Jail Bernanke, Geithner, and Obama Now
for Massive Theft and Loan Fraud
July 26, 2011 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee.
Lyndon LaRouche today called for the immediate jailing of Federal Reserve Chairman Ben Bernanke, Treasury Secretary Timothy Geithner and President Barack Obama for their role in a massive theft of taxpayers money, in the 2008 bailout of Wall Street and London, and the ongoing pledge to continue the bailout of the hopelessly bankrupt European Monetary Union and Wall Street.
LaRouche made the demand after reviewing the July 2011 Government Accountability Office (GAO) audit of the Federal Reserve, which is the first installment of a larger audit to be completed by October of this year. The preliminary audit revealed a trail of criminal action on the part of Bernanke and Geithner. In March 2008, Fed Chairman Bernanke fraudulently invoked an emergency clause in the Federal Reserve Act, claiming that on the basis of "unusual and exigent circumstances," the Fed could issue emergency loans to nondepository institutions for the first time since the Great Depression. As the result, the Fed issued more than $16 trillion in emergency loans to Wall Street and foreign banks. Furthermore, most of the fraudulent "emergency lending" was outsourced to private contractors, led by JP Morgan Chase, Morgan Stanley and Wells Fargo, in no-bid contracts that totalled $660 million in fees. Numerous officials of the Fed and the outside contractors were given blanket waivers, allowing them to act despite clear conflicts of interest. The Fed audit cited the case of William Dudley, a former chief economist of Goldman Sachs, who is now the Chairman of the New York Federal Reserve, who was given a conflict-of-interest waiver to retain his stocks in AIG and General Electric at a time when he was authorizing hundreds of billions of dollars in fraudulent "emergency" loans to these firms. In another example of the rampant conflict of interest, the CEO of JP Morgan Chase was allowed to remain on the board of directors of the New York Federal Reserve Bank while his firm received $390 billion in loans, and functioned as a major clearinghouse for the entire Federal Reserve emergency loan program.
The GAO audit was conducted under an amendment to the Dodd-Frank bill that was introduced by Sen. Bernie Sanders (I-Vt.), over strenuous objections.
Lyndon LaRouche today demanded that Bernanke, Geithner and President Obama be immediately sent to prison for their role in this fraudulent theft of taxpayer's money. "There never was an emergency warranting $16 trillion in bailout to Wall Street and foreign banks," LaRouche declared.
"There was always an alternative, which I spelled out clearly in my 2007 Homeowners and Bank Protection Act (HBPA), an alternative thoroughly in keeping with the U.S. Constitution. I called for the immediate reinstatement of the Glass Steagall Act and a freeze on all home foreclosures for the duration of the bankruptcy reorganization of the entire Federal Reserve System. It was a high crime to bail out Wall Street and London's gambling debts, and Bernanke's declaration of emergency, unleashing $16 trillion in Fed funds to bailout gambling debts that can never be paid, was a criminal fraud. President Obama has furthered that criminal fraud, by pledging that the U.S. Federal Reserve and Treasury would be the lenders of last resort for the European Monetary Union. The President made that illegal promise as recently as last week, during a telephone conversation with German Chancellor Angela Merkel."
"There is only one appropriate course of action. Send Bernanke, Geithner and Obama to prison right now. The idea that the American people should be held responsible for bailing out tens of trillions of dollars in fraudulent, worthless, unpayable debt, is unforgivable, and must be punished by criminal prosecution and hard jail time. Public officials elected or appointed to high office in our Federal government must be held accountable for their crimes, or else our entire Constitutional system is worthless. I know the American people are with me, and that there can be no delay. The GAO is the official investigative arm of the U.S. Congress. They have provided their findings in a 239 page audit report. The facts speak for themselves."