The figures are in: $16.1 trillion bailout not $700 billion
 

Audit: Fed gave $16 trillion in emergency loans

By Stephen C. Webster
Thursday, July 21st, 2011 -- 11:34 am

The U.S. Federal Reserve gave out $16.1 trillion in emergency loans to U.S. and foreign financial institutions between Dec. 1, 2007 and July 21, 2010, according to figures produced by the government's first-ever audit of the central bank.

Last year, the gross domestic product of the entire U.S. economy was $14.5 trillion.

Of the $16.1 trillion loaned out, $3.08 trillion went to financial institutions in the U.K., Germany, Switzerland, France and Belgium, the Government Accountability Office's (GAO) analysis shows.

Additionally, asset swap arrangements were opened with banks in the U.K., Canada, Brazil, Japan, South Korea, Norway, Mexico, Singapore and Switzerland. Twelve of those arrangements are still ongoing, having been extended through August 2012.

Out of all borrowers, Citigroup received the most financial assistance from the Fed, at $2.5 trillion. Morgan Stanley came in second with $2.04 trillion, followed by Merill Lynch at $1.9 trillion and Bank of America at $1.3 trillion.

The audit also found that the Fed mostly outsourced its lending operations to the very financial institutions which sparked the crisis to begin with, and that they delegated contracts largely on a no-bid basis. The GAO report recommends new policies that would eliminate such conflicts of interest, and suggests that in the future the Fed should keep better records of their emergency decision-making process.

The Fed agreed to "strongly consider" the recommendations, but as it is not a government-run institution it cannot be forced to do so by lawmakers. The seven-member board of governors and the Fed chairman are, however, appointed by the President of the United States and confirmed by the Senate.

http://www.rawstory.com/rs/2011/07/2...ergency-loans/

i cant afford $16.1 trillion...

nor can the usa :(

i wish i had a printing press. I would make myself a trillionaire. :thumbsup

i cant believe the fed agreed to the audit..

i thought the have been fighting that for the last 2 years..

staggering numbers...





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Why are people that don't create a damn thing in control of so much money? Their business is inherently criminal, and based on leeching from the people that actually contribute to society. I'll bet if you go back to the beginning of human civilization, there were low life scumbags without talents, following the money around to scam their piece for doing nothing. Today, they just work on Wall Street. Worthless people. I hope they all die horrible deaths.

If that's the case then it was done on purpose so that the fed owns most developed nations, just like it has owned the US.

source is bullshit. the left wing world net daily. you people of all people should not believe everything that slithers across the internet.

buy guns.. buy canned food.. buy generators.. buy gas..

Dodd-Frank required it. I think we can assume the report was massaged somewhat.

I've read in quite a few places estimates of the balout at about 8 trillion - the GAO report suggests at least twice that much, if the summaries so far are reliable. It's a dense report written in financialeze.

From the GAO report:

Why GAO Did This Study

The Dodd-Frank Wall Street Reformand Consumer Protection Act directedGAO to conduct a one-time audit of theemergency loan programs and other assistance authorized by the Board of Governors of the Federal ReserveSystem (Federal Reserve Board)during the recent financial crisis. This report examines the emergency actions taken by the Federal ReserveBoard from December 1, 2007, throughJuly 21, 2010.

http://www.scribd.com/doc/60553686/G...-Investigation

If true, it does suggest the scale of the crimes and mismanagement.

try some other source you may believe. But considering you've been in denial for quite some time I don't find you believing any truth.

The Fed Audit

July 21, 2011

The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression.

http://sanders.senate.gov/newsroom/n...3-62060dcbb3c3

“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,” Sanders said in a statement. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”


http://www.washingtonpost.com/busine...nSI_story.html

Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.

epiiiiiiic

It's class warfare folks, and guess whose allowed to use their guns.

The $16 trillion figure isn't what it cost us.

Seems to me most of that money was loans.

I've grown tired of big headlines that shock us, but are totally misleading. It's not long about reporting news, it's about generating shocking headlines to get our attention. It's wrong.

But this is interesting...

That's stunning.

I take it you haven't been to the grocery store in awhile?