The American taxpayer was counting on the country’s largest banks to use the bailout money for lending back to the American public; small business loans, personal loans basically hoping for business start ups and personal relief. The same banks that helped bring down America with the fractional banking nightmare during the housing crisis, actually turned around and screwed the America tax payer twice.
By taking the bailout money that the Federal Reserve printed, some 3 trillion dollars, at an unheard of interest rate of 0.0078 percent, they then turned around and re-loaned back to the U.S government at a much higher rate making huge profits, this after the big gamble of the synthetic fractional securities catastrophe. The banking mafia had no intentions at all of helping regular Americans. Instead, they chose another “Three Card Monte” circus act to make big profits.
If you recall, Americans were wondering why no loans were being made to people and businesses around the country, complaining and no receiving reliable answers from anybody that would listen. Well now we are starting to hear some of the reasons why, as Bernanke is starting to open up. The corporate mafia again used the U.S taxpayer to fill their pockets.
Bank of America, JP Morgan/Chase were both players in this crapola crap shoot, and now we can start to see how the CEOs have managed to give themselves, in some cases, up to 23 million dollars in bonuses. Just when you think that you have a pretty good idea what kind of games are being played by the corporate mafia, you get hit with something like this.
So now we have to ask ourselves, what the hell did the U.S government do with the money that they basically loaned to themselves? Why wasn’t more unemployment benefits extended to the American people? What exactly happened to the 3 trillion dollars? Tim Giethner should be investigated as to what the happened to that money. Why were the American people left out of the equation? Americans were counting on that money for small business loans.
Bernie Sanders, the junior senator from Vermont had a study done for him by a Congressional Research Service. Below gives us some more light:
A study requested by Sen. Bernie Sanders (I-Vt.) found numerous instances during the financial crisis of 2008 and 2009 when banks took near zero-interest funds from the Federal Reserve and then loaned money back to the federal government on sweetheart terms for the banks.
The banks pocketed interest on government securities that paid rates up to 12 times greater than the Fed’s rock bottom interest charges, according to a Congressional Research Service analysis conducted for Sanders.
“This report confirms that ultra-low interest loans provided by the Federal Reserve during the financial crisis turned out to be direct corporate welfare to big banks,” Sanders said. “Instead of using the Fed loans to reinvest in the economy, some of the largest financial institutions in this country appear to have lent this money back to the federal government at a higher rate of interest by purchasing US government securities.”
The corporate mafia loaned just enough to the American people to at least be able to answer uncomfortable questions later if and when the time came for those inconvenient explanations.
A Bank of America spokesman says in an e-mail below that it had loaned money to the American people:
Bank of America provided vital support to the economy throughout the financial crisis and we continue to support businesses and individuals today through our lending and capital raising activities,
Extended $184 billion in credit to individuals and businesses
JP Morgan/Chase has had no comment.
The American people are still waiting for a full accounting of the money that was basically stolen from them. The government had to have known where this money was coming from. These billions could give much needed help to the currently 15 million unemployed, rather than sitting in some multimillionaire’s private account subsidizing their yachts and private jets.
What about all of this gobble de gook Barry Soetoro was flapping his gums about loaning money to the Americans to start new businesses?
Americans have been shown another way the corporate mafia and the U.S government are in bed together, doing nothing but furthering their own agendas while giving the American people the brush off. Pathetically, the American tax payer had to foot the bill.
The government is just as complicit as the banksters with all of this and Americans demand answers.
Congressional Research Services Report