Bloomberg Sues The Bucket Shop Known As The ECB, Seeks Disclosure Of Secret Greek Swap Documents

Tyler Durden's picture

And so the spirit of Mark Pittman lives on. Bloomberg, which last year sued the Fed in a landmark FOIA case, and won (a decision which is being appealed by the kleptocrats but not the Fed), has decided to go transatlantic, and is now suing that smaller and far less viagraed cousin of the Fed, the ECB. Per Bloomberg: "The lawsuit asks the European Union’s General Court in Luxembourg to overturn a decision by the ECB not to disclose two internal documents drafted for the central bank’s six-member executive board in Frankfurt this year. The notes show how Greece used swaps to hide its borrowings, according to a March 3 cover page attached to the papers obtained by Bloomberg News. ECB President Jean-Claude Trichet withheld the documents after the EU and International Monetary Fund led a 110 billion- euro bailout ($144 billion) for Greece. The dossier should be disclosed to stop governments from employing the derivatives in a similar way again and to show how EU authorities acted on information they had on the swaps, according to the suit, filed by Bloomberg Finance LP, the parent of Bloomberg News." And for all those who were concerned that Mutual Assured Destruction is purely a US response to a rat being cornered, it appears the virus has gone airborne: "The information contained in the two documents would
undermine the public confidence as regards the effective conduct
of economic policy,” Trichet wrote in an Oct. 21 letter,
turning down Bloomberg’s request for the documents. Disclosure
“bears, in the current very vulnerable market environment, the
substantial and acute risk of adding to volatility and
instability.” Hello, McFly... We got the impression that PGBs moving 350 bps in two hours after Trichet's own bucket shop of a central bank decided to buy every single outstanding bond in the open market may be a far more potent reason for market "volatility." As for undermining confidence, perhaps this murder of charlatans should have considered that before they set off on the world's most ridiculous pilgrimage to the gods of lies, hubris, deceit, market manipulation and propaganda. Lastly, as this is merely a "protect Goldman" exercise, which as everyone knows is the main party involved in this Greek swap "transaction" - who cares: everyone in the world knows full well the high ethical standards of the West 200-based hedge fund.

Bloomberg's editor in chief Matt Winkler gave an interview on Bloomberg TV explaining the reasoning for Bloomberg's actions:

"It's very straight forward. We are seeking full disclosure of documents that show how Greece was able to finance itself into a predicament that became the European debt crisis as we know it. It's entirely to the benefit of all the members of the EU, all of the citizens, all the taxpayers and for sure the financial markets. Transparency is something that has a way of enlightening perspective."

Winkler also commented on the derivatives Bloomberg is seeking more information on:  "In this case, very complicated, intricate financing techniques were deployed to essentially enable Greece to put off consistently any kind of transparent reckoning of its indebtedness. That's really at the heart of this case and that's really why we are seeking these documents."

Winkler spoke about Bloomberg's earlier FOIA suit, saying, "We've just received a voluminous record of documents from the Federal Reserve, belatedly, having to do with the U.S. financial crisis and actually the transparency that resulted from the Dodd-Frank law was good for the market and good for bank stocks. They actually rallied with more information."

About the reasons for initiating the lawsuit, Winkler said, "What got our interest in the first place was the use of interest rate swap, which are extremely complicated and conceived in the dark…literally. Financing in the dark is a primarily reason why the financial unraveling occurred in 2007 and where there is a debt crisis with respect to Greece that has afflicted the rest of the European Union."

Full clip:

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Mr Lennon Hendrix's picture

The Euro is getting a kick in the nuts for this one. Well, does this mean dollar strength? It does mean gold strength, if you are not used to it yet, you will be.

SheepDog-One's picture

Bottom line Im trusting gold and silver in my safe over the lunatic central bankster thieves from here on out. Thats their biggest problem with the whole thing, theyre all exposed as bloodthirsty criminals who will stop at nothing to rob you, who would ever again put a dime within reach of these pirates?

dlmaniac's picture

Why are they wasting time sueing ECB? Just contact Assange for a few more leaks.

SheepDog-One's picture

Now if only Bloomberg could file suit against the FED asking them just how theyre able to print trillions to taxpayer debt in order to benefit a handfull of TBTF's? But nah, lets just pick on the ECB over Greece.

In other news, I was scared there for a minute, looked like the DOW was actually in some danger of closing red...but they miraculously reversed it for more holiday joy feelings. DOW will not close red, as that may cause some sort of national panic.

Update- And all IS well! As the media can now report 'And the DOW closed up 8 points, this is ABC news, back to sleep sheepies'...

Cdad's picture

Super.  More news from the cosmic bunny hole once known as planet Earth.  And I'm sure L. Blankfein had nothing to do with those pesky swaps in Greece...right?  Oh, and let me guess, L. Blankfein actually has an air tight alibi for that day...proving his innocence...right? 

Oh, and Chinese communists guys buying Europe is good news...right?  And presto magic Euro "liquidity" had nothing to do with my dollars...right...causing oil to spike and make L. Blankfein's wildest dreams come true...right?

And gasoline is currently priced by a free market, buyers and sellers...right?

Presto magico no need for jobs in America anymore because Ben Bernanke is 100% sure that the RULE OF FREAKIN' LAW is NOT BEING TRAMPLED ON....right?

And money printing is just cool and makes wealth....right?

And kittens are currently being featured on the Blow Horn [CNBC] right now with M. Bartiromo...after 2 months of bobble shopping stories...right?  And we still have a 4th estate...right?

Hello cosmic bunny hole.  And who the fuck was it that said I should NOT take Prozac just now?

And just now...the absolute worst portfolio manager in the entire world @ 15:28 did not just go long into the Roach Motel [SPY] despite the news that the entire world just changed into some sort of cosmic bunny hole?

Do I have all these things right today?

knukles's picture

Ativan and Thorazine enemas help.

SheepDog-One's picture

Yea its a real pixiedust euphoria fest right now, everything and anything is good news, greenlights stock buying frensies daily no matter what. News of communists buying Europe is just great news, bankruptcies are better than expected, well until they suddenly arent and I have a feeling that day is coming soon. Whenever the central banksters have deemed theyve moved the last of the bootlegged liquor out the back, theyll burn the place down and collect on the insurance.

Cdad's picture

And the FBI guys are pounding those "Expert Networks" guys again, even though those guys are clearly stooges....right?

And Mary Shapiro of the SEC is almost done having meetings with this crew of criminal syndicate Wall Street bankers about what laws she should enforce and what laws she should ignore...right?

And "flash crash" is the new expression meaning "price discovery"...right?

And I would not be asking any of these questions, on the day that the entire world just turned into an entire banana republic right before my very eyes, IF I could just get busier buying bobbles and searching for the elusive white  Iphone...right?

And every single fucking criminal syndicate Wall Street banker is balls on fire bullish...into all of my questions...right?


Cdad's picture

And a criminal syndicate Wall Street banker on M. Bartiromo's show on the Blow Horn [CNBC] just told me that my problem is that I am stuck...which I presume he means I should be more happy about all the make believe he has made around me...that I'm stuck...along with millions of Average Joe's that simply refuse to stop selling the shit out of equities for 33 weeks in a row now...that the problem is that WE ARE STUCK and should forgive them THE GREATEST THEFT IN HUMAN that things can get better finally...right?

And I should NOT be cheering for the coming of January and massive layoffs of these fucking criminal syndicate Wall Street bankers...after they have finally destroyed that last ounce of everything they have touched for the last decade...right?

And I should NOT short shares of Comcast as the approaching proud new owner of the biggest joke of a network that has ever been witnessed in the history of the previously free country called America...right?


Cdad's picture

And as one after another after another of these criminal syndicate Wall Street bankers whore themselves over the Blow Horn [CNBC] without a breath of concern about this situation...that is not happening because a few of them have figured out that they have just finally gone too far...and they are pumping their book as HARD AS THEY maybe have a chance to survive the layoffs when those come because there is no capital left to manage....right?

And people in the MSM are no longer curious, skeptical, or anything because that is what is best for me, Average Joe...right?

And because a 12 month rising chart of Lies says so, I should forget these questions...I should forget TRUTH and INTEGRITY and DUE DILLIGENCE and CAPITAL PRESERVATION...right?

And this whole thing, every day since David Tepper jumped the shark, or the king of criminal syndicate Wall Street bankers, IS NOT JUST WALL STREET PREPARING TO DO THE ONLY THING IT KNOWS HOW TO DO ANYMORE..and has been doing relentlessly for the last 30 arbitraging the fuck out of everything on the surface of the planet...right?

And when the king of criminal syndicate Wall Street bankers is finally fired from his post...coming soon I expect...that won't cause any problems for folk trying to sell once the only catalyst left on this planet is gone...that won't cause a capital preservation problem for them...right...because markets are no longer forward looking discounting mechanisms...right?

And that being said and done, that won't leave us in the Greater Depression here in America...again...thanks again to Wall Street bankers...right?

mynhair's picture

Nice to know that you are one of the 25,000 morons watching that trash.

Cdad's picture

Thank you mynhair [which means what exactly?],

After being met with that barrage of questions, thank you for for showing yourself for exactly what you are...a moron.  This is the depth of your thought?

I watch and bring news of the state of propaganda in the US.  I do not watch to become informed.  If you had devoted 10 seconds of thought before responding, you would have understood that.

Mark this fool for future reference.

Cdad...stomping this fool every chance I get from now on...

SheepDog-One's picture

Hey Cdad you see these things yet?  YouTube - Mobile Tyranny Prison Camps being set up - Walmart testing ground

Yes Walmart parking lots are the obvious place most all of the rioting will originate when the shit suddenly hits the fan one of these days....360 civil unrest towers loaded with crod control devices, cameras, loudspeakers, and chemical weapon deployment capabilites, check out what their website says! Yes, good times comin soon!!

Cdad's picture

No Dog,

I did not visit the site because, and literally as I finally read your response, Maria Bartiromo just began another shopping story.  I am starting to believe, however, that no one at that network actually thinks this is a problem or wrong, as I think I am coming to understand that everyone wrapped up ON WALL STREET is simply a materialistic zombie...and it is all they know.

What I am saying is that I think they all may have simply forgotten why they are on TV regarding financial news.  And so maybe there is hope there...that at least one of them will remember...and tell the rest of them about the 4th estate thingy.

But Dog...I think I am going to have to simply go have a drink right now...because I do not believe in Prozac, but I do believe in martinis...

SheepDog-One's picture

Pretty interesting, the 'mobile prison camp tower' named 'Cerberus', tm of course, upon a bit of investigation into names says Cerberus is the multi headed guard dog to the gates of hell. BAH Im sure its nothing...just for 'our safety' of course!

Cdad's picture


As I sip my calming drink, WATCH FAST MONEY NOW...first segment.  Behold, the pretzel logic of Dennis Gartman...oil through the roof IS GOOD. 

Watch as his lackies half heartedly try to back him up...and listen for the sound of laughter from L. Blankfein's office echoing across a nation of folk hungry...for FREEDOM!

And of course, the dumping on folks that buy gold.  Is it that they know...or do they not know...arrogance plugging their sick minds?

Capital cannot form in banks filled with people such as these here in the wasteland of America.


Oh...and by the by...the next thing I have learned...about "flash quoting" that works.  Oh Dog, this thing is so rotten....

unununium's picture

Class A rant there Cdad.  Holds up martini glass.

Cdad's picture

Glass raised back to you brother with too many Us and Ns: 

You know, somehow, the rabble of ZH is going to have to rise above the din of the Hong Kong effect, someday.  I rather think Tyler needs all the help he can get just now.

Speak up, brothers [you know, beyond calling this and that TV personality a "whore"]

Cdad drinkin'...

SheepDog-One's picture

Well all I can tell you is my shopping trips to the gun store for more ammo go on weekly, today Im buying a couple hundred more 12 guage rounds for the riot gun. Load up on food, ammo, clothes, even an official tactical spork with can opener on it I bought the other day...insulate yourself from the lunatics best you can.

RobotTrader's picture

Right now, that news is being ignored.

Dip buying remains absolutely ferocious.

In fact, the "worst of the worst" Chinese IPO's are getting HeatMapped as we speak:

SheepDog-One's picture

So? What are you saying, youre buying it? Have fun.

Mitchman's picture

They must be betting heavily on those tried and true Chinese accounting standards...

Spitzer's picture

Bloomberg deserves some credit for this

knukles's picture

Shocked!  Shocked, I say!  Goldman's involved in this fiasco, too?  OMG!

I'm beginning to have some qualms as to the integrity of financial markets. 

Rick64's picture

"The information contained in the two documents would undermine the public confidence as regards the effective conduct of economic policy,” Trichet wrote in an Oct. 21 letter

 Yes the truth would be detrimental to the bailout facade.  It would be hard to attract investors with the truth.

SheepDog-One's picture

Anything short of the complete wool ever the eyes of the sheeple spells total disaster, telling any truth spells death to 'public confidence' in the morons who apparently believe whatever theyre told...yea this 'recovery' is real solid.

knukles's picture

"The information contained in the two documents would undermine the public confidence.."

And what the fuck does he think is happening?   Like it's an "If I told you, you'd believe it?" line of reasoning, so since you'd believe it, I won't tell you because if I did, you'd loose faith in me, so since I don't tell you, it's all just O-fucking-K. 

Where the fuck do people like this come from?  Prizes in cans of Beanie Weenies?

Rick64's picture

 He is basically saying that if the people knew the truth then they wouldn't be confident, I guess then we would see the dominoes fall. The bigger the lie the bigger the buy.

tasmandevil's picture

You know, his name says it all, Jean-Claude Trichait, meaning Jean-Claude Cheated... I dropped Economics at Erasmus Rotterdam and became an artist on the French Riviera, which means I did at least two things right. Not sure J-C-T likes the snow in Frankfurt.

downrodeo's picture

Are you an ex-pat?

I applaud your change of study, as long as it is personally rewarding to you, of course.


M.B. Drapier's picture

Not entirely unrelated story, from Reuters:

FLORENCE, Italy (Reuters) - Italy's financial police have seized 22 million euros (18 million British pounds) at domestic and foreign banks as they probe allegations of fraud involving the sale of derivatives to municipalities, they said on Tuesday.

The probe is the latest in a series by Italian authorities into alleged misleading swap deals signed by the country's local authorities to reduce their debt.

Police said they were looking at derivatives deals for a total of 1.4 billion euros subscribed to by the Tuscan region, the Florence city council and three other local municipalities, with banks including Bank of America-Merrill Lynch (BAC.N).

Assets of Deutsche Bank (DBKGn.DE), France's Natixis (CNAT.PA), UBS (UBSN.VX) Investment Bank of London, Dexia Crediop and Banca Monte dei Paschi di Siena (BMPS.MI) were also seized, police said.

I mean, (allegedly) getting the Sienese monte in to cook your accounts? How's that for Old World class! Another set of banks is already up for aggravated fraud on behalf of Milan, but they're only comparative parvenus - UBS, Deutsche, Depfa, JPM, your everyday criminal defendants.

Tic tock's picture

..dammit, if you want to hide stuff under the rug at least give us a reason not to ask! It's like children, you're hands are covered in chocolate, you've been eating I haven't..!..wash your hands...why, I'm not eating sweets..!..what are you chewing?...nothing, (gulp).

unununium's picture

Folks this is exactly why it is important to discipline your children and allow life's natural consequences to educate them as to proper morals and their place in society, and on this Earth.

Each and every banksta is a case in point of failed parenting.

unununium's picture

In case that was not clear enough, yes, dickwad, I am talking about YOUR MOTHER.

A Man without Qualities's picture

They don't want to reveal those documents because they probably refer to other countries who've done the same thing..

youngandhealthy's picture

Bloomber is supposed to report on the market...not being an arbitrator.

Do Bloombegr feel challenged by WikiLeaks?


SheepDog-One's picture

Well where are the REAL arbitrators? Guess someone has to do it. Seems to me I remember a year ago Bloomberg had some lawsuit filed against GS or the FED or...well WTF its all the same group anyway. Point is, at least someones doing something.

Misean's picture

"murder of charlatans"

I'm sure Heckle and Jeckle would take offense...and as an aside, the charlatans are trying to reduce the amount of same...

Heckling and jeckling, that is...

erik's picture

Potentially huge news out of MBIA vs Bank of America battle.  NY court today ruled that MBIA can use statistical sampling (instead of costly and laborious loan-by-loan examination) to prove their case in mortgage putbacks. 

MBIA has been handed a powerful tool for establishing its claims. And Bank of America is a bit closer to facing the put-back apocalypse it hoped it could avoid—or at least slow down—by fighting the claims one loan at a time.

Miles Kendig's picture

I am sure BBG will have fun with these shimmering examples of foolery at the ECB.

As confidence continues to get pounded

Coldfire's picture

Trichet defended the ECB's opacity by claiming that revelation of the Greek swap details "would undermine the (sic) public confidence as regards the effective conduct of economic policy". A sentiment that Bernie Madoff would surely have shared in a qualitatively identical context. The central question is: why can't the information sought by Bloomberg stand the light of day? Because confidence is fundamental to the Ponzi (badly) masquerading as European monetary policy. If one person in twenty understood the reality, the John Laws running the scam would be behind bars, if not swinging from lampposts.

gwar5's picture

Oh, I love this one. At least Bloomberg is good for something. You have to be a billionaire to get the truth.

DaveyJones's picture

"how Greece [used Goldman and] used swaps to hide its borrowings"

gwar5's picture

I forgot to mention GS cooking the Greece books, but I figured Bloomberg knew already. He's got the megaphone.

GS was helping Ireland, too. That turned out well.

tasmandevil's picture

Dutch in France going 30 yrs now... feel like a tourist when visiting NL.

Life is great playing with color

brent1023's picture

Interesting and I wish them well on this.

You have to wonder why Trichet is holding back on these documents. On his own initiative? At the request of Greece? At the request of the banks involved? Because disclosure would indicate that Greece is in deeper doodoo than anyone thinks?

When are all the books going to be opened on Ireland? On Iceland? On Portugal? On Spain?

Wikileaks on diplomatic cables has turned into a bit of a bore. Embarassing but not incriminating.

Who can leak details of the banking that ruined the world economy to jump start criminal proceedings against the perps?

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