Ron Paul’s Legacy: a Complete Audit of The Secretive Banking Cartel?Submitted by PWA on Fri, 08/10/2012 - 03:12
They only bubble up rarely, these scandals at the Federal Reserve System, but when they do, they're doozies, involving huge amounts of money, massive conflicts of interest, all-out manipulation, collusion, favoritism, dizzying cronyism.... And yet, over the 100 years that the Fed has existed, it has done an excellent job in one of its other primary functions, maintaining the dollar, which has lost only 96% of its value—instead of 100%.
The latest scandal is the Libor fiasco that is spawning worldwide investigations of the largest banks, going back years. The New York Fed under its President Timothy Geithner knew of the manipulations as early as 2007, and knew it involved banks of which it was one of the regulators. There were some hush-hush contacts with British regulators, and that was it. Nothing changed. Status quo maintained.
Just about then, the financial crisis began to expose the house of cards that financial institutions had become. Bear Stearns was saved. During the ensuing bailout mania of 2007 – 2009, the New York Fed, under the same management, handed trillions of freshly printed dollars to the same banks that it knew were manipulating Libor. It was done in secret, and the public wouldn’t have known who got what, how the decisions were made, why Lehman wasn’t bailed out though Goldman was, had it not been for the audit by the Government Accountability Office (GAO) as authorized by the Dodd-Frank financial reform act [for some gory details, read... The GAO Audit of the Fed Doesn’t Call It ‘Corruption’ but it should].