Big banks are robbing the middle class: big banks are scamming the American taxpayer out of billions and billions of dollars

The banks have operated a gigantic scam on all of us. A newly released study from the Congressional Research Services says that the banks have borrowed the Fed at nearly 0% and then lent it back to us at around 3%. Bank of America borrowed from the Fed at .25% to .5%, and then lent it back to the Treasury at 3.5%! They did this for at least $15 billion. Do you know how much you would make if you ran the same scam? About $450 million…free! It pays to know someone at the Fed. And this is all done on your dime.

And again, J P Morgan borrowed from the Fed at .3% and lent it back to the Treasury at 2.1%. They did that with about $20 billion that they borrowed from you. And the list of banks and financial institutions doing this goes on and on. At one point the Fed was lending out money to these banks at .0078%. That’s free money. And they lent out about $3 trillion that way. If you take that $3 trillion and multiply it by 3%, that’s possibly as much as $90 billion of our money being scammed by these big banks.

Do you know what the banks were supposed to do with that money? They were supposed to lend it to you, the consumer, and small businesses. Did they? No. Over the same time in 2009, outstanding credit to U.S. households went down $234.5 billion. And for non-corporate businesses, outstanding credit went down $296.1 billion.

These banks did not give you the money, they didn’t lend it to you, they just took it. You should be really mad about that. If someone did it to you in your personal life, you know you would be mad, but they did it to you and virtually all of you didn’t even know about it, since our government allowed them–in fact, gave them the money–to do such.

Please…get mad.

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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