by Nomi Prins
43 Board of Governors of the Federal Reserve System, “Board Announces That It Will Begin to Pay Interest on Depository Institutions’ Required and Excess Reserve Balances,” press release, October 6, 2008.
44 Board of Governors of the Federal Reserve System, The October 2008 Senior Loan Officer Opinion Survey on Bank Lending Practices, November 3, 2008, http://www.federalreserve.gov/boarddocs/SnLoanSurvey/200811/fullreport.pdf.
45 Board of Governors of the Federal Reserve System, Report Pursuant to Section 129 of the Emergency Economic Stabilization Act of 2008: Commercial Paper Funding Facility, pp. 2-6, http://www.federalreserve.gov/monetarypolicy/files/129cpff.pdf.
46 Board of Governors of the Federal Reserve System, Report Pursuant to Section 129 of the Emergency Economic Stabilization Act of 2008: Commercial Paper Funding Facility, p. 2.
47 Board of Governors of the Federal Reserve System, “Federal Reserve Announces Extension through October 30, 2009, of Its Existing Liquidity Programs That Were Scheduled to Expire on April 30, 2009,” press release, February 3, 2009, http://www.federalreserve.gov/newsevents/press/monetary/20090203a.htm.
48 Board of Governors of the Federal Reserve System, “Federal Reserve Board Announces Two Enhancements to Its Programs to Provide Liquidity to Markets,” press release, September 19, 2008, http://www.federalreserve.gov/newsevents/press/monetary/20081021a.htm; Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.combailout.htm.
49 Board of Governors of the Federal Reserve System, “Federal Reserve Announces the Creation of the Money Market Investor Funding Facility (MMIFF),” press release, October 21, 2008, http://www.federalreserve.gov/newsevents/press/monetary/20081021a.htm; Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.combailout.html.
50 Board of Governors of the Federal Reserve System, “Federal Reserve Board Announces Several Initiatives to Provide Additional Support to Financial Markets, Including Enhancements to Its Existing Liquidity Facilities,” press release, September 14, 2008, http://www.federalreserve.gov/newsevents/press/monetary/20080914a.htm.
51 Board of Governors of the Federal Reserve System, “Federal Reserve and Other Central Banks Announce Further Coordinated Actions to Expand Significantly the Capacity to Provide U.S. Dollar Liquidity.
52 Board of Governors of the Federal Reserve System, The Federal Reserve System: Purposes and Functions, 2005, p. 16, http://www.federalreserve.gov/pf/pdf/pf_2.pdf.
53 GovTrack, H.R. 1424: Emergency Economic Stabilization Act of 2008, n.d., http://www.govtrack.us/congress/bill.xpd?bill=h110-1424.
54 Board of Governors of the Federal Reserve System, “Federal Reserve and Other Central Banks Announce Further Coordinated Actions to Expand Significantly the Capacity to Provide U.S. Dollar Liquidity.”
55 Board of Governors of the Federal Reserve System, Chairman Ben S. Bernanke at the Greater Austin Chamber of Commerce, Austin, Texas, Speech, December 1, 2008.
56 Edmund L. Andrews, “A New Role for the Fed—Investor of Last Resort,” New York Times, September 18, 2008.
57 Michael Siconolfi, Anita Raghavan, and Mitchell Pacelle, “How Salesmanship and Brainpower Failed to Save Long Term Capital,” Wall Street Journal, November 16, 2008, http://home.gwu.edu/˜alexbapt/ltcm111698.htm.
58 A&E Television Networks, “Alan Greenspan Biography,” n.d., http://www.biography.com/search/article.do?id=9319769.
59 Board of Governors of the Federal Reserve System, All Regulations, March 12, 2009, http://www.federalreserve.gov/bankinforeg/reglisting.htm.
60 Federal Reserve Bank of Dallas, Understanding the Fed, n.d., http://www.dallasfed.org/fed/understand.cfm.
61 Board of Governors of the Federal Reserve System, Appendix: Federal Reserve Regulations , n.d., pp. 117, 119, http://www.federalreserve.gov/pf/pdf/pf_appendixes.pdf.
62 G. Edward Griffin, The Creature from Jekyll Island (Westlake Village, CA: American Media, 2002), pp. 3-24.
63 Board of Governors of the Federal Reserve System, FAQs: Federal Reserve System, March 7, 2007, http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm.
64 John T. Woolley and Gerhard Peters, The American Presidency Project (online), Santa Barbara, California, hosted by the University of California, Gerhard Peters (database), http://www.presidency.ucsb.edu/ws/index.php?pid=29590.
65 Federal Reserve Bank of New York, The Founding of the Fed, n.d., www.newyorkfed.org/aboutthefed/history_article.html; FRASER, Federal Reserve Archival System for Economic Research, Money Trust Investigation, Investigation of Financial and Monetary Conditions in the United States under House Resolutions Nos. 429 and 504, n.d., http://fraser.stlouisfed.org/publications/montru.
66 William Greider, Secrets of the Temple: How the Federal Reserve Runs the Country (New York: Simon & Schuster, 1989), pp. 277-78.
67 The Federal Reserve Bank of New York, The Founding of the Fed, n.d., http://www.newyorkfed.org/aboutthefed/history_article.html.
68 Ibid.; Board of Governors of the Federal Reserve System, H.4.1 Factors Affecting Reserve Balances, Federal Reserve Statistical Release, May 7, 2009, http://www.federalreserve.gov/releases/h41/Current.
69 The Federal Reserve Board, Membership of the Board of Governors of the Federal Reserve System, 1914-Present, January 29, 2009, www.federalreserve.gov/BIOS/boardmembership.htm#chairmen; N. Gregory Mankiw, “How to Avoid Recession? Let the Fed Work,” New York Times, December 23, 2007, http.//www.nytimes.com/2007/12/23/business/23view.html?ex=1356066000&en=3337604c8708710a&ei=5090&partner=rssuserland&emc=rss.
70 FRASER, Federal Reserve Archival System for Economic Research, Events in the Life of William McChesney Martin Jr., n.d., http://fraser.stlouisfed.org/martin/timeline/board.html.
71 Ninety-first Congress of the United States of America, Bank Holding Act Amendments, April 18, 1969, p. 196.
72 Ibid.
73 Roger Lowenstein, “Reserved,” New York Times, November 6, 2005, www.nytimes.com/2005/11/06/magazine/06wwln_essay.html; Federal Reserve Bank of San Francisco, Economic Letter: Exploring the Causes of the Great Inflation, 2000-21, July 7, 2000, www.frbsf.org/econrsrch/wklyltr/2000/el2000-21.html.
74 “Paul A. Volcker News,” New York Times, n.d., http://topics.nytimes.com/topics/reference/timestopics/people/v/paul_a_volcker/index.html.
75 Federal Deposit Insurance Corporation, An Examination of the Banking Crises of the 1980s and Early 1990s, Volume I, n.d., http://www.fdic.gov/bank/historical/history/3_85.pdf.
76 Associated Press, “F.D.I.C. Faces First Loss Ever,” New York Times, March 29, 1988, www.nytimes.com/1988/03/29/business/fdic-faces-first-loss-ever.html; Federal Deposit Insurance Corporation, The S&L Crisis: A Chrono Bibliography, December 20, 2002, http://www.fdic.gov/bank/historical/s&l.
77 Federal Deposit Insurance Corporation, Resolutions Handbook, “Glossary,” April 2, 2003, p. 97, http://www.fdic.gov/bank/historical/reshandbook/glossary.pdf.
78 U.S. Department of the Treasury, “Keynote Remarks to the Harvard Law School Symposium on Building the Financial System for the 21st Century, U.S. Deputy Treasury Secretary Kenneth W. Dam,” press release: PO 848, December 7, 2001, http://www.treas.gov/press/releases/po848.htm.
79 Timothy Curry and Lynn Shibut, The Cost of the Savings and Loan Crisis: Truth and Consequences, FDIC, December 2000, p. 1, http://www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf.
80 Ibid., p. 33.
81 U.S. House of Representatives, Treasury Under Secretary for Domestic Finance John D. Hawke, Statement, September 9, 1997, https://www.treas.gov/press/releases/rr1909.
82 Greg Ip, “Fed Chief Questions Loan Choices,” Wall Street Journal, February 23, 2004, http://www.themandersgroup.com/GreenspanArticle.pdf.
83 Countrywide Home Loans, Inc., “Countrywide Dominates Adjustable Rate Mortgage Market,” press release, June 2, 2004, http://prnwire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/06-02-2004/0002185601&EDATE=.
84 The Federal Reserve Board, Remarks by Chairman Alan Gr
eenspan—Economic Flexibility, Speech, October 12, 2005, http://www.federalreserve.gov/boarddocs/speeches/2005/20051012/default.htm.
85 The Federal Reserve Board, Remarks by Chairman Alan Greenspan, Speech, May 8, 2003, http://www.federalreserve.gov/boarddocs/speeches/2003/20030508/default.htm.
86 The Federal Reserve Board, Remarks by Chairman Alan Greenspan—Risk Transfer and Financial Stability, Speech, May 5, 2005, http://www.federalreserve.gov/Boarddocs/Speeches/2005/20050505/default.htm.
87 The Federal Reserve Board, Remarks by Chairman Alan Greenspan—Economic Flexibility, Speech, October 12, 2005.
88 Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.com/bailout.html.
89 Edmund L. Andrews, “Exit Greenspan, amid Questions on Economy,” New York Times, February 1, 2006, http://www.nytimes.com/2006/02/01/business/01fed.html.
90 House of Representatives, Committee on Oversight and Government Reform, Committee Holds Hearing on the Role of Federal Regulators in the Financial Crisis, October 23, 2008, http://oversight.house.gov/story.asp?ID=2256.
91 Jon Ward, “He Found the Flaw?” Washington Times, October 24, 2008, http://washingtontimes.com/weblogs/potus-notes/2008/Oct/24/he-found-flaw.
92 House of Representatives, Committee of Government Oversight and Reform, Testimony of Dr. Alan Greenspan, October 23, 2008, http://oversight.house.gov/documents/20081023100438.pdf.
93 Ibid.
94 U.S. House of Representatives, Statement of Congressman Ron Paul—Introducing the Federal Reserve Transparency Act, Ron Paul’s Speeches and Statements, February 26, 2009, http://www.house.gov/apps/list/speech/tx14_paul/AudittheFedBill.shtml.
95 House Committee on Financial Services, Subcommittee Assignments for the 111th Congress, http://financialservices.house.gov/subassignments.html; U.S. House of Representatives, Statement of Congressman Ron Paul—Abolish the Federal Reserve, Ron Paul’s Speeches and Statements, September 10, 2002, http://www.house.gov/paul/congrec/congrec2002/cr091002b.htm ; GovTrack, H.R. 2755—110th Congress (2007): Federal Reserve Board Abolition Act, GovTrack.us, http://www.govtrack.us/congress/bill.xpd?bill=h110 2755; U.S. House of Representatives, Statement of Congressman Ron Paul—Introducing the Federal Reserve Transparency Act, Ron Paul’s Speeches and Statements, February 26, 2009.
96 GovTrack.us., H.R. 1207—111th Congress (2009): Federal Reserve Transparency Act of 2009, GovTrack.us, http://www.govtrack.us/congress/bill.xpd?bill=h111-1207.
97 Pauline Smale, “Structure and Functions of the Federal Reserve System,” CRS Report for Congress, June 15, 2005, http://fas.org/sgp/crs/misc/RS20826.pdf.
98 U.S. House of Representatives, Statement of Congressman Ron Paul—Introducing the Federal Reserve Transparency Act, Ron Paul’s Speeches and Statements, February 26, 2009.
99 GovTrack.us, H.R. 1207—111th Congress (2009): Federal Reserve Transparency Act of 2009, GovTrack.us, http://www.govtrack.us/congress/bill.xpd?bill=h111-1207.
100 See 31 USC §714.
101 The Federal Reserve Board, FAQs: The Federal Reserve System, March 7, 2007, http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm.
102 Alan Grayson, “Grayson Letter: Bring Some Accountability to the Federal Reserve,” FDL, May 21, 2009, http://action.firedoglake.com/page/content/graysonletter.
103 Board of Governors of the Federal Reserve System, “De Novo Bank Application Process,” Partnership for Progress, n.d., http://www.fedpartnership.gov/bank-life-cycle/start-a-bank/de-novo-bank-application-process.cfm.
104 Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.com/bailout.html.
105 Justia Docs, Bloomberg L.P. v. Board of Governors of the Federal Reserve System, Case No. 08 cv 9595 (LAP), November 7, 2008, http://docs.justia.com/cases/federal/district-courts/new-york/nysdce/1:2008cv09595/335178/1.
106 Mark Pittman and Bob Ivry, “U.S. Taxpayers Risk $9.7 Trillion on Bailout Programs (Update 1),” Bloomberg, February 9, 2009, http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aGq2B3XeGKok.
107 Mark Pittman, “Fed Refuses to Disclose Recipients of $2 Trillion (Update 2),” Bloomberg, December 12, 2008, http://www.bloomberg.com/apps/news?pid=20601109&sid=apx7XNLnZZlc&refer=home.
108 Pittman, “Fed Refuses to Disclose Recipients of $2 Trillion (Update 2).”
109 FOXBusiness, “FOX Business Sues Treasury for Failure to Respond to Freedom of Information Act Requests,” December 18, 2008, http://www.foxbusiness.com/story/markets/fox-business-sues-treasury-failure-respond-freedom-information-act-requests; Karey Wutkowski and Robert MacMillan, edited by Gerald E. McCormick, “Fox Business Sues Fed for Information on Bailouts,” Reuters, January 12, 2009, http://www.reuters.com/article/bondsNews/idUSN1235009220090112.
110 U.S. House of Representatives, Oversight of Implementation of the Emergency Economic Stabilization Act of 2008 and of Government Lending and Insurance Facilities: Impact on the Economy and Credit Availability, Hearing, November 18, 2008, Serial No. 110-145, pp. 16-17, http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_house_hearings&docid=f:46593.pdf.
111 U.S. House of Representatives, Statement of Ben S. Bernanke, Chairman Board of Governors of the Federal Reserve System before the Committee on Financial Services, February 10, 2009, p. 8, http://www.house.gov/apps/list/hearing/financialsvcs_dem/bernanke021009.pdf.
112 Board of Governors of the Federal Reserve System, Chairman Ben S. Bernanke, Semiannual Monetary Policy Report to the Congress, before the Committee on Banking, Housing and Urban Affairs, Testimony, February 24, 2009, http://www.federalreserve.gov/newsevents/testimony/bernanke20090224a.htm.
113 David Barstow and Mike McIntire, “Calls for Clarity in New Bailout for US Banks,” New York Times, February 9, 2009, http://www.nytimes.com/2009/02/10/business/economy/10bank.html.
114 Board of Governors of the Federal Reserve System, Chairman Ben S. Bernanke, Semiannual Monetary Policy Report to the Congress, before the Committee on Banking, Housing and Urban Affairs, Testimony, February 24, 2009.
115 Board of Governors of the Federal Reserve System, H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks, Federal Reserve Statistical Release, February 28, 2008, http://www.federalreserve.gov/releases/h41/20080228/h41.pdf.
116 Board of Governors of the Federal Reserve System, H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks, Federal Reserve Statistical Release, February 19, 2009, http://www.federalreserve.gov/releases/H41/20090219/h41.pdf.
117 Board of Governors of the Federal Reserve System, “Federal Reserve Announces It Will Initiate a Program to Purchase the Direct Obligations of Housing Related Government-Sponsored Enterprises and Mortgage-Backed Securities Backed by Fannie Mae, Freddie Mac, and Ginnie Mae,” press release, November 25, 2008, http://www.federalreserve.gov/newsevents/press/monetary/20081125b.htm.
118 Board of Governors of the Federal Reserve System, “Federal Reserve Announces the Creation of the Term Asset Backed Securities Loan Facility (TALF),” press release, November 25, 2008, http://www.federalreserve.gov/newsevents/press/monetary/20081125a.htm.
119 Paul Kasriel and Asha Bangalore, “SIVs Got Us into Trouble—SIVs to the Rescue?” Safe Haven, February 19, 2009, http://www.safehaven.com/article-12644.htm.
120 Ibid.
121 James Hamilton, phone conversation with the author, November 25, 2008.
122 U.S. Department of the Treasury, “Joint Statement by Treasury, Federal Reserve and FDIC,” press release: HP 1206, October 14, 2008, http://www.treas.gov/press/releases/hp1206.htm.
123 Board of Governors of the Federal Reserve System, “Board Announces That It Will Begin to Pay Interest on Depository Institutions’ Required and Excess Reserve Balances,” press release, October 6, 2008, http://www.federalreserve.gov/newsevents/press/monetary/20081006a.htm.
124 Group of Thirty, Financial Reform: A Framework for Financial Stability, Janua
ry 15, 2009, http://www.group30.org/pubs/recommendations.pdf.
125 David Goldman, “Volcker: Regulate to Prevent Future Crisis,” CNNMoney .com, January 15, 2009, http://money.cnn.com/2009/01/15/news/economy/volcker_regulation.
126 Board of Governors of the Federal Reserve System, “Board Announces Final Rules Pertaining to the Asset Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF), Regulations H, W, and Y,” press release, January 30, 2009, http://www.federalreserve.gov/newsevents/press/monetary/20090130a.htm.
127 24/7 Wall Street, “Bailout Moves Toward $2 Trillion,” October 24, 2008, http://247wallst.com/2008/10/24/bailout-moves-t.
128 Charting Stocks, “Wall St Bailout Cost Now Exceeds $4 Trillion,” November 18, 2008, http://www.chartingstocks.net/2008/11/wall-st-bailout-cost-now-exceeds-4-trillion.
