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alp227 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-30-11 10:04 PM
Original message
Wall Street Pushed Federal Reserve for Europe Action
Edited on Wed Nov-30-11 10:10 PM by alp227
Source: Wall Street Journal (Google the title for full article.)

Wall Street executives, in a private meeting with a top Federal Reserve official in late September, recommended a coordinated effort by central banks to remedy the European financial crisis, according to Fed documents received in an open-records request.

The meeting, led by Louis Bacon, founder of hedge fund Moore Capital Management, preceded a joint action Wednesday by the world's major central banks, which banded together to provide liquidity to the markets through cheap U.S. dollar loans.

Wednesday's moves involved central-bank coordination to lend to European banks, and it couldn't be determined what precisely prompted the Fed and the other central bankers to act. In the September meeting, the Wall Street executives suggested a different kind of coordination by central banksboosting the global economy by buying securities or through other methods of injecting liquidity. Coordinated lending to European banks wasn't among their suggestions.

But analysts say Wednesday's broad stock-market rally was partly fueled by investors' expectations that central banks will do more to ease the crisis, such as the kind of central-bank coordination recommended by the members at the September meeting.

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solarman350 Donating Member (24 posts) Send PM | Profile | Ignore Wed Nov-30-11 11:19 PM
Response to Original message
1. Now, Do Ya'll Understand the Occupation Movement?
Need more info?

Here's the "Dry Run" for the Wall St. Takeover of the Central Banks of the World:
While the nation's largest banks were publicly reassuring nervous investors of their stability during the height of the financial crisis, they were also quietly approaching the Federal Reserve, hat in hand. The total price tag: $7.77 trillion, many times the amount of the better-known TARP bailout.

The magnitude of the government's assistance to struggling banks allowed them to grow even bigger and continue paying executives billions in compensation, a report in Bloomberg Markets January issue said Monday.

A win in court against a group representing the banks and a FOIA request filed by Bloomberg LP revealed the extent of the central bank's largesse as well as the $13 billion in profits banks earned from those bailouts. The so called "big six" JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley accounted for $4.8 billion of that total nearly a quarter of their net income during that time.

Those borrowed trillions were a deeply-buried secret. It appears that even high-ranking Fed officials didn't know about the scale of the handouts. According to Bloomberg, then-president of the Federal Reserve Bank of Minneapolis Gary H. Stern wasnt aware of the magnitude, and unnamed sources say that even top aides to Treasury Department head Henry Paulson were kept in the dark.

The six biggest banks in the country received a total $160 billion in TARP funds, but as much as $460 billion from the Fed, raising the question as to how and why this nearly $8 trillion in loans, guarantees and limits remained under wraps for so long. According to the Fed, the massive scale of banks' borrowing and the red ink that prompted it had to be kept secret to avoid spooking investors and prompting a panic or bank runs that would have had even more devastating consequences on the shaken economy.
you tube dot com/watch?v=oUpXDZFtEHw
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DallasNE Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-01-11 12:25 AM
Response to Reply #1
3. Regulatory Oversight
I happen to believe that there is merit to the concept of too big to fail. Doing nothing would have started another Great Depression. That doesn't mean that things were handled properly. They weren't. We previously knew that Hank Paulson did not have controls in place and one of Obama's first tasks was to establish some controls. What happened here happened on Paulson's watch. Bernanke also was in on this. He is required by law to testify before the Banking committees regarding activities of the Fed, including what comes next. Now if he was worried about panic in the markets he could have requested to speak in private with the Congressional leadership to request that a portion of the meeting be behind close doors. He never went that route. And nobody can claim that Paulson didn't know what was really happening under his watch. After all, he called his buddies to tip them off with his insider information, saving their bacon to the tune of several hundreds of millions of dollars.

The remedy for too big to fail is to break up the giant banks like Standard Oil was broken up many decades ago. And then to regulate their activites so linkages are not allowed to happen whereby a domino effect can occur. That way if somebody got too greedy they would go down but not bring everything else down with them, such as we were facing if no action took place.
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benld74 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-30-11 11:20 PM
Response to Original message
2. Good luck with that,,,,,
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defendandprotect Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-01-11 02:02 AM
Response to Original message
4. kr
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fasttense Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-01-11 05:56 AM
Response to Original message
5. So much for the independence of the Fed
It seems the only independence the Fed has is from We The People.

Wall Street banksters, in a secret meeting of course, basically laid out the plans Good Old Boy Ben would later implement.

The oligarchy has it's fingernails firmly digging into the neck of our nation. And it ain't done strangling us yet.
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Hotler Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-01-11 08:36 AM
Response to Original message
6. Fucking banksters. n/t
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SOS Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-01-11 11:03 AM
Response to Original message
7. Watertight doors ordered shut by Captain Smith
Sinking of Titanic delayed by an hour.
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