Corruption at Federal Reserve Bank Ignored by News Media

Posted: February 20th, 2010 by Militant Libertarian

by Jim Kouri, RBN

America’s banking industry is aiding and abetting lawbreakers and there appears to be no one in Washington, D.C. interested in conducting an investigation into this corruption.

While the mainstream news media are hard at work covering the Democrats striving to achieve their dream of taking control of Americans’ health care, the Federal Reserve Bank continues working with the Mexican government to make it easier for illegal aliens to export US money to their homeland.

The Fed is currently devising several programs that will extend banking services to illegal aliens, and most of this money transfer scheme was created under the radar with few — if any — political figures are discussing the subject.

One such program being utilized by illegal aliens from Mexico is a remittance program with the ultimate goal of bringing illegal Mexican aliens — who send money home — into the mainstream of the US financial system, regardless of immigration status. In other words, The Federal Reserve Bank is aiding lawbreakers in moving their cash around in the US and Mexico. This obviously includes the myriad alien gangs and more than 50,000 gang members who are involved in narcotics trafficking, identity theft, homicides, and other criminal activity.

“Directo a Mexico,” the name of the program, enables US commercial banks to make money transfers for Mexican workers through the Federal Reserve’s own automated clearinghouse, which is linked to Banco de Mexico, the Mexican central bank. Few Americans are aware of the connection between the Fed and foreign banks and this program would be just another that exists in the shadow world of international banking.

To use the service, a Mexican need only possess a matricula consular, an ID issued by the Mexican consulate in most major US cities to those with proof of Mexican birth or citizenship, or a picture ID card issued by the US or another foreign government. The idea is to make it “cheaper and safer” for illegal workers to send funds to their relatives in Mexico.

While on the surface this may appear to be a good idea for banks, it’s an idea based on lawbreakers being given assistance in moving their money around. The Mexican drug trafficker will be able to take advantage of this new banking system as much as the illegal worker cleaning toilets.

Most law enforcement commanders recognize the Matricula Consular card as a useless identification document. In fact, some US government agencies still refuse to accept them as identification documents.

Most illegal aliens make cash transfers, which average $350 each, through companies like Western Union or a hodgepodge of wire-transfer firms, couriers and others that operate out of storefronts in Hispanic enclaves. Family members then collect the wired cash at a shop in their town or village.

The Federal Reserve Bank’s primary goal is to use the program to draw hundreds of thousands of illegal aliens into our banking system because commercial banks require that those wanting the service first open a savings account. While American citizens will continue to be required to show extensive identification and proof of residence, illegal aliens will only be required to show a Matricula Consular card, which are known to be counterfeited and sold by human smugglers.

“People who didn’t have bank accounts establish a relationship with us,” said James Maloney, chairman of Mitchell Bank in Milwaukee, one of the first banks to offer the Federal Reserve Bank’s remittance scheme, according to the Wall Street Journal, a newspaper that favors using illegal alien workers.

“It’s great for our business,” said Maloney.

Remittances sent by Mexicans topped $15.5 billion in the first few months of this year, 20 percent higher than the amount sent during the same period the previous year, according to Mexico’s central bank, and this year’s annual figure is expected to hit a new record. Savings scraped together by nannies, painters and others working abroad are now Mexico’s second-largest source of foreign revenue, after oil exports and ahead of tourism, according to analysts interviewed by the WSJ.

The Federal Reserve Bank, always a friend to foreign interests, is instructing illegal aliens that should they return home on their own or should they be deported, their money is safe whether it was obtained working as a busboy in a restaurant or working as an enforcer in a sex-slave house.

The Fed has already set up a system by which illegals can retrieve their money through easy access at an ATM in Mexico using their debit cards.

And whom do we have to thank for this financial windfall for illegal aliens? The US federal government.

One of the stated objectives is to continue to help lower the fees paid by Mexican workers to send money to their native country. It’s bargain time for illegal aliens.

“Now, if only Obama and the rest of our elected officials would look out for the interests of US citizens during these tough economic times,” quipped political strategist Mike Baker.

“As for mobsters, they will have an even easier time laundering the ill-gotten gains,” he added.


Comments (3)


  1. Now the whole thing about Mexican gangs using the banking system is just silly. No drug dealer in his right mind is going to use this system. It’s not there to make the lives of illegal aliens EASIER. It’s there to make it easier for the bankers to CONTROL ordinary “illegal aliens” – whether they’re in the U.S. or Mexico – the same as they CONTROL the rest of us.

    • Militant Libertarian says:

      Actually, any foreign national can open an account at an American bank quite easily. It’s easier, in fact, than if your’e a U.S. citizen and want to open one. I doubt it’s all that uncommon for illegals to do it. After all, as the article points out, if you are deported, your money is safe.

  2. Dan Scott says:

    Most everything the U.S. Federal Reserve Bank has been doing to knowingly assist illegal aliens transport money to Mexico is illegal under the Patriot Act: yet U.S. Government will use those same laws under the Patriot Act to charge Americans for lesser offenses.

    It has been reported 230 U.S. Cites are now proliferated with street gangs that support Mexican Drug Cartels—selling their illegal-drugs in America. Mexican Drug Cartels among other acts of terrorism are now deploying (roadside bombs) in Mexico to maim and kill police and military personnel to further their Narco-Terrorist-Enterprises—that extend into the United States. It would be naive for Americans to believe Mexican Drug-Cartel terrorism won’t cross the border spreading into U.S. communities. U.S. Street gangs that directly market illegal-drugs for Mexican Drug Cartels are agents of Foreign Terrorists. The “Patriot Act” defined “supporting terrorism” as any criminal activity that “participates” in “World Markets” terrorists may use or depend on for their support. It is apparent U.S Street Gangs selling illegal drugs for Mexican Cartels in the U.S., are participating in “World Markets” that Mexican Cartel Terrorists use and depend on for their support. U.S. Government should charge Mexican Cartel gang members arrested selling illegal Cartel drugs in America with aiding and supporting foreign terrorists—that might interrupt the flow of illegal drug money to Mexican Drug Cartels and other terrorists they network with globally.

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