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Let Us All Give Three Cheers for the CFR

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  • JAIL4Judges
    Corporate CFR members get lion s share of bailout funds Written by Thomas R. Eddlem Monday, March 23, 2009 Newspapers are fixated upon $160 million in bonuses
    Message 1 of 1 , Apr 25, 2009


      Corporate CFR members

      get lion's share of bailout funds


      Written by Thomas R. Eddlem

      Monday, March 23, 2009   


      Newspapers are fixated upon $160 million in bonuses given to American 

      International Group (AIG) executives. And it’s nice to know where the millions

      are going (note: the bonuses could have been cancelled had the federal government let the company go bankrupt, as officials should have). 


      But where are the trillions in TARP, TALC and Federal Reserve Bank bailout funds going? The man in charge of administering the bailouts is Treasury Secretary 

      Timothy Geithner, who served as a staff member of the New York City-based 

      Council on Foreign Relations before being hired in 2003 to head the New York

      City branch of the Federal Reserve Bank (Fed). As the vice chairman of the Fed’s Open Market Committee, Geithner is probably a poor choice to get the nation out of it’s current economic mess. He served as Alan Greenspan’s number two man at the Fed, so Geithner is as responsible as anyone for facilitating the severity of the real estate and financial  bubble and its subsequent collapse. After all, the Fed was the driving  force behind the asset bubble, inflating the bubble larger and larger  through artificially low interest rates and an inflationary easy-money  policy.


      Under Geithner and his predecessor (former Goldman Sachs CEO Henry “Hank”

      Paulson), the majority of bailout funds have been awarded to high-level donors to Geithner's former employer: the Council on Foreign Relations (CFR).


      Here’s a survey of TARP bailout awards to the CFR’s corporate members

      (there are a total of only a little more than 200 corporate members at all levels): 

      Among the “Founders,” those who give $100,000 or more to the CFR, can  be



      ·        American Express Company: $3.389 billion TARP

      ·        Goldman Sachs: $10 billion TARP, plus a separate Federal  Reserve

      bailout and more than $13 billion of the allotment to AIG  (below)

      ·        Merrill Lynch: $45 billion through its corporate parent, Bank of America , which is also a CFR Premium corporate member, plus $6.8 billion of

      AIG’s bailout funds


      “President’s Circle” CFR members ($60,000 or more) received the following

      bailout funds:


      ·        American International Group (AIG): $182 billion in total 

      TARP/TALF funds to date

      ·        Citibank: $50 billion TARP

      ·        Morgan Stanley: $10 billion TARP


      Premium members ($30,000 or more to CFR):

      ·        Bank of New York/Mellon Corporation: $3 billion TARP

      ·        Freddie Mac: Sharing with Fannie Mae $1.25 trillion —  that’s $1,250 billion — in mortgage securities being purchased  from the Federal Reserve Bank

      ·        Chrysler: $4 billion TARP, plus $1.5 billion TARP for Chrysler Financial

      ·        JP Morgan Chase: $25 billion TARP

      ·        CIT Group: $2.33 billion TARP


      That’s a total of more than $1 trillion in bailout funds for CFR corporate members, easily the lion’s share of the total bailout funds awarded to date. CFR Membership seems to have its benefits, and then some.


      So why is no one asking questions about why most of the funds are going to the former employers of our Treasury secretaries? Perhaps because many of the entities who should ask "why" are also CFR corporate members. Among the

      financial press, the CFR counts among its members Bloomberg, General Electric (NBC, CNBC, MSNBC), News Corporation (Fox, Fox Business), Standard and

      Poor's, ABC News, Time Warner (CNN, Time Magazine, etc.), Moody's, and

      McGraw Hill (book publishers).


      Somebody should ask the question why the same people who brought us this

      financial crisis are now bringing us the "cure," and why that cure necessarily involves financing former employers of the people making the decisions.

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