In Last Bailout, the Fed Outsourced Management to the Banks Being Bailed Out – Then Paid Them Huge Fees for Their Work

by Pam Martens and Russ Martens
Wall Street on Parade

Many of the darkest secrets of the Federal Reserve’s bailout of Wall Street banks during the 2007 to 2010 financial crisis are cryptically contained in the government audit of the Fed’s emergency lending programs that was released to the public on July 21, 2011. A careful reading shows that some of the very same Wall Street mega banks that were in desperate need of, and receiving, bailout funds from the Fed were given assignments by the Fed to oversee parts of the bailout. Making the situation even more ludicrous, those same firms were paid huge fees by the Fed for their work. There is good reason to believe that the same plan is in the works for the Fed’s latest bailout.

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