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"Wall Street profits from trades with Fed"

There is currently a proposal that would require Congress to audit the Federal Reserve.  The bill has 282 co-sponsors, which means it would easily pass the House.  Yet someone in the House has buried the bill.  The Fed, of course, does not want audited. Although the Fed gave hundreds-of-billions of money directly to Wall Street, the Fed has actually transfered trillions (nine trillion, by conservative estimates) through many subterfuges.  Here is a recent example: Wall Street banks are reaping outsized profits by trading with the Federal Reserve, raising questions about whether the central bank is driving hard enough bargains in its dealings with private sector counterparties, officials and industry executives say.The Fed has emerged as one of Wall Street?s biggest customers during the financial crisis, buying massive amounts of securities to help stabilise the markets...continue to full post

Full post as published by Crime & Federalism on August 23, 2009 (boomark / email).