TheAgitator.com
Feds Already Bucking Bailout Transparency
Monday, November 10th, 2008The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.
[...]
The Bloomberg lawsuit argues that the collateral lists “are central to understanding and assessing the government’s response to the most cataclysmic financial crisis in America since the Great Depression.”
The Fed has lent at least $81 billion to American International Group Inc., the world’s largest insurer, so that it can pay obligations to banks. AIG today said it received an expanded government rescue package valued at more than $150 billion.
The central bank is also responsible for losses on a $26.8 billion portfolio guaranteed after Bear Stearns Cos. was bought by JPMorgan.
“As a taxpayer, it is absolutely important that we know how they’re lending money and who they’re lending it to,” said Lucy Dalglish, executive director of the Arlington, Virginia- based Reporters Committee for Freedom of the Press.
[...]
The Fed’s collateral “absolutely should be made public,” said Mark Cuban, an activist investor, the owner of the Dallas Mavericks professional basketball team and the creator of the Web site BailoutSleuth.com, which focuses on the secrecy shrouding the Fed’s moves.
Back in September, I warned that no matter how bad the behavior on Wall Street, it’s laughable to think the debt-saddled, asset-hiding federal government has the wherewithal to properly identify and fix the problem.
You should proceed the title with “To the surprise of absolutely no one…”
[...] Via Radley Balko. [...]
Even worse than the lack of oversight, Treasury changed elements of the tax code to facilitate the bank mergers, without Congressional oversight (you know, those people who make the laws).
” discrete notice recently issued by the Department of the Treasury disclosed a change to Section 382 of the tax code. The little publicized modification will allow banks to reap massive rewards for mergers, according to a report in The Washington Post.”
“Twelve different tax experts interviewed by WaPo opined the Treasury lacked authority to make the ruling. One of them, Candace Ridgway, said it shocked the tax community. “It was a shock to most of the tax law community. It was one of those things where it pops up on your screen and your jaw drops. I’ve been in tax law for 20 years, and I’ve never seen anything like this,” Ridgway told the Post.
See Washington Post, or for those without an account, http://www.thestreet.com/story/10447030/1/quiet-tax-change-boosts-bank-ma-report.html?puc=googlen&cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA
Sorry, that should have read “even worse than a lack of transparency, they are actually making changes to the tax code that exceed their legal powers”
What the h— does anyone expect? We are talking about crooks and politicians here, although there is no real difference between them. Until people wake up and understand the real governmental system we have, the inmates will run the sanitarium.
Since Congress has no authority to even spend money in this mannre, why should they bother to provide for management and transparency. We have no graft or corruption in the US. That’s for third world countries.
Dominus providebit
You’re all missing the point. We had to act immediately, no matter what. It was necessary. And for the children. Resistance is futile. Go ObaMcCain!!!! Good times.
The first “economic stimulus package” was buying us dinner, and the bailout is fucking us in a very uncomfortable place. We could say “at least they bought us dinner,” but then we look in our wallets and realize whose money they spent on it. And someday soon, the people who voted for Obama or McCain are going to wake up, look around and ask “why does my ass hurt?”
By the time they wake up and ask why it hurts they’ll realize their hands and feet are bound and gool ‘ol uncle sam is coming in for another helping of tenderloin.
The only thing we can hope for is that this is the last gasp for FDRism, the time that they push it too far for us to let it go so long again.
The Fed is transparent in that it is subject to the oversight of
Congress. Is twice a year not fast enough? The intent of Congress in
shaping the Federal Reserve Act was to keep politics out of monetary
policy. Legislation requires that the Federal Reserve reports annually
on its activities to the Speaker of the House of Representatives.
http://nomdeals.blogspot.com
I worry it all went to that Nigerian Prince I keep getting emails about.
Guys, isn’t ANYONE tracking those tax breaks for children’s wooden arrows?!
How surprised will you be when in x number of years when we have a well-researched report from a libertarian thinktank revealing every bit of the $3 trillion (yes, I wrote $3 trillion) paid out as part of the bailout was wasted/ineffective?
It’s front page on Digg…digg it up
A FRIEND SENT THIS SUPPOSEDLY FROM THE BARNES REVIEW. WHAT DO Y’ALL THINK?
Barnes Review Re: Global Elite
Rothschild Empire will be the big winner financially, while the American people will be among the big losers.
The Global Elite
Does anyone read The Barnes Review? Http://www.barnesreview.ORG/
Has anyone ever heard of it?
If you’re interested, you might want to start watching it. Reason to follow
So what?
The financial crisis we’re experiencing today is based on the derivative implosion. That much is clear–and it’s bad, outrageously bad. But what’s the political maneuvering on the world’s stage behind the scenes?
The European Rothschild Banking Empire vs. The Rockefeller Empire
These two empires are waging war, and the financial destruction we’re seeing is the direct result. The Rockefeller/Bush/Cheney faction had a massive debt come due on Sept 30, 2008. Knowing full well the Bush faction couldn’t pay for it, this moment in history was chosen to confront them–so The Rothschilds demanded payment. As you know by now, this has been much more than a slap on the wrist. This financial crisis is real. The other power centers of the world have essentially joined hands and are fighting to defeat this Bush faction. Supposedly, the world does not want to crash the American people economically but they know they have to hurt it badly to get to the Bush dynasty. That’s one aspect.
Another angle comes from the war/skirmish/fighting in Georgia in August 2008. Remember that? The Bush faction along with Israel using Georgia as a base and wanting to hide under the cover of the Olympics, planned to start a war with Iran. But what happened? Russian Intelligence somehow intercepted this plan to attack Iran, and had a significant force in hiding, waiting to attack at a crucial moment. In other words, Georgia, the Bush/USA/CIA, and Israel were caught with their pants down, and had to make an extremely hasty retreat. In the process of running away from their positions, the CIA left behind complete documents of practically everything–information so astounding, you wouldn’t believe what they contain–or so I’m told.
So what?
The Russians are expected to release that information to the world–a real eye opening experience for sure. Evidently, one of the sites chosen for this release is The Barnes Review. No one knows yet exactly when the Russians will release the documents to the world, but most of the gov’ts of the world already know about it. The speculation is that the information will be released when the 50+ year Bush dynasty has been brought to their knees. Most think this will occur before the election–which will ensure Obama’s victory. Have you noticed McCain’s demeanor/body language in the last two weeks–one of defeat. He already knows all this and that he’s lost the election because of it. This could be the reason why both baby bush and Cheney have been eliminated in the decision process.
My guess is the financial problems in the US will continue until this battle of empires is over. The ramifications of this event will change history. No, it’s already changed history. A massive re-distribution of wealth is
happening before our eyes! The Rothschild Empire will be the big winner financially, while the American people will be among the big losers.
The only thing transparent in DC are the politicians…see right through them bastards.
but remember … if you vote for Obama, the country will become socialist …
HTH does Bush sleep at night? or Paulson? or any of these people?
The problem was created by government.
It is axiomatic that the solution to a problem cannot be that which created it.
The solution is no government.
QED