Monday, November 28, 2011

Banks Profited From Secret Fed Loans

Secret loans from the Federal Reserve allowed risk-free profits by the bankers. The bank bosses took over-sized bonuses for their success at turning risk-free money into profits.

Ron Paul is right, we need a full and complete audit of the Federal Reserve.

Secret Fed Loans Helped Banks Net $13 Billion
The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.
The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy.
“TARP at least had some strings attached,” says Brad Miller, a North Carolina Democrat on the House Financial Services Committee, referring to the program’s executive-pay ceiling. “With the Fed programs, there was nothing.”