Scandal at the Fed (“Ben slapped for secrets”)
Another chapter why Ben Bernanke (and Tim Geithner) must immediately be replaced and cannot be trusted with the finances of our country.
From Saturday’s New York Post:
Ben slapped for secrets
By PAUL THARP
Posted: 12:25 AM, March 20, 2010
Federal Reserve boss Ben Bernanke came under attack yesterday from the courts and politicians alike for his penchant to conceal the Fed’s deepest secrets.
His biggest slap came from a federal appeals judge who cleared the way for the release of information that Bernanke tried to block on how the Fed spread an unprecedented $2 trillion in taxpayer money to bail out banks.
At the same time, a House oversight panel also demanded Bernanke turn over internal Fed documents on whether a sitting chairman of the Federal Reserve Bank of New York, Stephen Friedman, got insider information from his role while he was simultaneously serving as a director of Goldman Sachs in the autumn of 2008.
Friedman’ dual duties may have enabled him to buy Goldman Sachs shares ahead of its multibillion-dollar bailout by the Fed in late 2008. Friedman resigned his Fed post last summer, while the shares, purchased for $1 million, have gained $3.7 million in value.
The NY Fed chairman and Goldman Sachs guy got inside information about a bailout and made an easy $3.7 million. People used to care about this stuff.
Bernanke’s bad day peaked around noon, when Chief Appellate Judge Dennis Jacobs released his surprise decision on lawsuits filed by media organizations seeking to reveal which banks got bailouts and how much each received.
Fox News Channel and Bloomberg News both had to sue for this. The Fed wanted more secrecy on the bailouts.
The Fed stinks. Insiders are making millions while America is bankrupt.
IN OTHER FINANCIAL NEWS:
From Business Insider:
The FHA Is Being Run Like A Ponzi Scheme That Will Surely Implode
John Carney | Mar. 19, 2010, 3:34 PM
ObaMao on Mar 19, 3:49 PM said:
Another very good and original article by Carney.
What a breath of fresh air with utter junk cut and paste amateur jobs by Joe and Vince with sensational titles…
My take is that FHA is taking over Sallie and Freddie’s roles stealthy to continue the housing bubble Ponzi scheme. And we the taxpayers are hosed once again as guess who will bail out FHA – us.
Jon Stewart’s “JONCO” explains financial fraud for you. I don’t like Stewart’s title “In Dodd We Trust.” I wouldn’t trust Chris Dodd with anything. Stewart picks up steam halfway through, when he explains how to incorporate “JONCO,” get a 0% loan from the government on a $900 junk car for collateral, and pay himself a million dollars in salary. If Jon Stewart knows how to game the system and rip off poor taxpayers, you know it’s just that easy.