Well, the Federal Reserve has now revealed where some,
not all, of the 3.3 trillion dollar bail out has gone. The recipients may
surprise you. No doubt there will be further calls for an audit of the
central bank as well as a few calls for its closure as a result of these
"But the extent of the lending to major banks - and the
generous terms of some of those deals - heighten the political peril for a
central bank that is already under the gun for a wide range of actions,
including a recent decision to try to stimulate the economy by buying $600
billion in U.S. bonds.
'The American people are finally learning the incredible
and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall
Street and corporate America,' said Sen. Bernard Sanders (I-Vt.), a longtime
Fed critic whose provision in the Wall Street regulatory overhaul required the
new disclosures. 'Perhaps most surprising is the huge sum that went to bail out
foreign private banks and corporations. As a result of this disclosure, other
members of Congress and I will be taking a very extensive look at all aspects
of how the Federal Reserve functions.'
The Fed launched emergency programs totaling $3.3
trillion in aid, a figure reached by adding up the peak amount of lending in
each program. "
For example: "The Fed then purchased commercial paper
issued by GE 12 times for a total of $16 billion. It bought paper from
Harley-Davidson 33 times, for a total of $2.3 billion. It picked up debt issued
by Verizon twice, totaling $1.5 billion."
How amazing it is that some favored private
companies get billions of tax dollars, while others are left to fail, all
without oversight or the approval of the taxpayer!
Here is a link
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TexasLawyerBlog.com, a blog by Michael McBride