First Audit Results In The Federal Reserve

[Camilo]

First Audit Results In The Federal Reserve’s Nearly 100 Year History Were Posted Today, They Are Startling!

Source: Sott

Rep. Ron Paul (R-Tex.) wins (again) the most significant victory of his congressional career. He has taken his pet issue since the 1970s–the unwarranted power and secrecy of the Federal Reserve–from something pretty much no one but him cared about six years ago, through a bestselling book and mass movement by 2009, the second time he’s gotten the House of Representatives to vote to widen the government’s powers to audit the Fed’s activities.

Huffington Post with details about the vote , and on Paul’s Democratic ally equally upset with the Fed’s lack of transparency, Rep. Dennis Kucinich (D-Ohio):

In a rare moment of bipartisanship, the House overwhelmingly passed a bill by Rep. Ron Paul (R-Texas) to audit the Federal Reserve.

The first ever GAO (Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill(HR1207), so that a complete audit would not be carried out.

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Ben Bernanke (pictured to the LEFT), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning.

What was revealed in the audit was startling:

$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious – the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.

To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is “only” $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is “only” $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world.

In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.

“This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”- Bernie Sanders (I-VT)

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and supercorporations like Halloween candy. If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses will eventually plunder the world economy.

The list of institutions that received the most money from the Federal Reserve can be found on page 131of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve (July 21st, 2011):

Federal Reserve Chairman Ben S. Bernanke participated in a live webcast of a town hall meeting with educators on Thursday, September 30, 2010 from 2:30-3:30 p.m. EDT. During this session, Chairman Bernanke answered teachers’ questions about the Federal Reserve and the economy.

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[Rocky_Shorz]

how much was given to Maiden Lane to buy US assets?

or is that still a secret?

[write4change]

every american should be sent a copy of this in black and white. thanks for posting this.

[Rocky_Shorz]

there are several Maiden Lanes...

Maiden Lane III LLC
(A Special Purpose Vehicle Consolidated by the
Federal Reserve Bank of New York)
Financial Statements for the Period
October 31, 2008 to December 31, 2008... link

Total liabilities and member's equity Value: 27,256,173,000

tip of the iceburg?

Maiden Lane LLC
(A Special Purpose Vehicle Consolidated by the
Federal Reserve Bank of New York)
Consolidated Financial Statements for the Period
March 14, 2008 to December 31, 2008...

2011 2010
Total liabilities and members' equity 17,819,827,000 23,582,899,000

the Fed reserve started an LLC out of Delaware;

Maiden Lane II LLC
(A Special Purpose Vehicle Consolidated by the
Federal Reserve Bank of New York)
Financial Statements as of and for the Years Ended
December 31, 2011 and 2010,..

Total liabilities and member's equity 9,257,201,000 16,456,861,000

[modwiz]

Posted by write4change (here)
every american should be sent a copy of this in black and white. thanks for posting this.

I agree with your sentiment. Sadly, about 85 per cent of recipients would pay no heed.

Save the trees.

[rgray222]

Camilo...........thanks for posting. I think Ron Paul has done a lot to bring the issue of the Federal Reserve to the forefront but it seems that the world is not ready to take action or for that matter to even attempt to understand the damage that the federal reserve has done around the world. When people talk about the allusive powers that be they fail to point their finger consistently and unanimously at the Fed. When the protesters protest, whether it be the tea party or the 99% they have identified the what (spending, reckless printing of money, bankers and wall street getting richer) but they fail to identify the who. Without doubt and without question the who is a small handful of people running the central banks. They have literally and figuratively gotten away with murder. They may not have taken a gun out and shot people but they have done much worse, they have held the finances of many third world and second world countries hostage for decades. They are like a generational credit card that will never be paid back. No matter how well intentioned a third world government may be they stand no chance as long as the fed is around.

When you take away hope from people the only alternative is anarchy and we have seen that around the world for generations.

Of course there is no shortage of articles in the mainstream media about how much we need the fed, I am not sure why they persist on this path but they have failed to wake up and take notice of the truth. Fortunately the internet has put a hefty chink in the feds armor and this will grow over time providing the internet stays access free and open without controls. When we see efforts to control the internet and all sources of online money you can be 100% sure the fed is behind the effort.

If people would take the time to read the real history of the fed, how it got started and who they report to they would be shocked. When people read the terminology describing the fed as a "quasi government organization" it implies that they have something to do with the government, nothing could be further from the truth. In very simple terms the fed charges citizens for the use of their own money, can you only imagine! These people are like gangsters with ivy league educations that put on suits every day to come to work that have convinced themselves that they are professionals helping the world.

If I could wish for only one thing in this life it would be for more people to awaken to the sins the Federal Reserve is perpetrating on the citizens of the world, getting rid of the fed would be our fastest road to ending anarchy in many countries, civil wars in many countries, crime around the world and money could be put towards cures for illnesses etc etc. It is not a cure that will fix everything but it would be one hell of a start!

[ghostrider]

we are 16 trillion in debt, yet they give away our money ( 16 trillion ) to banks ????????? thats why we're in debt. they gave away money and billed it to us. They should all go to jail.

¤=[Post Update]=¤

Posted by modwiz (here)

Posted by write4change (here)
every american should be sent a copy of this in black and white. thanks for posting this.

I agree with your sentiment. Sadly, about 85 per cent of recipients would pay no heed.

Save the trees.

Save the whales to. Do what you want with the money , just don't hurt the fishes.

[Marin]

Please note this material cites work that was done last year, July 2011. This information does not reflect the recent bill that passed on July 25, 2012:

"A bill introduced by Rep. Ron Paul (R-Texas) to audit America’s central bank, the Federal Reserve, passed the US House of Representatives overwhelmingly Wednesday afternoon by a 327-98 vote.
.....Although Wednesday’s vote *(July 25, 2012) was a success for the congressman’s efforts to bring added transparency to the Fed, his fight for an audit doesn’t end here. Next the bill will be brought to the Senate for a vote, where it is not expected to pass. If it does clear both sides of Congress, however, it will then be sent to the desk of President Barack Obama for him to sign into law."

Article found here:
http://rt.com/usa/news/house-ron-audit-bill-061/

The material presented in the OP...."What was revealed in the audit was startling: $16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere....." is not linked to the legislation that was passed on July 25, 2012. It references a PDF that was published in July of 2011.... a year ago. Here's the PDF it references.

http://www.gao.gov/assets/330/321506.pdf
see page 131 for the breakdown of the 16 trillion

I only bring this up because I'm guessing some of you (like myself ) may accidentally lump these two bills together. Still waiting to see if the more comprehensive 2012 bill (H.R. 459) passes the Senate.

Additional info:

http://www.huffingtonpost.com/2012/0...n_1702879.html

posted: July 25th, 2012

"....Paul teamed up with former Rep. Alan Grayson (D-Fla.) in 2010 to pass similar legislation that became part of the final Wall Street reform bill. But Paul has said new audit legislation is needed because the 2010 bill didn't go far enough. Specifically, he states on his website that the audit called for in the 2010 bill only focused on emergency credit programs and procedural issues, rather than on the substantive details of the lending transactions. The 2012 bill doesn't limit the focus of the audit.

http://paul.house.gov/index.php?opti...1997&Itemid=69

posted: July 30th 2012

"Last week the House of Representatives overwhelmingly passed my legislation calling for a full and effective audit of the Federal Reserve. Well over 300 of my Congressional colleagues supported the bill, each casting a landmark vote that marks the culmination of decades of work. We have taken a big step toward bringing transparency to the most destructive financial institution in the world.
But in many ways our work is only beginning. Despite the Senate Majority Leader’s past support for similar legislation, no vote has been scheduled on my bill this year in the Senate. And only 29 Senators have cosponsored Senator Rand Paul’s version of my bill in the other body. If your Senator is not listed at the link above, please contact them and ask for their support. We need to push Senate leadership to hold a vote this year."

AND

http://www.deseretnews.com/article/7...-dialogue.html

posted: August 28th 2012

Deseret News: The Fed Reserve is perhaps the least understood, most independent government agency, but somehow you've made it a rallying cry. Do you think Congress will really win the power to audit the Federal Reserve?

Ron Paul: ....."(The bill) still has to go through the Senate and the President; and the Federal Reserve has a lot of influence and they are very much opposed to it. Mainly special interest groups like the banking industry, war industry, basically any industry that functions on debt.

[Marsila]

It is better late than never, but the ironic thing is that if this bill passed a few years ago it would have been easier to 'save' the US.

What a lot of people in the United States don't realize, is yes the debt is now $16 trillion but the networth of the USA is $75 trillion dollars, and if you think that most of that 16 trillion is owed to China, you are wrong, it is actually owed to private institutions...the banks. And a lot of that debt was created in the past few years.

Some links of interest, the list of countries by their country account balance as of 2010, dont' panic that the USA is at the bottom of the list, as it'd make a person think that it's the worlds poorest country, when in fact the Seychelles holds that titles.
http://en.wikipedia.org/wiki/List_of...ccount_balance

To learn more about the USA and it's finances, whoever wrote this wikipedia article is very good.
http://en.wikipedia.org/wiki/Financi..._United_States

Derivatives contracts are overwhelmingly held by large financial institutions. The five largest US banks hold 97% of derivatives by notional value; the top 25 hold nearly 100%.[29] Banks currently hold collateral against their derivative exposures amounting to 67% of their net current credit exposure.[30]

AND THEN, lets not forget the role of Forex in all this, when 4 of the top 10 traders are US banks...and with the BRICS countries serious about their own currency, is why the US dollar may lose a lot of its buyers, as people and countries around the world want something more trustworthy. Some countries are already taking action to stop their citizens from using the dollar, both in the country and abroad.
(as the chart says as of 2010 almost 85% of the trades involved the US dollar.) and the US can't keep launching wars left and right every time its currency is threatened ) and not with the the BRICS countries anyway....

http://en.wikipedia.org/wiki/Foreign_exchange_market

and this article with nice charts and all
http://en.wikipedia.org/wiki/United_...federal_budget

The total federal debt is divided into "debt held by the public" and "intra-governmental debt." The debt held by the public refers to U.S. government securities or other obligations held by investors (e.g., bonds, bills and notes), while Social Security and other federal trust funds are part of the intra-governmental debt. As of January 31, 2012 the total debt was $15.4 trillion, with debt held by the public of $10.6 trillion and intragovernmental debt of $4.8 trillion.[45] Debt held by the public as a percentage of GDP rose from 34.7% in 2000 to 40.3% in 2008 and 62.1% in 2010.[46] U.S. GDP was approximately $14.5 trillion during 2010 and an estimated $15 trillion for 2011 based on activity during the first two quarters.[47] This means the total debt is roughly the size of GDP. Economists debate the level of debt relative to GDP that signals a "red line" or dangerous level, or if any such level exists.[48] By comparison, China's budget deficit was 1.6% of its $10 trillion GDP in 2010, with a debt to GDP ratio of 16%

and a useful one explaining balance of trade and when it is a problem and when it isn't (connect the dots of this with the forex thing)
http://en.wikipedia.org/wiki/Balance_of_trade

and finally an article of interest when it comes to the USA and it's trade partners.
http://www.creditwritedowns.com/2011...-partners.html

I think it is somewhere in the links, but interesting that the last time that USA made itself a budget study, was in the year 2000.

[bennycog]

this guy seems to be well spoken and informative..

Source: https://youtube.com/watch?v=PnVA1z7B_fA

he is a talk show host here...

http://www.wideawakenews.com/

it is amazing how many new sites you see every day. that are there to help the cause of the new revolution.

[rgray222]

The federal reserve is nothing more then a cartel. Even a small amount of research will confirm the facts that you are about to hear and see.

Source: https://youtube.com/watch?v=ZWKlz2Z4Nlo

[GlassSteagallfan]

"If people understood money, there would be revolution by morning"

...forgot who's quote it is...

Source: https://youtube.com/watch?v=vAAPiBJbXrE

https://youtube.com/watch?v=vAAPiBJbXrE

[WhiteFeather]

Its a Big Club and You Aint In It!

Source: https://youtube.com/watch?v=eZUz5GpXB0w

[gripreaper]

Problem: Global Banks are diluting the global money supply, giving the money to the big banks to gamble on derivatives, sticking the taxpayers with the tab, while reducing currency in circulation for the average person.

Reaction: Outrage! Let's audit the Fed, occupy Wall Street, collapse the economy and the monetary system, reduce the middle class net worth to zero, steal their houses, and reduce everyone into poverty, and blame it on the big banks and the Federal Reserve!

Solution: In order to make sure that this sort of thing never happens again, let's put together a global cashless digital monetary system where every penny is tracked digitally, taxed based on the carbon footprint, monitored through imbedded chip technology, and enforced through Admiralty Law!

That will solve everything as the tax cheats will have no place to hide, and the evil people who are scamming the system will be faced with full transparency! Everybody will pay their fair share (everything) and no one will be left out!

Whollah!!!!!! Fixed. Now everybody shut your mouth, get back to work, and learn to live on less. Oh, and don't forget, you have that doctors appointment today for your mandatory vaccine. We wouldn't want to jeopardize the public health, now would we?

[music]

Hi, this is the link to Senator Bernie Sanders' website where this was first reported on July 21st, 2011.

In the round of US debt talks in August of that year, astute observers will have noticed that the 16.4 /trillion dollars did not appear as a credit on the books of the United States. Kiss those "loans" goodbye, they were given at no interest with no repayment terms. Why would you repay that money under conditions like those.

"The Fed Audit

July 21, 2011

The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.

The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.

For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.

In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.

To Sanders, the conclusion is simple. "No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed's board of directors or be employed by the Fed," he said.

The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.

The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.

A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. "The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."

[GlassSteagallfan]

Posted by modwiz (here)
I agree with your sentiment. Sadly, about 85 per cent of recipients would pay no heed

Ahhhh.....

..but to capture 95%, give them song, dance and women!

https://youtube.com/watch?v=GXcLVDhS8fM

[Peace of Mind]

Thanks for this, Camilo. I'll be emailing this and pasting it in other forums. I also took the liberty to make copies. Later today I'll be littering the streets and park benches with this. Thanks for doing your part...which allows others to do their part. I'm sure if info like this is made available for those that are not in the know, we will create the change we want. The Masses must and will know exactly whats happening. But it's up to the ones that do know something to grow a heart and some courage and assist in spreading the news. Optimism can be very contagious and if you doubt victory before making attempts to aquire it.... you're just a hindrance and part of the problem. Be the example.

Peace