Posted on 12/24/2013 1:45:23 PM PST by Errant
The Democratic Party gained prominence in the first half of the nineteenth century as being the party that opposed the Second Bank of the United States. In the process, it tapped into an anti-state sentiment that proved so strong that we wouldn't see another like it until the next century.
Its adversaries were Whig politicians who defended the bank and its ability to grow the government and their own personal fortunes at the same time. They were, in fact, quite open about these arrangements. It was considered standard-operating procedure for Whig representatives to receive monetary compensation for their support of the Bank when leaving Congress. The Whig Daniel Webster even expected annual payments while in Congress. Once he complained to the Bank of the United States President Nicholas Biddle, I believe my retainer has not been renewed or refreshed as usual. If it be wished that my relation to the Bank should be continued, it may be well to send me my usual retainer.
(Excerpt) Read more at marketoracle.co.uk ...
Only if you consider $10 lent and repaid daily for 30 days to be a $300 loan.
Well, I am down with the flu. So the less brainwork the better right now - especially when it’s something trivial that you already know the answer to.
Well, its $4 here but we do have a bottom on milk prices that the state enforces. I suppose it’s suppose to help the farmers. We’ve had that in this state for ages.
Yeah, as soon as I have a half hour to listen to those two idiots saying a bunch of stupid stuff, I'll let you know.
Then I'll explain why they're wrong and you can ignore my explanation until you post your next stupid link.
I see what you're saying, but there was a huge list of banks and intuitions that receive money from the Fed during that time. I assume the Fed receive interest on the loans?
Well, that could explain your widespread confusion.
When you recover, I'll be happy to continue clearing up your confusion.
Yes, the Fed charges interest on loans to banks. That money ends up going back to the Treasury.
It’s actually a decent interview with an interesting conclusion that I thought you would find interesting.
There has been a countervailing deflation caused by the collapse of bad loans made during the mortgage bubble. The expansion of the money supply has been designed to offset this deflation. Through HARP the Fed has been taking the worthless paper off of retail banks in exchange for new money. The net effect is a wash which is why the ‘expansion’ isn’t showing up as inflation.
Kinda like the Griffin book, after the first bunch of errors, I realize I’m wasting my time.
All of it? Don't they get to keep a percentage for their efforts, expense, and risk? And if the Fed is protected by law from revealing its transactions to foreign banks and etc., what makes them have to let the Fed know how much they've loaned out?
Griffen’s book is pretty well thought of. What is it that you find inaccurate?
Gave you this upthread.
The Federal Reserve Board on Thursday announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $88.9 billion of their estimated 2012 net income to the U.S. Treasury. Under the Board's policy, the residual earnings of each Federal Reserve Bank are distributed to the U.S. Treasury, after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in.
The Federal Reserve Banks' 2012 estimated net income of $91.0 billion was derived primarily from $80.5 billion in interest income on securities acquired through open market operations (U.S. Treasury securities, federal agency and government-sponsored enterprise (GSE) mortgage-backed securities (MBS), and GSE debt securities). Additional earnings were derived primarily from net realized gains on the sale of U.S. Treasury securities of $13.3 billion, net income of $6.1 billion attributable to the consolidated limited liability companies that were created in response to the financial crisis, and income from services of $450 million, offset by losses of $1.1 billion that result from the daily revaluation of foreign currency denominated asset holdings at current exchange rates. The Reserve Banks had interest expense of $3.9 billion on depository institutions' reserve balances.
Operating expenses of the Reserve Banks, net of amounts reimbursed by the U.S. Treasury and other entities for services the Reserve Banks provided as fiscal agents, totaled $3.7 billion in 2012. In addition, the Reserve Banks were assessed $1.2 billion for the cost of new currency and Board expenditures, and $387 million to fund the operations of the Bureau of Consumer Financial Protection and Office of Financial Research. In 2012, statutory dividends totaled $1.6 billion and $461 million of net income was used to equate surplus to capital paid-in.
The preliminary unaudited results include valuation adjustments as of September 30 for Term AssetBacked Securities Loan Facility (TALF) loans and the consolidated limited liability companies. The final results, which will be presented in the Reserve Banks' annual audited financial statements and the Board of Governors' Annual Report, will reflect valuation adjustments as of December 31.
The attached chart illustrates the amount of Federal Reserve Banks' residual earnings distributed to the U.S. Treasury from 2003 through 2012 (estimated).
Fed expenses, $3.7 billion. Earnings given to the US Treasury, $88.9 billion.
“I hear shares of the “loot” are determined by the assests held/owned by each member bank,”
Banks covered by the Federal Reserve System have to join- their “shares” mean membership, not ownership. There is no “divvying up of the profits” to the member banks. All profits to the Fed in excess of salaries, rent, and other routine expenses revert to the US Treasury.
Back in the late Carter, early Reagan years some state chartered banks fought against being included in the Fed system because “owning a share” would mean that some of their assets would be tied up and would not earn anything for them. The shares only mean membership, they earn nothing.
Thanks, but I don't see any mention of income from loans to foreign banks and etc. Am I missing that in amounts above?
What's not true about that? And loans are forgiven - no?
I was talking about the 6% (by law) dividend divided up among the member banks depending upon the size of their individual assets.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.