You are hereBlogs / dlindorff's blog / End the Bankers' $3.3-Trillion Free Ride: Bust 'Em Up and Take 'Em Down!

End the Bankers' $3.3-Trillion Free Ride: Bust 'Em Up and Take 'Em Down!


By dlindorff - Posted on 05 December 2010

By Dave Lindorff

Let’s just assume for the sake of argument--though I believe the claim to have been completely bogus--that the Federal Reserve and the US Treasury and all of the Bush and Obama economic advisers and Congressional leaders in late 2008 and early 2009 genuinely feared that shutting down and breaking up the nation’s biggest banks would lead to financial and economic disaster because of the extent of the fiscal crisis caused by the implosion of subprime-linked structured products.

We now know, thanks to an amendment to the Dodd-Frank financial “reform” law introduced by Sen. Bernie Sanders (I-VT), that the Fed made available a stunning $3.3 trillion in emergency lending, at extraordinarily low interest rates ranging as low as 0.5%.

But this information was withheld from both Congress and the public by the Fed and the Treasury until this past week! There was no legal reason for it to be withheld. It was our money, and in an excellent article by Gretchen Morgenson of the New York Times, Walker F. Todd, a former assistnat general counsel and research officer at the Federl Reserve Bank of Cleveland who now works as a research fellow at the American Institute for Economic Research, says the information about the amount of the emergency lending, and who was receiving the money should have been made available long before the Dodd-Frank legislation was drawn up.

As Todd tells Morgenson, “The Fed’s current set of powers and the shape of the Dodd-Frank bill over all might have looked quite different if this information had been made public during the debate on the bill.”

Boy is that an understatement.

Dodd-Frank was written within the constraints--huge and debilitating--of the concept of “too big to fail.” There was absolutely no consideration given during the drawing up of the bill to hacking apart Citibank, Bank of America, Wells Fargo, JPMorganChase or Goldman Sachs. Nor was any consideration given to requiring these big banks, which are responsible collectively for more than half of all foreclosures nationwide, and which have the huge majority of credit cards, on which Americans are struggling with long-term balances carrying loan-shark rates in excess of 20%, to cut their customers some slack.

If the American public had known a year and a half ago that the same banks that were turning the screws on them were receiving $3.3 trillion in subsidized loans, there would have been a massive clamor to demand that as a condition of those loans, deals be cut to reduce mortgages to accurately reflect the depreciated value of the homes in question, and to reduce the monthly payments people owed...

For the rest of this article by DAVE LINDORFF in ThisCantBeHappening!, the new independent online alternative newspaper, please go to: ThisCantBeHappening!

Speaking Events

2016

 

March 24, Boone, NC.

 

March 25, Asheville, NC
Battery Park Apartments, 1 Battle Square, rooftop room, noon - 2 p.m.
Sign up on FB.

 

War Is A Lie: Second Edition
Published April 5, 2016
Tour begins here:

April 11, Washington, DC, 6:30-8:00 p.m. at Busboys and Poets at 5th and K Streets.
Sign up on FB.

 

April 12, Baltimore, MD, 7:30 p.m. at Red Emma's.
Sign up on FB.

 

April 14, Bellingham, WA, 7:00-9:00 p.m. at Bellingham Unitarian Fellowship.
Sign up on FB.

 

April 15, Seattle, WA
Town Hall Seattle
1119 Eighth Ave (8th and Seneca) 
Seattle, WA 98101
7:30pm
Sign up on FB.

 

April 16 Portland, OR

 

April 24, Oneonta, NY at Unitarian Universalist Society of Oneonta.
5:30 discussion with students.
7:00 talk and Q&A with everyone.
Sign up on FB.

 

May 28, San Francisco, CA
11 a.m. to 1 p.m., David Swanson interviewed by Daniel Ellsberg, at San Francisco Main Public Library, 100 Larkin Street.
Sign up on FB.



May 28, Marin County, CA
4 to 6 p.m., David Swanson in conversation with Norman Solomon, at Book Passage, 51 Tamal Vista Blvd., Corte Madera, CA
Sign up on FB.



May 29, Oakland, CA
3 to 4 p.m., David Swanson interviewed by Cindy Sheehan, at Diesel: A Bookstore, 5433 College Avenue at Kales (near Manila), Oakland, CA
Sign up on FB.



May 29, Berkeley, CA
7:30 to 9 p.m., David Swanson and Cindy Sheehan at Berkeley Fellowship of Unitarian Universalists, sponsored by the Social Justice Committee and Cynthia Papermaster, 1606 Bonita Ave. (at Cedar), Berkeley, CA
Sign up on FB.



May 30, Fresno, CA
2 to 4 p.m., David Swanson and Cindy Sheehan at a Peace Fresno event

 


June 11 St. Paul, MN, 6 p.m. at Macalester Plymouth Church Social Hall 1658 Lincoln, St. Paul, MN.
Sign up on FB.

 

June 12 Minneapolis, MN, 9 and 11 a.m. at St. Joan's 4533 3rd Ave So, Minneapolis, MN, plus peace pole dedication at 2 p.m.
Sign up on FB.

 

Other Events Here.

CHOOSE LANGUAGE

Support This Site

Donate.

Get free books and gear when you become a supporter.

 

Sponsors:

Speaking Truth to Empire

***

Families United

***

Ray McGovern

***

Financial supporters of this site can choose to be listed here.

Buy Books

Get Gear

The log-in box below is only for bloggers. Nobody else will be able to log in because we have not figured out how to stop voluminous spam ruining the site. If you would like us to have the resources to figure that out please donate. If you would like to receive occasional emails please sign up. If you would like to be a blogger here please send your resume.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.