by Pam Martens and Russ Martens at Wall Street on Parade
The official that oversaw the secret funneling of trillions of dollars of bailout money from the New York Fed to the grossly mismanaged mega banks on Wall Street during the financial crisis of 2008 to 2010, had the temerity yesterday to pen an opinion piece at Bloomberg News pointing his finger at current Fed officials for today’s banking crisis – without once mentioning his role in getting us here.
The article was written by William (Bill) Dudley, who served as President of the New York Fed from January 27, 2009 to June 18, 2018. Prior to that Dudley was Executive Vice President of the Markets Group at the New York Fed, the group that runs its own trading floors in New York and Chicago and trades with the Wall Street mega banks it is also supposed to be supervising.
The New York Fed has become the official money spigot for Wall Street bailouts while being, literally, owned by some of the biggest banks on Wall Street. (See These Are the Banks that Own the New York Fed and Its Money Button.) Prior to joining the New York Fed in 2007, Dudley worked for two decades at – wait for it – Goldman Sachs, becoming a partner, managing director and chief economist.
Dudley’s broader agenda became clear in the opening sentence of his opinion piece yesterday. He writes that this is the “first banking crisis since 2008,” which dovetails nicely with the Wall Street lobbyists’ propaganda that there is nothing significantly wrong with the U.S. banking system so Congress shouldn’t start thinking about separating the Wall Street trading casinos from the federally-insured commercial banks by restoring the Glass-Steagall Act – which prevented systemic banking crises for 66 years until its repeal in 1999.
In fact, this is the third major banking crisis since 2008 and…
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