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Why Your Vote Is Worth Exactly Squat #2

20 Jun

Again Sourced from a piece at Erica Payne_The Daily Agenda:

Sen. Bernie Sanders gave anti-TBTF advocates a huge boost today as he unleashed records from the Government Accountability Office (GAO) that demonstrated a clear conflict of interest between Wall Street and the Fed. These records show that more than $4 trillion in near zero-interest Fed Reserve loans and other financial assistance were handed to the banks and businesses of at least 18 current and former Federal Reserve regional banking directors in the wake of the 2008 financial crisis.

Sanders issued these findings as part of a requirement of the GAO’s investigation. A previous report on Oct. 19, 2011 indicated some of these findings already, but it wasn’t until Sanders’ recent unveiling that the names were made available.

As Sanders said:

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.

We should have be clued into this already. Remember one salient case, when the NY Fed paid AIG’s partner, including Goldman Sachs, 100 cents on the dollar to tear up their contracts with the insurance giant. This latest report confirmed that having CEOs from the banking industry serve on the Fed Reserve’s board of directors posed a “reputational risk” to the Federal Reserve System, compromising the basic duty of the Fed as explicitly spelled out by their Guide of Conduct.

In Dimon’s case, JPMorgan received “some $391 billion of the $4 trillion in emergency Fed funds,” all while the bank was being utilized as a “clearinghouse for emergency lending programs.”

What’s informing: General Electric CEO Jeffrey Immelt was a New York Fed board member while GE was simultaneously helping to create a so-called “Commercial Paper Funding Facility” during the crisis. Immelt, you’ll recall, eventually resigned from his post because GE Capital would be regulated by the Fed “as a systemically important financial institution.” This is an unavoidable precedent, one Bernanke should bring to bear on Dimon.

It should be amply clear by now that Jamie Dimon ranks right up there with Mitt Romney as one of the gravest ever threats to democracy and freedom in the United States.  Are you STILL going to vote straight Republican in November Bubba?

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Posted by on June 20, 2012 in Uncategorized

 

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