Senator Bernie Sanders to Fed. Reserve Chair Bernanke - Show Me the Money!. This is a must watch clip and note the condescending attitude, the expression of disdain, from Federal Reserve Chairman Ben Bernanke on Sanders basic question of who is getting $2.2 trillion dollars in short terms loans from the Fed.
If there is a single episode in this entire 18 months that has made me more angry, I can’t think of one other than AIG,” Bernanke told lawmakers today. “AIG exploited a huge gap in the regulatory system, there was no oversight of the financial- products division, this was a hedge fund basically that was attached to a large and stable insurance company.
Alright! You're pissed, so are we. So why are you doing this?
TOP offers options on a short-term fixed rate Term Securities Lending Facility (TSLF) bond-for-bond loan of general Treasury collateral against a pledge of eligible collateral. The term of the loan typically spans a short period of traditional collateral market dislocation, such as a quarter-end dates. While the price of the loan is fixed, the price of the option is determined by competitive bidding.
We all know this plan will lead to a Zombie financial architecture:
Every plan we’ve heard from Treasury amounts to the same thing — an attempt to socialize the losses while privatizing the gains. We’re going to buy up all the bad assets at premium prices; no, we’re going to offer the banks guarantees against losses; no, we’re going to let private investors buy the stuff, but offer them de facto guarantees against losses in the form of non-recourse loans.
Now here's additional AIG tidbit from Bloomberg:
AIG has reduced the number of bets made by the financial products unit that sold credit-default swaps by more than 25 percent since October and cut expenses by “ hundreds of millions” of dollars, she said
Only 25%? Only 25% when it's well known that these CDSes are a massive unregulated problem and it is acknowledging this division in AIG was (is?) operating like a global Russian roulette wheel?
Meanwhile in a House hearing, it was brought to light just how many TARP recipients have offshore tax havens!
Even worse, the Fed wants even more tools upon which to give out and loan taxpayer money and it appears to be bypass Congressional oversight.
Anyone about to jump on the Ron Paul let's audit the Federal Reserve bandwagon yet? We all gettin' religion?