$4 trillion conflict of interest: Investment bankers on Fed boards

Published on Intrepid Report, by Jerry Mazza, June 29, 2012.

Who else but Independent Vermont Senator Bernie Sanders would have the courage to blow the whistle on the $4 trillion Fed scam involving near zero-interest Federal Reserve loans and other financial assistance that went to banks and businesses of at least 18 current and former Federal Reserve regional bank directors in the aftermath of the 2008 financial collapse, all documented in the Government Accountability Office records?

It was on the eve of Senate testimony by JPMorgan Chase CEO Jamie Dimon, on June 13, that Sanders released the detailed findings on Dimon and other Fed board members whose banks and businesses benefited from Fed actions. The GAO data also appeared at ReadersSupporedNews.org RSN.

RSN reports, “A Sanders’ provision in the Dodd-Frank Wall Street Reform Act required the Government Accountability Office to investigate potential conflicts of interest. The Oct. 19, 2011 report by the non-partisan investigative arm of Congress laid out the findings, but did not name names. Sanders today released the names.

“This report reveals the inherent conflicts of interest that exist at the Federal Reserve. At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks. These conflicts must end,” Sanders said … //

… “During the financial crisis, at least 18 former and current directors from Federal Reserve Banks worked in banks and corporations that collectively received over $4 trillion in low-interest loans from the Federal Reserve.” Here are more of the dual identity bankers: … //

… For more banks, names, and company information that the GAO information provides, click here to see the Senate PDF. The information is an indictment of the Fed’s practice, loaning interest-free funds to investment banks and other corporations whose officials sat on Fed Bank Boards as well.

Perhaps four questions need to be asked. Why wasn’t the Glass-Steagall Act reinstated? Two, why hasn’t Clinton been asked to explain why he repealed it? Three, when do we overhaul or eliminate the Fed? Four, when do we say thanks to Bernie? (full text).

(Jerry Mazza is a freelance writer, life-long resident of New York City. An EBook version of his book of poems “State Of Shock,” on 9/11 and its after effects is now available at Amazon.com and Barnesandnoble.com. He has also written hundreds of articles on politics and government as Associate Editor of Intrepid Report, formerly Online Journal. Reach him here).

Links:

Currency Ideals: By Sell on News, a global macro equities analyst, Cross-posted from Macrobusiness, by Yves Smith, June 30, 2012.

More on ACA Decision: A Dark Cloud on a Sunny Day, by Yves Smith, June 30, 2012: Yves here. This post amplifies Lambert’s key concern about the Supreme Court decision on the Affordable Care Act, that it would curtail Congress’ ability to pass social welfare laws, and facilitate the continuing rollback of New Deal protections …

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