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Report: ‘Apparent Conflict of Interest’ Between Fed Directors and Bailouts

Remember Sen. Bernie Sanders (I-Vt.) who recently came out in support of the Occupy Wall Street protests?

Report: Apparent Conflict of Interest Between Fed Directors and Bailouts

Well, he’s making headlines again because he might be onto something very, very big that involves a shocking degree of political corruption and corporate cronyism.

It all begins with a recent report from the Government Accountability Office (GAO) that claims that, “multiple directors or former directors of the Federal Reserve banks who played a key role in the 2008 bailouts had an apparent conflict of interest,” according to The Washington Examiner.

What’s the “conflict of interest?”

Several of these Fed reserve directors were connected to the companies and banks that received large sums of government money.

Joel Gehrke of Examiner reports:

The office of Sen. Bernie Sanders, I-Vt., who caucuses with the Democrats, noted that the [GAO] report did not name any names, “but unambiguously described several individual cases involving Fed directors that created the appearance of a conflict of interest.”

The group of 18 people connected to both the Federal Reserve and a bailed out company included: the CEO of General Electric, Jeffrey Immelt (who is now President Obama’s jobs czar); Stephen Friedman of Goldman Sachs Group Inc.; and Jamie Dimon, the CEO of JP Morgan Chase [emphasis added].

Friedman chaired the Federal Reserve Bank of New York in 2008, when the New York Federal Reserve approved Goldman Sachs as a bank holding company, which Sanders’ office explains “[gave] it access to cheap Fed loans.”

Friedman received a waiver from the Federal Reserve to keep his chairmanship, even though he was “a current board member and shareholder of Goldman Sachs Group Inc.”

When Friedman received this waiver, ”the Federal Reserve Board was unaware that the then-FRBNY chairman had purchased additional shares in Goldman Sachs via an automatic stock purchase program,” according to the full report.

It gets worse.

The Federal Reserve Bank of New York consulted with GE about creating an “emergency program to assist with the commercial paper market” while Jeffery Immelt served as a New York Fed director, according to the Examiner report.

“The Fed later provided $16 billion in financing for GE under the emergency lending program,” even while Immelt held his position with the Federal Reserve Bank of New York and GE, according to the Sanders report.

But it doesn’t stop there.

Jamie Dimon was the director for the Federal Reserve Bank of New York when JP Morgan received $29 billion through the Federal Reserve to purchase Bear Stearns, according to the report.

“Dimon also convinced the Fed to take risky mortgage-related assets off of Bear Stearns balance sheet before JP Morgan Chase acquired this troubled investment bank,” writes the Sanders report.

One starts to get the feeling as dishonest and underhanded as these actions seem, the revelations of the GAO and Sanders report are just the tip of the iceberg.

Read the Sanders Report Here.

Read the Full GAO Report here.

(H/T Hotair, Washington Examiner)

Comments (35)

  • carbonyes
    Posted on October 22, 2011 at 4:22am

    Another example of the Imposter-in-Chief’s Chicago style politics, does whatever he wants, whenever he wants regardless of the ramifications or repercussions, payoffs to “friends”, collaborators, bad loans to failing “green” companies, Soros sponsored troop commitments to African countries, creation of czar positions filled by wackos, disdain, disrespect and disregard of the Constitution, and the never ending list goes on. This is has gone beyond the pale of policy, procedural and ideological differences, which in itself is unacceptable. This man child and egomaniac has been entering into the arena of treasonous and traitorous acts, and is committed to the demise and destruction of this nation as we know know it and is bent upon the creation of a third world country subservient to the UN and the New World Order. If the rest of the leadership of this country on the right, i.e., true conservatism does not see it, or if they do, and don’t get some balls to confront this megalomaniac, we are going to have to take some steps ourselves.
    In the mean time we had better be certain to see that the right person is elected to confront him and beat him in 2012. There is not another option. He must be taken out in the November elections. We also must make sure that the Chicago mobsters, the Van Jones’s, the Lerner’s, the union thugs and the rest of the OCS types don’t run a muck to the point that Obama does not try to intervene and declare Martial Law postponing the election.

    Report Post »  
  • carbonyes
    Posted on October 22, 2011 at 1:01am

    Oh, there is much more than an apparent conflict of interest. This is treason and treachery with the participants being President Barack Hussein Obama, the Federal Reserve, the various banks and investment companies and business heads involved – all direct participants. Our Congressional representatives are minimally indirect participants.
    How is this so? Well, anyone with half a brain profoundly knows that these “persons” are destroying our economy, our nation and our families, both presently and our posterity, meaning our children and grandchildren as assuredly as if they opened the borders of our nation, laid down our arms, and told our enemies to come in and take over.
    The magnitude of this deception, the dark powers behind it and the ability to maintain this continued devastating destruction is almost incomprehensible. The type of force that would be needed to withstand and subsequently having the ability to counter these dark forces actually is incomprehensible, but it is available to those who are first prepared to give their life to God and His Christ and live for Him and then be prepared, as were our Founding Fathers, to give the ultimate sacrifice. This battle that we are in is as critical as that at the founding of our nation if not more so. this will take a commitment and a resolve preceded by and continually bathed in prayer, as well as a genuine repentance for our many sins and summoning the power, grace and mercy of Almighty God to see us through.

    Report Post »  
  • Patriot760
    Posted on October 21, 2011 at 9:24pm

    I keep saying this, “Tar and Feathers” anyone?”. Then we need a true conservative President who believes in the Constitution and will take his oath seriously. He will need to make sure our constitution is taught in our schools. This mess is going to take a generation to correct. We’ll need a chain of real conservatives to come to power. This crap doesn’t get cleared up in one administration. Also, if such a President is elected, I pray to God, then he needs to show the American people in simple terms what got us into this mess.

    Report Post »  
  • MGB-CPA
    Posted on October 21, 2011 at 7:40pm

    This all goes back to the 2008 TARP. The government and Bush decided to trash Capitalism and ignore the Constitution. A real coo for Barry that helped him set his plans into motion with legitimacy from the former President and the US Congress. Every person with any say-so re: TARP and the subsequent bailouts have MAJOR conflicts of interest, have trashed the Constitution and have willfully committed Treason on the peoples of the US.

    Report Post » MGB-CPA  
  • Ghandi was a Republican
    Posted on October 21, 2011 at 6:16pm

    The bigger Government gets, the more corruption you will have. That was the whole point of the Declaration of Independence and self Governance OF and BY THE PEOPLE!
    Ever hear anyone protesting “Power to the Bureaucrats” ?

    Report Post » Ghandi was a Republican  
  • JCoolman
    Posted on October 21, 2011 at 4:56pm

    If it ends up being true and the evidence proves that these people are cronies, then prosecute them like Madoff or Hecker or Rajaratnam. These investigations must include George Soros as well. It is time to start holding these people responsible. We are a country of laws not men. Its time to impliment this once again.

    Report Post »  
  • steelkat
    Posted on October 21, 2011 at 3:54pm

    And WHY aren’t they in jail? They’ll keep doing it and laugh at us all the way to the bank. Face it folks they have us by the balls and are squeezing. Pray the Lord comes soon… or cival war

    Report Post » steelkat  
    • lukerw
      Posted on October 21, 2011 at 9:11pm

      “They” are… the Investigaters, Police & Judges… of the Administration!

      Report Post » lukerw  
  • Norm D. Plume
    Posted on October 21, 2011 at 3:07pm

    Seems to me there is a candidate running for the Republican nomination who has said something or other about the Federal Reserve and corruption, and who has been pointing these things out for decades.

    Wonder who that guy is…

    Report Post » Norm D. Plume  
    • Justthefactsmam
      Posted on October 21, 2011 at 5:38pm

      Agree 100% The problem is then the crazy ideas start coming out. #1 being his isolationist attitudes, which would then open our country to attacks from all quarters. Yes, we need to stop giving “aid” to countries that are not our friends, and would love to see us wiped off the map, but there are allies that would cease to exist if we did not help them. I’m sorry, even as strong as the USA is, we cannot take on the whole world by ourselves. The place for the man you are talking about is as head of the Fed, or at Treasury.

      Report Post » Justthefactsmam  
  • affinnity
    Posted on October 21, 2011 at 2:55pm

    Wow, I never would have seen this coming: “Several of these Fed reserve directors were connected to the companies and banks that received large sums of government money.”

    Always follow the money and you’ll find the power.

    Report Post » affinnity  
    • 100 Million Patriots Standing
      Posted on October 21, 2011 at 3:53pm

      Is it merely a co-incidence that Stephen Friedman and Jamie Dimon are also CFR members?

      it‘s not hard to draw conclusions that ’a relative few’ are enriching themselves at the expense of us all…. by exploiting the system to their distinct advantage and control.

      same ol‘ players in the same ol’ clubs of exclusivity…..granting us the illusion of liberty.

      de-powering the ‘Secretive’ organizations such as the Fed, CFR, Bilderbergs, Club of Rome, and Committee of 300, would greatly reduce the progressive, elite leftist power structures and return to the people, ‘the voice of freedom’.

      - to accomplish this we need to elect honorable people to represent us that will acknowledge the problem and fix it.

      Report Post » 100 Million Patriots Standing  
    • EqualJustice
      Posted on October 21, 2011 at 3:58pm

      ANd then they get the brainwashed to PROTEST? hahaha such fools!

      Report Post » EqualJustice  
  • blackslaw6th
    Posted on October 21, 2011 at 2:35pm

    Here is an easy diagram of the mandrake mechanism to help you understand the Fed’s theft through fractional reserve banking http://www.geocities.com/rebornempowered/mandrake/mandrake.htm
    There is plenty of info out there, just read. Murray Rothbard, G Edward Griffin etc etc.
    Legal tender? how does that belong in a free market?
    Pay back “all” debt; how much legal tender is then in circulation for public and private use?
    Fiat currency hasnt work since the royal govenor of Mass. in 1690 first introduced it to the colonies.
    When you mandate fiat notes with legal tender law and add into the mix fractional reserve banking, you are begging for a collapse! It has happened over and over in this country yet we never seem to learn the lesson.
    The last president to zero the debt was Andrew Jackson, because he broke the central bank’s monopoly over money.
    If you dont start understanding that inflation is a hidden (to most) tax on the people, we will continue to keep repeating the same mistakes expecting different results!
    Educate!

    Report Post » blackslaw6th  
    • blackslaw6th
      Posted on October 22, 2011 at 9:30am

      Oh, and try to guess what the 5th plank of the communist manifesto is. Google it.

      Report Post » blackslaw6th  
  • ElChupaCabraDeUSA
    Posted on October 21, 2011 at 2:35pm

    Fiat money is the devil and the Fed is the vehicle from hell that the devil rides on. There is a reason to be occupying Wall Street. Unfortunately the imbeciles pooping on themselves aren’t smart enough to know what it is. The Fed has been de-valuing our currency to bail out socialist Europe and particularly the UK since the Fed was spawned from the demon seed of JP Morgan and the Rothschild Cabal in the early 20th century.

    Report Post » ElChupaCabraDeUSA  
  • taxpro4u03
    Posted on October 21, 2011 at 2:29pm

    “conflicts of interest” applies ONLY to low-level peons employed by the gov.

    Report Post »  
  • qzak491
    Posted on October 21, 2011 at 2:28pm

    The only conflict of interest I see is between what the fed wants and what the rest of America needs. If you think about it this is not a conflict, they don’t care about America, only themselves. Problem solved.

    GET RID OF THE FED!!!!!

    Report Post »  
  • objectivetruth
    Posted on October 21, 2011 at 2:03pm

    New York Federal reserve is the only reserve bank that has a standing seat in the banking and finance commitees.They are the only one that is allowed a stake in banking regulation.No the rest of them don’t[Well least time I checked which has been a few months I admit}Anyone here, other than me ,see a problem with this?Almost all of these companies had stakes in and backed companies that when the trail was followed had ties to prohibited countries and individuals.

    Report Post »  
  • award1989
    Posted on October 21, 2011 at 1:41pm

    Rowgue,
    The Fed isnt like any other private institution for one huge reason. It can print money. Pretty Simple. Its called reading, try it some time

    Report Post »  
  • Jim in Houston
    Posted on October 21, 2011 at 1:15pm

    Corruption in our FED. You gotta be kidding me. I am glad I am old and won’t live long enough to see the complete collapse of morality and ethics in our government. The regressives ( progressives is a misnomer of the highest order) are well on their way to the total destruction of the nation and we just sit by idly and watch it happen.

    Report Post »  
    • wbalzley
      Posted on October 21, 2011 at 1:43pm

      OUR Fed? As in the FED belongs to We The People? Sorry pal, the FED is a private bank owned by private stockholders. It was never OUR Fed…

      Report Post »  
    • wbalzley
      Posted on October 21, 2011 at 1:44pm

      By the way, I am from Pasadena, glad to run into a fellow TEXAN!

      Report Post »  
  • wbalzley
    Posted on October 21, 2011 at 1:07pm

    GHOSTOFJEFFERSON where are you? This is your moment to shine! Ok, I will beat you to the punch:

    “I believe that banking institutions are more dangerous to our liberties than standing armies…”

    “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”

    “The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

    –THOMAS JEFFERSON

    Report Post »  
    • Will4Freedom
      Posted on October 21, 2011 at 1:21pm

      Hmmm. If only someone had warned us about the Federal Reserve… Hmmm…….

      Report Post »  
  • TiocFaidhArLa
    Posted on October 21, 2011 at 12:44pm

    Holy crap!! Are we finally figuring out the FED is corrupt? Oh my goodness! Wake up people, they have been stealing from us and paying other countries and devaluing our currency for almost a century. The forfathers detested centralized banks because of the corruption it breeds. They can print as much money as they want and our hands are tied. We cant look into there affairs or see where the cash is goin or anything although they control our money. END THE FED

    Report Post »  
  • steveh931
    Posted on October 21, 2011 at 12:29pm

    The Federal Reserve Banking system looks great on paper, now add in the human factor, it allows people that are deceitful in nature to control our financial system and lets Greed grow rampant. All of these crooks need to have their passports pulled and let the investigations begin. Could we build a prison big enough to house all the crooks from the White House on down? Could you imagine what a poker game would look like with all these crooks sitting at the tables?

    Report Post » steveh931  
  • JAYBECONSERVATIVE
    Posted on October 21, 2011 at 12:22pm

    Ok, everyone who pitched a fit about Haliburton and Dick Cheney, where’s the uproar?

    Report Post »  
  • Rowgue
    Posted on October 21, 2011 at 12:15pm

    I don’t see where the conflict of interest comes in. The federal reserve is not a government agency, it’s a private business.

    The fact that the government treats the federal reserve like it is a government agency is their own fault.

    Report Post »  
    • TiocFaidhArLa
      Posted on October 21, 2011 at 12:46pm

      Your mentally ill if you don’t see the issue here. Do some research before you speak.

      Report Post »  
    • steveh931
      Posted on October 21, 2011 at 1:46pm

      ROWGUE,

      Start with reviewing the Federal Reserve System. Once you’re done, look at all the members of the F.O.M.C. and the way they treat the system as their own, handing down policies that all FDIC banks have to follow. There are numerous individuals throughout the system that have ties to the Representatives in Washington D.C. and the Federal Reserve. With all the bad debt throughout the system the Federal Reserve has been buying and selling that debt to foreign nations in the form of T-Bills giving those that purchase large amounts a say in Washington D.C. Once the T-Bills are sold it allows the Treasury to print more fiat money devaluing the dollar. The recent upward swing of the dollar is do to the decline in the Euro and the overall shape of the Eurozone. Greed runs rampant throughout our Legislative and Executive Branch of government through the Federal Reserve and Treasury Department, putting the peoples nation further and further in debt.

      Report Post » steveh931  
  • hauschild
    Posted on October 21, 2011 at 12:03pm

    And, this would surprise whom???

    Report Post »  

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