Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

[rockclimber]

Quote:http://www.silverbearcafe.com/private/10...audit.html

The first ever GAO(Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill(HR1207), so that a complete audit would not be carried out. Ben Bernanke(pictured to the right), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning.

What was revealed in the audit was startling:

$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious - the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.

To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is "only" $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is "only" $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world.

In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.

"This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else." - Bernie Sanders (I-VT)

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and supercorporations like Halloween candy. If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses will eventually plunder the world economy.

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve(July 21st, 2011): http://www.scribd.com/doc/60553686/GAO-F...estigation

Source: http://www.gao.gov/products/GAO-11-696
FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf
Senator Sander’s Article: http://sanders.senate.gov/newsroom/news/...060dcbb3c3

http://www.unelected.org

[thokling]

Ahhh, thank goodness people have encouraged the creation more bullshit for us to worry about.

It appears that, even though the Bank of Canada had a swap line opened to it by the New York Federal Reserve Bank in September 2008, and (after some closing and reopening) it remains open, it hasn't been used. I'm no economic whiz, but does that mean we've got enough money?

I'm slowly becoming a proponent of the notion that if a system is too complicated for your average layman to understand that it may not necessarily be a necessary function of a society.

[FastTadpole]

Quote:FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf

It will take some time to dissect a 266 page document, but I plan to. Thanks GAO and rockclimber.

Quote:The Bank of Canada had a swap line opened to it by the New York Federal Reserve Bank in September 2008

Source me please

[thokling]

(11-12-2011 10:42 AM)FastTadpole Wrote:  

Quote:The Bank of Canada had a swap line opened to it by the New York Federal Reserve Bank in September 2008

Source me please

I'd like to say that I pulled that out of the same orifice in which I've been keeping my lucky horseshoe, but sadly the information was what I gathered from the PDF:

Pg16: Figure 1: Timeline of Federal Reserve Emergency Actions, December 2007–June 2010: [2008/]9/18: FOMC authorized swap lines with Japan, United Kingdom, and Canada

Pg202, Table 23: Announcement Dates for FRBNY’s Dollar Swap Lines with Foreign Central Banks (September 18, 2008 - Bank of Japan, Bank of England, and Bank of Canada)

In addition, the swap lines have been extended until next year:

Pg20: In May 2010, to address the re-emergence of strains in dollar funding markets, FRBNY reopened swap lines with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank through January 2011. On December 21, 2010, the FOMC announced an extension of these lines through August 1, 2011. On June 29, 2011, the Federal Reserve Board announced an extension of these swap lines through August 1, 2012.

Oh, and unsure if my comment about the MMIFF not being used is at all related to the swap line. So commence Operation: Salt Grain until otherwise noted. ;>

[FastTadpole]

I've dug into this a bit but page 131 still is the one that really sticks out for me. When you compare US bank reserves to the total funds transferred you see a huge difference in the balance

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)

======================
$9 Trillion+

Reserves = $1.8 Trillion

Where is the rest? Follow the money...if you can.