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Fed Releases Thousands Of Pages Of Secret Loan Docs

Tyler Durden's picture





 

After years of threats about untold destruction should the Fed release discount window borrowings by both the Fed and the Clearinghouse Association (read the bulk of the Primary Dealers), the Fed today released "thousands of pages" of discount window borrowings. And while we are waiting for the docs to be uploaded in a publicly disclosable and legible format, we observe that not only has the market not plunged, but the Dow is in fact higher at this moment, confirming yet again that not only is each and every threat by the Fed that if it does not get its way hollow and baseless, but the whole TARP rescue which pledged over $20 trillion in taxpayer capital to prevent the apocalypse was likely just as much of an empty threat, whose sole purpose was to prevent the bankruptcy of bank management and shareholders. We will release the documents with our analysis as soon as we get them, but in the meantime, here is the summary on this event from Bloomberg, whose employee Mark Pittman was responsible for this lawsuit, and won.

From Bloomberg's Craig Torres:

The Federal Reserve released thousands of pages of secret loan documents under court order, almost three years after Bloomberg LP first requested details of the central bank’s unprecedented support to banks during the financial crisis.

The records reveal for the first time the names of financial institutions that borrowed directly from the central bank through the so-called discount window. The Fed provided the documents after the U.S. Supreme Court this month rejected a banking industry group’s attempt to shield them from public view.

“This is an enormous breakthrough in the public interest,” said Walker Todd, a former Cleveland Fed attorney who has written research on the Fed lending facility. “They have long wanted to keep the discount window confidential. They have always felt strongly about this. They don’t want to tell the public who they are lending to.”

The central bank has never revealed identities of borrowers since the discount window began lending in 1914. The Dodd-Frank law exempted the facility last year when it required the Fed to release details of emergency programs that extended $3.3 trillion to financial institutions to stem the credit crisis. While Congress mandated disclosure of discount-window loans made after July 21, 2010 with a two-year delay, the records released today represent the only public source of details on discount- window lending during the crisis.

“It is in the interest of a central bank to put a premium on protecting its reputation, and, in the modern world, that means it should do everything to be as transparent as possible,” said Marvin Goodfriend, an economist at Carnegie Mellon University in Pittsburgh who has been researching central bank disclosure since the 1980s.

“I see no reason why a central bank should not be willing to release with a lag most of what it is doing,” said Goodfriend, who is a former policy adviser at the Richmond Fed.

And some so called forward looking statements from the two primary beneficiaries of taxpayer largesse:

“I am concerned that in the next crisis it will be more difficult for the Federal Reserve to play the traditional role of lender of last resort,” said Donald Kohn, former Fed vice chairman and senior fellow at the Brookings Institution in Washington. “Having these names made public, or the threat of having them made public, could well impair the efficacy of a key central bank function in a crisis -- to provide liquidity to avoid fire sales of assets -- because banks will be reluctant to borrow.”

“I think it will make it harder for people to use the discount window in the future,” Jamie Dimon, chairman and chief executive of New York-based JPMorgan Chase & Co. (JPM), the second- biggest U.S. bank by assets, told reporters yesterday after a speech in Washington. “We never intend to use the discount window.”

We shall find out very shortly just how often JPM and everyone else used the discount window, that allegedly nobody intended to use.

 


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Thu, 03/31/2011 - 10:20 | Link to Comment gordengeko
gordengeko's picture

This should be interesting.

Thu, 03/31/2011 - 10:39 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

My thoughts exactly.  The lender of last resort will end up being the lender of first choice.

Thu, 03/31/2011 - 10:41 | Link to Comment Harlequin001
Harlequin001's picture

There are those that have used it, and those that are going to use it.

It is unavoidable in a credit environment...

Thu, 03/31/2011 - 10:42 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I would assume that the discount window IS banking at its core now.  Problem is, will anything happen because of this?

Thu, 03/31/2011 - 11:18 | Link to Comment gordengeko
gordengeko's picture

Even if they laid this whole scam out in laymans terms, the avg american human resource still wouldn't comprehend it.  The few that would, would just say well nothing I can do about it I have more important things to do like go to work tomorrow and I have to take my daughter to the lady gaga concert friday.

Thu, 03/31/2011 - 11:27 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I have to agree about nothing to do about other than getting out of the system. 

I have petitioned my Congressman, meet with his staff, wrote letters, made phone calls, sent informatino to encourage my friends to do the same, been published in editorials in my local paper, protested, bought gold and silver, withdrawn all funds from stock market, defaulted and settled on debt with unsecured creditors (now debt free on unsecured), challenged my mortgage note, been on national tv bringing up issues, walked door-to-door to help get an audit of the fed, and so many other things that I cannot remember right now.  All of this activity has taken place since 2008.  While the activities, I am sure, have helped in creating more awareness about the issue, most that aren't aware of more concerned about liberal this, or republican that.

I have reserved myself to rants online and getting on a path to self sustaining myself and my family.  As my father has told me, "It is better to save your family from a Katrina like storm rather than try to save the whole city."

Still can't let go of trying to do something about this, but am at a loss for an avenue that will produce results.  Until then I will just continue to drink heavier by the day.

Thu, 03/31/2011 - 11:57 | Link to Comment gordengeko
gordengeko's picture

I hear you.  We musn't stop trying tho even if it has resorted to just rants online.  It's possible to make aware just the right person with the right influence at the right time to make a change.  I'm not interested in the masses, they are fucked to be honest,  too far gone with the inoculations, chemicals in the food, propaganda, etc for them to wake up.  They have already pinpointed the location of the "fight or flight" area in the brain, they know how to turn it off.  Thats why no one cares, they already control the majority in the western culture, this is the reason why they are so intent on spreading "democracy".  The reason why they let sites like this, max keiser, www.cuttingthroughthematrix.com, just to name a couple, continue exposing the game is because they have just about complete and total control.  The human species is being mutated, just look at the adolescent males.  Very low % will put up a fight in the future.  They are more interested in wearing skinny jeans and being called an emu, what the fuck is that? 

Thu, 03/31/2011 - 12:40 | Link to Comment Canucklehead
Canucklehead's picture

Don't you realize the first successful public mind control instrument was the gen 1 cell phone?

http://imgsrv.worldstart.com/ct-images/cell_phone_generations_1.jpg

You should put that thing down...  It doesn't need to work anymore.  The "apathy or sloth" feature has replaced the "fight or flight" impulse.

Thu, 03/31/2011 - 13:10 | Link to Comment gordengeko
gordengeko's picture

Cmon that scene where he's walking on the beach talkin money on the zack morris gen1 in wallstreet is golden!lol  instant classic

Thu, 03/31/2011 - 12:08 | Link to Comment SRV - ES339
SRV - ES339's picture

Hi Doc,

As a Liberal "I feel your pain"... lol!

While I understand the contempt for the L/R nonsense, I also believe it's a mistake to drop out completely... for the very reasons you've laid out. Unfortunately (seriously unfortunate), the political system (sick as it is) is the only "avenue" that can actually reach the average person (like in Wisconsin as an example).

As such, I believe the Progressive agenda is the lesser of two evils (they're in the tank to big business, but only for the money..lol)... the GOP (and the TP, although the rank and file actually believe they're "grassroots") are all in, and willingly support the corporate agenda to rape and pillage the middle and lower classes in the name of ever more profit. I'm sure you have other views (which I do respect) but, other than true civil (middle east like) revolt, the battle must be fought in the political arena... IMHO.

Just tryin' to help out a bit... hate to see a good liver take such a beating... lol!

Thu, 03/31/2011 - 12:23 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Agreed.  Besides, everytime I actually try to quit and go back to sleep it erupts in the open again. 

Thu, 03/31/2011 - 12:23 | Link to Comment Harlequin001
Harlequin001's picture

I arrived at that conclusion and left for sunnier climes back in 2001.

and never looked back...

Thu, 03/31/2011 - 12:15 | Link to Comment dark pools of soros
dark pools of soros's picture

yeah, Discount Window means the cashier that you know at the grocery that let's you get your produce for free or whatever...  i guess it's the same thing then

Thu, 03/31/2011 - 13:16 | Link to Comment crazyjsmith
crazyjsmith's picture

“I think it will make it harder for people to use the discount window in the future,” Jamie Dimon

And this is a bad thing?  What an A hole!  It should be harder to borrow, these SOB's aren't taking that money and helping the economy out, so, YEAH, it should make it harder, and if they are afraid of transparency, then fail. 

Maybe we wouldn't be in this position if they were forced to make hard choices like the rest of the world.

A HOLES!  Maybe they should be forced to replace the Fukushima 50 - give them all one way tickets to hell.   

 

Thu, 03/31/2011 - 10:22 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

Oh good. More fodder for those awkward press conferences. As if we needed more.

Thu, 03/31/2011 - 10:23 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Criminals bitches!

Thu, 03/31/2011 - 10:44 | Link to Comment Harlequin001
Harlequin001's picture

“Having these names made public, or the threat of having them made public, could well impair the efficacy of a key central bank function in a crisis -- to provide liquidity to avoid fire sales of assets -- because banks will be reluctant to borrow.

like they have any choice, they can either borrow against crap collateral or sell it into non existent market.

Which one would you choose...

Thu, 03/31/2011 - 11:19 | Link to Comment A Nanny Moose
A Nanny Moose's picture

A market always exists. It's just that "they" did not like the price "they" would have gotten for those "assets."

Thu, 03/31/2011 - 11:40 | Link to Comment Harlequin001
Harlequin001's picture

Not this time Nanny, the market was the same banks that were setting the rates through auctions. Only they could know when the market would crash because only they would know at board level when they would stop bidding for their own account. If you weren't sitting on their Board there's no way you could know.

That's a fix, not a market, which is why the only place they could go was the discount window.

There is no market for this stuff...

Thu, 03/31/2011 - 10:24 | Link to Comment lsbumblebee
lsbumblebee's picture

Don't be surprised if they're printed on solid black construction paper.

Thu, 03/31/2011 - 10:31 | Link to Comment Sig Sauer
Sig Sauer's picture

+++ clever!

Thu, 03/31/2011 - 11:27 | Link to Comment assumptionblindness
assumptionblindness's picture

Redacted, bitchez!

Thu, 03/31/2011 - 10:25 | Link to Comment Boilermaker
Boilermaker's picture

Well, "it was our only option and in the best interest of the American people".

Get very used to that shit.

Oh, the market is melting up.  Back to your regularly scheduled sodomy.

Thu, 03/31/2011 - 10:35 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Sure, they concurrently released a huge buy order, along with the documents.

Thu, 03/31/2011 - 10:31 | Link to Comment Mercury
Mercury's picture

Look at the (soiled) laundry list of companies in the federal government portfolio these days too.

PHDC REV C 177622 [GO]

Holy crap.

Thu, 03/31/2011 - 10:29 | Link to Comment TruthInSunshine
TruthInSunshine's picture

“I think it will make it harder for people to use the discount window in the future,” Jamie Dimon, chairman and chief executive of New York-based JPMorgan Chase & Co. (JPM), the second- biggest U.S. bank by assets, told reporters yesterday after a speech in Washington. “We never intend to use the discount window.”

 

I have two things to say to Mr. Dimon:

1) Good. It should be MUCH harder to use the discount window to glean a competitive and subsidized advantage. At one time, that was called central planning. Banks are and should be treated no differently than factories, asshole.

2) Good, fuckface. We don't want to see JP Morgan, particularly, EVER be able to avail itself of subsidized loans. You don't need to, anyways,  right Jamie? Why would any free market capitalist ever think JP Morgan shouldn't be busted up, let alone get preferential treatment?

 

Goldman Sachs, JP Morgan, et al. are the modern day scourge on free market capitalism everywhere free market capitalism pretends to exist in the modern world. These corrupt, ruthless and politically powerful 'financial engineers' succeed because they are protected by a network bought and paid for by vast amounts of favors and payoffs, not because they do anything positive for a true supply/demand oriented market. The create markets through anti-capitalistic means, and then bleed ill-gotten gains from the wreckage they have sown.

Thu, 03/31/2011 - 10:30 | Link to Comment buzzsaw99
buzzsaw99's picture

i hope he gets a toomah

Thu, 03/31/2011 - 10:45 | Link to Comment Alienated Serf
Alienated Serf's picture

truth, that was pure art.  i nominate you for propaganda minister of the resistance.

Thu, 03/31/2011 - 10:59 | Link to Comment LawsofPhysics
LawsofPhysics's picture

I'll second that.  Does the motion carry?

Thu, 03/31/2011 - 11:11 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Thanks.

The thing that really pisses me off is that Jamie knows the discount window is closed now, for all practical purposes, at least in the way it had been open during 2009.

So that's why he can make an attempt to sound so independent when he says "we'll never borrow from the discount window" after the fact.

The fucker is really pissing me off. That his firm also employs the likes of Blythe Masters only infuriates me more.

Thu, 03/31/2011 - 11:29 | Link to Comment NotApplicable
NotApplicable's picture

Meh, no point in getting pissed.

They will get their's in due time.

Until then, just use your knowledge to further isolate yourself from its effects (as likely you already are), and keep a positive attitude due to the comfort of knowing you're not one of the sheeple they will slaughter.

I refer to this attitude as optimistic pessimissim. Yes, we are going to "Hell in a handbasket," but we might as well make the best out of the ride there.

Thu, 03/31/2011 - 11:31 | Link to Comment Cdad
Cdad's picture

Amen, brother Truth,

J. Dimon, in my estimation, has long since overtaken L. Blankfeind as the most disgraceful banker in the nation.  We all know the long list of JP Morgue violations of law, and we have all seen the way in which the bank "beats" earning estimates, and etc.  

However, the richness of this man's sickness was never more clearly on display than from the beautiful hills of Davos when he complained to the world how hard it was to be a millionaire banker.

Unless, of course, you count his complete hypocrisy from yesterday, preparing mom's and pop's all across this broad land to prepare for losses in the muni portfolios while suggesting that losses in Federal debt [not raising the debt ceiling] was literally an "insane" thought.

When you see a man like that, when he is so oblivious to his own arrogance, his corruption, his sense of superior intellect, it is breathtakingly....Faustian.

Yep, J. Dimon really takes the cake...here here, brother Truth.

Thu, 03/31/2011 - 12:02 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

There are bankers of a non-disgraceful variety?

Thu, 03/31/2011 - 11:06 | Link to Comment NidStyles
NidStyles's picture

Motion carried, now onto the topic of socks and puppets.

Thu, 03/31/2011 - 13:03 | Link to Comment SilverFiend
SilverFiend's picture

Remember that the resistance does not need to rely on propaganda.  Telling the whole ugly truth will be sufficient.

Thu, 03/31/2011 - 12:37 | Link to Comment AlaricBalth
AlaricBalth's picture

JP Morgan never "intended" to use the discount window because between 2008 and 2009 JPM kept rolling over loans totaling an aggregate of $52 Billion dollars from the FRB's Term Auction Facility at an average interest rate of approximately .33%. These loans were collateralized for the most part by their stellar residential loan portfolio. This rate was much better than the rate charged at the discount window for primary borrowers at that time.

Thu, 03/31/2011 - 10:25 | Link to Comment bania
bania's picture

I have a hard time believing incriminating docs will actually see the light of day.

Thu, 03/31/2011 - 10:34 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I agree.

Forgive my cynical view, but the FED has had over two years to scrub this data of the information it really doesn't want disclosed, then make sure it flows and any counter parties have done so as well. 

Thu, 03/31/2011 - 10:36 | Link to Comment Boilermaker
Boilermaker's picture

When is the flash crash and the emergency law re-write to avoid this?

Thu, 03/31/2011 - 11:27 | Link to Comment Solemn Simulacrum
Solemn Simulacrum's picture

I'm with you.  Too much time to clean it up.  Let's see if we're wrong.

Thu, 03/31/2011 - 10:26 | Link to Comment alien-IQ
alien-IQ's picture

"it is a tale told by an idiot, full of sound and fury, signifying nothing"

Shakespeare

Thu, 03/31/2011 - 10:28 | Link to Comment umop episdn
umop episdn's picture

"We shall find out very shortly just how often JPM and everyone else used the discount window..."

If I was a betting humanoid, I'd be throwing my LOLlars around at this very moment. Liars lie, and this is just another circus of distraction...all in my humble opinion.  

Thu, 03/31/2011 - 10:28 | Link to Comment Sean7k
Sean7k's picture

RIP 

Mark Pittman. Citizen hero. 

Should have been Jaime Demon in his place. 

Thu, 03/31/2011 - 10:40 | Link to Comment Boilermaker
Boilermaker's picture

+1 honest person against the establishment

Thu, 03/31/2011 - 10:28 | Link to Comment tcrown
tcrown's picture

Just because CEO's announced their company was solvent and expecting their stock to rise and dividends to be paid on the same day they panhandled the FED for 29 billion doesn't mean they lied.  Just optimistic in the future.  Well done boys.  Well done... 

Thu, 03/31/2011 - 10:30 | Link to Comment Misean
Misean's picture

" the Fed today released "thousands of pages" of discount window borrowings... we observe that not only has the market not plunged, but the Dow is in fact higher at this moment..."

Pavlovian reaction to the Feral releasing printed paper.

Thu, 03/31/2011 - 10:46 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

"thousands of pages" = banking solvency, as a whole, depends on the discount window.  Period. The house of cards is built on a base of negative interest rates and free money. 

I am in awe that ANY bank cannot make money when they create credit out of thin air, based on a fraction (possible 0) of their reserves, and then charge usury.  You would have to be a fucking moron not to make money in this manner.

FUCK THE BANKSTER CLASS.  FUCK THEM INTHE ASS!

Thu, 03/31/2011 - 11:22 | Link to Comment chunga
chunga's picture

Get a load of this shit. Nationwide Title Clearing is threatening a volunteer website with a SLAPP suit for publishing a document available on the Internet at many locations. I think by day's end it will be available for download on a couple thousand more sites. Bust their balls and scribd the damn thing everywhere. You'd think NTC would have enough to do with all the titles they have to reverse engineer.

Here's a link to the futile slapp suit...

Here's the site getting "slapped"

Getting rid of that lousy First Amendment ought to send the DOW through the roof...

Thu, 03/31/2011 - 10:30 | Link to Comment ivana
ivana's picture

FED & utilities for Great Game of expropriation.

Thu, 03/31/2011 - 10:28 | Link to Comment Careless Whisper
Careless Whisper's picture

just wondering, is the halliburton bank & trust on that list?

Thu, 03/31/2011 - 11:17 | Link to Comment NidStyles
NidStyles's picture

That would be Blackrock Financial.

Thu, 03/31/2011 - 10:31 | Link to Comment nonclaim
nonclaim's picture

At this point we must realize that even a black swam, in financial terms, is priced in...

Thu, 03/31/2011 - 10:46 | Link to Comment Harlequin001
Harlequin001's picture

bullish...

$1436 and rising...

Thu, 03/31/2011 - 10:29 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Guess it's time for me to fess up: I too borrowed from the discount window all during 2008. Many many dollars were put to good use however through extra mileage on my Yacht, Pussy Of The Sea, which alone kept the economy of a few small towns in Florida alive during the bust through demand for services. Although it may appear that I've got a few canary feathers around my mouth, I believe that my borrowings were patriotic and ultimately good for the country. So let's sail on all together toward the bright future the Fed has created for us all. I'll keep in touch through satellite hookup from our next party port of call!

Thu, 03/31/2011 - 10:58 | Link to Comment mikeyv1970
mikeyv1970's picture

An awesome post....!  :)

Thu, 03/31/2011 - 12:23 | Link to Comment SRV - ES339
SRV - ES339's picture

Sad part is... they actually think this way!

This is an entire community of seriously sick (delusional, self absorbed...), very powerful people.

Thu, 03/31/2011 - 10:30 | Link to Comment whatz that smell
whatz that smell's picture

headlines tonight..... russell 2000 closes at all time high (above 847.18 (may 2007 close)). bank on it bitchz.

praise be the bernank. may the next number be higher than the last.

Thu, 03/31/2011 - 10:34 | Link to Comment I am Jobe
I am Jobe's picture

Can we get the Guillotine ready. Forget about trails and crap. Too much time spent to nowhere and then tax payers have to pay to feed the crooks.

Thu, 03/31/2011 - 10:38 | Link to Comment MGA_1
MGA_1's picture

So, who didn't return their money ;-)

Thu, 03/31/2011 - 10:39 | Link to Comment Boilermaker
Boilermaker's picture

All of them.  They posted "collateral", right?  So, no losses.

Thu, 03/31/2011 - 10:36 | Link to Comment nobusiness
nobusiness's picture

Maybe if bankers know that going to the window will eventually be made public they will run the banks more conservatively.

No chance. BTFD

Thu, 03/31/2011 - 10:37 | Link to Comment smlbizman
smlbizman's picture

at least kohn is worried about the next crisis......not a possible crisis...a gauranteed next crisis...

Thu, 03/31/2011 - 10:41 | Link to Comment vast-dom
vast-dom's picture

i'm afraid very little will change. but these pgs will be interesting to peruse.

Thu, 03/31/2011 - 10:41 | Link to Comment buzzsaw99
buzzsaw99's picture

end the fed, end jpm, end the squid, end citi...

Thu, 03/31/2011 - 10:41 | Link to Comment Boilermaker
Boilermaker's picture

The good old 'collateral' details are there...right?

Thu, 03/31/2011 - 10:56 | Link to Comment AlaricBalth
AlaricBalth's picture

Here are links to the Federal Reserves collateral guidelines in .PDF and a risk collateral margin table in Excel format. The Fed uses an "internal fair market value estimate" when determining the loan amount to the requesting institution. If you notice on page 9 of the .PDF, none of the loans, inclusive of mortgages, which are pledged as collateral for a discount window borrowing can be more than 60 days past due. I wonder if they bent the rules a bit on that one?

http://www.frbdiscountwindow.org/FRcollguidelines.pdf?hdrID=21&dtlID=81

http://www.frbdiscountwindow.org/discountmargins.cfm?hdrID=21&dtlID=83

Thu, 03/31/2011 - 11:04 | Link to Comment Boilermaker
Boilermaker's picture

Rules?  Dude, I just shot coffee out of nose.  Thanks, man....I actually needed it.

Thu, 03/31/2011 - 11:12 | Link to Comment AlaricBalth
AlaricBalth's picture

Sorry! Meant "guidelines".

Thu, 03/31/2011 - 10:43 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

good news! the "market" luvs it...

Thu, 03/31/2011 - 10:44 | Link to Comment Youri Carma
Youri Carma's picture

Hate it when thos banksters playing "We are so vulnerable card" - "-- because banks will be reluctant to borrow.” So don't borrow rats! Go bankrupt and get the hell out of our lives!

Thu, 03/31/2011 - 10:52 | Link to Comment Caviar Emptor
Caviar Emptor's picture

"Throughout the last century the attachment of businessmen to free enterprise has weakened dramatically as they discovered they could demand--and receive--short-range advantages from the state. . . . I watched with incredulity as businessmen ran to the government in every crisis, whining for handouts or protection from the very competition that has made this system so productive." 

-William E. Simon, Secretary of the US Treasury, 1974-77, Energy Czar during 1973 Oil Crisis. 

Thu, 03/31/2011 - 10:46 | Link to Comment Caviar Emptor
Caviar Emptor's picture

I've said it : it wasn't just banks and financials, Fed kept the entire S&P 500 alive when credit froze and massive debt needed to be rolled. They weren't completely out of the woods until until this year. 

Thu, 03/31/2011 - 10:50 | Link to Comment snowball777
snowball777's picture

I know the ABCP market was fucked proximal to the crisis, but I thought that evened out in late 2009.

Thu, 03/31/2011 - 10:55 | Link to Comment Caviar Emptor
Caviar Emptor's picture

They weren't in the clear until they packed their balance sheets with cash, de-levered and rolled their pre-crisis debt. That required massive issuance including junk bonds (record set in 2010), secondary stock offerings (record set in 2010) and finally record regular corporate issuance (Record just set, March 2011)

Thu, 03/31/2011 - 10:47 | Link to Comment bankonzhongguo
bankonzhongguo's picture

The discount window is not the problem, its the fact that investment banks now have the same protection as former commercial banks to cover their gambling losses.  Its no different than running out of money in Las Vegas and going to the Cashier instead of YOUR ATM machine to get refunded.

At some point the Fed needs to be declared a national security threat to the United States (as if the Republic ever meant anything to these money worshipers), just like AQ, and closed down and its senior staff and material shareholders sent to Guantanamo for indefinite detention.

They can laugh all they want while they count their money, but nobody is going to forget these crimes against humanity.  20 years from now you are going to be at a cocktail party listing to some former FRB/banker slag boast about all the money and tricks they pulled over the Amerikan people.  You will need to make your decision for Christ as to whether you pull them aside and push a blade into their blackest inhuman heart.

Thu, 03/31/2011 - 10:51 | Link to Comment Harlequin001
Harlequin001's picture

Bear Stearn's showed that nobody can be allowed to fail...

That's no one and nothing, except Joe Public......

Thu, 03/31/2011 - 10:48 | Link to Comment tmosley
tmosley's picture

Transparency! 0.001% redaction free!

Thu, 03/31/2011 - 10:53 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

Ummmm, guys, maybe I'm paranoid, but handing over documents, talking about off-loading half of their dual mandate, Cold Turkey on QE...I mean, have they thrown in the towel or do you think someone's 'got the goods on them'...like China perhaps???

Feels like an ambush or something.

Thu, 03/31/2011 - 10:59 | Link to Comment snowball777
snowball777's picture

I feel ya. I keep thinking "Now?!".

Thu, 03/31/2011 - 11:29 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

Feels like a game of Poker and the stakes are really high.

Thu, 03/31/2011 - 10:48 | Link to Comment The Count
The Count's picture

The Rothshilds, the FED, the Illuminati, the Skull & Bones, the Pilgrims... and you are not even close to the core yet...

there is no apparent rhyme or reason to whats happening, because its an inside game and if your outside you will never get it.

 

 

 

 

Thu, 03/31/2011 - 11:51 | Link to Comment samsara
samsara's picture

Correct

Thu, 03/31/2011 - 10:50 | Link to Comment benevolous
benevolous's picture

can anyone link to the actual data?

Thu, 03/31/2011 - 11:01 | Link to Comment Cheyenne
Cheyenne's picture

Isn't the Fed's real problem here not so much Pittman's original FOIA request, but really the precedent it lays for future FOIA requests?

Is Bernanke not now defenseless against a holy shitstorm of FOIA requests, as there is now no legally cognizable grounds for objection?

Mark Pittman left us a beautiful legacy. It is Open Season on the Fed. Don't let your cynicism make you lose sight of that.

Thu, 03/31/2011 - 12:08 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Just a guess, but yes, the fact that the SCOTUS rejected hearing the appeal of the Bernank, allows the Federal Court (in Manhattan) decision to stand, as upheld by the Federal Appellate Court, and become the law of the land.

So, the Bernank & Criminal Syndicate Federal Reserve are now subject to FOIA.

Thu, 03/31/2011 - 11:02 | Link to Comment pauldia
pauldia's picture
For Immediate Release
March 29, 2011


Grassley Warns of Bailed-out Banks’ Repaying Bail-outs With Government Funds

WASHINGTON – Sen. Chuck Grassley is asking the Treasury secretary for assurances that banks bailed out with government funds will not be allowed to use another government program to pay back their bailouts.

 
“The reports that banks from New York to Nashville are using federal dollars from the so-called Small Business Lending Fund to increase profits and ‘pay back’ TARP make this look like another TARP-style money shuffle,” Grassley said. “Replacing one form of government subsidy with another wasn’t a repayment when GM did it and it still isn’t.  The Treasury Department has an obligation to put the brakes on any tricky bookkeeping that misleads the American taxpayer and subverts what this program was supposed to do.”

Grassley wrote to Treasury Secretary Timothy Geithner, citing media reports and a bank earnings statement to investors that banks in Pennsylvania, Nashville and New York that received money through the $700 billion Troubled Asset Relief Program (TARP) are considering paying back that bailout with money received through the federal Small Business Lending Fund.  One bank touted increased “profitability” in converting TARP funds to Small Business Lending Funds in its quarterly earnings report.

Grassley asked Geithner for assurances that a repayment shuffle will not take place.  He asked for a description of Treasury’s oversight plans to prevent such a shuffle and for information including a list of banks that have applied for loans under the small business program.

Last year, Grassley exposed the misleading nature of claims from the Treasury Department and General Motors that the company repaid a TARP loan through a business turn-around.  In fact, its repayment was via federal money held by the government.

The text of Grassley’s letter to the Treasury secretary is available here.

Thu, 03/31/2011 - 11:08 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The Fed has closed the discount window now, anyways, for all practical purposes.

They're on to their next big scam in collusion with the JP 'slash & burn' Morgans of the world, and absent someone like Mark Pittman, no one will ever probably even know the details (though I'd bet it has a lot to do with the Bernank's feigned righteous indignation at being asked if the Federal Reserve would bail out units of government at the county or below level - after all, there's going to be MASSIVE profits in the game taking over the infrastructure of local government, for firms like JP Morgan, and Jamie wouldn't want too many competitors).

Thu, 03/31/2011 - 11:10 | Link to Comment guasilas
guasilas's picture

  Re the comments of M. Dimon and M. Kohn: Obviously when banks have the choice between going bust and have their name shown, they will choose to go bust.

Thu, 03/31/2011 - 11:11 | Link to Comment falak pema
falak pema's picture

Transparency is such a soma, if the girl has had time to cover her warts, shave her legs and cream her mustache so that she looks like Grace Kelly on a summer night as the Country girl.

Hope the love affair with the S&P continues forever.

Thu, 03/31/2011 - 11:16 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Bottomline: you don't need thousands of bullshit docs to tell you that the biggest scam and social class genocide has been orchestrated at the heart of our very own dear central bank.  Let's get some fucking arrests going and shut down this bullshit fraud now!

Thu, 03/31/2011 - 11:24 | Link to Comment falak pema
falak pema's picture

Whenever Neutron Man goes some place the S&P shoots sky high. Is there a link between 'Country girl' and Neutron Man; I wonder! Must ask WB7 next time...

PS to AldoHux : now, now, be patient : innocent until proven guilty ! Like Maddox.

Thu, 03/31/2011 - 11:24 | Link to Comment Hondo
Hondo's picture

Kohn and Jimmie Diamond are the definition of corruption.  In fact if being afraid of having your banks name listed as a borrower from the FED is freighting to you then maybe, just maybe you may in fact act in a more prudential manner in conducting your business.  The thought process the FED has used and Kohn and Diamond expound is completely illogical and lacks any coherent attributes.

Thu, 03/31/2011 - 11:26 | Link to Comment Urban Redneck
Urban Redneck's picture

ambulance chasers will have to bill overtime to cross reference the borrowings with SEC filings and TV transcripts- but it will be worth it if they succeed where the AG & SEC have utterly failed.

Thu, 03/31/2011 - 11:36 | Link to Comment NotApplicable
NotApplicable's picture

This whole scenario reminds me of Sep. 10th, 2001, when Rummy came out and stated that the Pentagon had lost $3T.

 

Then again, as others have stated above, they've had a couple of years to scrub the data, and prepare the damage control, so who knows just how Bizarro World rolls?

Thu, 03/31/2011 - 11:49 | Link to Comment samsara
samsara's picture

An just a coincidence,  All the records of that investigation of the missing 3 TRILLION dollars unfortunately were destroyed in WT7 when it was "Pulled"  I mean collapsed.

 

Thu, 03/31/2011 - 13:17 | Link to Comment TruthInSunshine
TruthInSunshine's picture
Rumsfeld tells Mancow that he never heard of Building 7

Here is video of that unprecedented 9/11 event which Donald Rumsfeld claims he still hasn't seen, nor even heard of Building 7:

http://www.youtube.com/watch?v=F6QV6LK8j1Q

Mon, 04/04/2011 - 16:24 | Link to Comment ghendric
ghendric's picture

I think there was only about 800 billion in circulation at the time.. how did we lose something we didn't have in the first place? Can you say Madoff??

Thu, 03/31/2011 - 11:39 | Link to Comment curbyourrisk
curbyourrisk's picture

They probably could have filled the court order by dumpin 10% of the information.  I bet they over-dumped for the purpose of confuins, misleading and misdirecting the public.  Give them too much information and no one knows what to make of it.

Thu, 03/31/2011 - 11:47 | Link to Comment pointer
pointer's picture

whatever - they've had plenty of time to edit the documents - this is just another bone to the peasants to make them think they're actually accomplishing something - the boat has already sailed off the cliff - the only question is when do we hit bottom?

On another note - a friend of mine who listens to Bloomberg said there was a report that the Nasdaq got hacked and has been for a while - any news of this from anyone else?  Maybe it's the start of a mainstream media campaign that's going to lead up to an excuse for a market crash - or give reason for tighter internet rules and control.

Thu, 03/31/2011 - 11:49 | Link to Comment waterdog
waterdog's picture

I don't see how making these names public is going to make it harder for me to use the discount window.

 

Thu, 03/31/2011 - 12:08 | Link to Comment tradewithdave
tradewithdave's picture

For those ZeroHedgers interested in more background on Mark Pittman and the case, here's a link:  http://tradewithdave.com/?p=5788

I'm not completely resolved in my mind about this situation.  Everytime I read the name of the case and that the plaintiff was indeed Bloomberg, not Mark Pittman per se, it just doesn't sit right with me.  My instinct is that there is indeed one more layer to this onion that remains yet unpeeled.   

Dave Harrison

www.tradewithdave.com

Thu, 03/31/2011 - 12:41 | Link to Comment Singularity
Singularity's picture

This will be a huge non-event.

Thu, 03/31/2011 - 15:18 | Link to Comment pointer
pointer's picture

exactly - what happened to all the hype about Wiki Leaks?  They leak terribly slow - sell outs - Buncha BS

Thu, 03/31/2011 - 13:46 | Link to Comment sgt_doom
sgt_doom's picture

Sadly, as long as the majority of Americans are completely clueless as to the origins, and continuity, of the causes for the economic meltdown, I agree this is probably a non-event.

In summary: the banksters - or Transnational Capitalist Class - sold trillions of dollars worth of debt (as in securitized debt) and then, when payment came due, could NOT cover their sales.

They then - by way of the Fed and US Treasury - placed said debt in the public arena (monetizing debt, etc.) - while holding on to their ill-gotten gains.

And no, the defaulted mortgage loans were but a single drop in the torrential downpour of securitized debt instruments the banksters peddled.

Geez, aren't we all tired of explaining this, and why is there still an Ameritard out there who doesn't GET IT?

Thu, 03/31/2011 - 14:28 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Gorrila fuck Jaime up the A$$ and make him squeal like a pig......

Thu, 03/31/2011 - 15:17 | Link to Comment anonnn
anonnn's picture

There was a remedy.

The graduated income tax, reaching 90+%, was in fact a remedy for "insider" activity, as follows:

1."insider", defined in any way that denotes unfairness, is impossible to stop because schemes are unlimited in variations that defy transparency.

2. Federal income-taxation authority, personal and corporate, includes powerful discovery tools and enforcement capabilities. 

3. Thus graduated taxation can strongly and effectively limit "insider" schemes, especially when applied in a way that encourages the very human sense of fairness.

4. 50 years ago, the fed personal income tax was effective, but was later junked. Simultaneously, where the bulk of income tax receipts were corporate, the bulk is now personal income tax.

5. Return to effective, graduated income tax rates and effective corporate tax collection, with improvements/corrections on rules and simplification of paperwork. There is lots of hindsight available for guideance.

6. Result will be a workable playing-field. It does not have to be perfectly level to be tolerable. 

Thu, 03/31/2011 - 17:01 | Link to Comment Heroic Couplet
Heroic Couplet's picture

Just called my state attorney general and stated my desire to side with the homeowners and against the criminal bankers.

Mon, 04/04/2011 - 16:20 | Link to Comment ghendric
ghendric's picture

JP Morgan was one of the banks that created the Federal Reserve. Read the book, "The Creature from Jekyll Island: A Second Look at the Federal Reserve". The whole system was designed so that WE the taxpayers have to bail them out when they lose.. That should make you mad as h3ll!!!..

Read the book..

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