"Well, what happened, apparently, was that while the Dodd-Frank Act was being rewritten by the Congress, Janet Yellen changed the wording around and she said, “Well, how do we define a general liquidity crisis?” Well, it doesn't mean what you and I mean by a liquidity crisis, meaning the whole economy is illiquid. She said, “If five banks need to borrow, then it's a general liquidity crisis.” Well, the problem, as she points out, is it's the same three big banks, again and again, and again and again. And these are not short-term loans. She points out that they were 14-day loans; there were longer loans. And they were rolled over, not overnight loans, not day-to-day loans, not even week-to-week loans. But month after month, the Fed was pumping money into JP Morgan and Citibank and Goldman. But then she points out that, or at least she told me, that these really weren't Citibank and Morgan Chase; it was to their trading affiliates. Now this is exactly what Dodd-Frank was supposed to prevent.... So I think the reason that the newspapers are going quiet on this is the Fed broke the law. And it wants to continue breaking the law."
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Jews from the United StatesPeople from New York CityWomen academics from the United StatesEconomists from the United StatesUnited States Secretaries of the Treasury
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Janet Yellen
Janet Louise Yellen (born August 13, 1946) is an American economist who served as the United States Secretary of the Treasury from 2021 to 2025. She was the Chair of the US central bank, the Federal Reserve System, from 2014 to 2018. She previously served as Vice Chair from 2010 to 2014.
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