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!
Personally, I would need other sources to substantiate this...unless this is a satire.
See my post #16...jeesh
A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street.
The price tag for the Wall Street bailout is often put at $700 billionthe size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart here. Below, a guide to the pieces of the puzzle:
Treasury Department bailout programs (controlled by then-COS Rahm Emanuel)
Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokeragesas much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid. Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets." GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].
--SNIP--- long read
Federal Reserve bailout programs
Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.
Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.
Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.
Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.
--SNIP--- long read
The report is evidence that reveals major securities fraud in the embezzlement of $16 trillion by the Federal Reserve.
Really alarming. If this keeps up we’ll be talking about real money. /s
I ran across this and found it interesting...but I have no idea have factual it is, if at all. If it is true, though...
here’s the link
and here’s info on the Rothechilds. Again I don’t know how factual.
Ask your Congressman.
Probably not your own Congressman.
“What Geithner does not want the public to understand, his “dirty little secret”, is that the repeal of Glass-Steagall and the passage of the Commodity Futures Modernization Act in 2000 allowed the creation of a tiny handful of banks that would virtually monopolize key parts of the global “off-balance sheet” or OTC derivatives issuance.
Today, five US banks, according to data in the just-released Federal Office of Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activity, hold 96% of all US bank derivatives positions in terms of nominal values, and an eye-popping 81% of the total net credit risk exposure in event of default.
The top three are, in declining order of importance: JPMorgan Chase, which holds a staggering $88 trillion in derivatives; Bank of America with $38 trillion, and Citibank with $32 trillion. Number four in the derivatives sweepstakes is Goldman Sachs, with a mere $30 trillion in derivatives; number five, the merged Wells Fargo-Wachovia Bank, drops dramatically in size to $5 trillion. Number six, Britain’s HSBC Bank USA, has $3.7 trillion. “
These numbers are from 2009. Presently the top five US banks are on the hook for over 250 trillion in credit derivative exposure.
BTW..is it any wonder they’re becoming terrified of free speech and the right to associate freely?
Here; I fixed it for you:
16th Amendment not Ratified
In his declaration Knox claims the following States properly ratified the 16th: Alabama,Kentucky, South Carolina, Illinois, Mississippi, Oklahoma, Maryland, Georgia, Texas, Ohio, Idaho, Oregon, Washington, California, Montana, Indiana, Nevada, North Carolina, Nebraska, Kansas, Colorado, North Dakota, Michigan, Iowa, Missouri, Mane, Tennessee, Arkansas, Wisconsin, New York, South Dakota, Arizona, Minnesota, Louisiana, Delaware, and Wyoming.
Knox claimed that it appeared that New Jersey and New Mexico had approved the 16th.
NOTE Knox, claimed that he had official documents on file for all of these States, however, clearly there were no documents for Minnesota.
Again, the incorporation of the terms of the proposed amendment in the ratifying resolution seems in every case merely to have been by way or recitation.
Furthermore, under the provisions of the Constitution a legislature is not authorized to alter in any way the amendment proposed by Congress, the function of the legislature consisting merely in the right to approve or disapprove the proposed amendment.
Proof is given in a letter to Secretary of State Knox the fact that the 16th Amendment was not properly ra
P5: not-withstanding it appears that errors exist in the certified copies of Resolutions passed by the Legislatures of those States ratifying such amendment.
P5: 5. The Department has not received a copy of the Resolution passed by the State of Minnesota.
Resolution P3: It appears from this information that four states (Connecticut
Resolution P4: New Hampshire, Rhode Island, and Utah) have rejected the amendment. The remaining thirty-eight states have taken action purporting to ratify the amendment, the State of Arkansas being one of these states. Although the Governor of Arkansas has previously notified the Department that the legislature of that state had refused to ratify the amendment
Resolution P4: In all cases in which the legislature appear to have acted favorably upon the proposed amendment, either the Governor or some other state official has transmitted to the Department a certified copy of the resolution passed by the particular legislature, except in the case of Minnesota.
Alabama: Approved. Doesnt appear whether Governor signed.
Kentucky: Not signed by Governor.
Illinois: Not signed by Governor
Not Adopted only signed by Governors of:
Oklahoma, Texas, Montana, Indiana, Nebraska, Colorado, North Dakota, Iowa, New Jersey, New Mexico
Not signed by Governor:
Maryland, Georgia, Ohio, Idaho, Oregon, Washington, California, North Carolina, Missouri, Wisconsin, New York, South Dakota, Delaware
Attested by Governor:
Governor vetoed-Governor informed Secretary of State legislature had failed to pass resolution: Arkansas
No resolution (Secretary of Governor merely says there is a resolution):
It will be observed from the above record that the Governor of the State of Arkansas vetoed the resolution passed by the legislature of that State.
LFL NOTE: Law must be signed into law by the Governor / President before it is law: Article I, Section 7: Every Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States; If he approve he shall sign it, but if not he shall return it
Page 6: It is to be noted that the Kentucky legislature passed a resolution ratifying the proposed 16th Amendment before a copy of the resolution of Congress was transmitted to that body by the Governor and that when the Governor reserved the certified copy of the Joint Resolution of Congress from the Secretary of State and transmitted it to the legislature, the latter refused to act on it.
Errors in Resolutions of State Legislature in quoting the Proposed 16th Amendment
In the certified copies of the resolution passed by the legislature of the several state ratifying the proposed 16th amendment, it appears that only four of these resolutions (those submitted by Arizona, North Dakota, Tennessee and New Mexico) have quoted absolutely accurately and correctly the 16th amendment as proposed by Congress.
Minnesota, it is to be remembered, did not transmit to the Department a copy of the resolution passed by the legislature of that state.
The resolutions passed by twenty-two states contain errors only of capitalization or punctuation, or both, while those of eleven states contain errors in the wording.
LFL NOTE: the letter then goes attempting to justify ratification by showing errors in the 14th and 15th Amendment ratification process. Actually providing an excellent source of information invalidating the 14th Amendment.
P15: Furthermore, under the provisions of the Constitution a legislature is not authorized to alter in any way the amendment proposed by Congress,
P16: For these reasons it is believed that the Secretary of State should in the present instance include in his declaration announcing the adoption of the 16th amendment to the Constitution of the States referred to notwithstanding it appears that errors exist in certified copies of Resolutions passed by the Legislature of those States ratifying such amendment.
C-Live, Love Oppose Evil. Novus Ordo Seclorum.
The time to wake up is over. Ben Franklin has been rolling in his grave since 1913.
The fox is guarding the henhouse......
The Federal Reserve doesn't use tax dollars. All the bailout money from TARP and Obama's stimulus slush fund was spent by the Treasury, not the Fed.
The Congressional report determined that the Fed secretly hide most of the embezzled money into their own banks.
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)
Great idea! Seize everyone's bank account! LOL!
This guy is funny. I'd like to know what he's smoking.
Notional value is not the same as exposure.
Who is charging you interest on the $20s in your wallet?
“Notional value is not the same as exposure...”
Of course. But who will you trust to tell you WHAT the exposure really is? the banks? We the People certainly no longer have the regulatory oversight intact required to ascertain that which we are expected to be bailing out.
Of course. But who will you trust to tell you WHAT the exposure really is? the banks?
Whatever number the banks come up with is going to be closer to reality than the $250 trillion number you provided.
Perhaps, Toddster, you could kindly just post what the bank you work for SAYS their exposure is?
That way we could all make an objective judgment of the integrity of that number as the spiral of this mess continues to slowly uncoil.
I don’t work for a bank.
Page 90 and 91 of the report.
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