Vermont Senator reports GAO Fed Audit findings

[Stschil]

Sen Sanders has put up some of the Fed Audit findings on his web site
16 (yes Sixteen) Trillion in unregulated bailouts to US AND Foriegn 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."

GAO also uncovered serious conflicts of interest

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.

The Federal Reserve Bank needs to be shut down! No more money printing, no more greased palms and favors for rich friends, etc.
I sure would like to see these guys doing the perp walk.

 

[balorg]

Ron Paul tried to do something similar in the House version of the Frank-Dodd Act but it was stripped out before it went to the Senate. I am not surprised at all with any of these findings, but sadly it will fall on deaf ears.

 

[orange]

Thanks for the post, it was an interesting read.

here's another fun quote.

... 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.

We're not going to do anything about this conflict of interest because it might cause the appearance of a conflict of interest. Well done, bonuses all around.

 

[dross]

Thanks for the post, it was an interesting read.

here's another fun quote.
We're not going to do anything about this conflict of interest because it might cause the appearance of a conflict of interest. Well done, bonuses all around.

You really can't understand this?

Stock plummets. Bailout happens. Stock rises. Dudley sells his stock at new higher price. Everyone begins screaming about conflict of interest.

There was no way that could have been dealt with that would have made anyone happy.

 

[Stschil]

You really can't understand this?

Stock plummets. Bailout happens. Stock rises. Dudley sells his stock at new higher price. Everyone begins screaming about conflict of interest.

There was no way that could have been dealt with that would have made anyone happy.

Sounds like he had a vested interest in making sure the FAILED companies he invested in got back above water so HE wouldnt lose his investment capitol.
How about letting him keep his stock with the provision they be sold at the price he bought in (which is still under the table IMO) or Just saying "you gambled and lost, sell your interests before making any decisions on which companies recieve Federal aid." After all, the average investor never had that choice. They just lost.