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Forum Post: Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts.

Posted 12 years ago on Nov. 28, 2011, 1:58 p.m. EST by top40oldies (0)
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The first ever GAO(Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Lawl, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill(HR1207), so that a complete audit would not be carried out. Ben Bernanke(pictured to the right), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning.

What was revealed in the audit was startling:

$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious - the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.

To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is "only" $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is "only" $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world.

In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.

"This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else." - Bernie Sanders (I-VT)

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Lawl(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and supercorporations like Halloween candy. If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses will eventually plunder the world economy.

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve(July 21st, 2011): http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

Source: http://www.gao.gov/products/GAO-11-696 FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf Senator Sander’s Article: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3



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[-] 1 points by OccupyNews (1220) 12 years ago

It should be noted that this story is over a year old. Just sayin.

Doesn't make it any less acceptable and if you missed it the first time, than its news anyways.

[-] 1 points by justanobserver (29) 12 years ago

Surprising omits Bank of England and the National Bank of France or in some hidden formula in the equation?

[-] 1 points by jaktober (286) from Sonoma, CA 12 years ago


[-] 1 points by OccupyNews (1220) 12 years ago

This just proves my point that charging excessive interest rates to consumers is a scam. Excessive interest rate charges actually help start wars because it forces everybody to work extra hours and consume additional resources that we then must go to war over, just to pay off an arbitrary interest rate TAX.

[-] 1 points by jimmycrackerson (940) from Blackfoot, ID 12 years ago

Is there anyone prosecuting?

and when do I get my bailout?

[-] 0 points by fjolsvit (957) from Washington, DC 12 years ago

You have to get arrested before you get your bail out. If we keep asking questions and someone will get prosecuted. Unfortunately, it will more likely be us than them. So, there, you get your prosecution and your bailout. Assuming you know someone willing and able to spring you, and you are not held as a "terrorist".

[-] 1 points by justanobserver (29) 12 years ago

By the way the Dexia Bank is a big scandal in Belgium (bankrupted many small private investors and several municipalities). So when you mention Dexia as the Belgian bank of all places, the bank problems have seriously affected the Belgians too, so the money did not go out to bail the bank but landed elsewhere??

A sellout by some "reputed" politicans to corruption.

Furthermore Standards and Poor degraded Belgian's credit worthiness and guess what the Belgians bought Belgian government bonds en masse. S&P??

Then the government instead of selling more bonds to its citizens went on to get 2 Billion euros in the "open" financial markets. What irony after so many bogey scares from the rating agencies and politicans. Belgians are responsible and good citizens, it's a shame what politicians can do to a country.

[-] 1 points by WeMustStandTogether (106) from Newark, NJ 12 years ago

Thanks for the link. No wonder prozac sales r up. Peace.

[-] 1 points by belltor (60) 12 years ago

and you the tax payer picked up the tab

[-] 1 points by WeMustStandTogether (106) from Newark, NJ 12 years ago

You sound very chirpy about it. Peace.

[-] 1 points by belltor (60) 12 years ago

not so chirpy just matter of fact and a very bad fact at that

[-] 0 points by fjolsvit (957) from Washington, DC 12 years ago

Here's Eliot Spitzer saying that the Fed is a Ponzi scheme.