Bernie Sanders wants Ben Bernanke to name names

[FourScore]

Bernie Sanders wants Ben Bernanke to name names
by mspicata
Tue Mar 03, 2009 at 02:12:16 PM PST

About friggin' time, too:

"My question to you is, will you tell the American people to whom you lent $2.2 trillion of their dollars?" Sanders asked, referring to the size of the Fed's balance sheet.

Bernanke wouldn't, so....

According to the text of the proposed legislation, e-mailed by Sanders' staff, he wants the central bank to identify any firm that has received financial assistance since March 24, 2008, including details on the type of borrowing, amount, date, terms and the Fed's rationale for lending.

Sanders wants the Fed to publish those details on its website and update them at least every 30 days.

Now, let's be clear; this is NOT the TARP money. That is accounted for, and is public record. I have a previous diary on that subject. You'll find the Treasury's most recent TARP report here.

The money Sanders is referring to is loans the Fed has made outside the TARP program. Bernanke says the loans are "over-collateralized," but opted not to disclose anything more about them, citing the "stigma" attached to receiving such loans. To that, I have only two comments.

First, what stigma? The market is now assuming that every financial firm is in deep doo-doo. If anything, knowing which firms are receiving help and which are not removes one of the biggest uncertainties out there. It might actually improve the markets.

Second, what collateral? If we've learned anything at all over the last few months, it's that the value of pretty much everything is not what it might seem. That collateral is OUR collateral, Mr. Bernanke. Let us collectively be the judge of whether or not it's adequate.

I'm with Bernie. This is the important piece of information being withheld from us. We actually have a pretty good idea of where we stand with the likes of AIG, Citigroup, et al. This piece -- all $2.2 trillion of it -- is the part they're not telling us. Let's give Bernie props and support and get a bill passed...

http://www.dailykos.com/story/2009/3/3/165531/9770/544/704231

[vaberella]

1. I wholeheartedly agree. Where though is the regulation...?!

Is there legislation being written right now to start monitoring and limiting the banking actions? At this point no matter what money we throw at them these banks are going fuckin' nuts and this is unacceptable. I seriously want people fired AND strong legislation.

[leftstreet]

2. I don't hear anyone talking about regulation or legislation

Seems fishy to me

[vaberella]

3. Exactly. It's pissing me off.

I love what Obama is doing but I need to see laws in place to keep these people semi-honest. I'm tired of this. We gave them money before and they went on a junket buying manicures for their fuckin' poodles. Sure they'll be under more scrutiny now but that means nothing since they can always pull the wool over our eyes. I want to make sure that my investment into these shitty assets and banks will pay off and I want heavy regulation and mandates, as well as fines for any dirty dealing to put in place. I don't want to shit like this going on in the future and seriously...I don't care enough about the stock market and wall street to sweat over its collapse. Right now what I see us saving is the ability to transmit debt as stock over international waters...Since that's really what the banks do on the market besides of course stock in companies (but those are a bit more transparent than debt). I do care about credit and lending but that has nothing to do with the market...seriously. Mandates and laws will actually increase investor confidence in the market because they know they're money won't go "poof" one morning.

[cant]

4. baffling

that this has to be actually discussed. what kind of excuse this Stigma can be? Lending/borrowing is essentially a healthy process everyone does. I would want to see a track sheet with all the borrowers, date, repay date etc. If all seems to be working as planned and they return the base, why would it be negative thing for a bank. I would say it would be a positive sign for the bank.

[LeftHandPath]

5. Wasnt Bernanke under oath?

He cant just refuse to give to this information to Congress can he?

[autorank]

6. More than that even ...k*r

Where did this money go? Here's one way of looking at the scorecare of
"The People versus the Banks"


http://www.scoop.co.nz/stories/HL0903/S00010.htm">Cool! We're on the board (as of the stimulus package).

[slipslidingaway]

7. A few others have asked for this information as well...

Senator Dorgan, a few people in the House and Bloomberg News filed a lawsuit.


U.S. Taxpayers Risk $9.7 Trillion on Bailout Programs

http://www.bloomberg.com/apps/news?pid=20601087&sid=aGq2B3XeGKok

"...Most of the spending programs are run out of the Federal Reserve Bank of New York, where Geithner served as president. He was sworn in as Treasury secretary on Jan. 26.

When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and then Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight. The Federal Reserve so far is refusing to disclose loan recipients or reveal the collateral they are taking in return. Collateral is an asset pledged by a borrower in the event a loan payment isn’t made.

Fed Sued

Bloomberg requested details of Fed lending under the Freedom of Information Act and filed a federal lawsuit against the central bank Nov. 7 seeking to force disclosure of borrower banks and their collateral. Arguments in the suit may be heard as soon as this month, according to the court docket. Bloomberg asked the Treasury in an FOIA request Jan. 28 for a detailed list of the securities it planned to guarantee for Citigroup and Bank of America. Bloomberg hasn’t received a response to the request.

The Bloomberg lawsuit is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan)."