Sanders today released the names.
"This report reveals the inherent conflicts of interest that exist at the Federal Reserve. At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks. These conflicts must end," Sanders said.
"The
GAO study found that allowing members of the banking industry to both
elect and serve on the Federal Reserve's board of directors creates 'an
appearance of a conflict of interest' and poses 'reputational risks' to
the Federal Reserve System.â€
The
study further revealed, "In Dimon's case, JPMorgan received some $391
billion of the $4 trillion in emergency Fed funds at the same time his
bank was used by the Fed as a clearinghouse for emergency lending programs.
"In
March of 2008, the Fed provided JPMorgan with $29 billion in financing
to acquire Bear Stearns. Dimon also got the Fed to provide JPMorgan
Chase with an 18-month exemption from risk-based leverage and capital
requirements. And he convinced the Fed to take risky mortgage-related
assets off of Bear Stearns balance sheet before JP Morgan Chase acquired
the troubled investment bank."
But it wasn't only Jamie Dimon
The
report says, "The high-profile conflict involved Stephen Friedman, the
former chairman of the New York Fed’s board of directors. Late in
2008, the New York Fed approved an application from Goldman Sachs to
become a bank holding company, giving it access to cheap loans from the Federal Reserve.
"During
that period, Friedman sat on the Goldman Sachs board. He also owned
Goldman stock, something that was prohibited by Federal Reserve conflict
of interest regulations. Although it was not publicly disclosed at the
time, Friedman received a waiver from the Fed’s conflict of interest
rules in late 2008. Unbeknownst to the Fed, Friedman continued to purchase shares in Goldman from November 2008 through January of 2009, according to the GAO.
"In another case, General Electric
CEO Jeffrey Immelt was a New York Fed board member at the same time GE
helped create a Commercial Paper Funding Facility during the financial
crisis. The Fed later provided $16 billion in financing to GE under this
emergency lending program."
In fact, "Sanders on May 22
introduced legislation to prohibit banking industry and business
executives from serving as directors of the 12 Federal Reserve regional
banks." It looks like no one was paying attention to the legislation.
"During the financial crisis, at least 18 former and current directors from Federal Reserve Banks worked in banks and corporations that collectively received over $4 trillion in low-interest loans from the Federal Reserve.†Here are more of the dual identity bankers . . .
"Sanford
Weill, the former CEO of Citigroup, served on the Fed’s Board of
Directors in New York in 2006. During the financial crisis, Citigroup
received over '$2.5 trillion in total financial assistance from the
Fed.'
"Richard Fuld, Jr., the former CEO of Lehman Brothers,
served on the Fed’s Board of Directors in New York from 2006 to 2008.
During the financial crisis, the Fed provided $183 billion in total
financial assistance to Lehman before it collapsed.
"James M. Wells, the Chairman and CEO of SunTrust Banks, has served on the Board of Directors at the Federal Reserve Bank in Atlanta since 2008. During the financial crisis, SunTrust received $7.5 billion in total financial assistance from the Fed.
"Richard Carrion, the head of Popular Inc. in Puerto Rico, has served on the Board of Directors of the Federal Reserve Bank
of New York since 2008. Popular received $1.2 billion in total
financing from the Fed’s Term Auction Facility during the financial
crisis.
"James Smith, the Chairman and CEO of Webster Bank,
served on the Federal Reserve’s Board of Directors in Boston from
2008–2010. Webster Bank received $550 million in total financing from
the Federal Reserve’s Term Auction Facility during the financial
crisis.
"Ted Cecala, the former Chairman and CEO of Wilmington
Trust, served on the Fed’s Board of Directors in Philadelphia from
2008–2010. Wilmington Trust received $3.2 billion in total financial
assistance from the Federal Reserve during the financial crisis.
"Robert
Jones, the President and CEO of Old National Bancorp, has served on the
Fed’s Board of Directors in St. Louis since 2008. Old National
Bancorp received a total of $550 million in low-interest loans from the Federal Reserve’s Term Auction Facility during the financial crisis.
"James
Rohr, the Chairman and CEO of PNC Financial Services Group, served on
the Fed’s Board of Directors in Cleveland from 2008–2010. PNC
received $6.5 billion in low-interest loans from the Federal Reserve during the financial crisis.
"George
Fisk, the CEO of LegacyTexas Group, was a director at the Dallas
Federal Reserve in 2009. During the financial crisis, his firm received a
$5 million low-interest loan from the Federal Reserve’s Term Auction Facility.
"Dennis Kuester, the former CEO of Marshall
& Ilsley, served as a board director on the Chicago Federal Reserve
from 2007–2008. During the financial crisis, his bank received over
$21 billion in low-interest loans from the Fed.
"George Jones,
Jr., the CEO of Texas Capital Bank, has served as a board director at
the Dallas Federal Reserve since 2009. During the financial crisis, his
bank received $2.3 billion in total financing from the Fed’s Term
Auction Facility.
"Douglas Morrison was the Chief Financial
Officer at CitiBank in Sioux Falls, South Dakota, while he served as a
board director at the Minneapolis Federal Reserve Bank in 2006. During
the financial crisis, CitiBank in Sioux Falls, South Dakota received
over $21 billion in total financing from the Federal Reserve.
"L. Phillip Humann, the former CEO of SunTrust Banks, served on the Board of Directors at the Federal Reserve Bank
in Atlanta from 2006–2008. During the financial crisis, SunTrust
received $7.5 billion in total financial assistance from the Fed.
"Henry Meyer, III, the former CEO of KeyCorp, served on the Board of Directors at the Federal Reserve Bank
in Cleveland from 2006–2007. During the financial crisis, KeyBank
(owned by KeyCorp) received over $40 billion in total financing from the
Federal Reserve.
"Ronald Logue, the former CEO of State Street
Corporation, served as a board member of the Boston Federal Reserve Bank
from 2006–2007. During the financial crisis, State Street Corporation
received a total of $42 billion in financing from the Federal Reserve."
For more banks, names, and company information that the GAO information provides, click here to see the Senate PDF.
http://www.sanders.senate.gov/imo/media/doc/061212DimonIsNotAlone.pdf
The information
is an indictment of the Fed's practice, loaning interest-free funds to
investment banks and other corporations whose officials sat on Fed Bank
Boards as well.
Perhaps four questions need to be asked. Why
wasn’t the Glass-Steagall Act reinstated? Two, why hasn’t Clinton
been asked to explain why he repealed it? Three, when do we overhaul or
eliminate the Fed? Four, when do we say thanks to Bernie?
***
Jerry Mazza is a freelance writer, life-long resident of New York City.
An EBook version of his book of poems “State Of Shock,†on 9/11 and
its after effects is now available at Amazon.com and
Barnesandnoble.com. He has also written hundreds of articles on politics
and government as Associate Editor of Intrepid Report (formerly Online
Journal). Reach him at gvmaz@verizon.net.
ORIGINALLY PUBLISHED
http://www.intrepidreport.com/archives/6461
(June 29, 2012) Who else but Independent Vermont Senator Bernie Sanders
would have the courage to blow the whistle on the $4 trillion Fed scam
involving near zero-interest Federal Reserve loans and other financial
assistance that went to banks and businesses of at least 18 current and
former Federal Reserve regional bank directors in the aftermath of the
2008 financial collapse, all documented in the Government Accountability
Office records?
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