Friday, July 10, 2009

Fed under Fire

This is a great overview of why the Fed needs to be audited and ended. The biggest problem is the conflicts of interest inherent in its decision making. The most egregious conflicts of interest are at the New York Fed, where JPMorgan's CEO Jamie Dimon, also a NY Fed Director, engineered the bailout of Bear Stearns using a $30 billion guarantee from the Fed, engineered the takeover of Washington Mutual's failure using federal funds, and probably some other backroom details. Jeff Immelt, also a NY Fed director helped GE obtain taxpayer funded debt obligations for the collapsing wing of GE, GE Capital. Throughout the country, the boards of directors for each of the Federal Reserve Banks are filled with executives from its member banks. The Fed does not work for the benefit of the people, it works for the benefit of its member banks, this is simple agency theory. If our monetary and fiscal policy are conducted for the benefit of banks, then guess who loses out.

The Fed has a supposed "Dual Mandate" to maximize employment and maintain price stability. Obviously it has failed at both several times over the last 100 years, and has committed some of its worst errors in the last 10-20 years. Yet, the people of this country are too lazy or ignorant to get to the root source of the problem. Once people understand that the FEDERAL RESERVE IS A PRIVATE ORGANIZATION OWNED BY ITS MEMBER BANKS AND HAS NO SIGNIFICANT ACCOUNTABILITY TO THE US GOVERNMENT AND ITS CITIZENS, they will demand it to be ended by the congress who offloaded the responsibility of maintaining the currency as laid out in the constitution.

Below is a spattering of Fed Directors throughout the country. Notice that many of the banks here have received bailout money.

Jamie Dimon (bio) 2009
Chairman of the Board and Chief Executive Officer
JPMorgan Chase

Jeffrey R. Immelt (bio) 2011
Chairman and Chief Executive Officer
General Electric Company

Richard L. CarriĆ³n (bio) 2010
Chief Executive Officer and Chairman
Banco Popular de Puerto Rico

James M. Wells III
Chairman and Chief Executive Officer
SunTrust Banks Inc. - Horribly run bank highly exposed to Atlanta and Florida RE disasters

Rudy E. Schupp
President and Chief Executive Officer
1st United Bank - Failed bank

Robert H. Gilliam, Jr.
President & CEO
First National Bank

Kelly S. King
Chief Executive Officer
BB&T Corporation - Received TARP money but has recently paid back

Frederick H. Waddell
President and Chief Executive Officer
Northern Trust Corporation and The Northern Trust Company

Thomas J. Wilson
Chairman, President and Chief Executive Officer
The Allstate Corporation

The full list

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