The Federal Reserve has been increasingly the focus
of investigations. So, now the obvious collusion
between banks and the US government to feed
the economy to the banks, is out in the open.
Bernie Sanders of Vermont is one of the few
members of congress who is doing his job.
Read 'em and weep: Ritholz
Crony
Capitalists of the Federal Reserve
By
Guest Author - July 8th, 2012, 6:00AM
US
Senator Bernard Sanders (I-Vt.)
Washington, DC
June
12, 2012
Jamie
Dimon Is Not Alone
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.
Jamie Dimon, the Chairman and CEO of JP
Morgan Chase, has served on the Board of Directors at the Federal Reserve Bank
of New York since 2007. During the financial crisis, the Fed provided JP Morgan
Chase with $391 billion in total financial assistance. JP Morgan Chase was also
used by the Fed as a clearinghouse for the Fed’s emergency lending programs.
In March of 2008, the Fed provided JP
Morgan Chase with $29 billion in financing to acquire Bear Stearns. During the
financial crisis, the Fed provided JP Morgan Chase with an 18-month exemption
from risk-based leverage and capital requirements. The Fed also agreed to take
risky mortgage-related assets off of Bear Stearns balance sheet before JP
Morgan Chase acquired this troubled investment bank.
Jeffrey Immelt, the CEO of General Electric, served on the New York Fed’s
Board of Directors from 2006-2011. General Electric received $16 billion in
low-interest financing from the Federal Reserve’s Commercial Paper Funding
Facility during this time period.
Stephen Friedman. In 2008, the New York Fed approved an application from
Goldman Sachs to become a bank holding company giving it access to cheap Fed
loans. During the same period, Friedman, who was chairman of the New York Fed
at the time, sat on the Goldman Sachs board of directors and owned Goldman
stock, something the Fed’s rules prohibited. He received a waiver in late 2008
that was not made public. After Friedman received the waiver, he continued to
purchase stock in Goldman from November 2008 through January of 2009
unbeknownst to the Fed, according to the GAO. During the financial crisis,
Goldman Sachs received $814 billion in total financial assistance from the Fed.
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.
US
Senator Bernard Sanders (I-Vt.)
Washington, DC
June
12, 2012
