Judge Napolitano Glenn Beck Extortion: Government Federal Reserve Extorts Banks?

Judge Andrew Napolitano, sitting in for Glenn Beck, tells this developing story of the Federal Reserve and New York's biggest banks. Is our government and the Federal Reserve extorting banks?  See the video below.

Federal Reserve Bank of New York

Following are quotes from Judge Napolitano.

The CEO of the Federal Reserve Bank of New York called the heads of New York's largest banks into the offices of his lower Manhattan offices.

We don't know precisely what was said but we do know that the head of the Fed told the assembled bankers that they must start cutting executive compensation, or the government will do it for them.

The government admits that it has no lawful authority to regulate compensation at banks that never received TARP funds or paid the funds back already.

So what was the extortion? Undoubtedly, it was a threat to have the FDIC audit the banks if they fail to tow the pay Czar's line. An FDIC audit will cost the banks tens of millions in employee loss of time and shareholder loss of value.

What is extortion? Extortion is a threat to perform a lawful act to influence the free will of someone else. Well, can the FDIC audit these banks? Yes. But may it do so to force executives to do what they have a lawful authority not to do? No.

Napolitano has a great panel that now discusses what has happened. Napolitano asks? Can the federal government, constitutionally interfere with use of private funds and private freely negotiated contracts? Listen to this conversation about extortion and demonization.

Remember that Obama's Treasury Secretary, Timothy Geithner, was the head of the Federal Reserve Bank of New York when Obama tapped the tax-cheater to tend to our money.

Thanks much to David Lemon the master sculptor at Clay to Bronze.












Judge Napolitano - Government Extorts Banks? (video)

Bernake Paulson Lies: Barofsky Exposes Bernake Paulson TARP

Special Inspector General Neil Barofsky tells us what most of us already know: TARP money went to losers. According to IG Barofsky, institutions receiving money in the first round of redistribution of taxpayer's wealth, were not sound institutions and should not have qualified for the funds.

Henry Paulson

 Ben Bernake

"These are healthy institutions, and they have taken this step for the good of the economy," Paulson had declared at the time.

Barofsky said that the fact that Citigroup Inc. and Bank of America Corp. soon required billions in additional assistance highlighted the inaccuracy of that claim and raised questions about the whole effort. In addition, Merrill Lynch, which was also in the original nine, was in the process of being acquired by Bank of America because of its weakening financial position.

"Statements that are less than careful or forthright -- like those made in this case -- may ultimately undermine the public's understanding and support," the report said. "This loss of public support could damage the government's credibility and have long-term unintended consequences that actually hamper the government's ability to respond to crises."

Note that this report gives Paulson and Bernake no out. The statements were "less than careful." Secretary Paulson's announcement on television, with George Bush standing by his side in September 2008, is one of those moments I will always remember. In my kitchen, looking out over the kitchen bar to the TV, my husband and I listened and couldn't believe what we were hearing.

Anyone believing this whole thing was not contrived, is not paying attention. Usher in Barack Obama.

The Federal Reserve and the Federal Deposit Insurance Corporation also joined in the deception. Nevermind that the FDIC was soon claiming that they were underfunded and couldn't cover the claims coming their way.

Barofsky's report says "the government did not have the time needed to get the toxic asset program up and running," and that is why Paulson changed horses mid-stream, didn't buy up toxic assets as first planned - and just "injected capital" (gave money to the banks to enable them to lend out so that you and I could purchase a home or start a business, which didn't happen).

 Henry Paulson and Ben Bernake led the drive to bailout AIG. Paulson engineered the bailouts of Fannie Mae and Freddit Mac. Remember that Paulson had complete control - the last and only say about these funds. King Henry Paulson was granted unprecedented authority by Congress - historic in it's stark negating of Congress' own powers. It was Paulson who told bankers they would take the government money, whether they needed it or wanted it.

Goldman Sachs, of which Paulson is a previous CEO, benefitted from at least $12 billion of the bailed-out AIG funds.

IG Barofsky has exposed this insider-scam (that left Bush an outsider) that, in my opinion, put Barack Obama in the White House, and put the future of our grandchildren and great-great grandchildren in the trash heap of un-American history. Ben Bernake continues today as the Chairman of the Federal Reserve - an Obama nomination.