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realfuzzhead
Registered: 03/03/10
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First Federal reserve audit reveals 3
#14996580 - 08/29/11 01:19 PM (12 years, 7 months ago) |
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trillions in secret bailouts.
https://www.commondreams.org/headline/2011/08/28-3#.TlviKYk1NzR.facebook
The first-ever audit of the U.S. Federal Reserve has revealed 16 trillion dollars in secret bank bailouts and has raised more questions about the quasi-private agency’s opaque operations.
7000 metric tons of gold bars sit in the gold vault inside the Federal Reserve Bank of New York "This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else," U.S. Senator Bernie Sanders, an Independent from Vermont, said in a statement.
The majority of loans were issues by the Federal Reserve Bank of New York (FRBNY).
"From late 2007 through mid-2010, Reserve Banks provided more than a trillion dollars… in emergency loans to the financial sector to address strains in credit markets and to avert failures of individual institutions believed to be a threat to the stability of the financial system," the audit report states.
"The scale and nature of this assistance amounted to an unprecedented expansion of the Federal Reserve System’s traditional role as lender-of-last-resort to depository institutions," according to the report.
The report notes that all the short-term, emergency loans were repaid, or are expected to be repaid.
The emergency loans included eight broad-based programs, and also provided assistance for certain individual financial institutions. The Fed provided loans to JP Morgan Chase bank to acquire Bear Stearns, a failed investment firm; provided loans to keep American International Group (AIG), a multinational insurance corporation, afloat; extended lending commitments to Bank of America and Citigroup; and purchased risky mortgage-backed securities to get them off private banks’ books.
Overall, the greatest borrowing was done by a small number of institutions. Over the three years, Citigroup borrowed a total of 2.5 trillion dollars, Morgan Stanley borrowed two trillion; Merrill Lynch, which was acquired by Bank of America, borrowed 1.9 trillion; and Bank of America borrowed 1.3 trillion.
Banks based in counties other than the U.S. also received money from the Fed, including Barclays of the United Kingdom, the Royal Bank of Scotland Group (UK), Deutsche Bank (Germany), UBS (Switzerland), Credit Suisse Group (Switzerland), Bank of Scotland (UK), BNP Paribas (France), Dexia (Belgium), Dresdner Bank (Germany), and Societe General (France).
"No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the President," Sanders wrote.
In recent days, ‘Bloomberg News’ obtained 29,346 pages of documentation from the Federal Reserve about some of these secret loans, after months of fighting in court for access to the records under the Freedom of Information Act.
Some of the financial institutions secretly receiving loans were meanwhile claiming in their public reports to have ample cash reserves, Bloomberg noted.
The Federal Reserve has neither explained how they legally justified several of the emergency loans, nor how they decided to provide assistance to certain firms but not others.
"The main problem is the lack of Congressional oversight, and the way the Fed seemed to pick winners who would be protected at any cost," Randall Wray, professor of economics at University of Missouri- Kansas City, told IPS.
"If such lending is not illegal, it should be. Our nation really did go through a liquidity crisis - a run on the short-term liabilities of financial institutions. There is only one way to stop a run: lend reserves without limit to all qualifying institutions. The Fed bumbled around before it finally sort of did that," Wray said.
"But then it turned to phase two, which was to try to resolve problems of insolvency by increasing Uncle Sam’s stake in the banksters’ fiasco. That never should have been done. You close down fraudsters, period. The Fed and FDIC (Federal Deposit Insurance Commission) should have gone into the biggest banks immediately, replaced all top management, and should have started to resolve them," Wray said.
Renewed questions about the Federal Reserve have inspired some young activists to organize grassroots protests across the U.S.
"Since its creation by the U.S. Government in 1913, the Federal Reserve has created so much new money out of thin air that it has destroyed 95 percent of the dollar’s value," Joseph Brown, a college student and one of the organizers of a recent protest of the Federal Reserve Bank of Atlanta, said.
"This hidden inflation tax benefits Wall Street and the government, but hurts the poor and those living on fixed incomes, such as senior citizens, the most," Brown said.
The U.S. Government Accountability Office (GAO) audit itself was the result of at least two years of grassroots lobbying. IPS reported in June 2009 a wide bi-partisan coalition of Members of Congress had co-sponsored legislation to audit the Federal Reserve.
The audit was ordered as an amendment by Sanders as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act - a major banking overhaul passed by President Barack Obama and the U.S. Congress in 2010.
"I think this (the first ever GAO audit) was a good start to uncovering what the Fed did so that we can begin to determine whether similar actions should ever be permitted again," Wray wrote, adding, "my preliminary answer is a resounding no."
The GAO also found existing Federal Reserve policies do not prevent significant conflicts of interest. For example, "the FRBNY’s existing restrictions on its employees’ financial interests did not specifically prohibit investments in certain non-bank institutions that received emergency assistance," the report stated.
The GAO report noted on Sep. 19, 2008, William Dudley, who is now the President of the FRBNY, was granted a waiver to let him keep investments in AIG and General Electric, while at the same time the Federal Reserve granted bailout funds to the same two companies.
"No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed’s board of directors or be employed by the Fed," Sanders said.
The GAO is currently working on a more detailed report regarding Federal Reserve conflicts of interest, which is due on Oct. 18, 2011.
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Dunno
Registered Sex Offender
Registered: 01/30/10
Posts: 4,374
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Re: First Federal reserve audit reveals [Re: realfuzzhead]
#14996615 - 08/29/11 01:24 PM (12 years, 7 months ago) |
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so what does all this mean?
-------------------- I'm like a wild animal in the corner Waiting for the break of dawn Trying to get through the night Just a man with the will to survive
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MokshaMedicine
Mr. Mojo Risin
Registered: 08/17/11
Posts: 212
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Re: First Federal reserve audit reveals [Re: Dunno]
#14996636 - 08/29/11 01:28 PM (12 years, 7 months ago) |
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It means that people with the right connections stole a fuck-load of $$$$$ from taxpayer dollars that were supposed to be used to strengthen the US economy and associated banking systems. Human greed on a LARGE scale.
-------------------- GIFSoup
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The Ecstatic
Chilldog Extraordinaire
Registered: 11/11/09
Posts: 33,819
Loc: 'Merica
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Re: First Federal reserve audit reveals [Re: Dunno]
#14996645 - 08/29/11 01:29 PM (12 years, 7 months ago) |
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Quote:
Dunno said: so what does all this mean?
whoopedy doo, what does it all mean Basil?
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realfuzzhead
Registered: 03/03/10
Posts: 10,783
Loc: above the smog layer
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Re: First Federal reserve audit reveals [Re: The Ecstatic]
#14996658 - 08/29/11 01:32 PM (12 years, 7 months ago) |
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means exactly what we knew all along was true and maybe people should fucking start listening to Ron Paul 'cause he has been saying this shit for years
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The Ecstatic
Chilldog Extraordinaire
Registered: 11/11/09
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Re: First Federal reserve audit reveals [Re: realfuzzhead]
#14996688 - 08/29/11 01:38 PM (12 years, 7 months ago) |
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yeah I got you.
and this wasn't even a complete audit, as I understand it.
Trillions in interest-free loans, while the average American shells out 120% of their houses value in interest payments alone.
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Dunno
Registered Sex Offender
Registered: 01/30/10
Posts: 4,374
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Re: First Federal reserve audit reveals [Re: The Ecstatic]
#14996699 - 08/29/11 01:39 PM (12 years, 7 months ago) |
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will anything be done or will this be another issue thats pushed to the side?
-------------------- I'm like a wild animal in the corner Waiting for the break of dawn Trying to get through the night Just a man with the will to survive
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VaeVictum
Sativa Cyborg
Registered: 06/01/11
Posts: 4,397
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Re: First Federal reserve audit reveals [Re: Dunno]
#14996706 - 08/29/11 01:40 PM (12 years, 7 months ago) |
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People can only bitch, this government will never NOT be corrupted. Ron Paul or not.
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realfuzzhead
Registered: 03/03/10
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Re: First Federal reserve audit reveals [Re: VaeVictum] 1
#14996743 - 08/29/11 01:45 PM (12 years, 7 months ago) |
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end the fed
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VaeVictum
Sativa Cyborg
Registered: 06/01/11
Posts: 4,397
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Re: First Federal reserve audit reveals [Re: realfuzzhead]
#14996745 - 08/29/11 01:46 PM (12 years, 7 months ago) |
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Dream on?
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trekie
Metal man
Registered: 05/11/09
Posts: 11,085
Loc: Larger cities
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Re: First Federal reserve audit reveals [Re: VaeVictum]
#14996755 - 08/29/11 01:47 PM (12 years, 7 months ago) |
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I like some of what ron paul has to say and he has been consintent but him wanting to do things like get rid of the dept of education, and his stance on workers rights blow chunks.
He will foul you worse then obama , I say support the army you'll need them to overthrow the government
-------------------- I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.
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akira_akuma
Φύσις κρύπτεσθαι ὕψιστος φιλεῖ
Registered: 08/28/09
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Re: First Federal reserve audit reveals [Re: trekie]
#14996984 - 08/29/11 02:21 PM (12 years, 7 months ago) |
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i'd say... if one were to not stand up to injustice, then there will be no hope left soon to end your governments corruption.
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realfuzzhead
Registered: 03/03/10
Posts: 10,783
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Re: First Federal reserve audit reveals [Re: trekie]
#14996997 - 08/29/11 02:23 PM (12 years, 7 months ago) |
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Quote:
trekie said: I like some of what ron paul has to say and he has been consintent but him wanting to do things like get rid of the dept of education, and his stance on workers rights blow chunks.
He will foul you worse then obama , I say support the army you'll need them to overthrow the government
how old is the dept. of education? Are both your parents teachers? How many teachers do you know?
We did fine before the dept. of education, another layer of bureaucracy does not solve teaching problems.
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akira_akuma
Φύσις κρύπτεσθαι ὕψιστος φιλεῖ
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Re: First Federal reserve audit reveals [Re: realfuzzhead]
#14997009 - 08/29/11 02:26 PM (12 years, 7 months ago) |
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that's true.
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pwnasaurus
Stranger
Registered: 07/16/08
Posts: 12,317
Loc: Canada
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Re: First Federal reserve audit reveals [Re: realfuzzhead]
#14997017 - 08/29/11 02:26 PM (12 years, 7 months ago) |
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this exact thread came up 2-3 weeks ago.
for meams to come shut everyone up as he did last time.
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medialies
Registered: 08/24/11
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Re: First Federal reserve audit reveals [Re: trekie]
#14997118 - 08/29/11 02:48 PM (12 years, 7 months ago) |
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Quote:
realfuzzhead said: end the fed
Quote:
trekie said:
He will foul you worse then obama
That is absolutely ridiculous.
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blazenn
rawdog the whale.
Registered: 05/13/09
Posts: 4,584
Loc:
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Re: First Federal reserve audit reveals [Re: Dunno]
#14997225 - 08/29/11 03:06 PM (12 years, 7 months ago) |
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Quote:
Dunno said: so what does all this mean?
well for one thing the fed sent trillions of dollars OVERSEAS to bailout FOREIGN BANKS!!!! while we were in the midst of a crysis.
also, people who were part of the fed were also investers in the banks they bailed out. AKA the fed gave money to banks that would benefit the people who are part of the fed. this is how they decided which banks to bailout....
so really this just validates the claims that the federal reserve only really bailed themselves out of... uh nothing. they just wanted a fatter paycheck.
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dshow
Nomad
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Re: First Federal reserve audit reveals [Re: blazenn]
#14997300 - 08/29/11 03:21 PM (12 years, 7 months ago) |
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danielx
whatup!
Registered: 10/13/08
Posts: 6,500
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Re: First Federal reserve audit reveals [Re: realfuzzhead]
#14997336 - 08/29/11 03:28 PM (12 years, 7 months ago) |
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I think the real question is how do I get a job with the federal reserve?
-------------------- Long live kratom
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blazenn
rawdog the whale.
Registered: 05/13/09
Posts: 4,584
Loc:
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Re: First Federal reserve audit reveals [Re: danielx]
#14997371 - 08/29/11 03:33 PM (12 years, 7 months ago) |
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well technically if you're a taxpayer you already work for them, perse. except you're the one filling out their paycheck. every taxpayer is.
you pay taxes, they use that tax money for so called "bailouts" but what you don't know is that those who run the fed are also a part of the companies the fed bails out. so the "bailout" money actually just goes back in to the paycheck of he who's "bailing out" "important" companies that are in dire "financial trouble".
america's great idn't it?
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