Federal Reserve Bails Out Europeans Banks, While Americans Struggle?
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The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie 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. For example, the 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. Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs. In another disturbing finding, the GAO said that on Sept. 19, 2008, 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. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest. To Sanders, the conclusion is simple. "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," he said. The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans. The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG. A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. "The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."
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Answer:
the fed serves corporate power not the interests of the people
John Koptyra at Yahoo! Answers Visit the source
Other answers
My Brothers Do you know zeitgeist movement? May be Zeitgeist movement is a solution for you and me do your own research. Today almost all world media in hands of New World Order puppeteers like Murdoch. They manipulate and brainwash people, many of us don’t understand or realize that we all victims of evil plans of NWO. Democrats and Republicans have both failed us. No one is looking out for OUR interests. Next, the Federal Reserve is a Private Bank that issues our currency and controls our Nations Credit. This is against Constitutional Law. It is the Treasury Department's job to do this. Recently the Federal Reserve printed Trillions of Dollars causing severe inflation. Then the Government used this money to give it to already Rich corporations as our tax dollars. This rigged markets and caused economic collapse around the entire world. These Corporations in turn used that money to give themselves bonuses.1. It consists of Homeless people, hippies, mothers, fathers, sons, daughters, high school students. College students, adults, children, teenagers, democrats, republicans, libertarians, moderates, jobless people, people with jobs... every type of person there is.2. It is In every Major city around the entire world.3. All the protests in America and some other parts of the world are peaceful. But not every part of the world is protesting peacefully. Some countries have over thrown their dictators.4. it’s time to mobilize and aggressively move on common sense political reforms.We’ve had enough of… The Two-Party Oligarchy,Big Government,Big Corporate Power,The Concentration of Power It’s time to… ,Decentralize,Create New Political Parties,Restore the Rule of Law.The economic top one-tenth of one percent of the global population has launched an economic war on us. They are hoarding $39 Trillion in investible wealth, not counting the vast sums they have hidden in offshore accounts. In the United States, we now have the highest and most severe inequality of wealth in our nation’s history. While there is a record number of American citizens currently living paycheck to paycheck, in debt, unemployed, underemployed, without healthcare, on food stamps and in poverty, as our society is breaking down, global bankers have taken our tax dollars and given themselves all-time record-breaking bonuses. The same people who destroyed our economy have been rewarded with trillions of dollars in national wealth. It is now evident that both political parties and all three branches of government, along with the mainstream corporate media, have been bought off by global economic elite. As a broad-based network representing people across the political spectrum, we are working together to reach common ground and fight for pivotal political reforms. As long as the economy and government are rigged in favor of the top economic 0.1%, we will all lose.Here’s a general outline of our common ground platform:Enforce RICO Laws,Break Up the Big Banks,End the Fed,Break Up the Mainstream Media,Shut the Revolving Door,End Closed Door Lobbying,Increase Government Transparency,End Corporate Personhood, Amend Campaign Finance,Verify All Votes,Investigate War Profiteers,Investigate War Crimes,End the Wars,Reopen the 9/11 Investigation,Restore Civil Liberties,Uphold the Constitution,Clean Air, Water & Food,Reduce Healthcare Costs, Profiteering,Make Healthcare a Human Right,Improve Education For All, Reduce Costs,Reform Prison System,Reform Drug Laws,Immigration Reform,Rebuild Infrastructure,Protect Internet Freedom,Empower States’ Rights,End Corporate Welfare,Raise Taxes on Richest 0.1%,Reduce Taxes for 99%.These are the core common ground issues that we must urgently rally around and support. Unless we organize and take decisive action, we will all suffer the consequences of our collective inaction. Any politician who does not urgently move on these issues must be voted out of office and replaced by people who will aggressively fight on this fronts.
Joex
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