Largest Banks Likely Profited By Borrowing From Federal Reserve, Lending To Federal Government

  • Posted by a hidden member.
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    Apr 27, 2011 3:18 AM GMT
    "A newly-released study from the Congressional Research Service bolsters claims that the nation's largest banks profited off the Federal Reserve's financial crisis-era programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.

    The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended. ..."

    http://www.huffingtonpost.com/2011/04/26/fed-lending-helped-wall-street_n_853884.html
  • musclmed

    Posts: 3279

    Apr 27, 2011 3:32 AM GMT
    Caslon18000 said"A newly-released study from the Congressional Research Service bolsters claims that the nation's largest banks profited off the Federal Reserve's financial crisis-era programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.

    The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended. ..."

    http://www.huffingtonpost.com/2011/04/26/fed-lending-helped-wall-street_n_853884.html


    Yes I alluded to this a few weeks ago.

    Lets see what happens when Geitner testifies again in front of Congress, and if the Democrats will again try to protect him on the Oversight committee.

    Its the biggest grand theft in the history of the world.

    Scooter Libby's story lasted weeks in the NY times. Lets see how much coverage this gets in the press.

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    Apr 27, 2011 3:46 AM GMT
    Anyone know what the Obama Administration has said it plans to do about this? Any comments from Giethner or anyone else on this subject?

    This is just one more example of the bullshit that's gone on to save the rich while sending mainstreet America down the tubes, and you watch, no one will be prosecuted for any of this. Let one of our level of income do anything like this bunch of bankers have done and jail would be our reality, Hell a $50,000 dollar trick on our part like these bankers have done would put us into jail, but if you do it with half a billion to several billion, oh well that's OK, cause billionaires are intitled !!! The System is fucked up !!!
  • musclmed

    Posts: 3279

    Apr 27, 2011 4:17 AM GMT
    This is a cross partisan issue.

    Both parties are involved.

    Citizen United btw has nothing to do with this because Goldman-Sachs really doesn't care which party is involved, it gets what it wants no matter what.

    To sum it up, they took money that didnt belong to them, and lent it back to the US Government.

    If you are a believer in conspiracy theories,
    if say a group of banks created a crisis
    ( or didnt do much to avert one knowing they would get help)
    waited for real commodities to tank, then bought up the commodities/tangible assets. Gold, property and commodity futures.

    They could hand all the debt to the citzens ( the ones who pay income taxes) 0-1million dollar earners.

    Then allow us to argue amongst ourselves, and pick at the leftovers and argue over tax policy.

    anything under 1million isnt rich. The rich don't pay income taxes.
    They create asset corporations and pay themselves via perks and services.

    If it makes you feel good for a 300k earner to pay a few thousand dollars more a year, know that the bankers are all laughing at us.
    At least if a high earner pays less in taxes, there is a reasonable chance that person will spend the money and keep the country going.

    The ultra-rich banker gets paid via monetary policy. This is out of the reach of the US congress, the federal reserve is involved. They NEVER LOOSE and always win.


    They bankers are dumping treasury bonds now, After they borrowed the money for us, and repositioned there portfolios.