[News] Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

Mon Aug 1 10:32:17 EDT 2011

Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

Posted by D on July 21st, 2011
http://www.unelected.org/audit-of-the-federal-reserve-reveals-16-trillion-in-secret-bailouts 

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. 
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 
<http://www.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144>can 
be found on page 131 of 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 
<http://www.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144>many 
many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal 
Reserve(July 21st, 2011): 
<http://www.scribd.com/doc/60553686/GAO-Fed-Investigation>http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

Source: 
<http://www.gao.gov/products/GAO-11-696>http://www.gao.gov/products/GAO-11-696
FULL PDF on GAO server: 
<http://www.gao.gov/new.items/d11696.pdf>http://www.gao.gov/new.items/d11696.pdf
Senator Sander’s Article: 
<http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3>http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

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