The Fed Rightfully Believes That Protecting Goldman Is "In The Interest Of The U.S. Economy And The Interest Of The Public"

Tyler Durden's picture

Consummate Chairman,

We would like to direct Your attention to this letter written some months ago by that one person who comes closest to being called Your "supervisor." Indeed, we are well aware that You, Mighty Majesty, are not accountable to anyone, on heaven, hell, purgatory or earth. Nonetheless, we assume You got this particular memo.

SUBJECT:      Transparency and Open Government

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.

Government should be transparentTransparency promotes accountability and provides information for citizens about what their Government is doing.  Information maintained by the Federal Government is a national asset. My Administration will take appropriate action, consistent with law and policy, to disclose information rapidly in forms that the public can readily find and use. Executive departments and agencies should harness new technologies to put information about their operations and decisions online and readily available to the public. Executive departments and agencies should also solicit public feedback to identify information of greatest use to the public.


Government should be participatory. Public engagement enhances the Government's effectiveness and improves the quality of its decisions. Knowledge is widely dispersed in society, and public officials benefit from having access to that dispersed knowledge. Executive departments and agencies should offer Americans increased opportunities to participate in policymaking and to provide their Government with the benefits of their collective expertise and information. Executive departments and agencies should also solicit public input on how we can increase and improve opportunities for public participation in Government.



I direct the Chief Technology Officer, in coordination with the Director of the Office of Management and Budget (OMB) and the Administrator of General Services, to coordinate the development by appropriate executive departments and agencies, within 120 days, of recommendations for an Open Government Directive, to be issued by the Director of OMB, that instructs executive departments and agencies to take specific actions implementing the principles set forth in this memorandum. The independent agencies should comply with the Open Government Directive.
This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by a party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
This memorandum shall be published in the Federal Register.

We were confused, Munificent Maestro, how in the context of President Obama's commendable pursuit for transparency, openness and public participation, should we read Your request for an appeal of the Bloomberg lawsuit (presented below in its entirety) based on the following premise:

[D]isclosure of the identity of the institutions that have borrowed from the Federal Reserve Banks as lenders of last resort or providers of emergency credit is likely to stigmatize the borrowers and to cause substantial competitive injury - whether or not they are experiencing financial difficulties - including the withdrawal of funding from the institution, an outflow of deposits, and a loss of public confidence.

We got lost, Esteemed Eminence, at the point where in Your wisened ways, You purport to disagree with President Obama's claim that the United States of America "will work together to ensure the public trust and establish a
system of transparency, public participation, and collaboration."
Surely, Your Benign Benevolence must be mistaken as Your argument that "disclosure" equals a "loss of public confidence" conflicts diametrically with what our country's elected leader has stated in the past is his administration's primary goal. Does Your Honorable Highness purport to have an authority on par if not higher with a figure elected by the majority of roughly 330 million citizens of the United States of America? Or is it merely that in Your seasoned assessment of the situation You, Transient Tyrant, have so little faith in the ratiocination capacity of Your fellow countrymen that Your Felicitous Fabulousness presumes that You and You alone are capable of not only handling the truth, but deciding who else is privy to its dispensation.

Before we continue, rest assured Handpicked Holiness that we thoroughly agree with You. All the problems of this nation have and always will originate simply as a result of the general public becoming aware of what appears to be a massive criminal enterprise that occurs behind the scenes each and every day. After all, as another Evil Empire had a saying years ago, "The less they know, they better." If a multi trillion dollar crime has occurred in the woods and nobody heard it, it never really occurred. And to top off the list of sayings, when in doubt, Dubious Despot, deny, deny, deny.

Please do not for a minute assume, Delightful Dictator, that we, the American public, are not thoroughly grateful with Your repeated and escalating efforts to protect us from ourselves. After all, the last thing we need is information, understanding and responsibility. Best to keep all three of these in the realms of speculation, conspiracy and conjecture. If anything, we just request that You allow the ceiling on our collective credit cards to be raised by another 1,000,000%... as for the APR, we don't care: following in Your example, Prophetic Proselytizer, we have, all of us, decided never to pay off these credit cards. Ever.

Delightfully Yours In Perpetual Bankruptcy,

The American Sheeple


Memorandum_of_Defendant_Appellant -

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ghostfaceinvestah's picture

Another excellent post.

But seriously, I don't trust the Repubs or the Dems, but has BHO stood up for anything he promised?  In that way I think he is worse than GWB - at least with GWB, you KNEW you were getting someone whose main goal was to protect big business.  I doubt many voted for BHO expecting him to bail out Wall Street.

This Fed issue is insane, they are sadly mistaken if they think this is going away.  They are going to make this a campaign issue for 2010.

Quantum Noise's picture

They are going to make this a campaign issue for 2010.


No way. It has never been a campaign issue. It deserves to be, but it won't. MSM will not allow it.

Anonymous's picture

Actually, the Republicans will make it an issue. Then turn around and do the same thing.
Wash, Rinse, Repeat

dnarby's picture

MSM may have lost control at that point.

Anonymous's picture

"I doubt many voted for BHO expecting him to bail out Wall Street."

many working on Wall Street did.

ask twofish:

geopol's picture

Well folks, there you have it.. The circular firing squad.


I don't need no stinking transparency...


Anonymous's picture

Dear American Sheeple,

I wrote that memo before I realized who was paying me.

Since then, I have reached the conclusion that transparency may be hazardous for your health.

Remember now, Hope and Change.

Now, lets talk about my 2nd term and the realization of the goals we have achieved.

First and foremost, my fellow Americans, I would like to point to my outstanding achievement in bringing clarity and total transparency in government.

Thank you.



grunk's picture

Kid in elementary schools will be singing to Goldman Sachs:

"Equal work for equal pay, MMM, MMM, MMM."

Anonymous's picture

I pledge allegiance
to Lloyd Blankfein
the real president of the United States
and to the ponzi
which he runs
one nation
under goldman sachs
with liberty and justice
for a select few

Anonymous's picture

unfortunately zh misconstrues the aegis of the executive does not include the fed and said directive on openess is wholly moot and nonbinding except as a coaster for soft drinks....

ghostfaceinvestah's picture

The Fed had to get permission to appeal from the solicitor general, who works for the Obama Administration.

But thanks for visiting, feel free to register when you get some brains.

"The filing with the U.S. Court of Appeals in New York today was authorized by Solicitor General Elena Kagan, the Obama administration’s top courtroom lawyer, according to Charles Miller, a spokesman for Kagan."


Anonymous's picture

That was a delaying tactic.

Gilgamesh's picture

Supremely Snarktastic.

buzzsaw99's picture

It's been less than a year and I already don't listen to or read a single word that asshat has to say. I don't care if it's a national emergency, lalalalalala, I can't hear you. 2012 can't get here fast enough to suit me.

Quantum Noise's picture

I hear you, but the old man with the somewhat decent looking cougar would have done the same shit. Wasn't McCain praising Phil Gramm every 30 seconds or so?

buzzsaw99's picture

True, but the disappointment factor wouldn't have been there.

Cursive's picture

If BHO were Bush, every MSM cable news affiliate outlet would dedicate it's entire newscast to combating this man's monstrous hypocrisy.  Alas, don't get me started on MSNBC or Huff Po.  Sick.

Quantum Noise's picture

Not fox news. Fox was pleased with W's performance after Katrina...

Miles Kendig's picture

Two sides of the same coin attempting to get us to perpetually chase our tails. If BHO was an R it would be reversed... That's why it is called TV programming.

Anonymous's picture

it would not hurt my feelings any to see butthole bernanke lynched and drug like beer cans from a car after a wedding all around washington dc and across the nation....

as for the rockefeller / rothschild cabal, their heads could light the eternal flame on the statue of liberty...

AN0NYM0US's picture

I find it useful when the President is giving a speech to record it and later play it in reverse so as to understand the true meaning of what he was saying. Similarly if he has prepared a memorandum, I find that reading it whilst holding it up in front of a mirror often provides insight into its true meaning. I suspect that the maestro understands these exegetic principles and is proceeding accordingly.

agrotera's picture

Your third eye has given you great powers of intuition...

Anonymous's picture

it's an old trick he picked up from the masonic library.

Anonymous's picture

An amusing post, but the Fed would probably argue that it's independent of the Government, or at least the Executive branch.

The solution may actually be simple. Congress hardly ever repeals laws, so the Coin Act of 1793 is probably still on the books. And it states that the penalty for debauching the currency shall be death.

digalert's picture

I can't see the transparency through the opacity.


Golden Slacks holding/broker what ever the hell they were is now a BANK. Now a TARP bailed bank is trading equities with taxpayer $$$, all the gain and zero risk. This needs to stop.


Uncle Ben needs to prove that he in fact is not using Golden Slacks as a conduit to funnel tax $$$.


Chrome bracelets with matching leg shackles for them all.


London Banker's picture

The chairman of Goldman Sachs Bank is none other than Jerry Corrigan - formerly president of the Federal Reserve Bank of New York.

Go figure.

Anonymous's picture

It makes my head hurt.

Crab Cake's picture

I think that the Fed seriously underestimates the implications of the judiciary and legislative assaults that are underway.  If they fail, there will arise such a psychic scream as has not been heard before in America. 

They are worried about the implications of disclosure, when it is the implications of a failure to disclose they should truly be worried about.

The internet, and the free and wide dissemination of information, has fatally exposed the Ponzi scheme perpetrated by Central banks and their owners.

There is one thing, and only one thing IMO, that Americans are truly good at.  What is that you ask?  Why it is declaring loudly and proudly, "Fuck you!" consequences be damned.  The sleeping giant has awoken, shaking off its long torpor, and god help those who stand in its way. 

I advise the Fed to quietly and peacefully acquiesce before Hulk decides to smash. Quickly now Ben he's seen you, and he's coming your way. 

Anonymous's picture

Quiet riot.

ahab's picture

and who will this battle? My guess the Fed- and the USG will make it happen- because the economy- whether kept supported by lies and distortion- will not be allowed to collapse overnight by the truth

Rhea's picture

Mr Durden and the others real gentlemen, just one phase -  these days of unhonoured people, you are being very brave.



Anonymous's picture



Apocalypse Now's picture

Follow me, this only makes sense in the context of a take over.

Remember corporations have the legal rights of a person, the rules on percent ownership of a single public corporation may or may not be applied today (like so many other rules), but could be majority owned by a consortium of aligned separate legal entities. 

The fed would not name all of the recipients of taxpayer funds.  Price would not matter only if the funds were free (0% interest and printed not worked for) and you wanted to TAKE OVER THE WORLD.  Thus, they are buying not based on fundamentals, not based on technicals, but on INFLUENCE.  With a combined entity majority or major stake in corporations, they can influence the agendas of those entities and exert control and power over all boards, executives, and employees.

Of course with an increasing market, second equity offerings can be issued to turn around and pay off the bank loans off that would never have been paid back.  Also, if banks have significant positions in corporations they could in effect outline the terms of their financial services in all future dealings with the corporation (in the best parternship interest of the shareholders).

Who owns these shares (%), where did they get the funds to buy, and why needs to be answered.

Gilgamesh's picture

Wasn't this done back in '29 also?

Apocalypse Now's picture

In the banking cartels own words:

"On Sept. 1st, 1894, we will not renew our loans under any consideration. On Sept. 1st we will demand our money. We will foreclose and become mortgagees in possession. We can take two-thirds of the farms west of the Mississippi, and thousands of them east of the Mississippi as well, at our own price.... Then the farmers will become tenants as in England." - 1891 American Bankers Association as printed in the Congressional Record of April 29, 1913

In a word, yes, this has happened a few times.  For the record circa 1891 and circa 1929 and 2007.

Anonymous's picture

leave it to col. kurtz to find the end of the river.

now note this salient point:

Jim in MN's picture

Barack, meet Squid.

Squid, meet Obama.

Ohh, tentacles already reaching around!  You two are going to make beeeeee-uuuu-tiful music together.

CD's picture

Miles, I seem to remember a different alias with this same pic until a few days ago. Did you re-up and ditch the old username, or is it possible to change the userid?

Miles Kendig's picture

Folks here used to call me Layne.  Love the power of his early vocals.  My history and contribution to ZH is much more Miles Kendig tho.. I kept the pic so folks would know.

Ask Marla for a change.

CD's picture

"It became necessary to destroy the village in order to save it." -a statement attributed to an unnamed U.S. Air Force Major by AP correspondent Peter Arnett

" Political language. . . is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind. " Eric Blair (better known as G. Orwell)

Not that I would advocate anyone  taking literally the last few sentences of the post as applied to individual, personal instances, but for completeness' sake, here are some ways in which others have done such things:

London Banker's picture

You bring to mind one of the efforts from my blogging days:

<a href="">We had to burn the village to save it - October 2008</a>

London Banker's picture

Trying again using your link formatting as template:

<a href="" target="_blank">We had to burn the village to save it - October 2008</a>
London Banker's picture

I'm not sure why I can't hyperlink here.  Can anyone offer a clue as to appropriate formatting or why I'm having trouble?

Anyway, the linked piece starts:

We had to burn the village to save it

The title of this diary is a quote from the Vietnam era that sums up for many the arrogance and pointlessness of American aggression in Asia two generations ago. It keeps coming to mind each time I read President Bush’s (paraphrased) statement this week: We had to nationalise the banks “to preserve the free market.”