Skip to comments.Federal Reserve audit exposes major securities fraud and the embezzlement of $16 trillion.
Posted on 09/30/2011 11:19:55 AM PDT by Lucky9teen
An audit of the Federal Reserve has revealed that the privately owned Federal Reserve secretly doled out more than $16 trillion in zero interest loans to some of the largest financial institutions and corporations in the United States and throughout the world. The non-partisan, investigative arm of Congress also determined that the Fed acted illegally. In fact, according to the report, the Fed provided conflict of interest waivers to its employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans. The report is evidence that reveals major securities fraud in the embezzlement of $16 trillion by the Federal Reserve.
$16 trillion is 10 times more than what the U.S. Congress authorized and Bush ($700 billion) and Obama ( $787 billion) signed off on. The Federal Reserve was only authorized by Congress to use $1.487 trillion in federal tax dollars in bailouts. The Federal Reserve embezzled another $14.5 trillion.
The Congressional report determined that the Fed secretly hide most of the embezzled money into their own banks. The rest the Fed unilaterally transfered trillions of dollars to foreign banks and corporations from South Korea to Scotland. Foreign banks and corporations which the Federal Reserve bankers had a personal financial interest or stake in.
The report reveals that the CEO of JP Morgan Chase served on the New York Feds board of directors at the same time that his bank received more than $390 billion in federal money from the Fed conflict of interest. Moreover, JP Morgan Chase served as one of the clearing banks (money laundering banks) for the Feds emergency loans programs (aka embezzlement schemes).
In another disturbing finding, the Government Accountability Office 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 federal funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it would have exposed the Feds conflict of interest and major securities fraud in the embezzlement of $16 trillion.
The investigation also revealed that the Fed outsourced most of its embezzling to private contractors, many of which were rewarded with extremely low-interest and then-secret loans.
The Fed outsourced virtually all of the operations of their $16 trillion embezzlement scheme to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. For their part the same firms also received trillions of dollars in Fed loans at near-zero interest rates. Morgan Stanley helped the Federal Reserve banker launder embezzled $trillions into AIG.
A more detailed Government Accountability Office investigation into corruption charges, securities fraud, embezzlement, money-laundering and conflicts of interest at the Fed is due on Oct. 18.
How the U.S. government can avert debt default on August 2, 2011
Did you know that the $14.5 trillion the Federal Reserve embezzled (US Congress only authorized $1.487 trillion) could pay the entire U.S. national debt $14.346 trillion. To avert default the U.S. government need only to seize the assets of the Federal Reserve banks (the big six U.S. banks collectively hold about $9.399 trillion in assets) and get back the $trillions that the Federal Reserve illegally embezzled and money laundered to their foreign banks and corporations.
The U.S. government can recover $trillions from the Federal Reserve and their banks through asset forfeiture. Asset forfeiture is confiscation, by the State, of assets which are either (a) the alleged proceeds of crime or (b) the alleged instrumentalities of crime, and more recently, alleged terrorism. Proceeds of crime means any economic advantage derived from or obtained directly or indirectly from a criminal offense or criminal offenses. Crimes committed by the Federal Reserve banks against the United States and its people include; conflict of interest, securities fraud, embezzlement, fraud, money laundering, hoarding, profiteering, larceny, racketeering . . .
In 1982, a criminal forfeiture provision was enacted as part of the Racketeering Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1961, which provided for the forfeiture of all property over which the RICO organization exercised an influence.
The Money Laundering Control Act of 1986 added new felony provisions at 18 U.S.C. § 1956 for the laundering of the proceeds of certain defined specified unlawful activity, as well as prohibiting structuring transactions under 31 U.S.C. § 5324 (with the intent to evade certain reporting requirements). The law also added civil and criminal forfeiture provisions at 18 U.S.C. §§ 981 and 982 for confiscating the property involved in money laundering.
According to the Legislative Guide to the United Nations Convention against Transnational Organized Crime and the Protocols Thereto, Criminalizing the conduct from which substantial illicit profits are made does not adequately punish or deter organized criminal groups. Even if arrested and convicted, some of these offenders will be able to enjoy their illegal gains for their personal use and for maintaining the operations of their criminal enterprises. Despite some sanctions, the perception would still remain that crime pays. . . . Practical measures to keep offenders from profiting from their crimes are necessary. One of the most important ways to do this is to ensure that States have strong confiscation regimes
Top 10 Banks in the United States Institution Headquarters Assets 1. Bank of America Corp. Charlotte, N.C. $2,340,667,014,000 2. J. P. Morgan Chase & Company New York, N.Y. 2,135,796,000,000 3. Citigroup New York, N.Y 2,002,213,000,000 4. Wells Fargo & Company San Francisco, C.A. 1,223,630,000,000 5. Goldman Sachs Group, Inc. New York, N.Y. 880,677,000,000 6. Morgan Stanley New York, N.Y. 819,719,000,000 7. Metlife, Inc. New York, N.Y. 565,566,452,000 8. Barclays Group US, Inc. Wilmington, Del. 427,837,000,000 9. Taunus Corporation New York, N.Y. 364,079,000,000 10. HSBC North America Inc. New York, N.Y 345,382,871,000 As of Mar. 31, 2010. Source: Federal Reserve System, National Information Center.
Why is Bernanke not behind bars already?
When is enough, enough???
Yours are good questions, and one more: Why are we just learning about this now?
This HAS to be the Onion. If it were REALLY true we wouldn’t be reading it. No way, no how.
How reliable is this website?
Wow- what a post! Is this going to be the lead story on the networks & Fox & CNN??? Yeah, sure. Bernanke needs to do hard time along with Geithner and Paulson. Who in the House of Representatives is in charge of this area? Issa or someone else? How about a Citizens’ arrest!
Good questions all and I have no answers.
Good question. Not very.
Don’t know if it will eventually play out like this or not, but it makes for some interesting provocation of thought. All very, very possible.
There’s a link on the website that goes to a PDF of the GAO report which is over 200 pages.
Where is 'RonPaul'? And the Republicans? Was there really an audit, where is the 'report/audit'???? AND if this 'audit' is the case no wonder the BlackCaucus is ticked off at BamBamKennedy.
And the Fed wants to spy on private citizens?
So now we know where the money went, and who is responsible.
Cuff ‘em, Danno!
hotair is a parody site.
YOU ARE DEAD WRONG. Hotair is absolutely NOT a parody site.
Ok, but article is posted here too (although the dates seem to indicate the story is a couple months old):
Need I go on?
You can bet that you will not hear a peep about this on the news tonight.
I just sent link to Glenn Beck/The Blaze....we’ll see if they get into it.
Who is going to do it?
Even Glen Beck won’t touch it. JFK Tried!