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Fed Distances Itself From Banks, Says Will Not Seek Review Of "Pittman" Even Though It Is Lawsuit Defendant

Tyler Durden's picture




 

Amusingly, following up on earlier reports that the Clearing House Association (aka the banking oligarchy) will petition the SCOTUS to hide their oh so very secret insolvency which by now everyone knows about, the Fed has decided to amusingly distance itself from the kleptocratic crowd and will not seek court review. In other words, the public's anger when the SCOTUS sides with the bankers will fall squarely upon Lloyd Blankfein et al, and not Ben Bernanke, even though it is the Fed who is the defendant in the Pittman lawsuit. This is just plain ridiculous. And the reason provided by the banks: why more mutual assured destruction of course: "disclosure of the information threatens to harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions." Here is an inference about their current financial conditions: they are all insolvent. Does that matter? No. Because the only holders of bank stocks now are other banks. It is called a ponzi for a reason after all.

More from Dow Jones:

An association of large commercial banks on Tuesday asked the U.S. Supreme Court to review a ruling that ordered the Federal Reserve to disclose information about the banks that borrowed from its discount window and other emergency lending programs during the financial crisis.

In its petition to the high court, the Clearing House Association said disclosure of the information "threatens to harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions."

Bloomberg LP 's Bloomberg News and Fox News Network LLC's Fox Business Network separately sought the Fed disclosures under the Freedom of Information Act and sued the Fed when it denied their requests. The news organizations sought the names of the borrowing banks, loan amounts, origination dates and the collateral involved.

Fox News Network is a unit of News Corp . (NWS, NWSA), which owns Dow Jones & Co ., publisher of this newswire.

The New York-based 2nd U.S. Circuit Court of Appeals ruled in March that the Fed was required to disclose documents about bank borrowing from its last-resort lending programs.

The Fed's Board of Governors and the Clearing House Association have argued that the ruling could severely undermine the Fed's ability to implement lending programs critical to the economy and monetary policy.

The Fed has not yet filed a petition seeking Supreme Court review.

After the 2nd Circuit refused in August to reconsider the case, it stayed its ruling for 60 days to give the parties the opportunity to petition the high court.

 

 

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Tue, 10/26/2010 - 10:22 | 677509 Jim in MN
Jim in MN's picture

Roaches...with nukes?  Ick.

Tue, 10/26/2010 - 10:26 | 677513 Azannoth
Azannoth's picture

They know they'll loose, so at least they want to keep the FED as clean as possible so they can restart/reboot the Ponzi in 10 years after all blows over, they might even offer 1 or 2 of their 'own' for slaughter to save the Federal Reserve system as a whole 

Tue, 10/26/2010 - 10:31 | 677531 Sean7k
Sean7k's picture

Transparency is essential for the operation of free markets. Secrecy is essential for the practice of tyranny. This is really all we need to know. Make your choices:

   Tyranny

 X Liberty

Tue, 10/26/2010 - 10:47 | 677598 Cdad
Cdad's picture

Exactly.  This is tyranny.  It must end! 

And Oppenheimer upgrades JPM, C, and MS.  Good grief!

Tue, 10/26/2010 - 11:55 | 677800 whatsinaname
whatsinaname's picture

The new top has arrived - when the stooges wag their tails.

Tue, 10/26/2010 - 10:38 | 677548 Bob
Bob's picture

said disclosure of the information "threatens to harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions."

Now I've heard it all.  Is the argument proprietary knowledge or protecting the public from the risk of having wrong thoughts or . . .

Tue, 10/26/2010 - 10:40 | 677578 Azannoth
Azannoth's picture

It starts when the Government says 'it's for your own good' and ends when people start believing it

Tue, 10/26/2010 - 10:39 | 677573 masterinchancery
masterinchancery's picture

If the Fed does not seek review, as the actual defendant, it is highly unlikely that the SCOTUS will grant review.

Tue, 10/26/2010 - 10:43 | 677589 Sour Grapes
Sour Grapes's picture

You beat me to it.

Without the Fed, it is unlikely SCOTUS will take the case.

Tue, 10/26/2010 - 11:06 | 677662 Cerberus
Cerberus's picture

Which means the Appeals Court ruling would stand.

Tue, 10/26/2010 - 14:09 | 678152 cdskiller
cdskiller's picture

We live in hope.

Tue, 10/26/2010 - 10:47 | 677600 Sudden Debt
Sudden Debt's picture

Did anybody actually expected that the FED would give banks like BAC the bullet in the head?

HA! HAHA!

Hell no.

Tue, 10/26/2010 - 10:48 | 677601 primefool
primefool's picture

The political tide is turning - They can no longer even appear to be on the side of the banks. Or maybe Bennie is cracking under the stress.

Tue, 10/26/2010 - 11:10 | 677675 thepigman
thepigman's picture

Bennie is looking at his MBS portfolio

and it is finally dawning on him that most

of the fraud may be originator based

and he will have to put back that crap

to the banksters. You bet he cannot appear

be on the side of the banks.

Tue, 10/26/2010 - 10:54 | 677617 unum mountaineer
unum mountaineer's picture

wild man..just wild

Tue, 10/26/2010 - 11:29 | 677727 the not so migh...
the not so mighty maximiza's picture

It cannot distance itself form its own member banks.

Tue, 10/26/2010 - 11:51 | 677794 Inflate-It-Out-...
Inflate-It-Out-Bitchez's picture

I don't understand the banks argument.  What does their borrowing from way back then have anything to do with the public interpreting their current financial position?  The recession is over and they are all stocked to the hilt with reserves, right?  I thought I got a memo about the recession being over, the market recovering, home prices rising, etc... 

Tue, 10/26/2010 - 11:56 | 677808 whatsinaname
whatsinaname's picture

Now they need a reason to unload the "inventory" of equity purchases on hapless customers !!

Tue, 10/26/2010 - 12:02 | 677822 americanspirit
americanspirit's picture

I’ve been reading “The Sword and the Shield: The Mitrokhin Archive and the Secret History of the KGB” by Christopher Andrew and Vasili Mitrokhin and it raises some disturbing possibilities in my mind for explaining the seemingly inexplicable financial disasters that have been visited upon the US in recent years. Without actually trying to summarize this richly detailed book, which would be an impossible task, I’ll just say that it is now clear to me that the Soviet/Russian intelligence services have been extraordinarily successful at penetrating and manipulating Western institutions for decades beginning in the 1920s and continuing – apparently – to today. The extent of their success is a shocking surprise to me, as it probably would be to almost anyone reading this book. I was born in 1941 and so most of what the authors are detailing is contemporary for me.

 

For example, I remember the McCarthy hearings pretty well – I paid attention even at a young age. And now that I think about it, ever since those hearings you almost invariably hear the words ‘McCarthy’ and ‘witch hunt’ used in tandem. However, this book makes clear – without actually ever belaboring the point – that Senator McCarthy was actually way off on the downside in his assessment of the extent of Soviet intelligence penetration of our government and institutions. And of course by associating the words ‘witch hunt’ with his efforts to expose this penetration, the popular media have clearly been attempting to discredit him ever since. Hmmmm. Makes you wonder.

 

So I find myself asking – how much of what is going on could be explained by a successful, long-term foreign intelligence plan aimed at penetrating and manipulating our financial and government institutions with the goal of bringing them down with nary a nuke for us to blow back on? For example, how much could be explained by a Paulson, or Geithner, or Bernanke being a covert, long-term espionage agent? According to Andrew/Mitrokhin, our institutions have been regularly penetrated at such high levels for decades,m so this isn’t out of the question at all.

 

Or, forget the top names, the ones we all know. What about the invisibles – the HFTs, the JPM vice-presidents, the deputy under-secretaries, the less well-known Fed governors. I know – just like the words ‘witch hunt’ the words ‘conspiracy theorist’ are used to create an automatic discounting response in the popular mind. Almost Pavlovian – so to speak. But after reading this book I find myself asking – what if?

 

So here’s why I’m posting this on ZH as a comment on this article. Is there someone out there brilliant enough to figure out how to use the FOIA to begin a probe of, say, the Fed with regard to possible foreign espionage connections in its ranks? Just asking. As they say – have a great day, y’all.

Tue, 10/26/2010 - 14:04 | 678094 GoinFawr
GoinFawr's picture

Hunh. So you think this http://www.youtube.com/watch?v=83tnWFojtcY  guy was right, after all?

 (Jk)

As for your question:

Well, start by asking yourself who is responsible for you having the FOIA in the first place (not to mention clean drinking water).

Ans. Ralph Nader

Now ask yourself why you repeatedly refused to take the opportunity to elect him and his admin. to the white house, given that you have already had plenty of chances to do so.

Ans. because almost all have been duped into voting for an anodyne, rather than a solution.

Taking this all into account, reflect that your proposition doesn't stand a snowflake's chance in hell regardless of its merits because your plutocrats have always known that,

"...and don't we have half the fools on our side? And ain't that a big enough majority in any town." - Mark Twain

Regards

Tue, 10/26/2010 - 14:36 | 678212 tired1
tired1's picture

Bear in mind that the Bolsheviks got an infusion of $20 million from Kuhn, Loeb & Co to consolodate the revolution. The problem is deeper that you think. "I have met the enemy and the enemy is US",  literally.

Tue, 10/26/2010 - 12:09 | 677835 Winston Smith 2009
Winston Smith 2009's picture

"disclosure of the information threatens to harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions."

PRECISE Translation:  "We've corrupted accounting rules into mark-to-myth to allow us to bypass the post-S&L scandal "Prompt Corrective Action" _rule_, but we don't want that revealed for certain by allowing you to look at the books."

Tue, 10/26/2010 - 13:12 | 678000 Widowmaker
Widowmaker's picture

Bingo I can boil it further, "cooked books = incarceration of best and brightest fags money laundering has to offer"

Tue, 10/26/2010 - 13:15 | 678004 MainStMonkey
MainStMonkey's picture

Here's the deal folks: You're being lied to left and right! If you are surprized then you deserve that shocked look on your face when the Kleptocracy and its lackies in the gubment go balls deep on you and your bank account! This is never going to end until some brave sould decides that Warren Buffett, Barney Frank, Ben Bernanke and all of the rest need to be a made a violent and public example of! It's not only terrorists that respond differently to violence and swiftness of action! You can GOD DAMN GUARANTEE that if their balls were about to be put in a real (as in pysical) meatgrinder these assholes would be scrambling all over themselves to shut this game down and start blaming each other. If they can just lie and keep on covering the lies for each other than getting fucked in the ass is everybody on the other end's lot in life. Revolution is not about voting a new class of people into office and then praying like hell that the reverse rhetoric is going to save you and your neighbor! It doesn't work like that! George Washington and Ben Franklin and all of the other Founding Fathers of this once great Republic didn't say..."hmmm King George is fucking us in the ass and we are going to go ahead and disagree with him!" They said..." When, in the course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation...That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness. Prudence, indeed, will dictate that governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security. --Such has been the patient sufferance of these colonies; and such is now the necessity which constrains them to alter their former systems of government." Essentially, in the parlance of their time (Thank the the lord for the Big Lebowski), FUCK YOU!!! Oh, and we're going to fuck you up until you realize that you're the bitch! Sorry for the language here folks, but these stories just piss me off more and more! Now, I'm just as big of a pussy as my neighbor probably is, and I probably won't be leading said revolution, so any naysayers can take this as they fucking want! I will be interested to see if it happens and will gladly join in when it does! I really think the folks in the inquisition had it right. Lets put Mr. Frank and Mr. Bernanke up on the Spanish Donkey and then see how fast the sdituation changes.

Why are totally depressing assholes ALWAYS WAY AHEAD of everyone else? Here's proof from on oldie but goodie:

Artist: Concrete Blonde

Song: Everybody Knows

 

Everybody knows the dice are loaded,

Everybody rolls with their fingers crossed, Everybody knows that the war is over, Everybody knows that the good guys lost, Everybody knows the fight is fixed, The poor stay poor and the rich get rich, That's how it goes, when Everybody knows

 

Everybody knows the boat is sinking,

Everybody knows that the captain lied,

Everybody's got this broken feeling,

like they're momma or they're dog just died, Everybody's hands are in their pockets, Everybody wants a box of chocolates and a long stemmed rose, Cause Everybody knows

 

Everybody knows that it's now or never,

Everybody knows that it's me or you,

Everybody knows that you live forever,

When Ya maybe had a line or two,

Everybody knows the deal is rotten,

Old black Joe's still pickin cotton,

for your ribbons and bows, When Everybody knows

 

Everybody knows you love me baby,

Everybody knows you really do,

Everybody knows that you been faithful,

Give or take a night or two,

Everybody knows you been discreet,

So many people you had to meet without your clothes, and everybody knows,

 

Everybody knows,

Everybody knows,

Thats the way it goes,

When Everybody knows,

Have a great day!

Tue, 10/26/2010 - 13:53 | 678114 lilimarlene1
lilimarlene1's picture

Wait, that song ended with: "Have a great day!"?

Tue, 10/26/2010 - 21:39 | 679358 Katharotes
Katharotes's picture

amen

Tue, 10/26/2010 - 13:24 | 678031 zot23
zot23's picture

Help an idiot (me):  If the FED is the defendant and they refuse to appeal, how does this case make it to the supreme court?  Someone can appeal a case who is not a defendant?

Tue, 10/26/2010 - 13:25 | 678033 kdervin
kdervin's picture

"[H]arm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions."

Especially the justified inferences!

Tue, 10/26/2010 - 13:38 | 678069 americanspirit
americanspirit's picture

Everybody knows - Leonard Cohen. Credit where credit's due.

 

Tue, 10/26/2010 - 13:45 | 678088 optimator
optimator's picture

"Harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions"

So, the next punk caught robbing the convenience store gets off in court by simply saying, "Harm the kid by allowing the public to observe the video tape during the accused robbery and draw inferences

Tue, 10/26/2010 - 13:47 | 678092 MainStMonkey
MainStMonkey's picture

Well if it's Leonard Cohen then he should get the credit!

Tue, 10/26/2010 - 15:08 | 678328 Grand Supercycle
Grand Supercycle's picture

DOW weekly chart shows the rising wedge contained within the megaphone pattern. This remains a very bearish picture and we should
get a breakout soon.

http://stockmarket618.wordpress.com

Tue, 10/26/2010 - 15:30 | 678410 willien1derland
willien1derland's picture

So the American taxpayer co-signs the 'loan' to ensure no investor or bank loses any capital, however, we - THE CO-SIGNEES - are prevented from any salient details - wonder how many Supreme Court Justices & Clerks received 'sweetheart' mortgages - Justice 0 - Banks 12, top of the 6th inning...

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cheap uggs for sale's picture

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Thu, 12/09/2010 - 10:35 | 792244 senthil456
senthil456's picture

I love zerohedge policy.

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