Big Surprises Uncovered in Fed Audit!

What’s wrong with this picture?

Posted on The Patriot Update-By Ann-Marie Murrell-On July 25, 2011:

The Federal Reserve has recently had a complete audit and according to Vermont Senator Bernie Sander’s website, one of the big surprises found was the fact that the “U.S. provided $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression.”

Senator Sanders created an amendment to the Wall Street reform law a year ago which directed the

Government Accountability Office to conduct the audit.

“As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”

Included in the audit findings, the Fed provided trillions of dollars in financial aid from South Korea to Scotland.

“No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president,” Sanders said.

The audit also discovered that the Fed “lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse” and provides “conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.”

An example Senator Sanders gives is that the CEO of JP Morgan Chase served on the New York Fed’s board of directors “at the same time his bank received more than $390 billion in financial assistance from the Fed.”  Also, JP Morgan Chase “served as one of the clearing banks for the Fed’s emergency lending programs.”

Another “surprise” discovered in the audit is that, according to the GAO report, on Sept. 19, 2008, William Dudley, president of the New York Fed, was given a waiver allowing him to keep his investments in AIG and General Electric “at the same time AIG and GE were given bailout funds”.  According to the audit, one of the reasons Dudley didn’t have to sell his holdings is because it might have “created the appearance of a conflict of interest.”

“No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed’s board of directors or be employed by the Fed,” Sanders said.

Other information revealed by the audit is that the Fed outsourced most of its emergency lending programs to private contractors, “many of which also were recipients of extremely low-interest and then-secret loans.”

“The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo,” Senator Sanders posted on his writes.  “The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.”

Another more detailed GAO investigation into potential conflicts of interest at the Fed is due on October 18.

As Sanders says, “The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street.”

To read the GAO report, click here.”

Source:

http://patriotupdate.com/articles/big-surprises-uncovered-in-fed-audit

Note: The following articles and/or blog posts and videos relate to this disturbing issue-You Decide:

I. Close America’s Financial Borders!-Posted on Godfather Politics-By GIACOMO-On July 25, 2011:

http://godfatherpolitics.com/239/close-americas-financial-borders/

II. Feds Will Launch QE3 by Q3!-Posted on Money News-By Julie Crawshaw-On July 19, 2011:

http://www.moneynews.com/StreetTalk/JimRogers-Fed-Launch-QE3/2011/07/19/id/404095?s=al&promo_code=CA65-1

III. Bernanke Public Approval Rating Hits 2-Year Low!-Posted on Money News-By Bloomberg News-On June 24, 2011:

http://www.moneynews.com/Headline/bernanke-depression/2011/06/24/id/401302?s=al&promo_code=C81B-1

IV. Obama’s Dangerous Debt Ceiling Strategy!-Posted on The Heritage Foundation-On July 25, 2011:

http://blog.heritage.org/2011/07/25/morning-bell-obamas-dangerous-debt-ceiling-strategy/?utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell

V. Obama Doesn’t Want to Take Responsibility!-Posted on Godfather Politics-By GIACOMO-On July 25, 2011:

http://godfatherpolitics.com/237/obama-doesnt-want-to-take-responsibility/

VI. National Socialist States of America!-Posted on Godfather Politics-By GIACOMO-On July 25, 2011:

http://godfatherpolitics.com/241/national-socialist-states-of-america/

VII. One in five American men don't work: Where's the outrage?-Posted on CNNMoney-By Nina Easton, senior editor-at-large-On July 25, 2011:

http://finance.fortune.cnn.com/2011/07/25/unemployment-job-skills-training/

VIII. Life after 2011 if the Liberals have their way!-Posted on The Patriot Update-On July 25, 2011:

http://patriotupdate.com/10007/life-after-2011-if-the-liberals-have-their-way

IX. Video: Speaker Boehner on GOP Debt Plans!-Posted on The Patriot Update-On July 25, 2011:

http://patriotupdate.com/videos/speaker-boehner-on-gop-debt-plans

X. Boehner Weighs Balanced-Budget Amendment!-Posted on CNBC- By Reuters-On July 24, 2011:

http://www.cnbc.com/id/43875139

XI. Boehner: President Obama ‘Worried about His Next Election’!-Posted on The Hill-By Alicia M. Cohn-On July 24, 2011:

http://thehill.com/blogs/blog-briefing-room/news/173143-boehner-obama-worried-about-his-next-election

XII. Obama: Republicans’ Fault If Social Security Checks Don’t Go Out!-Posted on CNSNews.com-By Susan Jones-On July 23, 2011:

http://www.cnsnews.com/news/article/obama-republicans-fault-if-social-securi

XIII. Senate Kills Cut, Cap and Balance Bill!-Posted on CNSNews.com-By Susan Jones-On July 22, 2011:

http://www.cnsnews.com/news/article/senate-kills-cut-cap-and-balance-bill

XIV. Harry Reid Won’t ‘Waste the Senate’s Time’ on ‘Worst Legislation’ in U.S. History!-Posted on CNSNews.com-By Susan Jones-On July 22, 2011:

http://www.cnsnews.com/news/article/harry-reid-won-t-waste-senate-s-time-wor

XV. CNN Ignores Poll Results Showing Strong Support for ‘Cut, Cap, and Balance’!-Posted on The Media Research Center-By Matt Hadro-On July 21, 2011:

http://www.mrc.org/biasalert/2011/20110721081231.aspx

XVI. Four Questions For Obama’s 14th Amendment Supporters!-Posted on Godfather Politics-By JERRY BOWYER-On July 22, 2011:

http://godfatherpolitics.com/217/four-questions-for-obamas-14th-amendment-supporters/

XVII. S&P warns on deal without meaningful deficit reduction!-Posted on Hot Air-By ED MORRISSEY-On July 21, 2011:

http://hotair.com/archives/2011/07/21/nyt-obama-boehner-closing-in-on-deal/

XVIII. Exploiting Christianity over Budget Cuts!-Posted on FrontPage Magazine-By Mark D. Tooley-On July 21, 2011:

http://frontpagemag.com/2011/07/21/exploiting-christianity-over-budget-cuts/2/

XIX. President Obama is the one locked into rigid positions!-Posted on National Review Online-By Jonah Goldberg-On July 20, 2011:

http://www.nationalreview.com/articles/272217/ideologue-oval-office-jonah-goldberg

XX. Obama’s ‘Redistribution of Wealth’ Radio Interview, 2001!-Posted on The Patriot Update-By Ann-Marie Murrell-On July 22, 2011:  

http://patriotupdate.com/articles/obama’s-‘redistribution-of-wealth’-radio-interview-2001

XXI. Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac!-Posted on Conservative Byte-On July 22, 2011:

http://conservativebyte.com/2011/07/shocking-video-unearthed-democrats-in-their-own-words-covering-up-the-fannie-mae-freddie-mac/

XXII. Real Change Possible When Obama Is Gone!-Posted on Pittsburgh Tribune Review-By George F. Will-On July 22, 2011:

http://www.pittsburghlive.com/x/pittsburghtrib/opinion/s_747817.html

XXIII. Stupidity At Moody’s: Get Rid of Debt Ceiling and We Won’t Downgrade Your Debt!-Posted on News Busters-By Noel Sheppard-On July 18, 2011:

http://www.newsbusters.org/blogs/noel-sheppard/2011/07/18/stupidity-moodys-get-rid-debt-ceiling-and-we-wont-downgrade-your-debt

Note:  My following blog posts contain numerous articles and/or blog posts and videos that relate to this disturbing issue-You Decide:

Is the Fed’s concept of buying $600 billion of Treasuries just a smokescreen?

http://weroinnm.wordpress.com/2010/11/03/is-the-fed’s-concept-of-buying-600-billion-of-treasuries-just-a-smokescreen/

Treasury Secretary hired firm to help cover-up stimulus records!

http://weroinnm.wordpress.com/2010/11/06/treasury-secretary-hired-firm-to-help-cover-up-stimulus-records/

Nearly 80 percent don’t trust the government!

http://weroinnm.wordpress.com/2010/04/19/nearly-80-percent-don’t-trust-the-government/

Is it important to understand the Marxist assault on the foundations of our system?

http://weroinnm.wordpress.com/2011/01/27/is-it-important-to-understand-the-marxist-assault-on-the-foundations-of-our-system/

Note If you have a problem viewing any of the listed blog posts please copy web site and paste it on your browser. Be aware that some of the articles and/or blog posts or videos listed within the contents of the above blog post(s) may have been removed by this administration because they may have considered them to be too controversial.  Sure seems like any subject matter that may shed some negative light on this administration is being censored-What happened to free speech?-You Decide.

“Food For Thought”

God Bless the U.S.A.!

https://www.youtube.com/watch?v=Q65KZIqay4E&feature=related

Semper Fi!

Jake

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