I mean seriously, truly: WHAT. THE. FUCK???? So banks used the bailout to drive up our deficit, right?
A newly-released study from the Congressional Research Service bolsters claims that the nation’s largest banks profited off the Federal Reserve’s financial crisis-era programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.
The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended.
The Fed released records under pressure in December and March that showed the extent of its largesse. The CRS study shows for the first time how some of the most sophisticated financial firms could have taken the Fed’s money and flipped easy profits simply by lending it back to another arm of the government.
The report was requested by Sen. Bernie Sanders (I-Vt.), who likened the crisis-era emergency loans to “direct corporate welfare to big banks,” in a statement. The cash likely was lent back to Uncle Sam in the form of Treasuries and other debt “instead of using the Fed loans to reinvest in the economy,” Sanders added.
This is news? I thought it was a given…
I told you it was a scam from the gitgo – that some bright boy with an MBA sat down one day and calculated that if you did this then this would happen.
Nothing will change until we toss a few of these bastards out the window.
This was known quite a while ago….surprised you didn’t know!
But hey, whatcha gonna do – they don’t fix those broken outrage meters anymore. Hell, they don’t MAKE them anymore, anything goes these days!
And Obama is going to several Wall Street fundraisers where those precious rich folks get to pay $35,800 to see him.
That’s his base now – they got all of our money……
Previous presidents have tried to disband the Federal Reserve Bank, but they were assassinated for their efforts. When it comes down to a choice between a couple of million bucks or a bad ‘accident’ that may include your family, most politicians give up the moral high ground and play ball.
These days with media conglomeration, they don’t even have to spill blood anymore. Alan Grayson was outspoken against the banksters and they just ‘messaged’ him out of the way. Citizens United put dollars ahead of people when it comes to voting. We are so fucked.