Rep. Dennis Kucinich (D-OH) called for the U.S. Federal Reserve to be reformed after Bloomberg reported the central bank secretly loaned nearly $8 trillion to financial institutions from 2007 to 2009.
Tens of thousands of documents obtained by Bloomberg under the Freedom of Information Act showed that banks reaped an estimated $13 billion in profits thanks to the low-interest loans. JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley accounted for $4.8 billion of that total.
“Remember the great debate we had here over the 700 billion in TARP funds?” he said on the House floor Tuesday. “There was no debate over the 7.7 trillion the Fed gave the banks.”
“Did Congress have a clue?” he continued. “There is another game going on way over our heads, and our constituents are struggling while the banks with the help of the Feds have captured control of our government.”
“Now the rating services are threatening us, if we don’t come up with a deal they’ll downgrade U.S. debt. Could the threat to our national sovereignty be any clearer?”
Kucinich has proposed legislation, called the National Emergency Employment Defense (NEED) Act, that would incorporate the Federal Reserve within the United States Treasury and thereby make it accountable to Congress.
Watch video, uploaded to YouTube, below: