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Author Topic: "Federal Reserve’s Bailout of the Rich and Well-Connected"  (Read 2796 times)
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WhiskeyGirl
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« on: December 07, 2010, 12:14:13 PM »

The rest of us get Obamacare, unemployment, homelessness, poverty, and a future of despair...

Federal Reserve’s Bailout of the Rich and Well-Connected


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The conflicts of interest and policy controversies in the Federal Reserve’s bailout of the financial system now include helping out millionaires, billionaires, foreign automakers, and companies whose executives sit on the board of directors of the U.S. central bank.

General Electric (GE: 17.12 ,+0.43 ,+2.58%), JPMorgan Chase (JPM: 39.65 ,-0.22 ,-0.55%), Goldman Sachs (GS: 163.48 ,+0.82 ,+0.51%), Banco Popular, SunTrust Banks (STI: 25.56 ,-0.04 ,-0.16%) and Fifth Third Bank (FITB: 12.82 ,-0.20 ,-1.54%) received “hundreds of billions of dollars in low-interest Federal Reserve loans at the same time that senior executives at these institutions served on the Federal Reserve’s regional board of directors,” says Senator Bernie Sanders (Ind.-VT) in a letter to Federal Reserve chairman Ben Bernanke Monday.

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“It is an obvious conflict of interest when CEOs of banks and large corporations who serve on the Fed’s board of directors receive cheap loans from the Fed,” says Sanders in his letter.

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Senator Sanders’ staff found that “several billionaires and tens of multi-millionaires received cheap loans from the Fed to invest in securities backed by auto, mortgage, credit card, student and mortgage loans,” Sanders’ letter says. That Fed program is called the Term Asset-backed Securities Loan Facility.

The rich include Christy Mack, the wife of Morgan Stanley’s (MS: 25.83 ,+0.31 ,+1.21%) John Mack, billionaire businessman H. Wayne Huizenga; and Michael Dell, co-founder of Dell Computer (DELL: 13.76 ,+0.06 ,+0.44%), hedge fund manager John Paulson and private equity honcho J. Christopher Flowers.

Dell, Paulson and Flowers came to light in the disclosures through their ownership stakes in OneWest Bank...

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“We have lost over five million American manufacturing jobs since 2001, and our bridges highways, and schools are crumbling,” says the Senator. “Yet there are startling examples of massive levels of financial assistance to foreign governments and banks under these programs.”

Read more: http://www.foxbusiness.com/markets/2010/12/07/federal-reserves-bailout-rich-connected/#ixzz17RkgauDR

Who else had a hand in OneWest and IndyMac?

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The acquisition is the latest in a string of failed bank purchases for the California-based OneWest, a federal savings bank formed by an investor group that includes billionaire George Soros and Dell Inc. founder Michael Dell.

According to a press release, under the terms of the transaction OneWest acquired $3.6 billion in assets, including $3.3 billion in loans, and $2.8 billion in deposits of La Jolla, as of Dec. 31, 2009. The FDIC and OneWest have entered into a loss-sharing agreement covering a majority of the acquired loans.

read more here - http://www.wnd.com/?pageId=126555
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WhiskeyGirl
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« Reply #1 on: December 07, 2010, 12:15:23 PM »

Privatizing profits, socializing losses on the backs of common people on Main Street.  What other secrets lurk at the Fed?

"The emergency response appears to any objective ******* to have been a clear case of socialism for the rich, and rugged free market capitalism for everyone else," Senator Sanders wrote in his letter to Mr. Bernanke.

Read more: http://www.foxbusiness.com/markets/2010/12/07/federal-reserves-bailout-rich-connected/#ixzz17RmTKEzP
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WhiskeyGirl
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« Reply #2 on: December 07, 2010, 12:17:19 PM »

American workers have to compete in the global marketplace...

Americans need more college degrees to compete...

How do you compete when workers, self-employed, businesses are saddled with Obamacare?  Paying for unending bailouts, unemployment, financial conflicts of interest?

A government in Washington that isn't 100% against you, they're just for the rich, wealthy, elite globalists?
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WhiskeyGirl
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« Reply #3 on: December 07, 2010, 12:21:48 PM »

How many of those who use the Fed's money lose on their investments if Americans get jobs?  If Americans build factories and produce the goods that are currently produced offshore?

How much do all these Fed investments lose if Main Street get's a job?  A business?  An opportunity to prosper?

Is it fair, that Chinese workers get jobs, cars, highway, and a state of the art living standard when Americans get to pay for it?
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WhiskeyGirl
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« Reply #4 on: December 07, 2010, 02:35:16 PM »

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...Turns out, not only did billions go to European banks…billions more went to firms in the US that pretended they needed no help.

Goldman Sachs, for example.

Goldman went to the Fed 212 times between March 2008 and March 2009, according to Fed documents. It collected nearly $600 billion.


Morgan Stanley. GE. Citigroup. They were all in on it.

The Fed put out $3.3 trillion worth of credit, buying up speculators’ bad bets. Not surprisingly, the price of the bad credits rose. So that now the Fed can say it hasn’t lost a penny.

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Let’s imagine that instead of banking and speculating…Goldman was a cabbage grower. And let’s say Goldman overdid it. It planted far too much cabbage. The price dropped…and Goldman was on the verge of bankruptcy. So, in comes the Fed…and buys cabbage by the boatload. And what do you know? The price of cabbage goes up. So, the Fed then looks in its warehouse and it finds it owns tons of cabbage. It multiplies the price of cabbage by what it has in inventory. Wow! It hasn’t lost a penny!

The feds are supposed to pursue corrupt operators. But now the feds are at the center of the racket. Talk about infamy? Now, it’s right here at home…

How does the racket work?...The Fed hands out money to its powerful cronies.
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Remember, the Fed is a private bank. It serves what is supposedly a public purpose. But it is neither owned nor controlled by the government. Instead, it’s part of the banking industry. Its official role is to give the US a trustworthy currency…and (more recently) to promote full employment. You can see how well it fulfilled the fist part of its mission. Consumer prices are up about 33 times since the Fed was formed in 1913.

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The Fed’s real mission now is to make sure the banks stay in business and make a profit. This it does in the simplest way – by transferring money to the banks. How does it get the money? It just prints it up. Who pays the bill? Eventually, taxpayers and citizens…when this new money reduces the value of their old money.

Read more: The US Federal Reserve: A Bank that Will Live in Infamy http://dailyreckoning.com/the-us-federal-reserve-a-bank-that-will-live-in-infamy/#ixzz17SKW1qvu

Wow.  Billionaires  at big banks and big companies WANT to pay higher taxes.  They get billions, what exactly did they do with those billions?  And, how much do they make after taxes?
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« Reply #5 on: December 07, 2010, 02:37:18 PM »

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“There are startling examples of massive levels of financial assistance to foreign governments and banks under these programs,” Sanders said in the letter. “At a time when hundreds of thousands of Americans have had their jobs shipped to Mexico, why did the Federal Reserve extend over $9.6 billion to the Central Bank of Mexico?”

more here - http://www.bloomberg.com/news/2010-12-06/sanders-asks-bernanke-for-more-information-on-bailouts-after-data-release.html
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It doesn't do any good to hate anyone,
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« Reply #6 on: December 07, 2010, 02:44:01 PM »

The F Word: The big float’s a big scam

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WikiLeaks may be the biggest information explosion, but last Wednesday’s mammoth release of documents pertaining to the Fed’s bank bailout program could well spark the most outrage -- at least among those not fortunate enough to head a firm on Wall Street.

The Federal Reserve, we know, floating cash all over the place in the cold months of ’08 and ’09. But not just to Wall Street. Apparently Harley-Davidson and Verizon were also “too big to fail.”

...

Some of the biggest users of the Fed’s expanded lending were Goldman Sachs...Goldman hit up the Fed 84 times to borrow nearly $600 billion. GE, parent company of NBC, got $16 billion from the Fed -- all this, let us not forget, while credit for the rest of us was frozen over.

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Senator Bernie Sanders of Vermont, who wrote the provision requiring these disclosures, noted that the Fed could have forced the companies they helped to restrict executive pay and lighten the burden on mortgage holders. But they didn’t. Instead, the Fed loaned out trillions while families lost their homes. Some $3.3 billionin taxpayer cash went to private banks abroad, while half a million Americans a month were losing their jobs.

http://onlinejournal.com/artman/publish/article_6662.shtml

Bush tax discussions a cover for this news?  Unemployment a cover for this news?

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WhiskeyGirl
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« Reply #7 on: December 07, 2010, 02:46:36 PM »

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If there’s a lesson to be learned from the Fed’s bombshell, it’s that a lack of disclosure usually means there’s something to hide. In this case, we found out Barclays PLC /quotes/comstock/13*!bcs/quotes/nls/bcs (BCS 16.79, +0.10, +0.60%)  and UBS AG /quotes/comstock/13*!ubs/quotes/nls/ubs (UBS 15.86, +0.09, +0.57%)  also borrowed, a disclosure that irked Sen. Bernie Sanders, a Vermont Independent, who called the aid “astounding,” and bristled at the notion banks weren’t asked by the Fed to rebuild the economy.


Sen. Bernie Sanders (I-Vt.).

“How many Americans could have remained in their homes,” asked Sanders, in The Progressive. “if the Fed required these bailed-out banks to reduce mortgage payments as a condition of receiving these secret loans?” Read Sanders’ comments on Fed aid.


more here - http://www.marketwatch.com/story/mind-boggling-losses-at-the-banks-2010-12-06?reflink=MW_news_stmp
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WhiskeyGirl
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« Reply #8 on: December 07, 2010, 02:51:13 PM »

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Morgan Stanley got nearly $2 trillion. Citigroup got $1.8 trillion. Goldman Sachs got $600 billion.

Not only that, the Fed threw money at some of the biggest corporations in the land, including Caterpillar, General Electric, McDonald’s and Verizon.

I'm still waiting for my billion dollar bailout...maybe the check / tax holiday is in the mail?

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These were loans with no interest, or almost no interest, at a time when American consumers and small businesses couldn’t find loans to save their lives.

How many became homeless?  How easy would it be to buy a house or car with no or almost no interest financing?

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Even though the U.S. banks that got the easy loans held most of the country’s mortgages and credit cards, the Fed never insisted that they reduce the principal on their mortgages or the interest rates on the credit cards.

Wow...we did get that awesome financial reform bill.  Anyone saved from their credit card or mortgage interest yet?

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Sanders smells a rate. “I suspect a large portion of these near-zero interest loans were used [by the banks] to buy Treasury securities at a higher interest rate,” he said, thus “providing free money to some of the largest financial institutions in this country on the backs of American taxpayers.”

more here - http://www.progressive.org/wx120310.html

How much of this money was used to move jobs to Mexico?  China?  South Korea?

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WhiskeyGirl
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« Reply #9 on: December 07, 2010, 03:11:28 PM »

Federal Reserve, Goldman, and the price of energy on Main Street.

With Obama having pledged to bankrupt energy companies, why would Goldman be an advisor?  Morgan?

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AGL Resources will buy Nicor Inc for about USD 2.4 billion in cash and stock to expand its natural gas distribution business in the United States.

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The deal is expected to be neutral to AGL Resources' earnings in the first full year following the close and add to earning thereafter, the companies said in a statement.

After the completion of the deal, expected in the second half of 2011, AGL Resources shareholders will own about 67% of the combined company.

Goldman Sachs & Co is acting the financial adviser for AGL Resources while J.P. Morgan is advising Nicor.

What exactly does Goldman get out of the deal?  Money lender?

more here - http://www.moneycontrol.com/news/world-news/agl-resources-to-buy-nicor-for-3624-bn_503849.html

NICOR website - http://www.nicor.com/en_us/nicor_inc/

NICOR supplies gas to Main Street and business in Northern Illinois.

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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
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