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New Specifics: Fed Members Gave Their Own Banks $4 Trillion During Bailout

A report just released by the US Government Accountability Office explains how the Federal Reserve divvied up more than $4 trillion in low-interest loans after the fiscal crisis of 2008, and the news shouldn’t be all that surprising.

When the Federal Reserve looked towards bailing out some of the biggest banks in the country, more than one dozen of the financial institutions that benefited from the Fed’s Hail Mary were members of the central bank’s own board, reports the GAO. At least 18 current and former directors of the Fed’s regional branches saw to it that their own banks were awarded loans with often next-to-no interest by the country’s central bank during the height of the financial crisis that crippled the American economy and spurred rampant unemployment and home foreclosures for those unable to receive assistance.

"This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sen. Bernie Sanders (I-Vermont) says in a statement about the report.

“At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks,” adds Mr. Sanders. “These conflicts must end."

Bernie Sanders .pdf breakdown (4 pages)
http://www.sanders.senate.gov/imo/media/doc/061212DimonIsNot...

MORE | SOURCE
http://rt.com/usa/news/fed-federal-reserve-report-938/



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FEDERAL RESERVE HEIST

the original article was written in June.

the comments seem to confuse "Directors" between the nine members of the Board of Directors for each of the 12 FR banks with the members of the Board of Governors of the FR system.

The legal ownership of the BOG has been alleged to be various Wall Street banks but is not believed to be verified.

The hidden profit from the auctions of deficit spending Treasury securities as handled by the FRBNY and not reported to Congress or the public is not mentioned. It is claimed that the purloined $4 billion daily that appears to belong to the government is transferred to the owners of the BOG mingled with the funds for rolled-over T-security auction funds. Ref. Federal Reserve Heist, www.scribd.com/doc/101937790 .

Misleading

The board members did not benefit personally. The salary of board members is fixed by the government who appoints the chairman.

The Congress sets the salaries of the Board members. For 2012, the Chairman's annual salary is $199,700. The annual salary of the other Board members (including the Vice Chairman) is $179,700.

There are too many Blue Republicans and hidden National Socialists among us. I do not understand how they are comfortable with FREE SOCIETY where banks are 100% private and have no government regulations. THINK about what you support and better move to socialists where you belong.

Did you read the report?

Why not read it:

http://www.sanders.senate.gov/imo/media/doc/061212DimonIsNot...

You said "The board members did not benefit personally"

let's take a look at number 2 in the report as an example:

Jeffrey Immelt:
Current CEO of General Electric (since September 7, 2001), served on the New York Fed's Board of Directors from 2006-2011.

General Electric received $16 billion in low interest financing from the Federal Reserve’s Commercial Paper Funding Facility during this time period.

Compensation:

"As CEO of General Electric in 2007, Immelt earned a total compensation of $14,209,267, which included a base salary of $3,300,000, a cash bonus of $5,800,000, stocks granted of $4,713,000, and options granted of $0. In 2008, he earned a total compensation of $5,717,469, which included a base salary of $3,300,000, stocks granted of $2,044,650, and other compensation of $372,819. He waived his bonus in 2008. In 2009, Immelt earned a total compensation of $5,487,155, which included a base salary of $3,300,000, a cash bonus of $0, stocks granted of $1,791,000, and options granted of $0, and other income of $396,155. In 2010, Immelt's compensation nearly doubled to $15.2 million. He did not receive any bonus for almost 2 years, but in February, he received $4 million for his work in 2010."

You may also be interested in this primer on free market regulation:

http://mises.org/freemarket_detail.aspx?control=485

So GE, eh?

Wouldn't the person in charge of their accounting then know about said transactions?

Talk about Misleading.

The only thing misleading is your post.

Did you miss the last five years of discussions on this site when it comes to free market economics?

Thank you

Shared on Twitter with hashtags #banksters #crooks.

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sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Banksters helping banksters . .

I'm shocked, so very shocked!

For some strange reason I am not at all shocked or surprised.

Pretty much what we all knew would happen.

You could be happy to have

You could be happy to have Bernie on board if his solutions to the problem did all point in the wrong direction, Communism.
Bernie claims to be for civil liberties and anti-corruption but that is only because he prefers his brand of totalitarian rule. On top of that in the end he is owned by Israel and installed term after term by a Vermont electorate that's reason thoroughly escapes me. I hope they can get a liberty Candidate next time around. Vermont's small size and town meeting tradition offers an opportunity for a low budget political outsider to break in there with some hard work on the grass roots level.

“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.” ― Henry Ford.

I got no love for Bernie,you are right, he's a rabid socialist

He does put information together pretty good sometimes....but believe me...he fools no one. (who knows WTF is going on)

ytc's picture

ditto with the brilliant Rep Alan Grayson :-)

He was a fearless co-sponcer for RonPaul's Audit the Fed legislation and his Iraq war contractor fraud case & War Is Making You Poor Act were spectacular success. BUT then, he voted for Obm-care and Hate Crimes Expansion Act and such. . . ;-(