First Federal Reserve Audit Reveals Trillions in Secret Bailouts

First Federal Reserve Audit Reveals Trillions in Secret Bailouts | Common Dreams (http://www.commondreams.org/headline/2011/08/28-3#.Tlr6UKePmLI)



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.


/discuss



The part I find amusing is how this isn't the big story in the news while it should be the MAIN story. Crooks getting away with robbery and we just close our eyes and cover our ears.

Edit: Let me clarify something. I don't mean robbery as in they stole the money like some bank robber. I realize they are loans, but they were US government agency that doled out 16 trillion in loans and yet the public is unaware. Then we have have the bank failings (even after these secret loans) and yet more bailouts from the American taxpayers.

Let's think about this. People in the government handing out loans to corporations (bank institutions), who used to be in some of the very firms they were giving out loans to, and who probably had a financial stake in those very organizations.

Using government funds to benefit (or profit) from is the same as robbery. You can call it a "conflict of interest" all you want, but that's a rich person's way of saying robbery.

They should do a audit on each individual in the Federal Reserve and their stocks and compare it to the organizations they were giving the funds (loans) to.

These are emergency loans that have to be paid back right? What exactly is being stolen and do the cost outweigh the benefits?

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.

Crooks getting away with robbery and we just close our eyes and cover our ears.

Last I checked, a loan required repayment. Robbery does not.
What were the terms of the loan?
What's the interest rate?
Was their fraud in deciding which companies received the loans?

Yes, there were some conflict of interest issues, but "robbery"? Try again. According to the article, almost all the loans have been repaid and the rest are expected to be repaid. It's more an issue of the Fed's haphazard manner in handling the matter and the lack of oversight in determining who gets chosen. All matters that can be corrected (and likely will be).

A few facts beyond "Loans were made" would be useful to back up the highway robbery charges.

Saden and Joe, I clarified my subject and expounded on what I mean by "robbery".

Edit: Let me clarify something. I don't mean robbery as in they stole the money like some bank robber. I realize they are loans, but they were US government agency that doled out 16 trillion in loans and yet the public is unaware. Then we have have the bank failings (even after these secret loans) and yet more bailouts from the American taxpayers.

Let's think about this. People in the government handing out loans to corporations (bank institutions), who used to be in some of the very firms they were giving out loans to, and who probably had a financial stake in those very organizations.

Using government funds to benefit (or profit) from is the same as robbery. You can call it a "conflict of interest" all you want, but that's a rich person's way of saying robbery.

They should do a audit on each individual in the Federal Reserve and their stocks and compare it to the organizations they were giving the funds (loans) to.

By definition, benefitting from "conflicts of interests" involving government money is not robbery. Rather, it is simple corruption. Get your allegations of criminal behaviour right please.

While I am certain I don't share your conspirational conviction that the entire process was corrupt and done for the intentional profit of a few, I do agree that it stinks, that some corruption took place (some of which was intentional - done purely for personal profit - and some not - individuals making loans intended to benefit the economy as a whole that happened to benefit them as well).

Yes. An audit should be done of who got what, what the processes used to decide were, who took part in the decisions and what interests did they have (past & present) in the companies who received monies. If it appears from this that corruption occurred, criminal charges should be brought if possible. If not possible, laws should be changed to make such conflicts of interests illegal.

By definition, benefitting from "conflicts of interests" involving government money is not robbery. Rather, it is simple corruption. Get your allegations of criminal behaviour right please.

You really going to argue over wordplay?(semantics)


Why is it common people get arrested for stuff like this, but these guys are allowed to roam free and unchecked.


I don't care if you believe the "conspiratorial conviction that the entire process was corrupt", but you haven't been paying attention to your government. It's ALL corrupt, especially the Federal Reserve.

The Federal Reserve is to the United States as Money Launderer is to a Drug Dealer. As long as my bank account is filled with the money I've put in it and I retire with my accumulated wealth I don't give a fck what happens between a drug dealer and his money washer.

You really going to argue over wordplay?(semantics).

Okay, I should have put a smiley/winkey face here b/c I was just ribbing you. Intentional corrupt behavior, as with robbery, is just one of many forms of theft.

Why is it common people get arrested for stuff like this, but these guys are allowed to roam free and unchecked.

I don't care if you believe the "conspiratorial conviction that the entire process was corrupt", but you haven't been paying attention to your government. It's ALL corrupt, especially the Federal Reserve.

I disagree with the concept that all government is corrupt. I work in the govt. It is often stupid and short sighted and a small amount of corrupt people work for it. But it is inanity to suggest that all of govt. is corrupt. You want corrupt? Go to Greece, Russia, China.

From your past posts, I have no doubt you believe, at some level, US corporations and their boards, CEO's and etc. are sitting in the equivalent of some back room looking to buy judges, congressman and etc. while bilking us honest folk out of our last few pennies. I won't try to shake you awake from your delusion. Feel free to live bitter about our govt.

As to the Federal Reserve, to me, it exhibits the natural problems and conflicts that exist in quasi-governmental structures. Ultimately (in the next 50 years) I expect it will become a wholly governmental agencey with the requisite fairness/inefficiency problems that exist in govt. as a whole. Right now, I simply don't have a dossier on every FRB member to determine if they are a bunch of corporate lackeys who are corrupt and selfish as opposed to individuals heavily and diversely invested in various corporate holdings.

But you go on believing that the you're smarter than the rest of us and that only you can see the truth. I am sure that is comforting to you.

Okay, I should have put a smiley/winkey face here b/c I was just ribbing you. Intentional corrupt behavior, as with robbery, is just one of many forms of theft.



I disagree with the concept that all government is corrupt. I work in the govt. It is often stupid and short sighted and a small amount of corrupt people work for it. But it is inanity to suggest that all of govt. is corrupt. You want corrupt? Go to Greece, Russia, China.

From your past posts, I have no doubt you believe, at some level, US corporations and their boards, CEO's and etc. are sitting in the equivalent of some back room looking to buy judges, congressman and etc. while bilking us honest folk out of our last few pennies. I won't try to shake you awake from your delusion. Feel free to live bitter about our govt.

As to the Federal Reserve, to me, it exhibits the natural problems and conflicts that exist in quasi-governmental structures. Ultimately (in the next 50 years) I expect it will become a wholly governmental agencey with the requisite fairness/inefficiency problems that exist in govt. as a whole. Right now, I simply don't have a dossier on every FRB member to determine if they are a bunch of corporate lackeys who are corrupt and selfish as opposed to individuals heavily and diversely invested in various corporate holdings.

But you go on believing that the you're smarter than the rest of us and that only you can see the truth. I am sure that is comforting to you.

Obviously Joe, You Can't Handle the TRUTH (insert video here).

Govt and big corporations clearly skew the laws to suit them, and have a level of corruption inherent in them. Does that mean every person working for the gov't or a big corporation is evil, or corrupt, clearly not.

What's going to drive this country into the ground is going to be pure greed and people unwilling to work. The middle class gets F^%$ed by both groups. You have the rich which in most cases only care about themself and then the poor which sit around and do nothing (in most cases). Its the middle class that gets stuck with paying the bill and getting screwed by following the rules.