Financial Institutions spending 5 billion dollars repealing Financial Regulations

[hvactec]

[ame=http://www.youtube.com/watch?v=rthHFpPEQYk]MSNBC: Wall Street Protests - YouTube[/ame]

 

[waltky]

Granny says she always knowed the bailout was just a big bank scam...

Report: Banks earned $13B from secret Fed loans amid crisis
Nov 28, 2011 - Providing what it calls "a fresh narrative" of the financial crisis, Bloomberg Markets Magazine reports that banks earned $13 billion in secret cut-rate loans from the Federal Reserve and that one day in early December 2008 they needed $1.2 trillion to stay afloat.

As of March 2009, toting up loan guarantees and lending limits, the Fed had committed $7.77 trillion to rescuing the financial system. That was "more than half the value of everything produced in the U.S. that year," Bloomberg writes. The report is based on 29,000 pages of Fed documents obtained under the Freedom of Information Act and central bank records of more than 21,000 transactions that had been not been disclosed. Bloomberg sued the Fed and the Clearing House Association -- a group of the biggest U.S. banks -- and won in court, with the Supreme Court declining to hear the banks' appeal in March.

Bloomberg writes:

While Fed officials say that almost all of the loans were repaid and there have been no losses, details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger....

The Fed, headed by Chairman Ben S. Bernanke, argued that revealing borrower details would create a stigma -- investors and counterparties would shun firms that used the central bank as lender of last resort -- and that needy institutions would be reluctant to borrow in the next crisis. ...

Records shows that during the past five years, total assets at the largest six banks increased by almost 40% and executive compensation rose by 20% percent -- more than $146 billion in compensation last year alone. Responding today to the report, the ranking Democrat on the House Oversight and Government Reform Committee, Rep. Elijah Cummings of Maryland, asked panel Chairman Darrell Issa (R-Calif.) to hold a hearing with Federal Reserve Chairman Ben Bernanke, The Hill reports. "Many Americans are struggling to understand why banks deserve such preferential treatment while millions of homeowners are being denied assistance and are at increasing risk of foreclosure," Cummings wrote in his letter.

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[Avatar4321]

Then it's clearly cheaper than compliance. Which means the government is draining a heck of alot of money out of the economy for a worthless bureaucracy.