A Little Fly On The Wall Defeats The Big Banks

Tyler Durden's picture

Back in April 2010, Zero Hedge wrote an article titled "Banks Stifle First Amendment, Attempt To Create A Tiered Market Of "Clients" And "Everyone Else" As Theflyonthewall.com Is Blocked From Instant Stock Research Reporting" describing how "Theflyonthewall.com, which is a news aggregator service (much like most
of the blogosphere these days, but without the snarky commentary), and
is hosted on Zero Hedge, has just seen a major driver of its business
model cut off, after several banks just won an injunction that blocks
Fly from notifying its clients when a bank may have issued a research
event such as an Upgrade or, on those extremely rare occasions nowadays,
Downgrade. The banks who feel violated by everyone getting access to
information about their sellside detritus contemporaneously, not just
wealthy accounts and wire services, are Barclays,
Bank of America Corp.’s Merrill Lynch, and Morgan Stanley." We spared no words to explain the stupidity of this action: "this injunction is about the dumbest thing one could imagine: news of sell side research changes are reported immediately by Bloomberg, Reuters and all the major newswires. Why did Lehman, Morgan and Merrill not take them on? Oh yeah, limited budget. And now that they have a case precedent, the door is open to demand cashola or threaten with shutting down the big boys. As for the rest of the blogosphere - good luck."  Well, it won't come to that. Our friends at Fly just won their case.

From Fly on the Wall:

The Second Circuit Court of Appeals today handed Theflyonthewall.com a complete victory in its long running battle with the investment firms Barclays Capital, Merrill Lynch, and Morgan Stanley, that sought to enjoin Theflyonthewall.com from reporting “hot news” to its subscribers relating to the investment firms’ recommendations to their own subscribers.  The Second Circuit had previously stayed the injunction issued against Theflyonthewall.com, but today the Second Circuit unanimously reversed the district court opinion in a sweeping 71 page opinion that will define the dissemination of hot news in the digital era.  Glenn Ostrager, lead counsel for Theflyonthewall.com, stated that "the case was among the most challenging cases I have ever handled because of the enormous legal resources the investment firms drew upon to prosecute the case”.   Nevertheless, Ostrager said that he always believed in the merits of the case and he is gratified that the Second Circuit has written a definitive opinion clarifying the law in this area.  Theflyonthewall.com will continue to publish its daily news feeds.


Congratulation to Fly, while to all the big bad banks who think they have a monopoly on information flow, in addition to physical gold, corruption, hubris, megalomania, and bribery, go to hell.

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ZeroPower's picture

Good for Fly.

Pretty ridiculous anyway as Fly wasn't posting or providing the actual reports anyway. Kinda of like wanting to download a pirated movie but only getting the trailer - or not event that!

financeguru500's picture

Off topic but can anyone tell me if the Fed is still planning on the complete stopping of purchasing treasuries by July of this year? I remember reading a few months ago that they were planning on not purchasing any more treasuries and there was some worry that this event would trigger the actual collapse of the dollar but within the past few weeks there has been no news on this at all.
Tyler any info?

ThirdCoastSurfer's picture

Even if QE2 ends they will still reinvest any proceeds of their $2+ trillion balance sheet which last year was something like $80 billion in interest alone after expenses.  

PaperBear's picture

Not so hopelessly corrupt, noy yet anyway.

NotApplicable's picture

One has to maintain a credible appearance in order for a facade to maintain its integrity.

In other words, the judges were likely mad that they had to even consider a case where the "reasonable person" standard was that blatantly obvious. To rule any other way would diminish their personal gravitas, as well as the court's.

Instead, they likely admonished the plaintiff's legal team to come up with another avenue of attack that differentiates "real" news outlets from those terrorist bloggers who hate America.

Ergo's picture

Congrats.  As an IP lawyer myself, this sounded like fair use to me - just reporting the news.

ReallySparky's picture

Loud clapping above keyboard.  And the little guy wins for once.

12ToothAssassin's picture

For now... Isnt there a higher court to appeal? Surely THEY can be bought.

Problem Is's picture

We know what corrupt, proto-fascist, corporate bought, useless bastards (and Bastard-ettes) sit at the Big Kahuna court at 1st St NE and E Capitol DC...

Swinging their big gavel, pontificating absurdities and leaving constitutional scorched earth behind them...

Turd (Term) limits for the scrotums of SCOTUS...

Amerika's best and brightest... really???

Unholy Dalliance's picture

Amerika's best and brightest... really???

Judging by the rest -- probably.

JustACitizen's picture

The "Highest Court in the Land" supposedly "manned" by 5 strict constructionist defenders of the Constitution in its glorious and original form? Those folks who gave us Kelo and Citizens United?

(FTR the other 4 cannot be relied upon either - but I really don't expect them to be or do anything else - than that which they are...)

Could they be bought by monied interests - surely not... Hopefully, no one that reads their news here will rely upon these staunch defenders of the Constitution and the rights of the ordinary citizen (i.e. the common man).


Hugh G Rection's picture

What an abomination of everything our corrupt plutocracy stands for!  Stupid Fly, the serfs will eat the shit they are spoonfed and leave the profitable trading to the insiders.

swissaustrian's picture

Is there a possibility to appeal against this judgement for the tbtfb?

Also, Tyler, little spelling error:

Our friends at Fly just wont their case


Franken_Stein's picture


Bravo !

Tyler, FlyOnTheWall and team !

You rock !!!


Big kudos to Glenn Ostrager to help win this crucial battle for the free flow of information in this war, and it is a war as you may have noticed by now, against the global financial oligarchy.


You still think all these their efforts to drown out dissent are just a loose set of independent and unrelated events ?

You must be a fool to think so.


They want to do the same squeeze out on the internet where they want to destroy net neutrality, i.e. the centralized TPTB-fed MSM gets bigger broadband and the independent media gets less.

Which suits their globalist agenda.


ShankyS's picture

HA! Like their advice or opinions are worth something in the first place. ROFLMAO.

Congrats Fly!

carbonmutant's picture

Congratulation to the gang at Fly on the Wall...

doomandbloom's picture

can a (butter)fly cause a hurricane ?

JW n FL's picture

Fly on my ass.. charges a fee for the free information provided FREELY to them from the Banks!


Fuck a Fly on the Wall.. they play for and with the other team.


as a matter of Fact they cater strictly to the other team!





Re-Instate the Constitution of the United States of America!!!!!

Hacked Economy's picture

Uh...better put down that double espresso, JW.  Me thinks you may have read the article with crossed eyes.  This was likely a *good* court win for all of us, not bad.

I'm not gonna junk you this time, to give you a chance to re-read and perhaps re-post an update to your comment.

sagerxx's picture

That's no little fly...that's *SUPERFLY*!


"Just tryina get ovah" indeed!

Viva -- Sager

monopoly's picture

One small victory for the truth. Maybe, just maybe there is hope. Fly is a good site if you trade a lot and work off of breaking news. Way to fast for me. Yes, this is good.

And when they start trying to pick on Zero Hedge all, that is when it will be time to open our wallets and purses even more to keep the truth flowing. This site is NOT an option.

I am a Man I am Forty's picture

How fucking pathetic of BC, ML, and MS.  Losers every single one of them.

AldoHux_IV's picture

Go to hell they will.

BernankeHasHemorrhoids's picture

The only thing better would be pulling all their executives' pants down and letting all the prisoners at Huntsville, TX fuck them in the ass without any lube.

notadouche's picture

Why would you insult the good folks in the Huntsville pen?

BernankeHasHemorrhoids's picture

Good point. Murderers, child molesters and rapists would think that letting their cocks touch the likes of Vikram Pandit's asshole would be a contamination with the true vermin of Planet Earth. It's a shame that the executives of these criminal institutions can't meet their fellow citizenry locked in the stocks of old. I would piss in their mouths, take a shit in their hair and cut off various pieces of their faces and feed them to the fire ants.

msamour's picture

I think the best option would be to pull a Hancook, and put the heads of executive into other executive's asses. That way a giant train can be made, and they can all parade through New York and people can kick them in the balls as they are walking along...

johnnyblade's picture

flyonthewall,  day traders online, js services.  The good old days.

slewie the pi-rat's picture


now i understand why tyler waits 10 seconds before posting G/S research for ridicule...

cat2's picture

What if Zero Hedge blocked all IPs that come from the TBTF banks.

buzzsaw99's picture

1) bank upgrades, downgrades, etc., are worthless.

2) if they want to notify clients first why the hell do they proclaim loudly it on bloomie and reuters?


the fact is they hope by broad dissemination to move markets to their advantage. screw the banks. die bitchez!

Eternal Student's picture

Congrats, Fly, for a decision which affects us all. And thank you.

Kina's picture

Lucky for the banks.


These guys keep pushing the envelop on corruption and crime and treason. When the shit really hits the fan and millions of newly poor homeless Americans with no prospects will be baying for blood as there will be nothing else - the corrupt politicians and regulators and judiciary will want to creat the scapegoat that isn't them pretty quickly. That scapegoat will either be Banksters and or corrupt Regulators.'


At the end  of the day Americans may end up hunting down banksters in streets everywhere as the newly identified treasonous terrorists.

rocker's picture

You mean they are not already hunting.    Dam !!!    JPM threw Veterans and Family in the streets.

ThisIsBob's picture

Does price read Fly?

Pure Evil's picture

Where the fuck is my fly swatter!?

agrotera's picture

"Congratulation to Fly, while to all the big bad banks who think they have a monopoly on information flow, in addition to physical gold, corruption, hubris, megalomania, and bribery, go to hell."


hedgeless_horseman's picture

Sláinte, Fly On The Wall!  

Clay Hill's picture

Well done, Mr. Ostrager, well done indeed!

gwar5's picture

"Way to go McFly!"

ThirdCoastSurfer's picture

Hey, it got past the district court. 

Someone really needs to look into what is going on in that district court. 

StychoKiller's picture

Tarot Layout (Celtic Cross):

Querant: The Tower (16)

                                {My interpretation:} 
 1. The Devil (15)     {Desire, Deceipt}
 2. Two of Cups        {Marriage}
 3. Nine of Wands      {Vigilance}
 4. Ten of Wands       {Heavy Burdens}
 5. Two of Swords      {Choice}
 6. Knight of Swords   {Message}
 7. Three of Pentacles {Skill or trade}
 8. Five of Wands      {Conflict, confusion}
 9. Judgement (20)     {Renewal}
10. Page of Cups       {Imagination}

Question was:  "What will precipitate 'The Tower' in the financial World?"
Those that can interpret the cards, have at it!