Fed bends rules to help two big banks -- Are The Markets In Trouble?

[gavinmccallister]

By Peter Eavis, Fortune writer
August 24 2007: 5:09 PM EDT


NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out Citigroup (Charts, Fortune 500) and Bank of America (Charts, Fortune 500), according to documents posted Friday on the Fed's web site.

The Aug. 20 letters from the Fed to Citigroup and Bank of America state that the Fed, which regulates large parts of the U.S. financial system, has agreed to exempt both banks from rules that effectively limit the amount of lending that their federally-insured banks can do with their brokerage affiliates. The exemption, which is temporary, means, for example, that Citigroup's Citibank entity can substantially increase funding to Citigroup Global Markets, its brokerage subsidiary. Citigroup and Bank of America requested the exemptions, according to the letters, to provide liquidity to those holding mortgage loans, mortgage-backed securities, and other securities.

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[seo2020]

This is further evidence that the Federal Reserve runs our country.

For those of you that think the Federal Reserve is a government agency... WAKE UP!

The Federal Reserve is a privately owned bank whose sole mission was to take us off the gold standard so they can print as much money as they desire while systematically controlling the American People.

The media would make me out to be conspiracy theorist ... I wish I was!

Did you know the IRS is not a government agency?

Did you know the IRS is simply the collection agent for the Federal Reserve?

Did you know that none of your tax money is apportioned to anything?

Did you know the US Government borrows money from the Federal Reserve Bank at no interest?