A report just released by the US Government Accountability Office explains how the Federal Reserve divvied up more than $4 trillion in low-interest loans after the fiscal crisis of 2008, and the news shouldn’t be all that surprising.

by Fariborz-Zak Posted 2012/06/18 06:09:42

Related Topics: Unemployment, Federal Reserve, Bank, Foreclosure, Party, Economy, Recession, Time, Foreclosures, Loans, Meltdown, Sat, Financial, 2008, America, Trillions

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RT.com:When the Federal Reserve looked towards bailing out some of the biggest banks in the country, more than one dozen of the financial institutions that benefited from the Fed’s Hail Mary were members of the central bank’s own board, reports the GAO. At least 18 current and former directors of the Fed’s regional branches saw to it that their own banks were awarded loans with often next-to-no interest by the country’s central bank during the height of the financial crisis that crippled the American economy and spurred rampant unemployment and home foreclosures for those unable to receive assistance.

Although the crisis continues to have an effect on Americans that were devastated by the recession, the banks that survived the near meltdown were largely able to do so because some of their CEOs sat on the same Federal Reserve board the decided on how to dish out trillions of dollars.

"This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sen. Bernie Sanders (I-Vermont) says in a statement about the report. “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,” adds Mr. Sanders. “These conflicts must end."

The GAO’s report is believed to mark the first time that the Fed’s records about their major bailout identifying the parties involved to the public.

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ed 2012/06/18 09:00:17

I believe this

I just wonder who got all that money?

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HarleyCharley 2012/06/18 07:51:44

I believe this

the government is totally corrupt...

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flaca BN-0 2012/06/18 06:12:11

I don't care

they've always been part of the central banks board. Which organizations do you think would have been part of it? meat companies? toy companies? Your question is silly.

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Fariborz-Zak 2012/06/18 06:11:34

I believe this

that is how the ./.1 run USA

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