Federal Reserve Auit: What is reveals about our socialist system for the Banksters

[editec]

"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).

Since I already know that many of you won't accept data from a site like thisL First Federal Reserve Audit Reveals Trillions in Secret Bailouts | Common Dreams

Here's links galore detailing this same story. Take your pick and choose a source that YOU trust.

Must be nice to be in a position where if you're so over extended that you are techically insolvent, you'll get bailed bout time after time, no questions asked.

Meanwhile, these big banks shinannigans are driving honest BANKS out of business.

Meanwhile the American middle class is being asked to bite the bullet because the Bnaksters fouled things up.

Meanwhile we Americans continue to bicker amongt ourselves while the REAL SOCIAL PARASITES buy yachts and move the ill-got gains offshore.

Wake up folks.

 

[Dont Taz Me Bro]

The Federal Reserve is a criminal organization, in my opinion. That is why they fear people like Ron Paul who keeps calling for a thorough audit. They don't want the public to know what they're doing behind our backs.

 

[iamwhatiseem]

This is not new, and is well known by anyone who pays attention.
Few are paying attention.

Essentially, the government is providing profits for the largest banks at basically no cost.
The Fed loans $500 billion to Citigroup, Citi loans the money out to whoever and makes a hefty profit of $40 billion and hands $500 billion back to the government...repeat.

They do this with no oversight, they do not have to provide documentation or any permission whatsoever for doing it.
And you thought only congress appropriated money?

 

[dilloduck]

Thieves. Why do Americans tolerate this ?

 

[sparky]

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.


<<<<<<<<<<<<<<<<<<<<<<snip>>>>>>>>>>>>>>>>>>>>>>>>>>>>>




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.




<<<<<<<<<<<<<<<<<<<<<<snip>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

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.




<<<<<<<<<<<<<<<<<<<<<<snip>>>>>>>>>>>>>>>>>>>>>>>>>>>>>



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.



First Federal Reserve Audit Reveals Trillions in Secret Bailouts - IPS ipsnews.net


In the delete box today>

In 1887 Alexander Tyler, a Scottish history professor at the University of Edinborough, had this to say about the fall of the Athenian Republic some 2,000 years prior:

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship."

 

[sparky]

Henry M. Paulson Jr., the former Treasury secretary, told the Financial Crisis Inquiry Commission back in May 2010, “I was never able to explain to the American people in a way in which they understood it why these rescues were for them and for their benefit, not for Wall Street.”



<<<<<<<<<<<<<<<<<<<<<<<snip>>>>>>>>>>>>>>>>>>>>>>>>>>>>>


If these rescues were intended to benefit everyday Americans, as Mr. Paulson contended, they have failed. Main Street is in a world of hurt, facing high unemployment, rampant foreclosures and ravaged retirement accounts.

This important topic of bailout inequities came up in Congress earlier this month. Edward J. Kane, professor of finance at Boston College, addressed a Senate banking panel convened on Aug. 3 by Sherrod Brown, the Ohio Democrat. “Our representative democracy espouses the principle that all men and women are equal under the law,” Mr. Kane said. “During the housing bubble and the economic meltdown that the bursting bubble brought about, the interests of domestic and foreign financial institutions were much better represented than the interests of society as a whole.”

THIS inequity must be eliminated, Mr. Kane said, especially since taxpayers will be billed for future bailouts of large and troubled institutions. Such rescues are not really loans, but the equivalent of equity investments by taxpayers, he said.


http://www.nytimes.com/2011/08/28/business/economy/the-feds-rescue-missed-main-street.html?_r=2

 

[editec]

So it appears that there is at least ONE ISSUE upon which both leaning conservative folks and leaning not-conservative folks CAN AGREE?

Is that what I am reading here?

Do we all understand that WALL STREET BANKS get free money that they can lend to us at interest?

Do we all really get what that actually means?

Incidently 98% of all banks in the USA are NOT involved in this scam, folks.

It is a very select community of INSIDER BANKS who benefit from this kleptocratic system.

This is why a loaf of bread that used to cost a dime now costs $4.00, folks.

Not because the workers demand too much money but because the BANKSTERS get FREE money they get to loan to us AT INTEREST.

Now who is responsible for this system?

 

[sparky]

Now who is responsible for this system?

From bondage to spiritual faith;
From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;
From apathy to dependence;
From dependence back into bondage."


Perhaps you could imbelish, as i'm informed most past civilizations are a cyclical entity Editec.

We call ourselves capitalists, and allow the captians of industry exceptions to the rule

We call ourselves free, yet entertain a system of debt slavery that econonically stagnates the concept in disparity, and laud the austerity created as the fault of those who are subject to it

The Indentured Servant Has Become The Indebted Citizen

EXCLUSIVE: Analysis of Financial Terrorism in America: Over 1 Million Deaths Annually, 62 Million People With Zero Net Worth, As the Economic Elite Make Off With $46 Trillion | AmpedStatus
~S~

 

[expat_panama]

...We call ourselves capitalists, and allow the captians of industry exceptions to the rule We call ourselves free, yet entertain a system of debt slavery that econonically stagnates the concept in disparity, and laud the austerity created as the fault of those who are subject to it...

 

[editec]

The silence on this thread, from those self proclaiming lovers of freedom (when they say freedom, of course, they really mean insider capitalism) is deafening, isn't it?

Now Sparky knows me and knows that I approved of the FED and Treasury's decision to BREAK THE LAW and shore up the crashing BANKING SYSTEM.

He ALSO knows that I have serious problems with the DETAILS of the way that was done, too.

You see, we could have allowed the rules of capitalism to control the way we bailed out these faltering banks and financial insitutions.

For example, AIG ought to have gone into recievership.

Instead we ended up making WHOLE the very people whose actions CAUSED the problem to being with.

We weren't practicing capitalism when we did that.

What was happening was that the Insiders were taking care of their own and making the US taxpayer responsible for it.

I blame both BUSH II, and OBAMA and both US CONGRESSES for that.

I invite Republicans AND Democrats, Independents, too to look at what was done in DETAIL.

If you can come away with such a study of this event and NOT understand that this game is RIGGED by players in BOTH PARTIES, then please by all means explain to me how you arrive at THAT conclusion.

 

[expat_panama]

...the FED and Treasury's decision to BREAK THE LAW and shore up the crashing BANKING SYSTEM...

You don't like the FDIC? Anyone who thinks banks are bad has to give up money and try bartering.

 

[JWBooth]

The silence on this thread, from those self proclaiming lovers of freedom (when they say freedom, of course, they really mean insider capitalism) is deafening, isn't it?

Now Sparky knows me and knows that I approved of the FED and Treasury's decision to BREAK THE LAW and shore up the crashing BANKING SYSTEM.

He ALSO knows that I have serious problems with the DETAILS of the way that was done, too.

You see, we could have allowed the rules of capitalism to control the way we bailed out these faltering banks and financial insitutions.

For example, AIG ought to have gone into recievership.

Instead we ended up making WHOLE the very people whose actions CAUSED the problem to being with.

We weren't practicing capitalism when we did that.

What was happening was that the Insiders were taking care of their own and making the US taxpayer responsible for it.

I blame both BUSH II, and OBAMA and both US CONGRESSES for that.

I invite Republicans AND Democrats, Independents, too to look at what was done in DETAIL.

If you can come away with such a study of this event and NOT understand that this game is RIGGED by players in BOTH PARTIES, then please by all means explain to me how you arrive at THAT conclusion.

(emphasis mine)

There is only one party, organised into two factions, whose public face is designed to keep the sheeple confused into thinking that they are offered choices.

 

[sparky]

The silence on this thread, from those self proclaiming lovers of freedom (when they say freedom, of course, they really mean insider capitalism) is deafening, isn't it?

Now Sparky knows me and knows that I approved of the FED and Treasury's decision to BREAK THE LAW and shore up the crashing BANKING SYSTEM.

He ALSO knows that I have serious problems with the DETAILS of the way that was done, too.

You see, we could have allowed the rules of capitalism to control the way we bailed out these faltering banks and financial insitutions.

For example, AIG ought to have gone into recievership.

Instead we ended up making WHOLE the very people whose actions CAUSED the problem to being with.

We weren't practicing capitalism when we did that.

What was happening was that the Insiders were taking care of their own and making the US taxpayer responsible for it.

I blame both BUSH II, and OBAMA and both US CONGRESSES for that.

I invite Republicans AND Democrats, Independents, too to look at what was done in DETAIL.

If you can come away with such a study of this event and NOT understand that this game is RIGGED by players in BOTH PARTIES, then please by all means explain to me how you arrive at THAT conclusion.

(emphasis mine)

There is only one party, organised into two factions, whose public face is designed to keep the sheeple confused into thinking that they are offered choices.

Eggzzzactly on both posts.........~S~

 

[sparky]

...We call ourselves capitalists, and allow the captians of industry exceptions to the rule We call ourselves free, yet entertain a system of debt slavery that econonically stagnates the concept in disparity, and laud the austerity created as the fault of those who are subject to it...

 

[konkon]

Henry M. Paulson Jr., the former Treasury secretary, told the Financial Crisis Inquiry Commission back in May 2010, “I was never able to explain to the American people in a way in which they understood it why these rescues were for them and for their benefit, not for Wall Street.”

Yeah, don't get me started on Henry Paulson...

 

[sparky]

The silence on this thread, from those self proclaiming lovers of freedom (when they say freedom, of course, they really mean insider capitalism) is deafening, isn't it?

socialism for the rich doesn't register , but the social conditioning to ignore it is what's deafening......

Now Sparky knows me and knows that I approved of the FED and Treasury's decision to BREAK THE LAW and shore up the crashing BANKING SYSTEM.

He ALSO knows that I have serious problems with the DETAILS of the way that was done, too.

We were told we'd have sunk quickly in '08 , and so Congress went along with the bailouts.

The 'throw $$$ at it, and it'll go away' mentality

But we didn't follow up, which is the biggest b*tch for anyone who's been able to digest the entire debacle

Other countries (England for ex) considered the banking system's weapons of fiscal destruction, to an extent, but collectively too little too late

now the trifecta of fraud has gone global

now, we've been downgraded

debt fueled acrobatics can't preserve our insulated status as global reserve currency forever, and contortionist references of GDP economics based on it aren't going to cut it for long

so we have a choice

it's one of awareness

that so many of us instead choose to live and opine JP Morgan's famous addage is proof of how that's workin' out

~S~

 

[editec]

...the FED and Treasury's decision to BREAK THE LAW and shore up the crashing BANKING SYSTEM...

You don't like the FDIC? Anyone who thinks banks are bad has to give up money and try bartering.

They went far and away beyond FDIC protections, X.

Do some research and get back to me when you actually know something about this issue.

 

[dilloduck]

The Fed has offered America credit. We are now dependent on it. I think Americans fear the Fed. When some like Bernanke can belch and caused the stock market to take a nose dive, we need to be afraid.
( I like how they blamed a discussion regarding the debt ceiling for financial panic.)

 

[Intense]

"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).

Since I already know that many of you won't accept data from a site like thisL First Federal Reserve Audit Reveals Trillions in Secret Bailouts | Common Dreams

Here's links galore detailing this same story. Take your pick and choose a source that YOU trust.

Must be nice to be in a position where if you're so over extended that you are techically insolvent, you'll get bailed bout time after time, no questions asked.

Meanwhile, these big banks shinannigans are driving honest BANKS out of business.

Meanwhile the American middle class is being asked to bite the bullet because the Bnaksters fouled things up.

Meanwhile we Americans continue to bicker amongt ourselves while the REAL SOCIAL PARASITES buy yachts and move the ill-got gains offshore.

Wake up folks.

On track.

What is your take on B of A?

 

[PoliticalChic]

So it appears that there is at least ONE ISSUE upon which both leaning conservative folks and leaning not-conservative folks CAN AGREE?

Is that what I am reading here?

Do we all understand that WALL STREET BANKS get free money that they can lend to us at interest?

Do we all really get what that actually means?

Incidently 98% of all banks in the USA are NOT involved in this scam, folks.

It is a very select community of INSIDER BANKS who benefit from this kleptocratic system.

This is why a loaf of bread that used to cost a dime now costs $4.00, folks.

Not because the workers demand too much money but because the BANKSTERS get FREE money they get to loan to us AT INTEREST.

Now who is responsible for this system?

Actually, I'm surprised that you acquiesce to the conservative concepts involved, i.e., that a government that strays mightily form the free market system, and subscribes to crony capitalism...selecting winners and losers....is largely a detriment.

Good thread, Techy.