Banks Threaten To Go To Supreme Court To Prevent Fed From Disclosing Details Of $2 Trillion In Bailout Loans They Received

Tyler Durden's picture

The government endorsed racket continues. First we bail them out, then the court says they have to disclose the bailout loans they received (courtesy of Mark Pittman's last great deed), and still they refuse to tell America just who and how received $2 trillion in rescue aid. The Clearing House Association of America, the very people who would not exist without taxpayer bailouts, and who are now pocketing hundreds of billions thanks to the same steep curve which results in $10 billion of new US debt every day, has threatened it will appeal every decision that forces it to disclose the details of the Fed's bailout, all the way to the Supreme Court, flipping off the very people who permitted the bankers to continue to steal and pillage every single day in the biggest government facilitated wealth transfer in the history of this country. We are now convinced that the animosity toward the banks is the primary reason why the Primary Dealers have decided to not allow even one downtick in the market (that and the hope that they will finally find greater idiots to sell all their massive paper holdings to): should there be one substantial correction, with liquidity about to be drained (2099 is one day closer today than it was yesterday), it will be followed by another, and another.... And then the public anger may finally come crashing on the heads of the megalomaniacs from the CHAA, both metaphorically and literally. By then, however, we are confident they will find a way to extract diplomatic immunity and/or renounce their US citizenship, from the administration that cost them so little to purchase.

From Bloomberg:

Continued legal appeals will delay or block the first public look at details of the central bank’s $2 trillion in emergency lending during the 2008 financial crisis. The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., joined the Fed in defense of a lawsuit brought by Bloomberg LP, the parent company of Bloomberg News, seeking release of records related to four Fed lending programs.

The U.S. Court of Appeals in Manhattan ruled March 19 that the central bank must release the documents. A three-judge panel of the appellate court rejected the Fed’s argument that disclosure would stigmatize borrowers and discourage banks from seeking emergency help.

“Our member banks are very concerned about real-time disclosure of information that could cause a run on the banks,” said Paul Saltzman, the group’s general counsel, in an interview yesterday. “We’re not going to let the Second Circuit opinion stand without seeking a review.”

At stake are 231 pages of disclosure detailing just how the banks managed to rape the American middle class, and saddle it with debt that will never be paid off.

The central bank contends that 231 pages of daily reports summarizing lending activity, which were prepared by the Federal Reserve Bank of New York for the Fed Board of Governors in Washington, aren’t covered by the FOIA. The statute obliges federal agencies to make government documents available to the press and the public. The suit doesn’t seek money damages.

As this case will certainly rise to the very top of the appeals process (just like Chrysler did, and in that case the US Supreme Court soundly abrogated the sanctity of contacts), we have a nagging suspicion that a vote for the Clearinghouse and the Fed will be the tipping point that will highlight that America is a nation the serves nobody but the 11,000 or so richest people, the bulk of whom come from Wall Street. What happens next we don't know. But we do find that certain buildings in downtown New York have an odd resemblance to the Bastille.

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homersimpson's picture

This report will never see the light of day. Even if the Supreme court allows these details to go public, someone will flash a huge neuralizer the day before its release. As a result, we will keep on clicking "buy" and wonder what the huge hubbub was all about.

Won_Over's picture

How can it, opening the books is not in the books. There is no book, who even says it's $2T, it could be $20T or $200T. If you can lie and know can get away with it, why not make it crazy big, so everyone thinks it's a joke...

b_thunder's picture

Exactly!  And how do we know it's actaully a loan and not a gift?  If there is another selloff a la 2008-2009, or banks are forced to "marl to market", hwo do we know that the Fed wont's "write down" the value of the loan by 50%, or 75%, or 0%  and let the banks keep "the change?"

Mongo's picture

Nothing to see here, move along now.

hedgeless_horseman's picture

http://www.whitehouse.gov/the_press_office/TransparencyandOpenGovernment/

My Administration is committed to creating an unprecedented level of openness in Government.  We will work together to ensure the public trust and establish a system of transparency, public participation, and collaboration. Openness will strengthen our democracy and promote efficiency and effectiveness in Government.

....despite all evidence to the contrary.

Change, bitches!!!!!!!!!!!!!!

Commander Cody's picture

Right.  TD's ability to succinctly tie the facets of this great fraud together with wit and cynicism equally applied makes me swoon.

waterdog's picture

I believe the Supreme Court will back the Appeals Court. The Plaintiff's reason for not disclosing is invalid. There is no proof that the event will occur if disclosure is made.

 

neophyte's picture

"reason", "invalid", "Truth", "Honesty" do not stand a chance in this environment. Even if they backed the Appeals court, it will not make a difference. We are ruled by the BANKSTERS!! My .02 c.

Cookie's picture

Rapists trying to hide. How much more blood do they want??

Hondo's picture

Let them go.....there is nothing in that report that would harm national security and therefore every american should have the "right" (since we are giving those away for almost anything now days) to see how his tax $$ are being spent (wasted).  If the won't show us the list them stop paying the damn taxes (force the government to close down the spigit)......If the majority of the people want to see the list......there are ways that the list will be made available.

john_connor's picture

This is like the Kennedy assasination; we will never know.

Do citizens have the guts to stand up?  So far, no.

 

TwoJacks's picture

the citizens will never have the guts to call them to the mat while asset prices are rising. never happen.  the only way the rule of law gets restored in this country is when/if this market crashes.  until then, blind eyes all around

Papa Boule's picture

You're right, but the things that concern me are:

a.) Movements built around restoring "law and order" often turn out to be brutal and tyrannical.

b.) Whose law winds up ruling.

TwoJacks's picture

after reading your questions I can only guess that we're screwed no matter what. Hope to be dead before the shit hits the fan.

Village Idiot's picture

"the citizens will never have the guts to call them to the mat while asset prices are rising. never happen.  the only way the rule of law gets restored in this country is when/if this market crashes.  until then, blind eyes all around"

 

Human nature - so simple even a village idiot can figure it out.  Or, caveman.

Cyan Lite's picture

Shhhh!  I'm trying to catch up on re-runs of The Real Housewives of New York.  Please keep it down for the rest of us!

sweet ebony diamond's picture

greed is not good if you a bankster

A Man without Qualities's picture

"We are now convinced that the animosity toward the banks is the primary reason why the Primary Dealers have decided to not allow even one downtick in the market."

This is exactly what is happening.  The banks are ramping the market as a monetary public relations exercise - as long as people are making money in the markets, they will let the fleecing of the nation continue. 

FLETCH's picture

This is small potatoes...

What we need is a supreme court hearing on how the current "fiat" (tyrannical) monetary system is allowable under the constitution.

 

 

Shameful's picture

Wouldn't help.  To paraphrase Batman "Judges are a cowardly and superstitious lot".  They will not bite the hand that feeds.  Even Scalia has said do not expect a federal institution to limit federal power.  And getting ride of the printing press would be a massive limitation of federal power.

The courts are not going to ride to the rescue.  There is no calvary, we are on our own.

Cursive's picture

Whether the courts will ride to the rescue or not, I agree that we shouldn't wait.

 

http://www.swarmusa.com/vb4/

RonnieHonduras's picture

Exactly. Why would you expect career byproducts of the federal system, who tend to rubber stamp ever increasingly (formerly) unconstitutional behavior, to suddenly go backwards on accepted protocol?  Wrong direction, as the definition of "centrist" gets ever more pushed to the side of USAzilla.

Crab Cake's picture

"What happens next we don't know. But we do find that certain buildings in downtown New York have an odd resemblance to the Bastille."

I also find that lamp posts bear an odd resemblance to gallows...

Live free or die: Death is not the worst of evils. - General John Stark

ZackAttack's picture

Now, while I must lodge the most strenuous objection to the allusions of vigilantism directed against the bankers, it really wouldn't bother me if a few hundred of them accidentally sat on sharp sticks. Repeatedly.

Sudden Debt's picture

The government could always park some big planes into them :)

Sudden Debt's picture

The government could always land some planes into them. And TATA! A extra parking space is created :)

aint no fortunate son's picture

It should be a wonderfully "target rich environment"... 

Sudden Debt's picture

Why would we want to know? If it's in our best interest and our stocks keep going up, I don't want and need to know.

alien-IQ's picture

I would like to believe you are kidding with that comment...I sure hope so.

Rick64's picture

Since the latest trend by the Judicial system is to give corporations constitutional rights meant for citizens, it wouldn't surprise me if the supreme court jesters ruled against the people once again.

Shameful's picture

Will be no disclosure. If they have to they will claim national security.

RonnieHonduras's picture

Implied: to claim otherwise is economic terrorism.  This site may well be shut down for inciting economic terrorism. (newspeak for clear, truthful financial information)

trav7777's picture

YOU CAN'T HANDLE THE TRUTH.

Rainman's picture

As you point out, TD, the Supreme Court didn't even bother to hear the valid appeal of the Chrysler bondholders last year. Yes, it was a brazen disregard for contract rights. But the bondholders had lost at the appeals level ( an entirely different bad joke ). In this case, Bloomberg has won on appeal in Manhattan. That will probably put a lot more judicial pressure on the Supreme Court to at least hear the arguments.

So we can now mark our calendars for a 2012 decision that will side with the Fed's $ 2 trillion secrecy mandate. This assumes, of course, the Fed has not blown itself up by then for other unrelated reasons.

Meanwhile, Barry must do his part by hunting down a confirmed Marxist to replace Stevens.

RonnieHonduras's picture

They're hoping to delay long enough for the economy to recover, thus showing the wisdom of this crime.  Best of luck.  Of course, if it all collapes, the rats will have fled the sinking ship to some safe haven.

Carl Spackler's picture

Correct.

The Fed's talking point will then be, "The ends justified the means."

Hondo's picture

The sector with the most green today is...yes..you guessed it..financials.  Everyone is happy to know the banks are raping the citizens again and they are going to the SC to make sure no one can watch.

Thalamus's picture

If there's an insider at the Fed; mass distribute this information for your country. You have your orders...that is all. 

Cursive's picture

Project Mayhem!  TD should make this a post.  Good work, Thalamus.

MagicHandPuppet's picture

"...and in more important news, Simon of American Idol is outed as having fathered one of the contestants, Iranian religious leaders have issued a global fatwa against all non-muslim Americans bringing our national fear radar to code red, and the economic recovery has kicked into overdrive... all thanks to the iPad and Obama.  Remember my good Americans: buying an SUV and an iPad is our way of proving to the terrrrists that they lose." -your favorite MSM propaganda machine

Blithering ORSA's picture

The Gov has a really easy out here.  They can call the loans on all banks who refuse to comply...

 

As for those who have already repaid...That's a whole different ballgame.

Cursive's picture

That logic assumes that the USG is independent of the banksters.  However, reality shows that the USG is beholden to the banksters.

williambanzai7's picture

We can only hope Wikileaks is on this.

williambanzai7's picture

We can only hope Wikileaks is on this.

williambanzai7's picture

We can only hope Wikileaks is on this.

Amish Hacker's picture

"The regulation of derivatives transactions that are privately negotiated by professionals is unnecessary."

                  Alan Greenspan 7/24/98

Socrates's picture

So in this nation within a balkanized nation, the rulers said this to the people:

 

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partimer1's picture

some real powerful forces behind this from being exposed.  someone may end up in jail, if all known.