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Clawback to reduce the deficit

"Epic Claw Hand"

"Epic Claw Hand" by epicbeer on flickr

The GAO has completed it’s audit of the Federal Reserves actions regarding the bailout of the ‘financial system’.

And it would appear that all that is necessary to address the ‘deficit’ is a ‘clawback’ of the monies the Fed unilaterally provided these financial institutions.

If this audit doesn’t convince others just how corrupt our ‘capitalistic system’ is, then those not convinced MUST be complicit in that corruption.

From here:

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

And here the politicians are arguing about ,at most, $4 trillion.

“The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.”

Let’s see; don’t both Chambers of the Congress have ‘ethic committees’ that supposedly speak to conflicts of interest? And doesn’t Obama like to talk about ‘transparency’?

“The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.”

Why didn’t they outsource to other nations like other companies do in the U.S.? /S

To read the GAO report, click here. (PDF link)

Just love how they make thievery and corruption an ‘opportunity’.

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