A little Alan Grayson on the fed’s trillions of bank loans.
The newly discovered trillions loaned to the banks are not related to the TARP money and had no strings attached to it like TARP did. Grayson says every man, woman, and child in America paid almost $100,000 to the banks.These same banks then lobbied to keep regulations at bay. They got bailed out by our money and we got sold out by them.
Remember when we bailed out the banks but they didn’t tell us which banks needed the help, because they wanted to protect the banks. Tens of billions of dollars in loans were also used by the banks in emergency loans that were kept a secret. Yes, you recall them telling us that they were solid so that their investors didn’t pull out. Well, on top of all of that, they also took advantage of the fed’s lower rates.
Former U.S. Rep. Alan Grayson (D-FL) tells Keith how an audit of the Federal Reserve shows that the agency “play[ed] Russian roulette” with the U.S. dollar over the course of more than $26 trillion worth of bank bailouts.
Grayson points out that we paid almost $100,000 per man, woman and child in America to bail these banks out without any congressional authorization. We paid them $100,000 and they can’t cut us a break. They wouldn’t even be in business if it weren’t for the American taxpayer. The fed also played favorites with the institutions (goodbye free market claims).
The banks at issue, courtesy of Bloomberg, which filed the freedom of information request:
The six — JPMorgan, Bank of America, Citigroup Inc. (C), Wells Fargo & Co. (WFC), Goldman Sachs Group Inc. (GS) and Morgan Stanley — accounted for 63 percent of the average daily debt to the Fed by all publicly traded U.S. banks, money managers and investment- services firms, the data show. By comparison, they had about half of the industry’s assets before the bailout, which lasted from August 2007 through April 2010. The daily debt figure excludes cash that banks passed along to money-market funds.
We wouldn’t know any of this if Bernie Sanders hadn’t pushed for the audit and Bloomberg hadn’t won a court case against the Fed and a group of the biggest banks. The Supreme Court rejected the bankers appeal in March 2011 (shocking, eh?).
Forbes reported in September:
It is the first audit of the Fed in United States history since its beginnings in 1913. The findings verify that over $16 trillion was allocated to corporations and banks internationally, purportedly for “financial assistance” during and after the 2008 fiscal crisis.
Sen. Bernie Sanders (I-VT) amended the Wall Street Reform law to audit the Fed, pushing the GAO to step in and take a look around. Upon hearing the announcement that the first-ever audit would take place in July, the media was bowled over and nearly every broadcast network and newspaper covered the story. However, the audit’s findings were almost completely overlooked, even with a number as high as $16 trillion staring all of us in the face.
And they say Occupy Wall Street is class warfare? They say Occupy hates capitalism? Is THIS what they call capitalism, because it sure looks like the feds played favorites with our money and that is not the free market.
We bailed out the banks to the tune of trillions of dollars and they turned right around and screwed Americans who were suffering from the very same economic collapse brought on the by the very banks those same Americans had just saved with their money. This nightmare just keeps getting worse. This time it was done without congressional oversight. All of this time, the banks have been smugly lobbying for less regulations and shaming Americans who can’t pay their mortgages, and their puppets have been selling “shared sacrifices” to the American people and they knew that there were no shared sacrifices.
They knew that no American citizen could turn to the fed and ask for a bail out or a loan at the rates the banks were getting. No mom and pop could take their tale of woe to the fed, because the fed played favorites and the big banks won, ostensibly because they were “too big to fail” but if everyone knew that, then why didn’t they admit that there was a problem instead of pushing to get bailed out in secret? They knew that their mantra about capitalism was a big lie, but they shamed the 99% with their accusations of laziness and poor money management. The hubris is simply inconceivable, as is the obvious lack of conscience.
And they wonder why we’re angry. This isn’t capitalism and even conservative outlets like Bloomberg and Forbes know this is an outrage and a bastardization of the free market system conservatives champion.
Everyone is on to the big scam now. The question is, will any of our representatives who have the spine to suggest regulations get support from their colleagues?