Saturday, 30 January 2010

Bloomberg News on "Secret Banking Cabal"

Please note that the following article is from the mainstream media (Bloomberg News) and not from some "conspiracy website".

Jan. 29 (Bloomberg) -- The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.

Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.

We’re talking about the Federal Reserve Bank of New York, whose role as the most influential part of the federal-reserve system -- apart from the matter of AIG’s bailout -- deserves further congressional scrutiny.

The New York Fed is in the hot seat for its decision in November 2008 to buy out, for about $30 billion, insurance contracts AIG sold on toxic debt securities to banks, including Goldman Sachs Group Inc., Merrill Lynch & Co., Societe Generale and Deutsche Bank AG, among others. That decision, critics say, amounted to a back-door bailout for the banks, which received 100 cents on the dollar for contracts that would have been worth far less had AIG been allowed to fail.

If you think that the same sort of crap doesn't happen on this side of the pond then I really have to question your grip on reality.


AMcGuinn said...

You are completely wrong - public hearings into banking policy definitely do not happen here.

sound money man said...

@AMcGuinn: Mea Culpa. You're right! Yes, there is even less scrutiny and accountability over here.