Senator Elizabeth Warren is leading the charge against the Federal Reserve being too close to the bankers in a Hearing on Fed Accountability and Reform in the Senate. This week, the Senate Banking Committee held the first of its hearings on widespread demands to reform the Federal Reserve to make it more transparent and accountable. What will take down the Fed is its manipulation by the Wall Street Money-Center Banks. This is the mirror image of what is going on in London. But will it gain traction? It seems it is just a touch premature. Hold this AFTER 2015.75 and the other politicians taking contributions from the bankers will have no place to hide. Both Jeb and Hillary are courting Goldman Sachs who will hand both tons of cash buying both sides of the isle.
Senator Elizabeth Warren is putting her finger on the pulse of a growing public outrage over how the Federal Reserve conducts much of its operations in secret and is in bed with the Wall Street bankers succumbing to their every desire. Warren harped on the secret loans that the Fed made to Wall Street during the financial crisis as follows which illustrates my point – they may try to manipulate markets in search of that risk free trade, but they always fail and have the government backing them up each time. Warren began:
“During the financial crisis, Congress bailed out the big banks with hundreds of billions of dollars in taxpayer money; and that’s a lot of money. But the biggest money for the biggest banks was never voted on by Congress. Instead, between 2007 and 2009, the Fed provided over $13 trillion in emergency lending to just a handful of large financial institutions. That’s nearly 20 times the amount authorized in the TARP bailout.
“Now, let’s be clear, those Fed loans were a bailout too. Nearly all the money went to too-big-to-fail institutions. For example, in one emergency lending program, the Fed put out $9 trillion and over two-thirds of the money went to just three institutions: Citigroup, Morgan Stanley and Merrill Lynch.
“Those loans were made available at rock bottom interest rates – in many cases under 1 percent. And the loans could be continuously rolled over so they were effectively available for an average of about two years.â€
