EVERY DAY that NANCY PELOSI __allows__ BEN BERNANKE and TIMMY GEITHNER to REMAIN in their positions of high financial power - PRESIDING over the WHOLESALE LOOTING, THEFT, and PLUNDERING of the American people, MAKES HER __THE MOST CORRUPT__ Speaker of the House in U.S. history...
The below headline says it all: "The Fed" (the VERY PRIVATELY OWNED mega-banking cabal which, since it was established in 1913 has been the VERY PRIVATELY OWNED cabal of "THE MONEY TRUST" - [ "Since the Aldrich Plan essentially gave full control of this system to private bankers, there was strong opposition to it from rural and western states because of fears that it would become a tool of certain rich and powerful financiers in New York City, referred to as the "Money Trust".[4] ],today under the direction of BEN BERNANKE, has effectively FORCED the American public to buy, or purchase, BILLIONS of dollars of PURE CRAP "securities" - Mr. Beranke and Mr. Geithner were STEALING from American taxpayers, and just GIVING BILLIONS of dollars to their Bankster friends on Wall Street... Banksters who had CREATED PURE FRAUDULENT "securities" because they gave themselves INSTANT FEES, COMMISSIONS, and BONUSES the moment they wrote up their FRAUD 'securities' contracts; KNOWING in advance that they could PANIC, or STRONG-ARM, Congress and the White House to BAIL THEM OUT, at WHATEVER "VALUE" the bankers demanded for THEIR FAILED, BANKRUPT, FRAUDULENT paper TRASH -
Bloomberg explains how, in just ONE appearance before Congress, then, and current, Fed Chairman BEN BERNANKE _LIED_ to Congress, in order to STEAL those BILLIONS from American taxpayers, and GIVE those billons to his bankster career cronies and patrons on Wall Street
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Fed [Chairman Ben Bernanke, and N.Y. Fed Bank Chairman Tim Geithner] Made Taxpayers Unwitting Junk-Bond Buyers
By - Jul 1, 2010
Federal Reserve Chairman Ben S. Bernanke and then-New York Fed President Timothy Geithner told senators on April 3, 2008, that the tens of billions of dollars in “assets” the government agreed to purchase in the rescue of Bear Stearns Cos. were “investment-grade.” They didn’t share everything the Fed knew about the money.
U.S. Federal Reserve Chairman Ben S. Bernanke. Photographer: Jeff Kowalsky/BloombergJuly 1 (Bloomberg) -- Bloomberg's Caroline Salas discusses the credit quality of assets the government purchased in the rescue of Bear Stearns Cos. and the Federal Reserve's secrecy during the financial crisis. Salas speaks with Deirdre Bolton on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
The so-called assets included collateralized debt obligations and mortgage-backed bonds with names like HG-Coll Ltd. 2007-1A that were so distressed, more than $40 million already had been reduced to less than investment-grade by the time the central bankers testified. The government also became the owner of $16 billion of credit-default swaps, and taxpayers wound up guaranteeing high-yield, high-risk junk bonds.
By using its balance sheet to protect an investment bank against failure, the Fed took on the most credit risk in its 96- year history and increased the chance that Americans would be on the hook for billions of dollars as the central bank began insuring Wall Street firms against collapse.
The Fed’s secrecy spurred legislation that will require government audits of the Fed bailouts and force the central bank to reveal recipients of emergency credit.
“Either the Fed did not understand the distressed state of some of the assets that it was purchasing from banks and is only now discovering their true value, or it understood that it was buying weak assets and attempted to obscure that fact,” Senator Sherrod Brown, an Ohio Democrat and member of the Senate Banking Committee, said in an e-mail when informed about the credit quality of holdings in the Maiden Lane LLC portfolio. The committee held the April 3 hearing.
Bear Stearns Purchase
Maiden Lane, named for a street bordering the New York Fed’s Manhattan headquarters, was created to hold the assets the central bank acquired to facilitate JPMorgan Chase & Co.’s purchase of Bear Stearns.
The Fed disclosed the Maiden Lane holdings in March after Bloomberg News went to court using the Freedom of Information Act, and the U.S. District Court in New York held that the Fed should release documents related to Bloomberg’s request.
“The Federal Reserve was not straightforward with the American people regarding the risks they were taking with taxpayer money, despite my efforts to obtain such clarity at the time,” U.S. Senator Richard Shelby of Alabama, the Senate Banking Committee’s top Republican, told Bloomberg News. “It is apparent that the Fed withheld from the Congress and the public material information about the condition of these securities.”
Downgraded to Junk
When Bernanke and Geithner testified in April 2008, $42 million of the CDO securities the Fed would eventually buy had been downgraded to junk, data compiled by Bloomberg show. By the time the central bank funded its $28.8 billion loan to Maiden Lane 12 weeks later, about $172 million of such securities the Fed purchased were rated below investment grade, according to data compiled for Bloomberg by Red Pine Advisors LLC, a New York firm specializing in the valuation of complex, illiquid securities.
