Its being reported that Ben ‘Bailout’ Bernanke had his identity stolen after his wife’s purse, which contained the couple’s checkbook, was taken.
The Federal Reserve Board chairman was one of hundreds of victims of an elaborate identity-fraud ring, headed by a convicted scam artist known as “Big Head,” that stole more than $2.1 million from unsuspecting consumers and at least 10 financial institutions around the country.
…Last summer, just as he was dealing with the first rumblings of the financial crisis on Wall Street, Bernanke learned that a thief had swiped his wife’s purse—including the couple’s joint check book. Days later, someone started cashing checks on the Bernanke family bank account, the documents show. “It’s fair to say he was not pleased,” said one close associate of Bernanke, who asked not to be identified discussing what the Fed chairman considers a private matter.
The theft of the Bernanke check book—never publicly revealed until now—soon became part of a wide-ranging (and previously underway) identity-theft investigation by the Secret Service and the U.S. Postal Inspection Service. The probe culminated in recent months with a series of arrests, criminal complaints, and indictments brought by federal prosecutors in Alexandria, Va. The targets: members of a nationwide ring that used an inventive combination of old-fashioned thievery and high-tech fraud to loot the bank accounts of unsuspecting victims.
Ironically, at the same time a scam artist was using Bernanke’s identity to forge $2.1 million in checks, the central bank which he chaired was issuing $2.1 trillion in credit backed by the good faith of the American people. This week the pressure to release details of those loans has risen as a Federal judge ordered that the institution disclose the emergency lending recipients following a Bloomberg Freedom of Information lawsuit.
The Federal Reserve must for the first time identify the companies in its emergency lending programs after losing a Freedom of Information Act lawsuit.
…Bloomberg LP said in the suit that U.S. taxpayers need to know the terms of Fed lending because the public became an “involuntary investor” in the nation’s banks as the financial crisis deepened and the government began shoring up companies with capital injections and loans. Citigroup Inc. and American International Group Inc. are among those who have said they accepted Fed loans.
“When an unprecedented amount of taxpayer dollars were lent to financial institutions in unprecedented ways and the Federal Reserve refused to make public any of the details of its extraordinary lending, Bloomberg News asked the court why U.S. citizens don’t have the right to know,” said Matthew Winkler, the editor-in-chief of Bloomberg News. “We’re gratified the court is defending the public’s right to know what is being done in the public interest.”
The Fed’s balance sheet about doubled after lending standards were relaxed in the wake of the collapse of Lehman Brothers Holdings Inc. on Sept. 15, 2008. For the week ended Aug. 19, Fed assets rose 2.3 percent to $2.06 trillion as it continued to buy mortgage-backed securities under a program allowing the central bank to purchase non-government securities for the first time.
Bernanke, who is worried that the debt bubble could pop if it is revealed to the public that loans are being made with little to no collateral, has vowed to appeal the ruling.
Chief U.S. District Judge Loretta Preska in Manhattan said on Aug. 24 that the Fed had until Aug. 31 to disclose daily reports on borrowing by banks and other financial institutions. The central bank wants Preska to stay her order, made in a Freedom of Information Act lawsuit, until the U.S. Court of Appeals in New York can act on an appeal that the Fed said it intends to file.
…The Fed has refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under 11 programs, saying that doing so might set off a run by depositors and unsettle shareholders.
The situation raises doubt over the president’s decision to nominate Bernanke to another term as Fed chairman.
Economists such as Michael Pento have grown increasingly wary of ‘Banana’ Ben as he has refused to tackle the inflation problem, which has seen the dollar lose 95% of its value in the last 40 years.
No Fed head in our history has increased the monetary base…more than Ben Bernanke. Therefore, he stands far above all his predecessors in his efforts to weaken the dollar in order to engender a recovery in markets and the economy.
…I believe interest rates should be a function of the supply of savings vs. the demand for borrowing, not by decree.
What we need is a money supply that grows and contracts with the change in the work force and productivity. If we just adhered to that simple formula there would never be any inflation and we would always have a stable currency. However, when a country is dominated by bankers and politicians the people always lose.