In Case There Was Any Confusion Just Who The Fed Works For...

Tyler Durden's picture

Today, to little fanfare, the Fed announced a major binding settlement with the banks over robosigning and fraudclosure, which benefited the large banks, impaired the small ones (which is great: room for even more consolidation, and even more TBest-erTF, which benefits America's handful of remaining megabanks), and was nothing but one minor slap on the banking sector's consolidated wrist involving a laughable $3 billion cash payment. As part of the settlement, the US public is expected to ignore how much money the banks actually made in the primary and secondary market over the years courtesy of countless Linda Greens and robosigning abuses. A guess: the "settlement" represents an IRR of some 10,000% to 100,000% for the settling banks. We are confident once the details are ironed out, this will be an accurate range.

Yet what is most disturbing, or not at all, depending on one's level of naivete, is the response of Elijah Cummings, ranking member of the house Committee on Oversight and Government Reform. As a reminder, Congress had demanded that the settlement not be announced before there was a hearing on it. This did not even dent the Fed's plans to proceed with today's 11 am public announcement which can now not be revoked. It is Cummings' response which shows, yet again, just who is the true master of the Federal Reserve.

From The Committee on Oversight and Government Reform:

Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued the following statement regarding the public announcement of a new settlement between the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and 10 mortgage servicers without first briefing the Oversight Committee as requested on a bipartisan basis last week:

“I am deeply disappointed that the OCC and the Federal Reserve finalized this settlement and effectively terminated the Independent Foreclosure Review process before providing Congress answers to serious questions about how this settlement amount was determined, who these funds will go to, and what will happen to other families who were abused by these mortgage servicing companies, but have not yet had their cases reviewed.  I do not know what the rush was to make this settlement without answering these key questions, and although I look forward to obtaining information about how this deal may assist homeowners, I have serious concerns that this settlement may allow banks to skirt what they owe and sweep past abuses under the rug without determining the full harm borrowers have suffered.

On Friday, Cummings and Oversight Committee Chairman Darrell Issa sent a bipartisan letter to Federal Reserve Chairman Ben Bernanke and Comptroller of the Currency Thomas Curry requesting a briefing before any new settlement was agreed to or announced publicly. 

The statement concludes as follows:

In calls to the agencies this morning, agency officials stated that they
would not provide the briefing or answer additional questions before
going public with the announcement of the deal

And that, folks, says it all, although it should not come as a surprise to anyone who has by now realized that the only goal the Fed has is to boost the Russell 2000 to new record highs, instead of giving any part of a rat's anatomy about the US public or the broader economy.

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Michaelwiseguy's picture

The Federal Reserve Corporation is the Root of All Evil!

Pladizow's picture

ANY crime and ONLY a fine!

Kitler's picture

It's the only economical thing to do.

It saves the taxpayers a bundle on the billion or so years they would otherwise be spending in prison if there was actually a functional Justice System in this country.

eatthebanksters's picture

Where does one begin to describe how corrupt and fucked up our country has become?  When leaders look the other way instead of leading, when corruption is rewarded dependng on how much you pay your important elected friends?  Banana Republic. Putin is laughing at us.  We are in the process of trading places with the old USSR.  As they move towards market freedoms we move towards socialism.  As they begin to reward hard work and initiative, we start to redistribute the rewards of hard workers to those without ambition.  As our tax rates go up to sustain corrupt wage manipulation and inefficiant bloated government bureaucracy their rates stay at 13%.  People who only take find life difficult. People who are productive are rewarded.  Maybe Gerard Depardeau is onto something?

Fukushima Sam's picture

I've invented this metal spiky dildo-type thing on a chair that I call the "Bankers' Cum-Uppance".  Should be popular once the revolution gets started!

MiguelitoRaton's picture

Simple Scam: Banks dump bad loans on Fed -> Fed settles for peanuts -> Fed offsets mortgage losses against interest income on bonds -> Fed sends balance of bond interest (less operating costs) to US government. Net result: Fed just dumped bad loan costs on the US government (us).

Stuck on Zero's picture

The little people get jail time:

Closing Agent Jailed for Mortgage Fraud Crimes


Turd Ferguson's picture

Don't do the crime if you can't pay the fine.

ZerOhead's picture

Sad but true... can't understand where the junks could come from unless we have some banksters in our midst...

TwoShortPlanks's picture

I get Junked all the time...I'm blaming the Bots, not my outrageous comments.

ArkansasAngie's picture

With shareholders money.

At the very least can we fire ewvery last one of these sons of bitches?????


silverserfer's picture

you mean do the crime after you've calculated it nets you 1000% profit after the fine. Its called operating expenses.

Anasteus's picture

"The Federal Reserve Corporation is the Root of All Evil!"

Not so fast. In spite of the widespread myth that the Fed is a closed private corporation acting on its own will, one shouldn't forget that 7 out of 12 voting FOMC members (including the chairman) - that is, majority - are members of the Board of Governors who are appointed by the president and confirmed by the Senate. It is therefore the government and the Senate who are de jure the decision makers. The fact, that those people are often corrupt, incompetent or frightened and are de facto the puppets in the hands of private bankers is certainly a big problem. But it is the widespread tolerance and not taking appropriate measures to avoid such a corrupt status quo what is the root of all evil.

vmromk's picture


Bernanke belongs in PRISON.

silverserfer's picture

bernanke is the scripted face of the FED he's not the decesion maker. Neither is the board of govoners. Bernanke is our banker equivilant of Mahmood Ahmadinejiad. Our supereme leaders choose to stay anonymous.

e_goldstein's picture

Technically, according to the Coinage Act of 1792, as a counterfeiter, he deserves the death penalty.

Kitler's picture

FYI, It's very disrespectful to be talking about your owners like that. Especially in light of the Heroic efforts they have made to save their financial system from their own larceny.

Kitler's picture


I forgot to add...

And make off like BANDITS in the process.

TrustWho's picture

...slowly with piana wire!

No, American Indian style...bury them in the desert and poor blood on their heads.

Jonas Parker's picture

I like the "stake them out on a fire-ant mound" better...

ZFiNX's picture

If you're going to correct spelling and contribute not even a little humor GTFO and go back to trolling Drudge.

TwoShortPlanks's picture

Planning on cutting the body up and placing it upon two or more mounds are you?

It's Fire Ant or, Fire Ants or, Fire Ant Mound or, Fire Ant Mounds...take your pick.

Hobbleknee's picture

They will continue doing what they're doing until it's hazardous to their health.

Ruffcut's picture

Tuff fuck us al, they WIN!

They won. They won it, again. 

Those who pay, suffer, those who PRINT, RULE, bitchezz!!

When you go to bed at night, curse those assholes. IT wouldn't hurt.

H E D G E H O G's picture

Just how long is this in-your-face bullshit going to keep up!? I don't have any skin in this "settlement", (other than one of the taxpayers paying for it), but I do have a seat in the theater of the absurd watching  the open fraud, crime, lying, cronyism, unaccountability, bribery, and all the other sleaze bag shit that goes down with the bankster cartel/thieves and our phoney, incompetent so called government. The day is not down the road too far when finally, "Justice will be served" on ALL of these traitorist conspirators. It just can't get here fast enough for me.

OccupyTVstations's picture

The closest we've been to breaking the camel's back was in Wisconsin last year. There were 100,000 pissed off people, not just at Walker but at this type crap as well, they were only a few miles from 3 tv stations, but the fake leaders lik e Michael Moore and John Nichols told the crowd to calm down and wait for the recall vote- which got fixed and those fuckers were silent!

In one hour we could have had three tv stations surrounded with 100,000 patriots! damn phonies are worse than the cops. Rotten tomato their asses next time they tell you to wait for a vote.

So Close's picture

More of the same.


insanelysane's picture

Bust a deal, face the wheel.


Of course the wheel has "spin again" on it.

Bohm Squad's picture

And the bankruptcy slots are replaced with "taxpayer bailout"...

We are talking about Wheel of Fortune...right?

insanelysane's picture

Rent Mad Max Beyond Thunderdome and you will see the wheel, Bartertown, and the Thunderdome (2 men enter, 1 man leaves).

Dumpster Fire's picture

Congress couldnt find it's ass with both hands so nothing really lost there.

fuu's picture

"I have serious concerns that this settlement may allow banks to skirt what they owe and sweep past abuses under the rug without determining the full harm borrowers have suffered."

So do something. You are in a position of power and authority. Instead of being shocked, shocked I tell you, how about you earn your salary and do something.

Oh wait, you got me.

Chupacabra-322's picture

@ fuu,

"how about you earn your salary and do something."  Why?  I see you haven't read my prior posts.  Because they're all CRIMINALS and are compromised, bought, sold and are all "in on it." 

The Banksters have hijacked the world's Goverments and Criminal Politicians through Intelligence Operations, blackmail, racketering, murder, drugs, espionage, human trafficing, PsyOp, Flase Flags and funding/arming of terror organizations which they claim to be protecting us from. 

 The stage is set for complete, total full spectrum World domination from The Global Elite. Understand the core reason these Criminals continue to rape, pillage and steal wealth is though Illusion/Cover. We are not THE UNITED STATES but we are The United States of America. It is not The Constitution of The United States, it is The Constitution For The United States of America. Notice the difference. Do you see the Cover/Illusion.

These Criminals have been hiding behind the Corportate version of The Constituiton. Get it? That's the Cover and the reason behind their Crimes Against Humanity and The American People. Ask yourselves, why CIA propaganda, misinfomation/disinfomation is so good? Because it works. And the Elite own the media and have it staffed with their CIA agents/Council of Foreign Relation stooges like Andersen Cooper and Dianne Sawyer. The PsyOp runs deep, very deep.

The American people can continue to stay divided and blame the puppets Obama/Bush. Like they have any say in the matter. Both parties are the same sides of the same coin, bought and paid for a long time ago by The Elite Orligarchs. These Criminals sold their souls long ago.

So, continue to follow their lies, cover stories and false narratives such as Osama Bin Laden. A convenient CIA funded and trained Operative, code name Tim Osman. Sorry, But I digress.

Divide and Conquer. That's the Elite's game.

Total Complete Full Spectrum World Domination.  Via The City of London. The financial location of The Banksters, which Wall Street is just an extension. They own the Military, Media and have put forth hundreds of years worth of planning to complete their goals of the aforementioned.

It began with The Fascist Patriot Act which morphed into The Military Commissions Act, John Warner Defense Act, NDAA, PD51, Torture, Illegal Wire Tapping etc..etc... You get the picture? We're dealing with pure Evil, which cannot be reasoned or negotiated with. Their goal was to break the sovereignty of The United States along with our good men and women of the Military while simultaneously ushering in their NWO protective force of Their Global Military/Police Force to protect their Corrupt system/Crimes Against Humanity. We're just their Debt Slaves. Divided and Conquered.

Mr Pink's picture

Hey Chup, I'm inviting you over for Easter. Just be prepared for many a blank stare

Banksters's picture

Compare the following headlines:


Men get six months in jail for stealing food from trash

Jail time for taking food from trash ‘ridiculous,’ Hieb says The men admitted that they jumped a fence and took fruits and vegetables from the garbage area at Sweet Pea. They originally were charged with felony second-degree burglary and misdemeanor theft. They accepted the plea agreement offered by Assistant District Attorney Kerry St. James, they said, because they did not want to risk being convicted of a felony.   _____________________________________________________________ HSBC to pay $1.9 billion U.S. fine in money-laundering case HSBC's record $1.9bn fine preferable to prosecution, US authorities insist


XitSam's picture

So now the taxpayers will supply these guys with a roof, heat, toilet and meals for six months. Wouldn't it be cheaper, and in the interest of Justice, just to give them an EBT card?

And while we're at it, senence the HSBC executives to (at least) six months of homelessness.

XitSam's picture

The more I think about a criminal sentence to homelessness, the more I like it. Break a law and the sentence doubles. No friends bringing food, no Chablis, no heat, no cellphone, no car, sleeping on a piece of cardboard behind a dumpster, washing up in the morning in a gas station bathroom, carrying everything you own in a backpack, washing your other underwear in a bathroom sink. 

eatthebanksters's picture

Corzine is walking around free...go figure...

Cursive's picture

If you presented the true story as a "National Treasure" type of screenplay, people would dismiss the true story of the Creature from Jekyll Island as over-blown, unbelievable fiction.

yogibear's picture

So who went to jail for this fraud?  Nobody!

If I lost my papers, when back and recreated them and had the gardener sign the papers and back date them, then went to court I would have been prosecuted for presentation of fraudulent documents.

The criminals just keep pushing their power. From no doc loans and junk rated as AAA to swindling money. Anything goes as long as you have connections to the house and senate.

PlausibleDenial's picture

I am about half way through "Predator Nation".  I read til 1:00 am this morning as I could not put the book down.  Finally, I had to get to sleep, but it would not happen.  I was soooo fucking pissed I laid there thinking of how to kill these fucks.  Google Jimmy Cayne.  Cocksucker

Element's picture

Don't cooperate with government in any way, reject their governance and your citizenry. You are a human, and so are they, that's it.

buzzsaw99's picture

they are still just a bunch of undead assholes. mortgage originations will be in the toilet unless rates keep falling. whatever morts they hold are crap. auto loans don't pay diddly. treasurys, ha!