Fed won't reveal to CONgress the nature of "loans" made to AIG

WSJ Original Article

This month’s $700 billion rescue legislation included several provisions designed to increase transparency of government bailouts, including a requirement that the Federal Reserve report to Congress when loans are made under “unusual and exigent circumstances.” The Fed’s first reports appear to have fallen short of the transparency some lawmakers wanted.

Senate Banking Committee Chairman Christopher Dodd (D., Conn.), who sought the provision, notes that the two reports he received — on the Fed’s new commercial paper program and its second loan to insurer American International Group Inc. — “make the Fed’s actions more transparent, which protects American taxpayers and allows the public and the market to be better informed during these difficult times.”

But he then goes on to acknowledge that the public actually won’t be informed about the Fed’s report about the $37.8 billion offered to AIG last week, on top of the $85 billion in credit extended initially. The central bank is requiring that it be kept confidential. (Most of the details in the report about the commercial paper program have been released publicly already.)

“I am disappointed that the Federal Reserve decided to require that their report on their second loan to AIG be kept confidential and not be made available to the public,” Sen. Dodd said in a statement Wednesday. “One of the best advances in monetary policy over the past decade has been increased transparency in the Fed’s actions. It is my hope that the Federal Reserve will become more transparent as they submit these reports so that we can continue to protect American taxpayers and restore confidence in our economy.”

Fed's report to CONgress on the new CP Program

So much for transparency and oversight. Of course, saying that on ATS is "preaching to the choir." But heh, maybe you have some friends who still believe that the passed bailout bill was in any way different from the failed bailout bill (after all the pork topping of course).

Maybe you can share this lovely bit of news with them and help Deny Ignorance

Originally posted by redhatty
Of course, saying that on ATS is "preaching to the choir." But heh, maybe you have some friends who still believe that the passed bailout bill was in any way different from the failed bailout bill (after all the pork topping of course).

Maybe you can share this lovely bit of news with them and help Deny Ignorance

its always nice to be told you were right

so for those that called it early ^_^ well done

unfortunatley what you were right about was a very bad thing .... isnt it always

The funny thing about it is the United States of America cannot compel this contracted, chartered, corporate entity to comply!

What kind of 'relationship' does this nation have with this corporation named the "Federal Reserve Bank"? Are they, or are they NOT, a US Citizen?

If the Representatives of this NATION (i.e. "We the People") ask to review and or audit their books, EXACTLY WHAT EMPOWERS THE FED TO REFUSE THE REQUEST?

We can now see clearly who is MASTER and who is SERVANT.

I call for a full accounting of the Federal Reserve, including details of assets, disposition of GOLD, and PERSONNEL. What do you say presidential candidates? Think you can talk your way out of that?

[/rant]

Ahem.... sorry.

LOL "“One of the best advances in monetary policy over the past decade has been increased transparency in the Fed’s actions."

Thats why on March 26 2006 the "Fed" stopped publishing M3.. transparent???? I say BULL#


Sailor

I'm sure this is why Bernake is sweating, he knows there's no oversight
and that the current plan it doomed. Without any laws from either the Fed or the SEC to prevent the investment bankers from trading risky mtg portfolios
there's absolutely no way to prevent it from happening again.

Last Tues before a congressional body the Insurance commissioner of New York said there was no way he could regulate AIG ... they had slipped their bonds thru a loophole that prevented him from intervening.



[edit on 16-10-2008 by Skydancer]

All I can say is (AND PLEASE PEOPLE TAKE ME OFF IGNOR) remove your heads from the sand call your REPS and demand passage of HR2755



Google HR2755 to find out what it is.


Sailor

reply to post by Sailor1


I think you'll find that MANY here are aware of HR2755.

The problem is that it languishes in the hands of those who are beholden to the bankers. It will barely see the light of day.