Federal Reserve Chairman Jerome Powell’s net worth is $55 million, and much of his wealth is managed by vampire squid Goldman Sachs — a Wall Street bank that is supervised by the Fed — and BlackRock via its iShares Exchange Traded Funds (ETFs), according to his 2019 financial disclosure. Government-mandated financial disclosures require reporting of investment values within a range, and the upper value of Powell’s holdings with BlackRock is $11.6 million.
Federal Reserve Vice Chair Randall Quarles has, at the top range, $19.6 million in BlackRock iShare investments, according to his July 21, 2019, financial disclosure form.
So it shouldn’t come as a huge surprise that BlackRock was selected by the Fed to manage on behalf of the Fed the unprecedented buying of corporate bonds — ranging in grade from junk to investment — to the tune of approximately $750 billion, according to the most recent Term Sheet from the Fed. As if that’s not corrupt enough, the Fed will also allow BlackRock to buy up its own junk bond ETFs using money from both taxpayers and the Fed.
In an April 9 press release, and purporting to be taking actions to help everyday Americans, the Fed changed its Terms Sheets for both of its corporate bond-buying operations — the Primary Market Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF) — and announced that the Fed, for the first time in its 107 year history, would be buying junk bonds. The following chart very much appears as if “certain people” got the memo earlier than the rest of us.
The PMCCF and the SMCCF programs will use $75 billion in taxpayer funds from the CARES Act to eat losses. In reality the potential for Treasury loss is open ended.
By the way, BlackRock, also manages U.S. securities purchases for the central bank of Israel.
In 2015, legendary Wall Street investor Carl Icahn called BlackRock “an extremely dangerous company” [see video clip below]. Icahn was specifically talking about BlackRock’s packaging of junk bonds into ETFs and rebranding them as “high yield” investments, which the average American doesn’t understand is doublespeak for junk-rated bonds.
Powell is a former investment banker at the Wall Street firm Dillon Read; a former partner at the controversial private equity and leveraged-buyout firm the Carlyle Group, which has spent over $1 billion over the past decade lobbying the federal government; and a lawyer at Davis Polk, a Big Law firm that played a key role advising the government and Treasury in the 2008 Wall Street bailout.
In 1993, Powell began working as a managing director for Bankers Trust, but he quit in 1995 after the bank got into trouble when several customers suffered large losses due to poorly conceived derivatives.
During Powell’s stint as partner at The Carlyle Group (1997 to 2005), he founded and led the Industrial Group within Carlyle’s U.S. Buyout Fund (aka Parasite Guild).
The Carlyle Group is well known for its connections to Bush-Clinton cabal members and neocons. Carlyle was founded in 1987, just in time to make billions off the commercial real estate bust. It seems the Carlyle has a knack for capitalizing on distressed asset markets, and it’s during these periods that its expertise excels.
After leaving Carlyle, Powell founded Severn Capital Partners, a private investment firm focused on specialty finance and “opportunistic investments” in the industrial sector.
Like most other Fed chairmen, Jerome Powell is a member of the Council on Foreign Relations (CFR), the flagship of the globalist “liberal world order” which has dominated US policy since WW2. Laurence Fink, billionaire chairman of BlackRock, is a CFR director. David Rubenstein, billionaire founder of the Carlyle Group is the current CFR chairman.
In the lead up to the scamdemic, Powell was involved in kayfabe with Trump, mostly centered around whether the Fed would monetize the administration’s irresponsible fiscal policies. Today this kayfabe is a moot point.
In professional wrestling, “kayfabe” is the portrayal of staged events as real or true, specifically the portrayal of competition, rivalries and relationships between participants as being genuine and not of a staged or predetermined nature of any kind. Kayfabe has also evolved to become a code word of sorts for maintaining this “reality” within the direct or indirect presence of the general public.
Under Powell and Quarles, the rules on everything — from the amount of reserves held at the Fed by the mega banks to the Volcker Rule — have been gutted until essentially meaningless.
Both men were well schooled in leveraged buyouts before coming to the Fed. Both men are now involved in what is effectively levering up $454 billion of taxpayers’ money provided to the Fed through the CARES Act into a $4.5 trillion leveraged buyout fund of toxic debt from Wall Street banks. After taxpayers take the first $454 billion in losses on those purchases, the remainder may be sold off to private investors.
That should have been a given considering that the Washington Post reported that Powell, in the nine months prior to his confirmation hearing, had “formal meetings or calls 50 times” during the year “with the heads of Wall Street investment banks, such as Goldman Sachs, JP Morgan, Wells Fargo and Deutsche Bank, according to a copy of his calendar through Sept. 30.”
Enter Steve Mnuchin
At a recent Senate Banking hearing, Treasury Secretary Steve Mnuchin and Powell were called to testify. The CARES Act irresponsibly, gave Mnuchin control of $500 billion, of which $454 billion was earmarked to go to the Fed to be leveraged into a $4.54 trillion bailout program.
Democrats say they were promised that the money would go to help Main Street and that the actual crafters of the CARES Act legislation conveniently forgot to put that language into the bill. The bulk of numerous programs set up by the Fed will use CARES Act money to absorb losses and will be structured as bailout programs for Wall Street.
Democratic Sen. Elizabeth Warren derided the $500 billion as a “slush fund,” while Republican Sen. John Kennedy of Louisiana described it as a backroom deal put together by Mnuchin, Senate Majority Leader Mitch McConnell (R-Ky.), House Speaker Nancy Pelosi (D-Calif.), House Minority Leader Kevin McCarthy (R-Calif.), and Senate Minority Leader Chuck Schumer (R-NY) and then forced on other members of Congress who didn’t get to participate in negotiations.
Naturally and par for the course, the Mnuchin slush fund is exempt from sunshine laws and to requirements to disclose it’s activities.
Mnuchin is married to bit-roles actress Louise Linton, who has shown outright disdain for the “little people.”
One of her infamous business trips with Mnuchin went viral in August of 2017 when Linton bragged in an Instagram post about her designer clothes as she disembarked with Mnuchin from a U.S. chartered plane. Linton flaunted her #hermes, #valentino, #roulandmouret, and #tomfordsunnies couture.
When a female reader responded in a post, “Glad we could pay for your little getaway,” Linton berated her for being “adorably out of touch,” and bragging about how much more in taxes Linton and Mnuchin pay than the “little people.”
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