Due to a legislative push by Bernie Sanders I-vt, the ever-present Ron Paul R-tx, and Alan Grayson D-fla, it has come to light the Fed has loaned an estimated 3.3 trillion in liquidity and more than 9 trillion in short term loans and other financial arrangements to US and foreign banks and corporations at zero to near zero interest during the course of the current financial crisis.
With hundreds of billions of US money going to foreign financial institutions, Sanders asks, has the Fed become the central bank of the world? Bernanke lobbied against the amendment attached to the financial reform legislation passed this year by congress. Sanders and his allies won but not to the extent they had hoped - Ron Paul has wanted a full audit of the Fed for years. Even Wall Street is praising these guys.
Where did the money go? - banks and corporations like Verizon and Toyota. They collected trillions and the American people got little in return. The reason is that the Fed failed to require loan recipients to invest in building our economy. The paperwork from the Fed raises the prospect that the banks and corporations used the money to pad their bottom lines, which may mean the loans were direct corporate welfare to banks.
Sanders wants an investigation into whether banks took loans at near zero interest rates and then bought treasuries to provide free money to some of the largest financial institutions in the country on the backs of American taxpayers.
And yesterday 2 million Americans began having their unemployment cut off before Christmas. What's new?