The Fed Audit 16 trillion given to foreign banks in bailout

[lovuian]

that is against the law

the violated the law in taking our money and depositing it in foreign banks

without our permission

Congresses

we want our money back NOW

where did this money go ...in a Federal reserve account
or did the Reserve just issue big checks with their name

and now we have to pay for it

that is not in the Constitution

CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed.

Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "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 said.

The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.

http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

this is criminal corrupt and so very very wrong

[EFerrari]

1. US and foreign banks. n/t

[lovuian]

2. Do you know how much went to the US bank and how much

went to the Foreign banks

Is their anybody watching where this money is going and to WHOM this money is paid too

[EFerrari]

3. No, nobody is. In "Capitalism: A Love Story", Moore reminds us

that this money was given out with no strings.

[lovuian]

5. try looking at the GAO report on violations of conflict of interest

http://sanders.senate.gov/imo/media/doc/GAO%20Fed%20Investigation.pdf

It is quite damning

[lovuian]

4. All Federal Reserve employees are subject to Conflict of Interest

laws

Many Federal Reserve employees violated Conflict of Interest

[Pooka Fey]

6. K&R

[lovuian]

7. The GAO reported it and now where is the Justice Department

they violated the law

ladies and gentlemen of the Justice Department

I don't think its legal for someone to issue a waiver of conflict of interest when that person issuing the waiver is in conflict of interest

lawyers out there any comments

[lovuian]

8. William Dudley, who is now the New York Fed president,

was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds

Why is Dudley sitting as NY Fed president and continues to own AIG and GE stock

heaven help your company if it isn't owned by Dudley
you may not get bailed out

[indurancevile]

10. because....

Prior to joining the Bank in 2007, Mr. Dudley was a partner and managing director at Goldman, Sachs & Company and was the firm’s chief U.S. economist for a decade. Prior to joining Goldman Sachs in 1986, he was a vice president at the former Morgan Guaranty Trust Company. Mr. Dudley was an economist at the Federal Reserve Board from 1981 to 1983.

[lovuian]

9. The TARP spin move goes in and then used to payback

http://finance.yahoo.com/blogs/daniel-gross/banks-pay-back-tarp-funds-borrowing-treasury-205658852.html
Generally, banks that repaid CPP funds did so with cash raised from earnings, or by raising new outside capital. In finance and banking you always have to read the fine print. And if you go back to the report, you'll notice that the fine print accompanying the entries for each of the above exits makes reference either to Footnote 49 or Footnote 50. Footnote 49 reads: "Repayment pursuant to Title VII, Section 7001(g) of the American Recovery and Reinvestment Act of 2009 using proceeds received in connection with the institution's participation in the Small Business Lending Fund." Footnote 50 reads: "Repayment pursuant to Title VII, Section 7001(g) of the American Recovery and Reinvestment Act of 2009 — part of the repayment amount obtained from proceeds received in connection with the institution's participation in the Small Business Lending Fund."

All of which is to say that these banks repaid cash owed to a program run by the Treasury Department by. . . borrowing from another program run by the Treasury Department.

[girl gone mad]

11. Yes, and they also repaid through..

Geithner's "tax forgiveness" schemes, which allowed the banks to put taxes they owed toward paying back TARP.

[Marblehead]

12. out right theft

at an unimaginable level. They will get away with it because there is no one left to stop them and... they will do it again and again till there is nothing left.

[RegieRocker]

13. Where are the FED cheerleaders now?

[econoclast]

14. Since 16.1 trillion dollars in loans is clearly IMPOSSIBLE...

I was curious to see just how the real data was tortured into admitting to 16.1 trillion dollars

Found it in footnote ... To wit

If an institution borrowed 10 billion overnight, but each day, for thirty days, rolled over that 10 billion dollar loan it shows up in the "aggregate borrowing"  as 300 billion dollars.    If that same institution borrowed the same 10 billion dollars for the same 30 days but did the initial loan as a 30 day term loan instead, that loan shows up as "aggregate borrowing" of only 10 billion dollars.   

Cute!

This 16.1 trillion dollar figure is one of those "gee whizzz" numbers that has little bearing on what happened in reality, but is designed to elicit a particular response from the reader.

Like saying I have a 150,000 dollar mortgage.   I refinanced it  twice to get lower rates

According to this logic I  borrowed 450,000 dollars.

The amount of actual bailouts was bad enough. They had to concoct this BS figure. Why can't ANYONE just tell us the simple, unvarnished facts? Even the freaking AUDIT has to be spun? Sad. And irritating.

[Gin]

15. I knew foreign banks got most of it......this all makes me sick

[lovuian]

16. "The Federal Reserve must be reformed to serve the needs of working families

"The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."

the conflicts of interest is Blatant!!!!

criminal

and the Justice Department needs to step up as well as the SEC

if they do not
then they also are part of this stealing of American wealth

[lovuian]

18. It seems they want Social security into the stockmarket

that seems to be the plan for Wall street

break the government program and watch the retirement funds of people send Wall street into a Boon

with the idea of stealing it eventually

[Ilsa]

17. The thieves belong in prison. nt

[lovuian]

19. yep

I agree