The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans

[mirror wall]

I already posted this in GD, but thought it belonged here as well. It's really too bad that it's more than 12 hours old since I think it should be posted to Latest Breaking (since it wasn't posted there within that timeframe after it was published). This needs to be spread as far and wide as possible. Your money has gone down the rabbit hole. There's no disclosure on what happened to it. Bloomberg News has filed suit to try to get them to state what's going on, but has so far been unsuccessful.

Here are a few choice quotes from the article
http://www.bloomberg.com/apps/news?pid=20601087&sid=aatlky_cH.tY&refer=worldwide:

"The 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 Fed's lending is significant because the central bank has stepped into a rescue role that was also the purpose of the $700 billion Troubled Asset Relief Program, or TARP, bailout plan -- without safeguards put into the TARP legislation by Congress.

Total Fed lending topped $2 trillion for the first time last week and has risen by 140 percent, or $1.172 trillion, in the seven weeks since Fed governors relaxed the collateral standards on Sept. 14. The difference includes a $788 billion increase in loans to banks through the Fed and $474 billion in other lending, mostly through the central bank's purchase of Fannie Mae and Freddie Mac bonds.



``It's your money; it's not the Fed's money,'' said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. ``Of course there should be transparency.''

[aquart]

1. Waterboard them till they tell.

Bush is still president so it's still legal.

[valerief]

8. LOL!!!! That's an instance of waterboarding I wouldn't object to!

:rofl:

[aquart]

10. Hey, as long as it's legal...

Of course, if we do it to them, it will get unlegal in about ten minutes.

[BrklynLiberal]

2. FOIA?

[Festivito]

9. Freedom of Information Act.

A process for requesting copies of government documents, usually including agreement to pay for copying costs up to a specified amount.

[Carolann]

3. This makes me...

...so darn mad, I'm shaking! It's unbelievable that the Dems in Congress haven't demanded accountability & oversight! What the heck is going on here? Do we just sit here yammering about all this crud going on and not do anything about it? For cripe's sakes...get on the phone; use your writing skills; start screaming; begin a campaign of bombardment; OR WHATEVER IT TAKES to get these rotten jerks off their butts and start using the Congresssional tools that are available to them!

Good God, I can't even see straight enough to write this! I know ONE thing: I start calling tomorrow!

[tama]

4. Dems in Congress

are just as much part of the scam as the other wing of the Party.

Why do you think people despise Congress even more than the President?

[Morpheal]

5. RELAXED COLLATERAL ? IF TRUE TOTAL MELTDOWN IS IMMANENT

Relaxing collateral standards, rather than tightening them and making lending strictly related to a maximum ratio in relation to real assets (rather than worthless paper assets), is a fatal error.

If that is true, and collateral standards, which were weakened already, have been significantly relaxed, there is an immediate need for
Congressional and Senate action to remedy the situation. That would include removal of some officials and their investigation for their
incompetence and further endangering of the entire system with total and irrevocable collapse.

I hope you are wrong, but if you are right, do the Senators know ? Does Obama know what is happening ?

Are they acting to remove those responsible to stop it from happening again and to recover wrongfully lent funds where collateral is now
inadequate for even the nominal recoveries that were anticipated from the previous collateral standards and the levels of bad debt involved ?

Your source is not always totally reliable so I am being very conjectural in this, but if true, the crap of the past few months of "crisis" has now
hit the proverbial fan, and will land on everyone and everything, particularly the presidency, the treasury and both houses of the legislature.

Robert Morpheal

[JohnWxy]

6. Recommended!

maybe some congressmen should get some emails about this. I thought the Government worked for the taxpayers.

[Canuckistanian]

7. How does the Federal Reserve make money?

By that I mean, where do they get the revenue stream to pay their employees?

Does the federal govt. pay them? Or do they just siphon off from the massive flow of money that goes through them every day?