This is wrong.
This should be illegal.
The Fed just put the US taxpayer on the hook for $2 trillion. With no oversight. No transparency. And most likely, with no chance of getting the $2 trillion back. I sent a note to the Fed in December 2007 requesting the list of recipient banks, and was quickly denied. Here's their response:
Thank you for your recent correspondence in which you requested bid and award data for the Term Auction Facility (TAF) auction.
I regret but the Federal Reserve Board not publish individual bid and award data. Data on aggregate awards broken down by Federal Reserve District will be posted on the H.4.1 statistical release. You can use the following link to access that release: http://www.federalreserve.gov/releases/h41/.
I hope this information is helpful.
Sincerely,
JPD Board Staff
They will not give out the information. And our Congress has gone along with this lunacy. However, Bloomberg today filed under the Freedom of Information Act to get this information. We'll see where this goes. Too bad the cat's already out of the bag (again).
You know, they're going to be closing down Guantanamo soon. Maybe we could fill it back up with members from the Fed. And Congress too.
Fed Defies Transparency Aim in Refusal to Identify Bank Loans
The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.
``The collateral is not being adequately disclosed, and that's a big problem,'' said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. ``In a liquid market, this wouldn't matter, but we're not. The market is very nervous and very thin.''
Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.
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39 comments:
They only had something like $800 billion at the beginning of the year. So yes, we need to know where that $1.2 trillion came from and went. But as a 'private' corporation, isn't some or all of that information open only to themselves and the federal government?
I remember someone saying on one or these blogs that if the Fed is a private entity then the Fed can be sued. I don't know how this would work, or why someone hasn't sued the Fed before because they deserve it every time they lower and raise rates and steal everyone's money through inflation. The greatest robbers of our time.
And then there's the whole secretive and possibly illegal alteration of tax codes to favour bank mergers:
http://www.msnbc.msn.com/id/27635885/
This is just the start folks.
Another X-billion thrown (wasted) on AIG ... soon too also become insolvent.
Trillions of tax-payer money to be literally thrown away, when it would have served the economy far better to invest this money back into main street - where it really belongs - so people who have lost their jobs can get back onto their feet.
If Obama is worth his salt, he'll do what he can to expose the Bernanke/Paulson tax-payer free give away to wallstreet and the bankers.
We need to do what we can to put an end to our government employee's continual wasteful spending of our money, that we gave them *in good faith* to be spent wisely.
Business as usual in the USSA
the United Socialist States of America.
Adding to the robbery of the American taxpayer in the last dying days of the Bush Administration, we now know why BofA was in such a rush to buy Countrywide and all their toxic problems.
http://www.washingtonpost.com/wp-dyn/content/article/2008/11/09/AR2008110902155_pf.html
I swear. At times, reading crap like this, you almost want to give up and concede.
From today's Washington Post:
A Quiet Windfall For U.S. Banks -
With Attention on Bailout Debate, Treasury Made Change to Tax Policy
The financial world was fixated on Capitol Hill as Congress battled over the Bush administration's request for a $700 billion bailout of the banking industry. In the midst of this late-September drama, the Treasury Department issued a five-sentence notice that attracted almost no public attention.
But corporate tax lawyers quickly realized the enormous implications of the document: Administration officials had just given American banks a windfall of as much as $140 billion.
The sweeping change to two decades of tax policy escaped the notice of lawmakers for several days, as they remained consumed with the controversial bailout bill. When they found out, some legislators were furious. Some congressional staff members have privately concluded that the notice was illegal. But they have worried that saying so publicly could unravel several recent bank mergers made possible by the change and send the economy into an even deeper tailspin.
WHAT THE HELL?
Oh, what the hell.
I think this is the gorging, looting and asset stripping phase where people of influence stuff their pockets full of cash and run for the private jets.
Bloomberg says: Gold Rises On Dollar Weakness
Censure Bushco and Cheneyburton today.
Take away the pardon and jail all the traitors.
Come out come out wherever you are...
Keith, you are asking too much out of the Fed. It's like asking a burglar to take off his mask while you are handing him your wallet, your laptop, your cell phone and your wristwatch.
I bet the Fed's excuse is that it's their responsability to protect distressed banks from possible bank runs and potential collapse if their names are disclosed.
Again, the taxpayer has no say in the matter. The Fed's primary concern is clearly to protect banks--not taxpayers.
This whole financial meltdown is like a slow-mo train wreck. It will end very badly. Watch it accelerate after bush leaves office. Right now his admin is holding both feet and both hands against the door keeping the Depression Monster outside. Once they leave they won't give a shit.
If the liberals are smart they'll demonize the conservatives while the people are feeling intense pain and then we can remake this country in a totally new image as well as destroy conservatism for generations.
It's the kettle calling the pot black syndrome.
This boondoggle will easily turn into 10 Trillion by the time its all said and done.
there will be much to learn in the coming months. UBS (and other banks like it) and its clients are finally feeling the squeeze. Never thought I'd find myself cheering on the I.R.S. but go taxman, go!
First step:
All candidates for Congress and the Senate should memorize the US Constitution and Articles in its entirety. There should be a test and anyone scoring less than 75% should be disqualified.
Alternately, there should be a second revolution since the current incumbants, largely, have demonstrated a complete lack of regard for the fouinding documents.
There are too many Big Banks, and too many Bankers.
$4-6 tr of Housing value disappeared, and some $50 tr of various leveraged derivatives around that -- all paying fat fees to Fat, undeserving bankers.
NO to jail! Just get their paychecks and bonuses back.
We need an incompetence banker bonus tax, on all executives of all financial firms requiring special fed support. Like 90% on bonuses over $1mil for the last 5 years.
Jail is silly, there was no intent to deceive or cheat -- just incompetence. Going for jail means missing the money of most, and few if any go.
No bailout to banks. Let the Fed make loans directly, if the banks have no cash. Let the FDIC pay the depositers who want their cash out of banks before the banks go under. Let more banks die.
Actually, a more public program for emergency lending WAS TRIED, AND IT FAILED to help the credit crisis at all.
In fact, that's the NORMAL program. But it doesn't work.
Put yourself in a bank's shoes--you're about to close your doors if you don't have an emergency infusion of cash. So do you go to the "public lending window" of the Fed Reserve? HELL NO!
Why? Because once the public realizes your in that desperate shape--they will take off work, and RUN TO YOUR BANK TO TAKE OUT THEIR MONEY.
Thereby ENSURING the end of your bank.
Therefore--NO BANKS WERE USING THIS LENDING WINDOW, last fall between August and February, and the crisis was slowly getting worse.
So the Fed slowly starting creating confidential methods of lending.
You folks should have been reading The Economist magazine for the past 15 months, instead of just tuning into the rants of the conspiracy theorists, and the predictors of Zombie apocalypse.
(I'm not saying this is a good situation or that it can't be abused by the cronies; but you'll just have to trust your government (for once in your life) to hopefully eke out a solution. Unless of course you WANT all the bank failures, the soup lines, the 20% unemployment, the food shortages because farmers can't get seasonal loans against their fall harvest, etc, etc, etc. Hmmm?)
I just hope that Obama changes things and stops this bailout, stops the reckless "stimulus" packages that come out of our own pockets and stops the illegal wars of aggression on foreign nations and the reckless spending on foreign military adventures.
Oh, wait a minute. He supports all of the above. Oh well.... We're screwed.
Anon: "but you'll just have to trust your government."
We are in this mess because we did follow our government so blindly. They have betrayed our trust and f*cked us many times over. They will continue to do so-- Obama or not!
Wake up! It's your money after all. And since you are a fan of The Economist, could you please remind me in which 2005 issue they had that great cover story about the "Looming Housing Crash and Financial Collapse?" I need to go back to that article to see how they'd figured that out! LOL!
I swear. At times, reading crap like this, you almost want to give up and concede.
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i dunno, it seems ok to me if the acquiring bank assumed all of the acquiree's liabilities. Problem is, they aren't typically assuming all liabilities. they are only taking on the first X billion and the government is picking up the rest.
problem is though if the wells or bofa doesn't acquire these failed banks the government will. either way the tax payer is going to pay.
It is better to pay with a reduction in future tax revenue vs paying in full right now.
keith,
you need to face the music. We, the tax payer, are going to pay for all of this in the end. and doing so is going to throw us and the world into n economic depression.
I say "we" meaning tax payers from nearly every country. the same SHT is happening in europe too.
the great unwinding is here. it will be long. it will be painful. and obama's policies will make it last longer than it needs to. so would have mccains but from now on I will just mention obama's policies because he will be the next president.
Well, with your messiah Obama looking at Fed cronies for the next Treasury Secretary, it's only going to get worse.
Being a front for a "secret society" of course they will try to hide as much as possible from public view.
The Fed should never have been allowed to exist. It is just a front for European interests to control America via the financial system.
In 1913, with the establishment of the Fed, 1776 was undone and America was once again put under the yoke of European control.
Keith said:
I swear. At times, reading crap like this, you almost want to give up and concede.
HEY! What's this lyin' around sh*t?
What? Over? Did you say over?
Nothing is over until we decide it is!
Was it over when the Germans bombed Pearl Harbor?
Hell no!!!
And it ain't over now.
Cause when the goin' gets tough...............
.....the tough get goin'!
Who's with me?
Let's go!!!
Aaaaahhhhhhhhhh!!!
What the f*ck happened to the Delta I used to know. Where's the spirit? Where's the guts? Huh? This could be the greatest night of our lives but you're goin to let it be the worst.
"Ooh we're afraid to go with you Bluto. We might get in trouble."
Well just kiss my ass from now on! Not me! I'm not gonna take this!
Well Frank, that's all republicans have left. Hope that things will get really bad.
Such nice people.
What you brainstems don't realize is that things are already bad thanks to 30 years of pursuing conservative, free-market economic policies.
TOOLS,
WHY DOES CHINA'S IDEA OF A STIMULUS PACKAGE SOUND BETTER THAN OURS?!?!?!? HAVE YOU READ WHAT THEY PLAN TO DO WITH THE MONEY?!?!?!?
WE COULD HAVE SPENT THE TRILLIONS ON BETTER THINGS THAT WOULD LAST A LITTLE LONGER THAN HOOKER AND COKE MONEY FOR WALL STREET EXECS!!!!
HAS ANYBODY BEEN TO LAX?!?!?! IT LOOKS LIKE A FRIGGIN BUS STATION.
TROLLS IN WASHINGTON MAKE ME PUKE!!!!
TOOLS!!!!
DOLTS!!!!
DOPES!!!!
Lehman Brothers (Say, where does the name 'Lehman' come from?) transferred $400,000,000,000 to accounts in israel a day before they declared bancruptcy.
Now, where oh where do you suppose the jews at the fed reserve could have sent that $2,000,000,000,000?????
Well, with your messiah Obama looking at Fed cronies for the next Treasury Secretary, it's only going to get worse.
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and filling his staff with former clinton staffers. I wonder if that was the deal to get hillary's support that he make his administration look like Clinton part II.
Can't obama attract some new blood?
Now we know what he meant by "change". change back to the clinton years.
perhaps he will make lewensky head of interns.
I’ve noticed a lot of new Churches going up in my area,
Makes you wonder if the money is really going to banks.
The ‘Church’is loaded and tax exempt.
Why don’t we start by having the high and holy get real jobs first.
HONICA,
TOOL, I AM NOT A LAWYER, HOWEVER THAT SOUNDS A LOT LIKE FRAUD!!!!!! ANY LAWYERS OUT THERE FAMILIAR WITH BANKRUPTCY LAW AS IT PERTAINS TO CORPORATIONS???? IF THAT WAS/IS TRUE, WHO IS GOING TO TAKE THE CRIMINAL HIT ON THIS DEAL???? LEHMAN EXECS??
DOPES!!!!
Dopes 2,
Oh no, not bancruptcy fraud. That never happens here in America, NEVER! If someone does try and pull it off, our fine and upstanding jewdicial system makes quick work of them..... LMMFAO!!!
We are in this mess because we did follow our government so blindly. They have betrayed our trust and f*cked us many times over. They will continue to do so-- Obama or not!
Wake up! It's your money after all. And since you are a fan of The Economist, could you please remind me in which 2005 issue they had that great cover story about the "Looming Housing Crash and Financial Collapse?" I need to go back to that article to see how they'd figured that out! LOL!
Okay, here's your Economist cover story, "Danger time for America", Jan 2006 issue.
Selected quote:
"Mr Greenspan's departure could well mark a high point for America's economy, with a period of sluggish growth ahead. This is not so much because he is leaving, but because of what he is leaving behind: the biggest economic imbalances in American history." There's more, but I won't bother to log in to get it.
Or how about Nov 18 2005: "Prepare for slower growth, rising inflation and wobbly housing markets, says Pam Woodall"
Or how about Jul 20 2005:
"Over the last decade, as the baby-boomers have watched retirement lurching closer, an aura of mania has hovered over the American marketplace and Americans are ploughing their money into real estate, with expectations of recouping a modest 20% or so a year on their investment." The Economist calls this "the madness of the crowd."
Point made, I won't bother to look further back.
And once the housing market and overall economy started to slow, in 2007 there were MANY good articles on CDO's, CDS's, Alt-A's, counter-party risk, etc, etc, etc.
Let's put it this way--it was my main source of economic/financial info, and I was almost COMPLETELY out of the stock market by Sep 2007. Take a look at the current 1-year chart. How'd I do?
We aren't in this mess because we "followed the government blindly". MANY of us were SCREAMING about the Iraq war and its cost, too-low interest rates and the bubbles they create, and the spend-and-debt ways of the PARTY in power. SCREAMING about bridges to nowhere, Schiavo, Abramoff, Miers, Katrina, tax cuts for the rich, cancellation of Pell grants, Valerie Plame, Gonzales, torture, censorship of Iraq casualties, voter purges, butchering national parks for profit, etc, etc. MANY of us were buying gold, and other rising debt / falling dollar plays.
But because we were SMART people, including The Economist, we were called "elitists" and "traitors" and "liberal biased media" (even though the E is considered fiscally conservative) and the FOOLS in one party and their FOOL voters allowed it to continue for the benefit of the thieves, scam artists and republican corporate fascists. In other words, we mostly didn't HAVE a government. Just like in 1998 when terrorists were taking flight lessons IN THE U.S. (not bothering with the part about landing) and Enron was figuring out how to steal money from grandma's electric bills, but the REPUBLICANS in congress were instead worried FOR A YEAR about a STAIN ON A DRESS.
So keep trying to be a republidiot apologist if you want to, trying to divert attention away from the opinion of 81% of the nation and 90+% of the world, by saying the Dems are just as bad. Good luck with that. Keep trying to say "no one could have forseen this" for EVERTHING that's happened. MANY DID forsee all these things--including Katrina and the Iraq quagmire.
Any ideas why we can't be permitted to see the underlying collateral?
Because it doesn't exist.
and Enron was figuring out how to steal money from grandma's electric bills, but the REPUBLICANS in congress were instead worried FOR A YEAR about a STAIN ON A DRESS.
----------------------------------
geez, why does a democrat president get a "pass" to under oath? that is what the stain was about, you idiot. LYING. or rather the proof, that the president lied UNDER OATH.
First step:
All candidates for Congress and the Senate should memorize the US Constitution and Articles in its entirety. There should be a test and anyone scoring less than 75% should be disqualified.
Alternately, there should be a second revolution since the current incumbants, largely, have demonstrated a complete lack of regard for the fouinding documents.
I am afraid only Ron Paul would score a passing grade on your first point.
Your second point. We had the opportunity to have a peaceful revolt last Tuesday, and the American people said they loved being fleeced, may I have another.
Thanks Bluto.
The Fed is transparent in that it is subject to the oversight of
Congress. Is twice a year not fast enough? The intent of Congress in
shaping the Federal Reserve Act was to keep politics out of monetary
policy. Legislation requires that the Federal Reserve reports annually
on its activities to the Speaker of the House of Representatives.
http://nomdeals.blogspot.com
Henry Paulson is the biggest crook ever to walk the face of this earth. The only just thing is for him to leave office in chains and leg-irons.
PS -- I am moving to Iceland, because they will be the first ones to be sitting on top of the world.
Thanks for posting that -- I had missed the news.
I think an overhaul of this system is way overdue, and some letters need to be written to every elected official.
Perhaps a reminder after the new congress starts would be in order?
This is an outrage and I am pissed. I am working hard to just barely live and the Fed via our tax dollars is bailing out the rich at the expense of us working class folks.
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