The Fed’s Inspector General Clears Jerome Powell of Wrongdoing in the Trading Scandal, One Day After Five Senators Accuse Him of Hampering the Investigation

By Pam Martens and Russ Martens, July 15, 2022

Yesterday afternoon, Mark Bialek, the Inspector General of the Federal Reserve, released a memorandum clearing Fed Chair Jerome Powell and former Fed Vice Chair Richard Clarida of wrongdoing in the trading scandal that has engulfed multiple officials of the Federal Reserve.

The Fed’s Inspector General Clears Jerome Powell of Wrongdoing in the Trading Scandal, One Day After Five Senators Accuse Him of Hampering the Investigation

Related:

Senators on Senate Banking Committee Accuse Fed Chair Powell of Hampering Trading Scandal Investigation

Fed Chair Powell Opens a Big Can of Worms at His Press Conference

Fed Chair Powell Opens a Big Can of Worms at His Press Conference

What the Fed did back then, which it knows it can still do at the drop of a dime today, is to demand an adequate amount of securities as collateral from the Wall Street firms that request its emergency loans. There is zero need or rational reason to make the U.S. taxpayer backstop potential losses on Wall Street – particularly when today’s Wall Street funding problems began months before COVID-19 reared its head in the United States.

Senator Menendez: “3.3 Million Small Businesses Have Closed” and “1.1 Million Local and State Employees Have Lost their Jobs” as a Result of Pandemic

Senator Menendez: “3.3 Million Small Businesses Have Closed” and “1.1 Million Local and State Employees Have Lost their Jobs” as a Result of Pandemic

Trump Issued an Executive Memorandum Giving Mnuchin a $50 Billion Slush Fund; Mnuchin Gave Himself $386 Billion More

Trump Issued an Executive Memorandum Giving Mnuchin a $50 Billion Slush Fund; Mnuchin Gave Himself $386 Billion More

Five days before Congress passed the CARES Act on March 25 of this year, President Donald Trump issued an Executive Memorandum giving U.S. Treasury Secretary Steve Mnuchin complete discretion to use $50 billion in the Treasury’s Exchange Stabilization Fund (ESF) as Mnuchin solely saw fit. The Memorandum was dated Friday, March 20. On the prior Tuesday and Wednesday of that same week, Mnuchin had already used $20 billion of the Exchange Stabilization Fund to bail out Wall Street. As Mnuchin’s letter of November 19 to Fed Chair Jerome Powell confirms, he gave (or committed) $10 billion from the ESF to the Fed’s Commercial Paper Funding Facility on March 17 and another $10 billion to another Fed emergency lending program, the Money Market Mutual Fund Liquidity Facility, on March 18.