Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fails?

December 3rd, 2011

FAKE NEWS for the Zionist agenda

Economic Collapse Blog
Friday, December 2, 2011

What you are about to read should absolutely astound you. During the last financial crisis, the Federal Reserve secretly conducted the biggest bailout in the history of the world, and the Fed fought in court for several years to keep it a secret. Do you remember the TARP bailout? The American people were absolutely outraged that the federal government spent 700 billion dollars bailing out the “too big to fail” banks. Well, that bailout was pocket change compared to what the Federal Reserve did. As you will see documented below, the Federal Reserve actually handed more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010. So have you heard about this on the nightly news? Probably not. Lately Bloomberg has been reporting on some of this, but even they are not giving people the whole picture. The American people need to be told about this 16 trillion dollar bailout, because it is a perfect example of why the Federal Reserve needs to be shut down. The Federal Reserve has been actively picking “winners” and “losers” in the financial system, and it turns out that the “friends” of the Fed always get bailed out and always end up among the “winners”. This is not how a free market system is supposed to work.

According to the limited GAO audit of the Federal Reserve that was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the grand total of all the secret bailouts conducted by the Federal Reserve during the last financial crisis comes to a whopping $16.1 trillion.

That is an astonishing amount of money.

Keep in mind that the GDP of the United States for the entire year of 2010 was only 14.58 trillion dollars.

The total U.S. national debt is only a bit above 15 trillion dollars right now.

So 16 trillion dollars is an almost inconceivable amount of money.

But some other dollar figures have been thrown around lately regarding these secret Federal Reserve bailouts. Let’s take a look at them and see what they mean.

$1.2 Trillion

A recent Bloomberg article made the following statement….

The $1.2 trillion peak on Dec. 5, 2008 — the combined outstanding balance under the seven programs tallied by Bloomberg — was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg.

The $1.2 trillion figure represents the peak outstanding balance on these loans, not the total amount of all the loans. On December 5, 2008 the “too big to fail” banks owed this much money to the Federal Reserve. Many of them could not pay these short-term loans back right away and had to keep rolling them over time after time. Each time a short-term loan got rolled over that represented a new loan.

$7.7 Trillion

Bloomberg is reporting that the Federal Reserve had made a total of $7.77 trillion in financial commitments to the big banks by the end of March 2009….

Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.

But as mentioned above, a one-time limited GAO audit of the Federal Reserve that was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act covered an even broader time period and revealed even more bailout loans.

According to the GAO audit, $16.1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010. The following list of firms and the amount of money that they received was taken directly frompage 131 of the GAO audit report….

Citigroup – $2.513 trillion
Morgan Stanley – $2.041 trillion
Merrill Lynch – $1.949 trillion
Bank of America – $1.344 trillion
Barclays PLC – $868 billion
Bear Sterns – $853 billion
Goldman Sachs – $814 billion
Royal Bank of Scotland – $541 billion
JP Morgan Chase – $391 billion
Deutsche Bank – $354 billion
UBS – $287 billion
Credit Suisse – $262 billion
Lehman Brothers – $183 billion
Bank of Scotland – $181 billion
BNP Paribas – $175 billion
Wells Fargo – $159 billion
Dexia – $159 billion
Wachovia – $142 billion
Dresdner Bank – $135 billion
Societe Generale – $124 billion
“All Other Borrowers” – $2.639 trillion

This report was made available to all the members of Congress, but most of them have been totally silent about it. One of the only members of Congress that has said something has been U.S. Senator Bernie Sanders.

The following is an excerpt from a statement about this audit that was takenfrom the official website of Senator Sanders….

“As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world”

So where is everyone else?

Why aren’t leading Republicans and leading Democrats crying bloody murder over this report?

This scandal should have been front page news for months when it was revealed.

But it wasn’t.

And Guess what?

Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the “too big to fail” banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. According to the GAO, the Federal Reserve shelled out an astounding $659.4 million in “fees” to the very financial institutions which caused the financial crisis in the first place.

In addition, it turns out that trillions of dollars of this bailout money actually went overseas. According to the GAO audit, approximately $3.08 trillion went to foreign banks in Europe and in Asia.

So why were our dollars being used to bail out foreign banks while tens of millions of American families were deeply suffering?

That is a very good question.

Also, it is important to remember that many of these bailout loans were made at below market interest rates, and this enabled many of these financial institutions to rake in huge profits.

According to a recent Bloomberg article, the big banks brought in an estimated $13 billion by taking advantage of the Fed’s below-market rates….

While the Fed’s last-resort lending programs generally charge above-market interest rates to deter routine borrowing, that practice sometimes flipped during the crisis. On Oct. 20, 2008, for example, the central bank agreed to make $113.3 billion of 28-day loans through its Term Auction Facility at a rate of 1.1 percent, according to a press release at the time.

The rate was less than a third of the 3.8 percent that banks were charging each other to make one-month loans on that day. Bank of America and Wachovia Corp. each got $15 billion of the 1.1 percent TAF loans, followed by Royal Bank of Scotland’s RBS Citizens NA unit with $10 billion, Fed data show.

So once the financial crisis was over, were adjustments made to the financial system to make sure that this type of thing would never happen again?

Of course not.

A d v e r t i s e m e n t

Today, the “too big to fail” banks are larger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.

So now they are more “too big to fail” than ever.

But this is what happens when we allow unelected central bank bureaucrats to run our financial system.

Most Americans do not realize this, but the truth is that the Federal Reserve is not part of the government. In fact, it is about as “federal” as Federal Express is. The Federal Reserve has admitted that they are a privately owned institution in court many times, and you can see video of a Federal Reserve employee admitting that the Federal Reserve is privately owned right here.

The Federal Reserve is an out of control monster that is throwing around trillions of dollars whenever it wants to. Nobody should be allowed to do this. Nobody should be allowed to give bailouts to banks and corporations without the express permission of the U.S. Congress and the president of the United States.

This is a point that I made in my article yesterday. The Federal Reserve decided this week that it is going to provide “liquidity support” to Europe. If the American people do not like this move, that is just too bad. We do not get a say in the matter.

Are you starting to understand why I keep pushing the idea that it is time toshut down the Federal Reserve?

Please share this information about the secret 16 trillion dollar Federal Reserve bailout with your family and your friends.

If we can get enough people to wake up, perhaps there is still time to change the direction that this country is headed.

Print this page.

Comment Rules

10 Responses to “Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fails?”

Actually, the Federal Reserve can throw around all the money it wants. The tie that needs to be cut is the US taxpayer being on the hook. As we can all see, our GDP was over 14 trillion. That tells me that the US is not broke, our government is. We as a people need to put our differences aside for one day (April 15th) and say NO to this odious debt. One day, and we change the world. How easy it is, yet completely out of our grasp.

Greatness is not about what you achieve, but what you have overcome!!!

JailBanksters Reply:
December 2nd, 2011 at 6:55 am

In the real world, you are Bankrupt when you can no longer repay your debt obligations.
Every miniute of every day, the US Government is spending nearly 50% more than it collects in ALL Taxes. How is this not Bankrupt, it’s not like it’s been happening for a Month or even a whole Year, it’s been nearly 10 years of spending more money than the Government Collects.
If Printing Money is the Answer to all problems, then why not just let everyone print their own money at home on their own Inkjets. It would be no more counterfeit than what the Feral Reserve is doing.

thegeneral Reply:
December 2nd, 2011 at 9:17 am

The obsession with government debt is silly when 3/4 of the debt in this country is outside the government. Most of those other holders of debt have no ability to print new money! There is $56T in public and private debt in the US. The cost per year to pay the interest only on this debt is $3.8T per year, 1/4 of the whole GDP. That’s just the interest. That does not stop additional principal from being built up. Also consider when (not if) interest rates go up – it will be a complete melt down. The cost of this debt is clear as crystal when you look at a graph of change in GDP vs change in debt – in the 1960s you got $1 of benefit to the GDP from $1 of new debt backed money. This has dropped steadily since as the debt has gone up, until 2009 when it went negative, meaning economic growth will actually collapse the GDP, and at an increasing rate. This trajectory is as sure as a car about to hit a wall. Only a radical change in the monetary system will correct things.
go to illuminati.org for the countdown clock. left scroll over the upper left-hand corner of the black screen. This equates to December 6th 7:00am central time. The only significance i have found is that it is the feast of st. nicholas. and the only signficance of that is “you better not pout, you better not cry, you better not shout, i’m telling you why….he knows when you’ve been sleeping, he knows when you’re awake, HE KNOWS IF YOU’VE BEEN BAD OR GOOD, SO BE GOOD FOR GOODNESS SAKE….

look up who comes to judge and what drags away the bad little boys and girls during the night of dec 5th through the morning of dec 6th. just be on the watch on Tuesday morning
ROBBER BARONS ROBBER BARONS ROBBER BARONS stop feeding the fat revoltingly smug ROBBER BARONS, do not fund the eveil ROBBER BARONS. do not buy the lies of the robber barrons ROBBER BARONS. I think that there is just enough rope to dangle the evil doer ROBBER BARONS….ROBBER..BARONS.
It’s only money no?

when will we learn ? they trapped most of us with that american dream illusion.They controlled it from the very begining.BUt we all were too naive to see it?

But hey, it’s time we show them : what ya going to do about thug? we will not pay this fraud criminally done. Your time is up illuminati . Your compartmentalized pyramids will not hold back the truth no more. The pandora box has been opened and exposed.

Now we will all witness the forces in action on this planet and in the rest of the Universes.
These are loans. They real money they get to keep comes from interest, and you need these big numbers due to interest rates being so low.

That interest income translates into Big Bonuses for upper management, and political money and heavy influence over governments. For example, Goldman Sachs guys often end up running the U.S. Treasury, or Italy, or the Fed.

The Federal Reserve is not impartial! It is therefore corrupt. So can we not ask questions of it?

AUDIT THE FED
Can someone tell me what these banks did with this money? Its been said they paid it back – why the heck would you need trillions of dollars and then all of the sudden shortly thereafter you were able to pay it back?! I have never seen this specified.

Also, another key point – how the heck do we know they actually paid it back? It was revealed in a Rolling Stone article that two wives of Morgan Stanley executives basically pilfered a quarter billion through a Caribbean front corporation, and never gave it back. It was revealed that there was a clause in the Fed loans that said the borrowers did not have to return a cent of the loans, and the loans would be forgiven. Does this apply to all the $16T to these parties? Do we have actual evidence that they paid back this money? I don’t believe the Fed for a second on this claim.

CarcassGrinder Reply:
December 2nd, 2011 at 1:04 pm

@general

“Can someone tell me what these banks did with this money? Its been said they paid it back – why the heck would you need trillions of dollars and then all of the sudden shortly thereafter you were able to pay it back?! I have never seen this specified.”

…..the banks borrow the money @ 1%……then loan it short term to the federal gov.for 3%….or leverage invest it otherwise. They clear at least 2% off the top for money they never earned…just borrowed. In most cases this transpires with a few key stokes.
jailbanksters: You are overlooking one important distinction between your basement counterfeit money and the money created by the Federal Reserve: Your money would be backed by nothing at all, their’s is backed by slave debt; your debt, your children’s debt, and their children’s debt. This money that they are CREATING? is backed by our paychecks and all future paychecks, and profits from legitimate business transactions.

Lincoln didn’t free the slaves, he just added all Americans to the inventory. Your chains are not made of steel anymore, they are made of paper, tons of bad paper. The National debt, is their legal claim to us as property! As Russel Means said so aptly: “Welcome to the Reservation.”

Do many of you still think that “Voting” will change anything at all? I voted for two so called Republican Senators, and both of these traitors voted to scrap the Constitution. Those who have read my posts, going back almost 2 years now, know that I have said that the only way to make your votes count these days, is not to cast them!

I will repeat something else that I have been harping on; The solutions that you seek are individual solutions. Change yourselves. Get up off of your knees to the system, and get down on your knees to the LORD.

Do not go quietly into the night! PRAY-PREPARE-PREVAIL