Skip to comments.Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts
Posted on 12/27/2011 6:08:43 PM PST by Iam1ru1-2
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 socialist 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. Federal Reserve Chairman, Ben Bernanke(pictured to the right), former chairman, 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 Reserves nearly 100 year history were posted on Senator Sanders webpage earlier this morning (July 21, 2011).
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 (Bush's term) and June 2010 (Obama's term), the Federal Reserve had secretly bailed out many of the worlds 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. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious - the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.
To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is "only" $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is "only" $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world. In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.
"This is a clear case of socialism for the rich and rugged, youre-on-your-own individualism for everyone else." - Bernie Sanders (I-VT)
When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability. Sanders said one thing already is abundantly clear. "The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."
Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and supercorporations like Halloween candy. If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses will eventually plunder the world economy (as may be their intent).
The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..
Citigroup: $2.5 trillion ($2,500,000,000,000) Morgan Stanley: $2.04 trillion ($2,040,000,000,000) Merrill Lynch: $1.949 trillion ($1,949,000,000,000) Bank of America: $1.344 trillion ($1,344,000,000,000) Barclays PLC (United Kingdom): $868 billion ($868,000,000,000) Bear Sterns: $853 billion ($853,000,000,000) Goldman Sachs: $814 billion ($814,000,000,000) Royal Bank of Scotland (UK): $541 billion ($541,000,000,000) JP Morgan Chase: $391 billion ($391,000,000,000) Deutsche Bank (Germany): $354 billion ($354,000,000,000) UBS (Switzerland): $287 billion ($287,000,000,000) Credit Suisse (Switzerland): $262 billion ($262,000,000,000) Lehman Brothers: $183 billion ($183,000,000,000) Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000) BNP Paribas (France): $175 billion ($175,000,000,000) and many many more including banks in Belgium of all places
View the 266-page GAO audit of the Federal Reserve (July 21st, 2011): http://www.scribd.com/doc/60553686/GAO-Fed-Investigation Source: http://www.gao.gov/products/GAO-11-696 FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf Senator Sanders Article: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
well ummm whaaa....is this to be believed? all the more unbelievable if it is.
What did Freepers say at the time? (I think I was on vacation)
We Waz ROBBED!
Is this for real?
Makes you wonder what a complete audit would reveal?
Only 16,000,000,000,000.00 American Dollars?
Hard de har har,
For that we wasted the time of the General Accounting Office.
that’s just Looney
This means our money is worth nothing. What else could it mean. So everyone should just stop paying any debt they ow to any of the banks or credit card compainies because they have already been paid.
It is time a whole lot of people WAKE THE HELL UP!
Ron Paul leads the charge to stop the criminal behavior of the Federal Reserve. This is probably the tip of the iceberg of debt that the US taxpayers are accountable for via the Fed. It is hard to believe they want to bail out the European Central Bank on the backs of us citizens.
If it were that easy we would just run the printing presses and pay off the debt.
$1.2 trillion -- The Feds actual lending to banks and financial companies at its single-day peak, Dec. 5, 2008, through the seven programs Bloomberg News studied in depth.
$16 trillion -- The total transaction amounts for Fed lending included in a July 21, 2011, study by the Government Accountability Office, a non-partisan investigative agency that reports to Congress. The Feds Dec. 6 memo said it was inaccurate to describe that amount as the total of its lending and guarantees, as some websites did.
The method the GAO used to produce that total differed from Bloombergs approach. Bloomberg built spreadsheets to show each borrowers daily amounts outstanding, and then found the day on which those amounts peaked. The GAO tallied all cumulative loans to arrive at $16 trillion. Its report noted that the total didnt reflect how loans terms varied under different Fed programs.
If a bank borrowed $1 billion overnight for 100 nights, Bloombergs analysis would show that the bank had a $1 billion balance at the Fed for 100 days; the GAO method that produced the $16 trillion total would sum up those transactions to $100 billion, even though the bank never owed more than 1 percent of that total.
>>>Ron Paul leads the charge to stop the criminal behavior of the Federal Reserve.<<<
I suspect the Federal Reserve and the “Too Big Too Fail” (TBTF) banks have hired (or paid off) an army of instigators and shenanigans to smear Ron Paul in every way imaginable. Is it working? Time will tell.
thanks maggie....I’ve REALLY missed getting ALL the news here on FR.
Just curious, but I’m wondering who would I have to blow in order to get a meazly $1 million, tax-free, interest-free, non-repayable loan/bailout (a la Solyndra).
Perhaps I need to rent a limo, buy a couple of grams of “blow” and then blow Barry, eh?
Sorry, but even though I could go along with the first 2 conditions, I’d prefer to be boiled in oil rather than comply with condition number 3.
Guess I’m going to have to keep my day job. ;-)
From an article posted here on FR last July 29: