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Federal Reserve Lost in Court - Must Disclose Bank Bailout info

FireFly

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Results of a FOIA lawsuit by Fox News & Bloomberg - Federal Reserve Must Disclose Bank Bailout Records
The Federal Reserve Board must disclose documents identifying financial firms that might have collapsed without the largest U.S. government bailout ever, a federal appeals court said.

The U.S. Court of Appeals in Manhattan ruled today that the Fed must release records of the unprecedented $2 trillion U.S. loan program launched primarily after the 2008 collapse of Lehman Brothers Holdings Inc. The ruling upholds a decision of a lower-court judge, who in August ordered that the information be released.

The Fed had argued that it could withhold the information under an exemption that allows federal agencies to refuse disclosure of “trade secrets and commercial or financial information obtained from a person and privileged or confidential.”
 

Modbert

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$6a010536b4f156970c0120a7cb25ad970b-500wi.jpg

Good News Everyone!
 
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FireFly

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The judge gave the Fed five days to turn over documents it told the reporters it located, including 231 pages of reports, and said it must look for more at the Federal Reserve Bank of New York, which runs most of the loan programs.

The Fed must name the financial firms it lent to & disclose the amounts or the assets put up as collateral under 11 programs imposed during the deepest financial crisis.

The Fed says that doing so might set off a run by depositors and unsettle shareholders.

The market may be in for a wild ride when this info is released.

Bloomberg - Court Orders Fed to Disclose Emergency Bank Loans
 

Avatar4321

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And this comes in under the radar. This news is huge!
 
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FireFly

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[ame="http://www.youtube.com/watch?v=ST9UXzjm-zE"]Fed to Disclose Details - Bloomberg[/ame]
[ame="http://www.youtube.com/watch?v=befj54Y0IVQ"]E-mails reveal N.Y. Fed told AIG to limit disclosure[/ame]
[ame="http://www.youtube.com/watch?v=9ofGt4yeyv4&feature=related"]Former AIG CEO Hank Greenberg Dishes on Coverup[/ame]
[ame="http://www.youtube.com/watch?v=vvhMZAG3VXU"]Fed Res has a policy to NOT disclose counter-parties PAID[/ame]
[ame="http://www.youtube.com/watch?v=_vbrJa3-RK0&NR=1"]AIG Exc: Says Federal Reserve OK's Bonus[/ame]
[ame="http://www.youtube.com/watch?v=T73DbJg2B-E&feature=related"]AIG's former CEO Hank Greenberg says US taxpayers screwed by AIG[/ame]
[ame="http://www.youtube.com/watch?v=54v3WA3RC54&NR=1"]Greenberg: Federal Bailout of AIG has failed![/ame]
[ame=http://www.youtube.com/watch?v=kOv-qbEZR8g]YouTube - DeMint amendment to audit Federal Reserve blocked[/ame]
[ame="http://www.youtube.com/watch?v=lifeilnmi5k&NR=1"]Senate Blocks FED audit[/ame]
[ame="http://www.youtube.com/watch?v=jpz4huFetSM"]Could release of Federal Reserve documents really cause panic?[/ame]
 
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KissMy

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Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, said "The committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance ... That's the approach, rather than a piecemeal one."

Finally Barney Frank admits the GSEs were the problem all along. Very little media coverage. The deception continues.

[ame="http://www.youtube.com/watch?v=Y-2vl5Ow5ok&NR=1"]Banks Threatened into TARP[/ame]

GSEs Not in Reform Bill. Fannie & Freddie will be abolished low key by the Democrats because they were the real cause of the crisis. Bank reform is a cover story.

[ame="http://www.youtube.com/watch?v=IjL8MR_-jWY"]TARP rip-off, government lies and corruption[/ame]
 
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jillian

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The judge gave the Fed five days to turn over documents it told the reporters it located, including 231 pages of reports, and said it must look for more at the Federal Reserve Bank of New York, which runs most of the loan programs.

The Fed must name the financial firms it lent to & disclose the amounts or the assets put up as collateral under 11 programs imposed during the deepest financial crisis.

The Fed says that doing so might set off a run by depositors and unsettle shareholders.

The market may be in for a wild ride when this info is released.

Bloomberg - Court Orders Fed to Disclose Emergency Bank Loans


I agree disclosure is generally best. But I'd hope you're not pleased by the fact that there may be a "wild ride".
 

Paulie

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The judge gave the Fed five days to turn over documents it told the reporters it located, including 231 pages of reports, and said it must look for more at the Federal Reserve Bank of New York, which runs most of the loan programs.

The Fed must name the financial firms it lent to & disclose the amounts or the assets put up as collateral under 11 programs imposed during the deepest financial crisis.

The Fed says that doing so might set off a run by depositors and unsettle shareholders.

The market may be in for a wild ride when this info is released.

Bloomberg - Court Orders Fed to Disclose Emergency Bank Loans


I agree disclosure is generally best. But I'd hope you're not pleased by the fact that there may be a "wild ride".

Any kind of change that's actually going to make a positive difference is probably going to be accompanied by a wild ride of some sort.
 

KissMy

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Latest FOIA blog about Fed Release.

I want to know where are the documents. This court decision happened on the 19th. It is now the 28th. The court gave the Fed 5 days to release those documents & we have herd nothing for 9 days now. WHERE'S THE BEEF???
 

KissMy

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I can't find the released documents anywhere & it has been 11 days. I smell Big Government & Big Media cover-up!
 
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FireFly

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Robert Reich's Blog: Fed in hot water over secret bailouts - The Fed bailed out Bear Stearns without authorization from Congress or informing the public.

The Fed has finally came clean. It now admits it bailed out Bear Stearns – taking on tens of billions of dollars of the bank’s bad loans – in order to smooth Bear Stearns’ takeover by JPMorgan Chase. The secret Fed bailout came months before Congress authorized the government to spend up to $700 billion of taxpayer dollars bailing out the banks, even months before Lehman Brothers collapsed. The Fed also took on billions of dollars worth of AIG securities, also before the official government-sanctioned bailout.

The losses from those deals still total tens of billions, and taxpayers are ultimately on the hook. But the public never knew. There was no congressional oversight. It was all done behind closed doors. And the New York Fed – then run by Tim Geithner – was very much in the center of the action.

This raises three issues.

First, only Congress is supposed to risk taxpayer dollars. The Fed is not part of the legislative branch. Its secret deals, announced almost two years after they were done, violate the democratic process, if not the Constitution itself. Thomas Jefferson put a stop to Alexander Hamilton’s idea of a powerful central bank out of fear it would be unaccountable to the public. The Fed has just proven Jefferson’s point.

Second, if the Fed can secretly bail out big banks, the problem of “moral hazard” – bankers taking irresponsible risks because they know they’ll be rescued – is far greater than anyone assumed after Congress and the Bush and Obama administrations bailed out the banks. Big banks will always be too big to fail because they know the Fed will secretly back them up if they get into trouble, even if Congress won’t do it openly.

Third, the announcement throws a monkey wrench into the financial reform bill now on Capitol Hill, which gives the Fed additional authority by, for example, creating a consumer protection bureau inside it. Only yesterday, Sen. Jim DeMint (R-S.C.) blasted the Dodd bill for expanding the Fed’s authority “even as it remains shrouded in secrecy.”

The Fed has a big problem. It acts in secret. That makes it an odd duck in a democracy. As long as it’s merely setting interest rates, its secrecy and political independence can be justified. But once it departs from that role and begins putting billions of dollars of taxpayer money at risk — choosing winners and losers in the capitalist system — its legitimacy is questionable.

That it chose to reveal the truth about its activities during a week when Congress is out of town, when much of official Washington and the Washington media have gone on vacation, and only after several federal courts have held that the Fed must release documents related to its bailout of Bear Stearns, suggests it would rather remain secret than become transparent.

Much of what Ben Bernanke and Tim Geithner did (when Geithner was at the New York Fed) in 2008 was presumably necessary. But the public has no way of knowing. The public doesn’t even know who else the Fed has bailed out, or what entities it will bail out in the future. All we know is the Fed secretly bailed out Bear Stearns and AIG and thereby subjected taxpayers to risks that remain even today, without informing the public. That’s not a record on which to build public trust.
 

Terry

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OH damn, no wonder it is a news black out so far. They are all trying to cover their asses!

I say this is a good reason to END THE FED!
 

KissMy

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OMG these bankers are corrupt. Fresh from these documents. News that Goldman knew years earlier that AIG would fail & took bets against them with money they did not even have in order to make big money when it went down & then helped take them down. Goldman did not disclose to the Fed or any regulator that it knew AIG would go down. Goldman quietly put its people into position to profit from their destruction using tax payer money & then helped destroy them by having them insure more toxic assets that Goldman also benefited from with bailouts instead of sounding alarms to regulators.
 

antagon

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you dont think regulators knew about AIG too?
 

KissMy

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you dont think regulators knew about AIG too?

You are probably right, the regulators probably knew. I was just kind of parroting what I heard on MSNBC.

From what I have pieced together all the banks were operating under the assumption that all these toxic assets were going to be backed by the Government. This shadow backing was created by the Clinton administration when they allowed banks to create & sell bad loans to Fannie, Freddie & other government backed institutions like pension funds. This turned the entire banking system into a Government Sponsored Enterprise. This was all done to create affirmative action lending in order to not deny credit to anyone. Clinton moved his office to Harlem believing this would rebuild the inner cities & make him like a god to them.

Wow, Now we have Government Sponsored Health Insurance. I can see the writing on the wall now.

Socialism rewards a few very rich & poor at GREAT EXPENSE to many slaves & this quasi Government Sponsored Enterprise system is even worse. Man we are stupid, stupid, stupid.
 
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Neubarth

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Since I have long advocated the downsizing of the Big Banks and the exposure of the shenanigans that they have engaged in, I think it is wrong to try to link them to the FED as this judge has done. The subpoenas need to be issued for the accountants at the various banks and the FED needs to operate independent of corrupt government interference.

I firmly believe in Executive privilege and I believe in FED privilege. There is integrity in the methods and the knowledge of the institution that have to be safeguarded or you destroy the strength of the institution.
 

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