Federal Reserve gives secret loans to foreign banks.

**fishjoel** · 07-27-2011

Here we can see another example of how mega-international banks should not be the people who are in control of printing our money. Their priority is to themselves, not the welfare of the United States. I would hope that we could disband the Federal Reserve someday but I have a feeling we are already screwed and we can't do a damn thing about it.

The Fed Audit: "U.S. provided a whopping $16 trillion in secret loans to bail out US and foreign banks"

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.

There is especially no chance of this changing because we have too many people who are foolish enough to believe the Federal Reserve is a good thing.

Cancel the Debt Held by the Fed Bank

Some day, down the road, it will be more beneficial for the banks that compose the FED to go against the American economy. It's been nice knowing you America.

**USCitizen** · 07-27-2011

Most people are not even aware that the cleverly named institution is private and profit driven.

Here's an example of a waste of tax dollars.
An investigation whose results will soon disappear into the night.

**mabus** · 07-28-2011

Last time I checked most loans generate revenues. How exactly is generating revenues endangering your economy?

I'm starting to get an impression why the US economy got into the bin in the first place.

**PeterUK75** · 07-28-2011

It depends how you look at things I suppose. I'm a glass half full kind of guy when it comes to the government ownership of banks in that I think we will all eventually make a profit once things in the economy get back on track. People will always need banks and they should make money so hopefully now the government owns shares they should be ploughing some of that profit back to all of us. Then we will hopefully get even more money once we sell the shares.

That's what I'm hoping will happen but on the other side

The banks we now own all fail and drag us down the poop chute once again which would be a bit of a disappointment.

I know what I prefer to hope for.

**fishjoel** · 07-28-2011

Originally Posted by mabus

Last time I checked most loans generate revenues. How exactly is generating revenues endangering your economy?

I'm starting to get an impression why the US economy got into the bin in the first place.

If you had read the article you would have seen that the loans were given out at basically 0% interest. I don't see that as a good thing if it's coming from the institution that's supposed to be looking out for the US economy before anything else. Of course, they are just private mega banks so what's good for the does not have to coincide with what is good for the US and this is a lesson that people have to learn.

**fishjoel** · 07-28-2011

Originally Posted by PeterUK75

It depends how you look at things I suppose. I'm a glass half full kind of guy when it comes to the government ownership of banks in that I think we will all eventually make a profit once things in the economy get back on track. People will always need banks and they should make money so hopefully now the government owns shares they should be ploughing some of that profit back to all of us. Then we will hopefully get even more money once we sell the shares.

That's what I'm hoping will happen but on the other side

The banks we now own all fail and drag us down the poop chute once again which would be a bit of a disappointment.

I know what I prefer to hope for.

I think you are missing the point. The banks that comprise the Federal Reserve make the profits, not the US. The only thing the US gets is charge interest on every dollar that's printed. We are in debt from the gate. I have no problem with banks and banks making profits. I have a problem with some of those banks being the gatekeepers of our nation's economy.

**USCitizen** · 07-28-2011

mabus,
Giving out loans, for a meaty commission, to people, LOTS of people from all different ranges of professions, some of whom could never have repaid the loan, and others who careers were sabotaged way before the loans were made, is irresponsible.

And even today, the Fed will only allow a partial audit.