Who did the Fed give money to? Cenk Uygur video and transcript.

We now have new information about the Federal Reserve and who they gave our money to, and it continues, of course, to be disastrous.  We now find out that they gave $30 billion each to Goldman Sachs, Credit Suisse, and Royal Bank of Scotland at the grand interest rate of 0.01%.  That means basically they gave them free money. 

Now you might think, hey, wait a minute, that’s Federal Reserve of the United States of America.  I wonder if the Royal Bank of Scotland is an American Bank?  Well, if you were wondering that, you were right, it is not an American Bank.  Neither is Credit Suisse.  In fact, we have given to a great number of foreign banks now that we find out what the Fed was actually up to.  And here’s my favorite, by the way, of course, there is the Deutsche Bank and all the European banks, etc., but we also gave to the Arab Banking Corporation.  We gave $28 billion in loans to them.  And guess who their majority owner is?  That’s right, Libya Central Bank.  In other words, Gaddafi’s bank.  Now that was back in 2008. 

But get a load of our Federal Reserve.  Who needs money?  Anybody, anybody, anybody, the Arab Banking Corporation, Credit Suisse, come and get it here, at almost 0% interest rate.  Now do you remember them asking Congress that they could distribute our money to other banks?  Our banks, let alone foreign banks?!  No, no, they didn’t because they are totally unaccountable.  It is an absolute outrage. 

Look, did we know that they were doing this before?  Yes, we did.  Did we know at the time?  No, no, no, now why didn’t they tell us.  Well, it would endanger the banks that we were giving the money to; people might think that they were not solvent and that there might be a run on those banks.  The reason people might think they were not solvent is because they were not solvent.  That’s why you need to give them $30 billion each. 

And by the way, that’s just the tip of the iceberg.  Overall they gave $3.2 trillion in loans.  These new ones we just at least identified the banks and identified the interest rate, which is 0.01%.  Do you have any idea how outrageous that is?  If you went to the Federal Reserve and said, hey, dude, I’m broke, man, like Goldman Sachs, can you give me $30 billion at 0.01%?  If they agreed to that deal, do you know how fabulously rich you would be?  Not because you would get to keep the $30 billion.  It’s a loan, you would have to return it, right?  But you could then, for example, turn around and buy treasury bonds with that, and whatever the rate might be, ranging from 3% to 4%, and you would get to keep the 3%.  And ironically you would be lending it back to the United States government.  You would be fabulously wealthy, and that’s exactly happened to all of these banks, US and foreign one, because we just gave our money away.  Just gave it away. 

Oh, but there was an economic crisis.  Who caused it?  Well, those banks.  So why do we help those banks that caused the economic crisis?  Okay, fine, we had to, that’s what they all say, it was a panic, we had to give away all of our money, etc.  

Alright, what did we get in return?  Did we get significant value?  Charging 0.01% interest rate is not getting something in return.  It’s getting literally almost nothing in return.  Did we get a piece of Goldman Sachs, or Credit Suisse, or the Arab Banking Corporation?  Because, you know, look, if you go to a private person, or any entity, and say, uh, I’d like to borrow $30 billion, they’re going to take a lot of hide for that $30 billion, let alone the $3.2 trillion overall.  They’d own you.  Did we do that?  No.  We gave it to them for almost nothing.  

By the way, how did we find out this information.  Two ways.  Congressman Ron Paul and Congressman Alan Grayson to their eternal credit, fought really hard, and so did Senator Bernie Sanders, and eventually got part of the reform bill, which is one of the few parts of the bill that I like, and that was worthwhile, to audit the Fed.  So they passed that in the Dodd-Frank Bill and now we’re seeing some of that audit.  Plus news organizations like Bloomberg did a freedom of information act and they wanted to get the information from this somewhat government organizations.  So through both of those avenues we’ve now found out. 

Now the entire time, the Fed fought this tooth and nail.  They fought the reform bill and they fought the freedom of information act in court.  They went to court to stop it.  Now on top of all that, the head of the Fed, Ben Bernanke, now says, “I personally have always been a big believer in providing as much information as you can to help the public understand what you’re doing, to help the markets understand what you’re doing, and to be accountable to the public for what you’re doing.” 

What an unbelievable joke.  They didn’t want you to find it for the last three years and only gave it under the threat of law:  oh, yeah, fine, I gave away all of your money for free, and all of those guys got rich off of it. 

Unbelievable crimes, man.  And I told you, this is the back door, they figured it out.  They’re like, Treasury? Oh, no, we’ll never make that mistake again.  Go ask Congress for money through TARP?  That was a disaster.  People got held accountable for that.  No, no, now we got a piggy bank at the Fed:  we’ll just print the money.  And we’ll “loan” it to you at nearly 0%, and you make a gigantic return, all my banker friends, and you bring the money back after you have made all of your money.

Transcribed by the Barefoot Accountant of Accountants CPA Hartford, Connecticut, LLC.

Accountants CPA Hartford, Connecticut, LLC, located in Berlin, Connecticut, offers quality accounting, auditing, tax, bookkeeping, and QuickBooks consulting services at fees of one-third of those of our competitors to individuals and businesses across a wide spectrum of industries throughout the entire United States. William Brighenti is a Certified Public Accountant and Certified QuickBooks ProAdvisor. For all of your accounting, auditing, bookkeeping, tax return preparation, tax planning, and QuickBooks services, please consider us: (860) 249-1323.

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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