Fed refuses to identify recipients of $2 trillion in emergency loans

November 10, 2008 by · Leave a Comment
Filed under: Legal News 

Well now we are seeing the “true power” of our Federal Reserve Banking System (FRBS).  They are going to state the response that we all know is coming when the Bloomberg lawsuit gets to trials that they are in fact not a government agency so they do not need to comply with the Freedom of Information Act (FoIA).  

mYou most likely don’t want to know where that money went, if you do then you are most likely going to be very upset and feel duped by your officials.  This is a bailout of the financial system at large and this will not prevent the havoc on “main street” as they were so pressed to make us believe.  They stand ready to issue money without limits just like Greenspan was quoted saying.  Good luck.

News:

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

“The collateral is not being adequately disclosed, and that’s a big problem,” said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. “In a liquid market, this wouldn’t matter, but we’re not. The market is very nervous and very thin.”

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.     

Source: Bloomberg

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