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Federal Reserve Audit Exposes Major Securities Fraud and the Embezzlement of $16 Trillion Dollars.

Source: Audit The Fed Phone Bomb

September 21, 2011

An audit of the Federal Reserve has revealed that the privately owned Federal Reserve secretly doled out more than $16 trillion in zero interest loans to some of the largest financial institutions and corporations in the United States and throughout the world. The non-partisan, investigative arm of Congress also determined that the Fed acted illegally. In fact, according to the report, the Fed provided conflict of interest waivers to its employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans. The report is evidence that reveals major securities fraud in the embezzlement of $16 trillion by the Federal Reserve.

$16 trillion is 10 times more than what the U.S. Congress authorized and Bush ($700 billion) and Obama ( $787 billion) signed off on. The Federal Reserve was only authorized by Congress to use $1.487 trillion in federal tax dollars in bailouts. The Federal Reserve embezzled another $14.5 trillion.

The Congressional report determined that the Fed secretly hide most of the embezzled money into their own banks. The rest the Fed unilaterally transfered trillions of dollars to foreign banks and corporations from South Korea to Scotland. Foreign banks and corporations which the Federal Reserve bankers had a personal financial interest or stake in.

The report reveals that the CEO of JP Morgan Chase served on the New York Fed’s board of directors at the same time that his bank received more than $390 billion in federal money from the Fed – conflict of interest. Moreover, JP Morgan Chase served as one of the clearing banks (money laundering banks) for the Fed’s emergency loans programs (aka – embezzlement schemes).

In another disturbing finding, the Government Accountability Office said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given federal funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it would have exposed the Fed’s conflict of interest and major securities fraud in the embezzlement of $16 trillion.

The investigation also revealed that the Fed outsourced most of its embezzling to private contractors, many of which were rewarded with extremely low-interest and then-secret loans.

Federal Reserve audit exposes major securities fraud and the embezzlement of $16 trillion. [continued]

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White House Sends Lawmakers to Beef Up Cyber-Security

President Obama greets White House Cyber Security Chief Howard A. Schmidt in 2009.

President Obama greets White House Cyber Security Chief Howard A. Schmidt in 2009. (Lawrence Jackson/White House photo)

By Ken Dilanian, Washington Bureau

May 12, 2011, 8:25 a.m.

Reporting from Washington —

The White House has just sent to Capitol Hill a proposal to beef up cyber security regulations, an attempt to forge consensus on how to protect vulnerable U.S. networks from attacks that could blow up city blocks, erase bank data, crash planes and cut power to large sections of the country.

One key provision would require electric utilities and others to disclose what steps they are taking to protect their networks, an attempt to use the market to force companies to beef up protections. Another provision provides legal immunity to companies that notify the government about cyber threats and intrusions against them, something they are sometimes reluctant to do now for fear of being sued.

The proposal will be derided as tepid by some critics, but a cross section of experts has long said even weak regulation is better than the status quo, with critical infrastructure now wide open for a variety of potentially crippling attacks.

As the Los Angeles Times reported in March, electrical grids, pipelines, chemical plants and other infrastructure are controlled by computer systems that were designed without security in mind, and are vulnerable to crippling cyber attacks.

Nonetheless, industry and privacy groups will probably oppose any government regulation of cyberspace, and the Republican-controlled House has shown little interest in moving a bill.

"Our proposal outlines key steps to take in order to better protect the American people from cyber crime and identity theft, to better safeguard critical infrastructure as well as the federal government computers and networks, and to better protect individuals’ privacy and civil liberties," said an administration official who spoke on condition of anonymity.

The proposal, the official said, was the White House's attempt to forge consensus among the dozens of cyber security bills pending, some of which call for starkly different approaches.

The proposal:

Requires businesses that have suffered an intrusion to notify consumers if the intruder had access to consumers’ personal information, standardizing the existing patchwork of 47 state laws that contain these requirements.
Empowers the Department of Homeland Security to quickly help a private-sector company, state, or local government when that organization asks for its help -- and clarifies the type of assistance that the DHS can provide to the requesting organization.
Provides legal immunity to businesses, states and local governments that share information about cyber threats or incidents with the DHS, while mandating robust privacy oversight to ensure that the voluntarily shared information does not impinge on individual privacy and civil liberties.
Requires operators of critical infrastructure, such as chemical plants and electric grids, to publish their cyber security risk mitigation plans so that the marketplace can assess whether or not their plans are adequate to the risks they face.

The proposal prevents states from requiring companies to build their data centers in that state, except where expressly authorized by federal law.

It includes a number of civil liberties protections, including limiting all monitoring, collection, use, retention, and sharing of information to protect against cybersecurity threats. Immunity for the private-sector business, state, or local government is conditioned on its compliance with the requirements of the proposal.

Source: http://www.latimes.com/news/politics/la-pn-cyber-security-plan-20110512,0,4473795.story

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Federal Reserve Audit Exposes Major Securities Fraud and the Embezzlement of $16 Trillion Dollars.

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White House Sends Lawmakers to Beef Up Cyber-Security