Results of the first ever Government Accountability Office audit of the Federal Reserve in its 100 year history indicate that the bank dished out $16 trillion to most major banks, corporations and governments in what the Fed calls all-inclusive loans.
From the period between December 2007 and June 2010, the Fed issued $16 trillion in loans at zero percent interest. To date, these loans have never been paid back.
The banks that received a major portion of the bailouts are as follows:
- Citigroup: $2.5 trillion ($2,500,000,000,000)
- Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
- Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
- Bank of America: $1.344 trillion ($1,344,000,000,000)
The Government Accountability Office (GAO) recommends stricter controls and greater defined policies aimed at reigning in the Fed Reserve which to date has acted independently, simply printing money and handing out loans to foreign banks whilst the American economy faces its most trying period since 1939.