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Forum Post: Fed members gave their own banks $4 trillion during bailout

Posted 1 year ago on Dec. 28, 2012, 12:44 p.m. EST by john32 (-272) from Pittsburgh, PA
This content is user submitted and not an official statement

http://rt.com/usa/news/fed-federal-reserve-report-938/

"A report just released by the US Government Accountability Office explains how the Federal Reserve divvied up more than $4 trillion in low-interest loans after the fiscal crisis of 2008, and the news shouldn’t be all that surprising.

When the Federal Reserve looked towards bailing out some of the biggest banks in the country, more than one dozen of the financial institutions that benefited from the Fed’s Hail Mary were members of the central bank’s own board, reports the GAO. At least 18 current and former directors of the Fed’s regional branches saw to it that their own banks were awarded loans with often next-to-no interest by the country’s central bank during the height of the financial crisis that crippled the American economy and spurred rampant unemployment and home foreclosures for those unable to receive assistance.

Although the crisis continues to have an effect on Americans that were devastated by the recession, the banks that survived the near meltdown were largely able to do so because some of their CEOs sat on the same Federal Reserve board the decided on how to dish out trillions of dollars.

"This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sen. Bernie Sanders (I-Vermont) says in a statement about the report. “At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks,” adds Mr. Sanders. “These conflicts must end."

The GAO’s report is believed to mark the first time that the Fed’s records about their major bailout identifying the parties involved to the public.

In a press release published on the official US Senate website for Mr. Sanders, the lawmakers singles out JPMorgan Chase CEO Jamie Dimon over an alleged conflict of interest that could have contributed to the bailout his bank received through the Fed. Sanders also calls out General Electric CEO Jefferey Immelt for sitting on the same Federal Reserve board that approved massive funding to GE during a time of financial insecurity in the United States.

Sen. Sanders’ office has released a report summarizing the information published by the GAO in a four page document hosted on his website titled “Jamie Dimon Is Not Alone.”

“Jamie Dimon, the Chairman a CEO of JPMorgan Chase, has served on the Board of Directors at the Federal Reserve Bank of New York since 2007,” the report mentions. “During the financial crisis, the Fed provided JPMorgan Chase with $391 billion in total financial assistance. JPMorgan Chase was also used by the Fed as a clearinghouse for the Fed’s emergency lending programs.”

One year later, the report notes, the Fed handed Dimon’s bank $29 billion to help acquire Bear Stearns. In the case of General Electric’s Immelt, Sanders recalls that the Fed handed over $16 billion in low-interest financing to GE during the five-year span that the company’s CEO sat on the Federal Reserve’s board of directors.

Other Fed members that benefited by the bailout include officials at the top of Citigroup, Lehman Brothers, SunTrust Banks and PNC, among others.

Testifying before the US Senate Banking Committee this week, Dimon apologized for a recent JP Morgan Chase in-trading gaffe that cost the institute billions."

50 Comments

50 Comments


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[-] 2 points by inclusionman (7064) 1 year ago

Solution to FED/big bankster disaster, & the economy.

To free the central bank from Wall Street capture, Congress or the president could follow the lead of Shinzo Abe and threaten a hostile takeover of the Fed unless it directs its credit fire hose into the real economy. The unlimited, near-zero-interest credit line made available to banks needs to be made available to federal and local governments.

When a similar suggestion was made to Ben Bernanke in January 2011, however, he said he lacked the authority to comply. If that was what Congress wanted, he said, it would have to change the Federal Reserve Act.

And that is what may need to be done — rewrite the Federal Reserve Act to serve the interests of the economy and the people.

Webster Tarpley observes that the Fed advanced $27 trillion to financial institutions through the TAF (Term Asset Facility), the TALF (Term Asset-backed Securities Loan Facility), and similar facilities. He proposes an Infrastructure Facility extending credit on the same terms to state and local governments. It might offer to buy $3 trillion in 100-year, zero-coupon bonds, the minimum currently needed to rebuild the nation’s infrastructure. The collateral backing these bonds would be sounder than the commercial paper of zombie banks, since it would consist of the roads, bridges, and other tangible infrastructure built with the loans. If the bond issuers defaulted, the Fed would get the infrastructure.

Quantitative easing as practiced today is not designed to serve the real economy. It is designed to serve bankers who create money as debt and rent it out for a fee. The money power needs to be restored to the people and the government, but we need an executive and legislature willing to stand up to the banks. A popular movement could give them the backbone. In the meantime, states could set up their own banks, which could leverage the state’s massive capital and revenue base into credit for the local economy.

http://seekingalpha.com/article/1220301-how-the-fed-could-fix-the-economy-and-why-it-hasn-t?source=yahoo

[-] 1 points by Shayneh (-482) 1 year ago

Well, we need a list of those banks so they can be boycotted - get the word out and boycott.

[-] 1 points by Kavatz (464) from Edmonton, AB 1 year ago

Oooh, the | |F|E|D| | is almost 100 years old! I wonder how the eight banks that own it will celebrate? I don't suppose the birthday party will happen in North America, since most are European.

[-] 1 points by Nevada1 (4020) 1 year ago

Good post. Everyone needs to see this.

[-] 1 points by TrevorMnemonic (5827) 1 year ago

HR 2990

National Emergency Employment Defense Act

[-] 1 points by shooz (26678) 1 year ago

Round and round and round we go, it stops at WallStreet everyone knows.

Or do they?

[-] 2 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

It is becoming apparent to more and more each day as they recognize the fact that GREED the mental illness is all pervasive in the ills of the world - ALL OF THE ILLS in the world - Greed has a part in it all - and wallstreet is the very visible tip of the iceberg - the nexus the center of the disease.

[-] 1 points by shooz (26678) 1 year ago

If you accept GREED as the disease, then you must accept that neolibe(R)tarianism is the vector for that disease.

[-] 1 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

People who are bought be it a rino or a dino any one in a position of influence and power being rented/bought by anyone with tons of money or a scheme to make tons of money. Greed the illness does not recognize race color religion political parties - that being said there may well be places that are more friendly to the greedy and where they will collect/gather to support the needs of greed - like the Heritage foundation or ALEC or CATO or or or or or .........................

[-] 1 points by shooz (26678) 1 year ago

You've fallen back into the "duopoly" trap.

You can't pretend that corporations are not a political force in their own right.

A force that's irrespective of either of OUR "established parties".

They are Worldwide.

They ARE the neolibe(R)tarians.

[-] 1 points by TrevorMnemonic (5827) 1 year ago

the corporations and banks already have captured control of our government. They did a long time ago.

The 2 party system is being used to suppress real democracy and never questions capitalism. Both sides worked like devils to banish and demonize communist and socialist and other far left movements that wanted more labor rights and better wages and fought the corporate power. Just look at how they demonize and blame Ralph Nader even though 10 million registered democrats voted for Bush.

Our monetary policy gives banks trillions of dollars, they then commit more fraud in the name of profits, and then the government lets them off the hook because the financial markets are considered part of national security.

It dates back to World War 1. Wall street backed a side and faced losing a ton if we didn't then back one side of the war. That was when the biggest push for the dismantlement of a true liberal class mainly started.

[-] 0 points by shooz (26678) 1 year ago

They were neolibe(R)tarians, long before I hung the label on them.

Then along came Ayn Rand.

[-] 1 points by TrevorMnemonic (5827) 1 year ago

the label is actually neoliberalism.

Neoliberalism refers to economic liberalizations, free trade and open markets, privatization, deregulation, and increasing the role of the private sector in modern society. Today the term is mostly used as a general condemnation of policies that deregulate and increase the role of the private sector.

Not to be confused with being a liberal. It's terrible word choice, in my opinion. I like the term "neocon agenda" personally.

[-] 1 points by shooz (26678) 1 year ago

This is another conversation I had a while back with Odin.

I feel both of those terms are misnomers.

Neolibe(R)tarian fits both to a T.

[-] 1 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

Nope - I actually am expanding the issue of greed greedy bought/sold/rented to be all encompasing - your comment:

neolibe(R)tarianism is the vector for that disease

Is incomplete and limiting.

[-] 1 points by shooz (26678) 1 year ago

Really?

I found it liberating in it's accuracy and scalability...........:)

How many languages has Atlas Shrugged been translated to?

[-] 1 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

I have no idea - should be a book that is burned or used as an example of sick twisted thinking.

[-] 1 points by shooz (26678) 1 year ago

I'm beginning to think the Kochs have secured printing and distribution rights.

Do they give away the paper to print it for free?

It wouldn't surprise me find that they do.

[-] 1 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

I am thinking that they and others push ( twist arms ) for it's use.

[-] 1 points by shooz (26678) 1 year ago

I have recently found that others have begun to notice that what I am saying is true.

That libe(R)tarians have infected both of our "parties", to deleterious effect.

These are the neolibe(R)tarians I'm referring to and they are infecting political systems throughout the World.

I will post a link to the next article I find on that subject.

[-] 1 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

But it is not "just" neolibe(R)tarians - they are perhaps one of the friendly easily manipulated gathering points/tools being used. Look at my right hand - what is that that it is holding(?) - meanwhile the other hand goes largely UN-noticed/UN-remarked.

[-] 1 points by shooz (26678) 1 year ago

If not them? Who else?

I don't believe these things are a coincidence.

Do I really need to repost all the links to the Koch's, ALEC, CATO, Rockwell, etc, etc.

[-] 1 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

The Koch's are puppeteers not puppets ( unless there really is a shadowy secret organization that pulls everyone else s strings ) the people that gather at their various organizations(?) puppeteers(?) or just puppets in positions that when their strings are pulled cause a chain reaction going downstream/hill from them? Koch's speeches to groups - puppeteers giving direction to a specific group/audience of puppets?


[-] 1 points by shooz (15504) 2 hours ago

Let me know when you find out who is pulling the strings for the Kochs.

They do run their own "little" private WallSteet, so it wouldn't surprise me to find out their are others as powerful in the background. ↥twinkle ↧stinkle permalink

[-] 1 points by shooz (26678) 1 year ago

It's much simpler.

They are neolibe(R)tarians, using their money and pull, to put forth neolibe(R)tarian ideology all over the World. One State at a time.

[-] 1 points by DKAtoday (33128) from Coon Rapids, MN 1 year ago

The lightning rods that catch the attention - which if people take the time to look and research will bring them to the controlling puppet masters. They used to do a better job of hiding there intents/actions - but are now standing and jumping up and down waving their arms and screaming at the top of their lungs - LOOK AT ME - LOOK - AT - MEEEEE. Seems kinda screwy and fucked-up don'tcha think? Then if something that "SEEM'S even Semi-Sane is proposed as an alternative - EVERYONE BREATHES A LOUD SIGH OF RELIEF - AND CHEERS.

[-] 1 points by shooz (26678) 1 year ago

Let me know when you find out who is pulling the strings for the Kochs.

They do run their own "little" private WallSteet, so it wouldn't surprise me to find out their are others as powerful in the background.

[-] 0 points by OTP (-203) from Tampa, FL 1 year ago

Infecting? The people you speak of have been in control since day one. I think its only now that the interenet is allowing for rapid information spreading that people are starting to catch on.

JP Morgan bailed out the US gov in 1895.

[-] -1 points by shooz (26678) 1 year ago

That was confused.

Why question an obvious infection, unless you don't see it, or are part of it?

When was day one?

Morgan just gave back SOME of the money he stole from the American public in the first place.

To bad our current crop of libe(R)tarian thieves won't do something as faux noble.

They're far too busy buying Michigan at the moment.

[-] 1 points by TrevorMnemonic (5827) 1 year ago

reply to your comment which was aimed at me "You missed the party where they bought Florida, and you ignore what they are actually doing in Michigan, and trust me, they just got started. But then you always seem to write off what they are doing in the States as meaningless. I will never understand why."

I'm not ignoring anything. I've read about it. I've read some of your posts on it to.

You can keep acting like I'm somehow against you on this issue, but I'm not.

I didn't see you post anything on my state when it was trying to stop LGBT rights in the workplace, but it doesn't mean you're anti-gay. It would be idiotic to assume that just as it is idiotic for you to assume I'm against unions in Michigan.

So I'm not a party hack and I denounce the republicans as well as many democrats, get over it.

[-] 0 points by shooz (26678) 1 year ago

What State are you in?

[-] 1 points by TrevorMnemonic (5827) 1 year ago

They already bought Michigan now they're selling the people out.

[-] -1 points by shooz (26678) 1 year ago

You missed the party where they bought Florida, and you ignore what they are actually doing in Michigan, and trust me, they just got started.

But then you always seem to write off what they are doing in the States as meaningless.

I will never understand why.

[-] 0 points by TrevorMnemonic (5827) 1 year ago

it's not letting me reply to your comments below.

You asked "What state are you in?"

A red one. Nebraska.

[-] 0 points by shooz (26678) 1 year ago

And yet you NEVER talk about what's going on in Nebraska.

Shall I do your research for you?

I'll bet it's an ALEC paradise.

[-] 0 points by OTP (-203) from Tampa, FL 1 year ago

They are robbing the people of 85billion monthly without a peep from any of our "elected leaders" as well.

JP filed a 5 Billion dollar loss in the 2nd quarter, said it was a "bad bet"...haha...what balls. Then in the 3rd quarter filed a record profit statement. And the beat goes on.

The entire thing is out of control, and its not going to stay this rosy with "only" 10% UE much longer.

[-] 0 points by shooz (26678) 1 year ago

Not a single comment from you on what was robbed in Michigan.

States "rights"? ( libe(R)tarian BS)

For some odd reason, all you can think about is the money.

[-] 1 points by FawkesNews (1290) 1 year ago

" A desperate disease requires a dangerous remedy. " Some Guy

[-] 0 points by shooz (26678) 1 year ago

I think you have that backwards.

It's the dangerous disease that often begs a desperate cure.

If WallStreet is the disease?

What is the cure?

[-] 1 points by FawkesNews (1290) 1 year ago

Simple...Removing Bankers from the political machinations they control, leaves them open to even more scrutiny and eventually to collapse.

Exposing corruption in Wall Street and Government weakens corruption, thus allowing for the people to regain control of what was rightfully theirs to begin with.

[-] 1 points by shooz (26678) 1 year ago

The corruption of Wallstreet/bankers/corporations etc., HAS been laid bare all over the place.

It has become the great lie that no one want's to accept, as it is too heinous, too all encompassing to do so.

Indeed, it threatens our very existence, as well as that of the Planet.

[-] 1 points by FawkesNews (1290) 1 year ago

Wall Street Corruption IS Being laid bare all over the place. The whole world does not depend on Wall Street.

Not all banking is susceptible to such manipulation. If you look at which countries are not operating on such huge amounts of deficit spending, you will seethe fear Wall Street is experiencing reflected in the global policies they expend immeasurable resource attempting to implement.

I digress.

http://en.wikipedia.org/wiki/Usury

[-] 1 points by shooz (26678) 1 year ago

I get that, but ask the average guy on the street what they know about Iceland, and you will get a blank expression.

You'll be lucky if they have any idea about where it is in the world.

[-] 2 points by FawkesNews (1290) 1 year ago

Unfortunately, you are correct.

Please keep in mind that while Iceland was the first to go under they were also the first to embark upon such an innovative solution. So while the average American, with a heavily cut educational system, may not know where Iceland is or what they have done, will certainly understand how that same measure can be applied to their own life.

Educating through discourse is the only way to spread ideas that work right now. Soon there will be more 'Icelands' and then the average will understand the profane.

[-] 2 points by shooz (26678) 1 year ago

I hope you're correct. I've been very proud of what Iceland has accomplished.....................:)

In the face of English tyranny, I might add.

[-] 2 points by FawkesNews (1290) 1 year ago

I hope I am correct also.

Iceland is small and easily forms cohesiveness. Perhaps larger behemoths will require more time to achieve the same accomplishments.

The changing face of tyranny.....

[-] -1 points by OTP (-203) from Tampa, FL 1 year ago

Economies are about money shooz. Follow the money.

[-] 1 points by shooz (26678) 1 year ago

It's on WallStreet and in the pockets of the neolibe(R)tarians all over the World.

I've been trying to tell you.

You keep sayin'.....,look! over there!.........Obama!

Fiscal cliff!!!!!!! End the FED!!!

Till you sound just like Alex Jones.

[-] -1 points by OTP (-203) from Tampa, FL 1 year ago

I dont think its a fiscal cliff at all. Taxes go back to Clinton levels, Wall St has a hiccup, and live goes on.

The Fed is Wall St. and Wall St is the Fed. Go look at where the Fed board members all worked. IMF, ECB, etc all the same players.

The 85Billion a month is the 800 lb gorilla. Its going to treat you like a "Messin with Sasquatch" jerky commercial pretty soon haha.

[-] 1 points by shooz (26678) 1 year ago

Alex has been saying that for 10,12 years now.

Say it often enough and the law of averages is on your side.

I just find it disgusting that you revel in the thought of a collapse.

[-] -1 points by OTP (-203) from Tampa, FL 1 year ago

How do you confuse simply acknowledging the most likely outcome, and ideally using it as motivation, with "that you revel in the thought of a collapse."?

Are you really serious? Or just crazy?