Fed Official Confronted Over Bailout Spending Secrecy (VIDEO)

Where's the bailout money going? If the federal government told you, then banks might stop taking it.

That's the argument made by Federal Reserve Vice Chairman Donald Kohn in this overlooked clip from Tuesday's House Financial Services Committee hearing on the bailout funds.

In response to pointed questioning from Rep. Alan Grayson (D-Fla.), Kohn laid out the reasoning.

"I'd be very concerned, Congressman, that if we published the individual names of who was borrowing from us, no one would borrow from us," he said. "The purpose of our borrowing is not to support individual institutions but to support the credit market."

Grayson couldn't believe it. "Has that ever happened? Have people ever said we won't take your $150 billion because people might find out about it?" he asked.

Watch Grayson v. Kohn:

Comments

[CaptainHowdy]

Ooohhh... he was "confronted".

Now what will happen?

I'll tell you what... NOTHING will happen... that's what!

Never does...

[amkhussein]

Fugging liar. And he speaks like Bloomsberg. What is it, a newyorker thing or something ?

[fillou]

Just look at Kohn's body language and the way he plays with his pen shows his level of stress, nervousness of a liar that just caught red handed ... Plain and simple.

[voltage356]

You noticed that also.

[MyTake]

If Americans would just abolish the Federal Reserve private bank and replace it with a true U.S. national bank run by their government, then one wouldn't have to listen to Frank.

Had you a true national bank, then this guy Kohn would not be employed and could only find work in Switzerland or Cayman banks where banking secrecy is enforced by law.

Didn't we just see Citibank, whose stock just tanked, force out Rubin as a director and Rubin was an advisor to Obama and Rubin brought the tax dodging Geithner into the fold and Geithner is now embarrassing Obama as it is now revealed that the IMF sent Geithner letters telling him he had to pay taxes on the income that Geithner didn't pay taxes on and this after Obama said on TV that Geithner made a HONEST MISTAKE and the Obama transition team does not appear to have a plan B for this critical post?!?!?!? This is a good soap opera script!

[Lion24]

Fess up, dude.

[dobberdoss]

Pelosi: "the party is ON!" "the party is ON!". If she was honest abuot it then thats what she should of said

[eilish]

I think Pelosi should go bye bye.

[4peace]

I couldn't agree more, and so should her collaborator Reid.

[trudem2]

Maybe part of the problem is nobody can understand a word Barney Frank says when he talks about lending $800 billion.

[littlepuffycloud]

haha

[amkhussein]

I agree. I hear more hissing noise coming out of Frank's mouth than acutal words.

[voltage356]

He was purposely sounding like that to understand a word he was saying. Was it not the reason why they held those meetings before this so call bailout bill was pass to get oversight as to where the money was going. So instead of stealing the money out the backdoor. They just walked out of the front door right before our eyes.

[gageeandbaba]

who is dealing with our money? Why are the same people in all positions of power that involve money?

[gageeandbaba]

WE need DIVERSITY in who is dealing with our money.

[CaptainVideo]

Actually that kind of thing happened during the banking crisis of the early 1930s. Financially stressed banks who could have borrowed money from the Federal Reserve System were unwilling to do so because if the word got out that a bank had borrowed from the Fed, that was the kiss of death. That would be taken as an indication that the bank was in financial difficulty and would result in a run on it.

[Poboy]

That's before FDIC.

[CaptainVideo]

That does not change my main point that the financial system is going to interpret getting TARP money as a sign of financial weakness and if the information is revealed, will make them reluctant to take the money even if they need it to maintain their financial viability.

[FloridaMich]

And no one will buy a car from a company that has filed for bankruptcy......

[houseafire]

CaptainVideo said:
Actually that kind of thing happened during the banking crisis of the early 1930s. Financially stressed banks who could have borrowed money from the Federal Reserve System were unwilling to do so because if the word got out that a bank had borrowed from the Fed, that was the kiss of death. That would be taken as an indication that the bank was in financial difficulty and would result in a run on it.


LOL!! But, of course, everyone will have no problem using a bank that is just GIVEN the taxpayers money, to do with whatever they want....

It's nothing but a mega scam to line their pockets and the pockets of their friends......the only kiss of death in this whole situation is for the "we the people"

[Fenestrate]

A couple of days ago, on a local morning newscast, I saw a blurb about a name change for a local credit union. The reason given for the name change was that the CU was being purchased by a local bank with funds it had received from the bailout. The information was being provided by way of a press release from the bank. (Dayton-Cincinnati area)

So, there's at least one bank who doesn't care who knows they got bailed out.

[Rog49Thomas]

I'm surprised he didn't say "If people knew where the money was going, there might be a run on that particular bank as depositors flee to presumably safer institutions".

But ... there has to be a way to give Congress the info.

On national security matters, certain info is disclosed only to the relevant legislative committees or their ranking republican and democrat members.

[Nonamnesiac]

It's hilarious that Congressmen and Congresswomen who gave this money to those who caused the collapse with no accountability requirement, no transparency requirement and no reregulation are whining about being unable to find out where the trillion dollars has gone. They act as if this is just another Chapter of Where in the World is Matt Lauer.

Congress passed the legislation that allows it to be spent without accountability, reregulation or transparency. They knew this would happen when they passed the legislation and were even warned about it at the time.

The politicians are so bought off -- they are so dependent on those who are stealing the trillion dollars for their campaign funds -- they intentionally passed the giveaway with no transparency, accountability or regulation. They easily could have included severe criminal penalties if the money was used as it is being used and couldn't be traced. They chose not to.

Remember, these are the same people who gave convicted felon and two-bit low-life thief Ted Stevens a bi-partisan standing ovation. They are laughing at the public who elected them while they dole out a trillion dollars to their campaign contributors.

[realitycheck7]

excellent comment and spot on

I would say the only way to begin and set this country straight is to remove private money from federal elections entirely

unfortunately since the fox guards the hen house, that is unlikely to happen

[FatherKindly]

And your remarks are excellent as well. You said what I wanted to say and said it well.

[FloridaMich]

I want my $4000.

[Nonamnesiac]

The Congressmen and Congresswomen of both parties are so corrupt that when they realized a financial calamity was on its way they passed the Bankruptcy Act, at the behest of predatory lenders so that the poor and middle class shlubbs who were going to lose their shirts would have to take off those shirts and give them back anyway.

Remember, the Bankruptcy Act passed on a bi-partisan vote in which many Democrats also voted in favor of the predatory lender against the people who were ripped off by the predatory lenders.

So forget about your $4000. It will be $8000 or more before this whole thing plays itself out.

[lesnouveauxpauvre]

Why are so many Obama supporters in denial about the fact that Obama is asking for the same thing Bush did? Bush/Paulson pushed through the first 350 Billion, now Obama and company are pushing through the second half. How difficult is this to comprehend. This is a example of how the Republicans, and Democrats are one and the same party,protecting the wealth of these monsters. The Democrats offer cosmetic differences to swindle people to vote for them, thus keeping this country a one party state. The only way to get change in this country would be for people to change their party affiliation Democrat, and Republican and elect someone who is truly Independent of these political entities, and who sint bought out by them. Thats what made me laugh about people who voted for Obama, when this man amassed more wealth and raised more money than his Republican counterpart, how was that change? How is he going to implement change when he got all this funding from theses very same Corporate/Wall street interests? That was the whole point of pushing for public financing of the elections, prevent the pay to play gamebook, yet Obama did the exact opposite and got elected President? Their money put him into office! And dont tell me he got all his money from individual $100 contribution. That is a lie, and will be a huge scandal if and when someone does investigation and reveals the truth, and Obama & Co. knows this.

[CaptainVideo]

It is not a matter of being in denial. It is a recognition that the fact that the Bush adminstration handled the bailout very badly is no reason to think that the Obama administration will make the same mistakes. We supported Obama because we concluded that he will do a much better job than Bush (or McCain) and therefore support giving Obama access to the remainder of the money.

" raised more money than his Republican counterpart, how was that change?"

Because a lot of it came from individuals like me who have confidence that Obama will make a great President.

[AKJM]

I brought a lemon once too, boy, was I wet ! !

[CaptainVideo]

A lot of individuals, like me, contributed a lot more than $100, but we are individuals, and not corporations.

[AKJM]

Hey newly poor, this is just the beginning. Wait till he back steps from NAFTA, health care and immigration.

[CaptainVideo]

WE WON AND YOU LOST! DEAL WITH IT!

LOSER!

[FloridaMich]

and a lot of individuals like me contributed 20 dollars.

[CindyKay]

I Gave $300

[CindyKay]

Angry & Bitter ?

Tell Me ........Have You been cleaning Your Gun ?

[msjimmied]

So what's the lesson about what you need to do to keep yours? Do not invest in the "market", Do not invest your money in paper, and do not pay your taxes...why are the choices so bleak?

[realitycheck7]

btw it is the congress who should bear the blame for most of this heist

it is they who gave out your money blindly with only some empty words on paper asking for disclosure

they are asleep and have not done their jobs