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Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts
GAO report ^ | 11-30-2011 | edcoil

Posted on 11/30/2011 12:53:25 PM PST by edcoil

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,

(Excerpt) Read more at silverbearcafe.com ...


TOPICS: Government; News/Current Events
KEYWORDS: dnc4eu; dnc4iag; dnc4sharia; dncrico; fedaudit; federalreserve; federalreserveaudit; kingofthedeficit; noaccountability; nohonesty; nointegrity; notransparency; obama4sharia; obamavsamerica; tyrantwagyu

1 posted on 11/30/2011 12:53:29 PM PST by edcoil
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To: edcoil

Are we in the Quadrillion range yet?


2 posted on 11/30/2011 12:57:09 PM PST by razorback-bert (Some days it's not worth chewing through the straps.)
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To: edcoil

Then add the Fed fundamentally bailing out Europe. The total tab for Euro bailout will be $4 trillion!!!!!

From ZeroHedge:

Central Banks “Last Tango in Paris” - “Fire up the printing presses, gang!” Or at Least Lower Swaps Rates 1/2%

http://confoundedinterest.wordpress.com


3 posted on 11/30/2011 12:57:34 PM PST by whitedog57
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To: edcoil
Just imagine what they would have found in a real audit!
4 posted on 11/30/2011 12:57:59 PM PST by E. Pluribus Unum (Holding our flawed politicians to higher standards than the enemy’s politicians guarantees they win)
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To: edcoil

...and that’s what they LET us find out...


5 posted on 11/30/2011 12:58:28 PM PST by jessduntno ("They say the world has become too complex for simple answers... they are wrong." - RR)
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To: edcoil

The names and pictures of the recipient banks, their majority stockholders, officers and directors should be published. In addition, their social and business relationships to the “American’s” responsible for the fund transfers should be made public.


6 posted on 11/30/2011 12:58:44 PM PST by AEMILIUS PAULUS (It is a shame that when these people give a riot)
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To: AEMILIUS PAULUS
The names and pictures of the recipient banks, their majority stockholders, officers and directors should be published.

Here ya go!


7 posted on 11/30/2011 1:00:52 PM PST by mmichaels1970
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To: edcoil

it’s really over.


8 posted on 11/30/2011 1:05:21 PM PST by reefdiver ("Let His day's be few And another takes His office")
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To: edcoil

So what does this mean exactly? They printed the money and they have the authority to print money. Do they have the authority to pass it around to their global elitist pals, too? I thought only Congress was authorized to spend or loan our country’s money?

This devalues the dollar, right? How did the Fed decide which banks and corporations to give our money to? Who takes the loss if these corporations and banks fail to pay back the Fed’s loans? Is this treason?

I’m asking these questions in the hope you or someone else will let me know what this means exactly.


9 posted on 11/30/2011 1:05:51 PM PST by SaraJohnson
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To: edcoil

US wont let the Euro fail. We will be bailing them out. The Fed has the authority to buy up foreign debt any time they want. They do not need Congressional approval.


10 posted on 11/30/2011 1:05:56 PM PST by floridarunner01
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To: whitedog57
The total tab for Euro bailout will be $4 trillion!!!!!

Well, four isn't a very big number. Just put it on our tab.

11 posted on 11/30/2011 1:06:26 PM PST by Maceman (Obama: As American as nasei goreng)
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To: edcoil

paging William Jennings Bryan....


12 posted on 11/30/2011 1:07:19 PM PST by Buckeye McFrog
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To: razorback-bert

Don’t worry, it’s only $16 Billion in Europe.


13 posted on 11/30/2011 1:08:50 PM PST by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
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To: All
Here's what I'm seeing: Borrowing Parent Company - Dollars in billions

Citigroup Inc. - $ 2,513
Morgan Stanley - 2,041
Merrill Lynch & Co. - 1,949
Bank of America Corporation - 1,344
Barclays PLC (United Kingdom) - 868
Bear Stearns Companies, Inc. - 853
Goldman Sachs Group Inc. - 814
Royal Bank of Scotland Group PLC (UnitedKingdom)- 541
Deutsche Bank AG (Germany) - 354
UBS AG (Switzerland) - 287
JP Morgan Chase & Co. - 391
Credit Suisse Group AG (Switzerland) - 262
Lehman Brothers Holdings Inc. - 183
Bank of Scotland PLC (United Kingdom) - 181
BNP Paribas SA (France) - 175
Wells Fargo & Co. - 159
Dexia SA (Belgium) - 159
Wachovia Corporation - 142
Dresdner Bank AG (Germany) - 135
Societe Generale SA (France) - 124
All other borrowers - 2,639
Total $16,115
Source: GAO analysis of Federal Reserve System data.
14 posted on 11/30/2011 1:08:58 PM PST by mmichaels1970
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To: edcoil

Do Conservatives really want to end the welfare state? End the creeping Federal takeover of the States’ Rights and the economy? End the debasement of our currency which steals earning and savings in the form of long-term inflation, to finance Gov’t social-engineering schemes?

The only way to do it is to end the Federal Reserve. The FED is the cornerstone of Progressive Gov’t. Without it, none of the above would be possible.

Its a once fringe-idea which is steadily moving into the mainstream.


15 posted on 11/30/2011 1:10:59 PM PST by PGR88
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To: edcoil

As much as I hate to admit, this makes me want to join the “Occupy Wall Street” crowd. With Obama et. al., we are all so completely screwed!


16 posted on 11/30/2011 1:11:56 PM PST by Ranger Warrior ("To stand in silence when they should be protesting makes cowards out of men." - Abraham Lincoln)
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To: edcoil
If it's okay to just print money, why can't we resolve the financial crisis overnight by just printing enough to cancel the debt?
We don't need any taxes, just print cash as needed.

I know and you know that printing money does not add any VALUE to the economy.
How come the financial gurus that are responsible for our money supply does not know that?

17 posted on 11/30/2011 1:13:31 PM PST by BitWielder1 (Corporate Profits are better than Government Waste)
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To: edcoil

16 Trillion? Isn’t that how much the country is in debt? Well there you go.


18 posted on 11/30/2011 1:16:36 PM PST by lwoodham (Time is what keeps everything from happening all at once.)
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To: edcoil
$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.

But, can a private business get a loan these days? My experience says no. We have an ongoing manufacturing business. We have no debt, except the mortgage on the building. We also need a new roof. The business is profitable, and we are current with all of our vendors. Our customers are current with us. We are financing day to day business through cash receipts, personal loans from me and my husband, and credit cards. In addition to the building and property owned by the business, the loan is also secured by our personal residence. Our bank (Canadian) wants out of the mortgage because they can make more money financing T Bills than by financing small business. There is no alternative financing available.

The last bank offer received wanted, in addition to our personal guarantees, our sons who, are not in the business, to also guarantee the loan. They also wanted to freeze repayment of any loans made by me in the past to the company. IOW, I would not be able to take any of my money back in emergencies. My husband told them to pound salt.

This business provides a living for about 15 long term employees plus the taxes we pay, both state and federal. We'd also love to give a $150,000 job to a roofing company, too. We are tired of wearing waders around here! But, there is no financing available. We have been trying to move our financing for over a year.

If only I had thought to start a line of solar panels. Maybe Obama would provide financing out of his "stash".

19 posted on 11/30/2011 1:17:45 PM PST by afraidfortherepublic
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To: edcoil
See story from Monday "Judge Blocks Citigroup Settlement With S.E.C." http://www.freerepublic.com/focus/f-news/2813392/posts

Judge Rakoff said "Even a $285 million settlement is pocket change to any entity as large as Citigroup..."

Particularly if they got $2.5 trillion from the Federal Reserve as this article says.

20 posted on 11/30/2011 1:18:15 PM PST by omega4412
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To: BitWielder1
I know and you know that printing money does not add any VALUE to the economy. How come the financial gurus that are responsible for our money supply does not know that?

I'm sure in their heart of hearts they do know it.

21 posted on 11/30/2011 1:20:47 PM PST by Hemingway's Ghost (Spirit of '75)
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To: edcoil

I do believe much of this 16 trillion has been paid back to the Federal Reserve even though the author says it has not. The Federal Reserve is a private bank


22 posted on 11/30/2011 1:22:36 PM PST by dennisw (I heard the old man laughing What good is a used up world and how could it be worth having-Sting)
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To: mmichaels1970

Thanks. However, my computer has only a dial up and the site you directed me to will not come up. I’ll try later.


23 posted on 11/30/2011 1:24:17 PM PST by AEMILIUS PAULUS (It is a shame that when these people give a riot)
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To: UnbelievingScumOnTheOtherSide
Don’t worry, it’s only $16 Billion in Europe. I know in england they dont like to use the word billion so it would be 1600 million million ? my brain hurts.
24 posted on 11/30/2011 1:40:23 PM PST by 09Patriot (your freedom to be you, includes my freedom to be from you.--Wilkow)
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To: mmichaels1970

Come on.... I believe much of that money has been paid back. Or possibly the 16 trillion is toxic assets the FR took from these banks and gave them US Treasuries on some kind of loan basis. An exchange. Having US Treasuries on their books made the banks look healthy. Lots of question marks.


25 posted on 11/30/2011 1:59:30 PM PST by dennisw (I heard the old man laughing What good is a used up world and how could it be worth having-Sting)
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To: dennisw
Come on.... I believe much of that money has been paid back.

I believe you're correct. I believe this report is detailing "emergency loans" that have been made. There's a page in there with dollars still outstanding. I think the point of the article is not that the fed is owed 16T, it's that they made 16T in "emergency" loans.

The point that can be debated, imho, is whether or not the term "emergency" and be synonymous with "bailout".
26 posted on 11/30/2011 2:05:30 PM PST by mmichaels1970
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To: edcoil

bump


27 posted on 11/30/2011 2:09:45 PM PST by Rumplemeyer (The GOP should stand its ground - and fix Bayonets)
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To: edcoil
$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,

Would someone please explain to me why this isn't criminal, and if it is why have there been no arrest?

28 posted on 11/30/2011 2:09:45 PM PST by JakeS (This would be a good time to read John chapter three 1-21)
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To: JakeS
Would someone please explain to me why this isn't criminal, and if it is why have there been no arrest?

GAO sites the Federal Reserve Act of 1913.

the Federal Reserve Board invoked emergency authority under the Federal Reserve Act of 1913 to authorize new broad-based programs and financial assistance to individual institutions tostabilize financial markets.

Here is the full doc from the GAO.

And here's a link to the Federal Reserve Act. It's very hard to navigate though.
29 posted on 11/30/2011 2:20:06 PM PST by mmichaels1970
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To: mmichaels1970

But this is what the author at Silver Bear cafe says. That the money has not been paid back—>>>
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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.


30 posted on 11/30/2011 2:20:43 PM PST by dennisw (I heard the old man laughing What good is a used up world and how could it be worth having-Sting)
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To: mmichaels1970

I’ve been reading it.

These guys should be under the jail.


31 posted on 11/30/2011 4:10:59 PM PST by JakeS (This would be a good time to read John chapter three 1-21)
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To: mmichaels1970

bttt


32 posted on 11/30/2011 4:12:57 PM PST by Pagey (B. Hussein Obama is weak, was born weak and as P.O.T.U.S. is a complete embarrassment to the U.S.A.)
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To: dennisw
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.

Ok. I can certainly cede you that point. I also agree that most of the money has been paid back and the GAO study cited lists that there is a very minimal risk of the money NOT being paid back.

My problem comes from the loans themselves being done under "emergency" authority.

I'm certainly no expert. But when the fed deems it needs to make these loans, doesn't it order more money to be printed by the treasury? Even if the fed is a private bank, if these "emergency" loans result in an increased creation of currency by the treasury, it would certainly affect us all right?

If you look at my specific posts, you should see that they are merely links sections of the GAO audit itself. I haven't drawn any conclusions as to how this affects me if at all. This is certainly something I'd like to know more about though.
33 posted on 11/30/2011 7:20:20 PM PST by mmichaels1970
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