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Why Does Brian Sack Interact With Goldman's "FX Committee"?

Tyler Durden's picture





 

Following the release of Bill Dudley's daily schedules from the beginning of 2009, through September 30, 2010, there have been some amusing, if not very surprising, disclosures. Among them: Dudley's penchant to meet with Jamie Dimon, Vik Pandit and, of course, former boss Lloyd Blankfein. Other meetings include Sullivan and Cromwell chairman, and the banking cartel's personal chief attorney H. Rodgin Cohen. Those are to be expected: after all Dudley has to conduct the New York Fed policy exactly in accordance with Wall Street's expectations, and per Wall Street's recommendations. What is a little more surprising is that on February 9, 2009, Bill Dudley hosted a lunch roundtable with hedge fund SAC Capital... Perhaps now Dudley knows almost as much about the chances of various Phase II/III drugs to make it to market as ole' Stevie himself. Additionally, on May 14 Dudley invited Ken Griffin and Adam Cooper from Citadel into his office at about 2:00 pm. One wonders just what the quid pro quo between the New York Fed and Citadel may have been, over and above of the traditional dark pool securities purchasing relationship between the two entities of course. Where it gets a little confusing is why Dudley had to have two informal meetings with the man who singlehandedly determines US fiscal and monetary policy: Goldman's Jan Hatzius, first on March 11, and then, less than a month later, on April 6, both times as the Pound and Pence. And where it gets downright bizarre, is trying to explain why Bill Dudley on June 11, 2009, had to bring over one still unknown Brian Sack, now pervasively known as the head of the Fed's Open Market Operations Committee, to not only walk over to Goldman Sachs for a meet and greet (as opposed to Goldman coming over to the NY Fed), but specifically "introducing Brian Sack to the Goldman FX Committee" between 4:00 and 4:30 PM on that day. Just which of Brian's myriad functions is the one that requires the participation of Goldman's FX team? Last time we checked, purchasing bonds and MBS in POMO operations had little if any impact on Goldman's FX trading flow...

But that's not all... In fact the very first official presentation of Bill Dudley of his market manipulation henchman occurred on April 16, 2009 to none other than Fed Expert Network head Larry Meyer of Macroeconomic Advisors, the same man whose on screen "intelligence"  was obliterated by David Einhorn recently,  and whose only value added it appears is to sell FOMC inside data to such high paying clients as Pimco, a peculiar artifact that was detailed by Zero Hedge long before 99% of America had even heard of expert network, and the fact that they peddle primarily in inside information.

And just in case anyone wonders if Larry Meyer is worth his monthly retainer in FOMC data, fear not: below are just his meetings with Bill Dudley:

  • April 16, 2009: telephone call with Larry Meyer (with Brian Sack in tow);
  • July 31, 2009: telephone call with Larry Meyer
  • March 3, 2010: telephone call with Larry Meyer
  • June 30, 2010: telephone call with Larry Meyer

Not bad access for a consultant. Only Lloyd Blankfein had Dudley's ear 5 times according to the official record.

And speaking of those with a hotline to Mr. Dudley, it appears it is not only consultant friendly. Below we summarize the meeting between Mr. Dudley and one Jon Hilsenrath:

  • February 5, 2009: meeting with Jon Hilsenrath, WSJ, and Nik Deogun, deputy managing director. Great to establish the groundwork early on, eh.
  • April 8, 2009: meeting with Jon Hilsenrath, WSJ
  • October 22, 2009: telephone call with Jon Hilsenrath
  • December 4, 2009: background call with Jon Hilsenrath
  • March 31, 2010: background meeting with Jon Hilsenrath
  • May 12, 2010: Hilsenrath chat
  • June 11, 2010: Phone interview with Jon Hilsenrath

So next time you question Jon's "articles" on the Fed, think twice: chances are he just may have a deeper throat at the Fed than you...

And one last, and modestly disturbing thing... While the AIG near-collapse necessitated nearly daily meetings with with every single Wall Street banker, and often times scrambling far and wide to prevent a systemic collapse, Mr. Dudley's schedule around the time of the flash crash in May 2010, both before and after, had the following curious schedule on May 7th, the "day after" - 9:00 - 10:00 AM : FSB plenary teleconference re: situation in financial markets... followed promptly by a "Disclosure Discussion", which lasted from 10:30 am until 4:30 pm... We are rather curious about just what transpires during these "Disclosure Discussions" - after al the only other time Dudley had one was on May 12, a week after the flash crash between 2:00 and 2:30 pm... promptly followed by one of the abovementioned Hilsenrath chats.

We are still going through the 491 page document and should we find other notable non-sequiturs, we will promptly bring them to your attention.

 

 


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Thu, 12/30/2010 - 15:16 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Does anyone know if The Federal Reserve 'Bank' has any type of conflict of interest policy, and if they do, can you source where it can be found?

I think this is a relevant and important issue given how many Fed Reserve Members have ties to, and have even worked for, the likes of the Giant Vampire Squid during the past.

Thu, 12/30/2010 - 15:20 | Link to Comment AR15AU
AR15AU's picture

The only conflict of interest the Fed cares about is their struggle to get the 10 year under 3% again.

Thu, 12/30/2010 - 15:24 | Link to Comment wiskeyrunner
wiskeyrunner's picture

Who cares it's all meaningless, you can do nothing. 

Thu, 12/30/2010 - 15:44 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

You can watch Europe burn, my friend, that's what you can do

http://www.youtube.com/watch?v=koa1B1ls2hg&feature=related

Thu, 12/30/2010 - 15:35 | Link to Comment Atomizer
Atomizer's picture

Does anyone know if The Federal Reserve 'Bank' has any type of conflict of interest policy, and if they do, can you source where it can be found?

 

Yes we do. The conflict is time vs. the FED baton hand off to New World Government entities.

Its all documented here

http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf

Thu, 12/30/2010 - 15:46 | Link to Comment Hansel
Hansel's picture

To add one more unhelpful answer,

I think the policy is that conflicts of interest are required.

Thu, 12/30/2010 - 16:01 | Link to Comment the rookie cynic
the rookie cynic's picture

They do have conflict of interest policy; it's their SOP manual.

Thu, 12/30/2010 - 17:21 | Link to Comment Raynja
Raynja's picture

Management meeting with the owners actually its not considered a conflict of interest

Sat, 01/01/2011 - 11:00 | Link to Comment Dollar Damocles
Dollar Damocles's picture

The FED is a banking cartel run by the major banks.  There has never not been a conflict of interest there.  Read Case Against the Fed by Murray Rothbard.

Thu, 12/30/2010 - 15:20 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Goes to show bankers will jump into the Sack with anyone.

No morals, them banksters.

ORI

http://aadivaahan.wordpress.com

Thu, 12/30/2010 - 15:22 | Link to Comment themosmitsos
themosmitsos's picture

Tyler, I must express surprise at this statement: "purchasing bonds and MBS in POMO operations had little if any impact on Goldman's FX trading flow..." !!!

Thu, 12/30/2010 - 15:25 | Link to Comment TruthInSunshine
TruthInSunshine's picture

There can be no doubt, based on indirect evidence, and I'd argue much direct evidence, that the commonly held belief that The Federal Reserve 'Bank' is a proxy arm of Wall Street is close to the mark.

When will Bloomberg assign a competent and aggressive network of investigative journalists to pursue this?

When will anyone in the CONgress, including but not limited to Ron Paul, press for some meaningful investigations of this nexus?

When? When? When?

Thu, 12/30/2010 - 15:23 | Link to Comment wiskeyrunner
wiskeyrunner's picture

No such thing as a down stock market, all indexes will close green. Down days are a thing of the past now that the FRBNY has taken control of all markets.

Thu, 12/30/2010 - 15:27 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

First day's lunch is with Tudor Investments. WTF are all the redactions?

Thu, 12/30/2010 - 15:27 | Link to Comment onlooker
onlooker's picture

Your connect the dots will certainly attract some attention. Modified, SHOULD attract some attention. Realistic, hopefully attracts some attention.

Thu, 12/30/2010 - 15:28 | Link to Comment themosmitsos
themosmitsos's picture

ps: Watched the Larry Meyer vid and now my brain hurts. Wow

Thu, 12/30/2010 - 15:29 | Link to Comment gwar5
gwar5's picture

They have to talk to God if they're going to do God's work.

It would be very wise of us to move our US gold out from under the FRBNY to West Point where we have facilities. We know they think about gold because they suppress the price to keep their fiat the king.

 

Thu, 12/30/2010 - 15:37 | Link to Comment gwar5
gwar5's picture

This must be what Central Planning looked like in the Soviet Union.

Nothing is a market. Winners and losers are chosen by status. It worked so well.

This might be a snap shot of USSR circa 1987.

Thu, 12/30/2010 - 16:22 | Link to Comment NotApplicable
NotApplicable's picture

In Soviet America, the market makes you.

Thu, 12/30/2010 - 15:30 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

Dudley has his head up every ass on Wall St

 

Thu, 12/30/2010 - 15:32 | Link to Comment TruthInSunshine
TruthInSunshine's picture

message in a bottle

Thu, 12/30/2010 - 15:34 | Link to Comment knukles
knukles's picture

Somebody's Nut Sack Should Be in a Hurt.

Thu, 12/30/2010 - 16:27 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Buy silver, copy.

Thu, 12/30/2010 - 15:35 | Link to Comment AccreditedEYE
AccreditedEYE's picture

It takes many servants to do God's work properly... and plenty of "networking" to keep the ponzi alive and well.

Thu, 12/30/2010 - 16:27 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"All hail the mighty POMO!"  Said Bernanke as he raised his glass of beer in front of the CEOs and banking heads.

"Malt ale!"  The banking heads replied.

Thu, 12/30/2010 - 15:37 | Link to Comment Seasmoke
Seasmoke's picture

what a sack of shit

Thu, 12/30/2010 - 15:50 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

A burning paper bag of it on your doorstep

Thu, 12/30/2010 - 15:47 | Link to Comment Bearster
Bearster's picture

People get bent out of shape when (presumably) free citizens engage in private transactions based on their own knowledge of legal and uncoerced events.

The true crime is that the government coercively distorts markets and of course its crony cartel profits from it.  While everyone else stands around looking at charts in an attempt to divine the next market moves.  And occasionally looks up from that in order to demand the head of a doctor who is advising a hedge fund on the progress of clinical trials for a drug, as if it was a "crime" to talk about the results of one's work in the real world.  Go back to sleep sheeple...

Thu, 12/30/2010 - 16:14 | Link to Comment Hansel
Hansel's picture

After reading the first 70 pages of appointments, it look to me like Goldman, Morgan Stanley, JP Morgan, Citigroup, Blackrock, etc., are all branches of the New York Fed.  No wonder they can all have perfect trading quarters.  Inside information makes it easy.

Thu, 12/30/2010 - 16:15 | Link to Comment miker
miker's picture

The Fed's relationship with the big money banks/firms and their players is no different than Congress's with the big corps (unions when they were strong) and other powerful ($) special interests.  They each need each other to get THEIR things done and typically look the other way at each other's indescretions.

Except this time the indescretions were so egregious and the economy in such danger that the Fed has exerted a much greater leadership role over these guys than ever occurred under Greenspan or Bernake/Geitner before the shit hit the fan.  At least for now, the Fed/Treasury appears to be calling the shots.  Are the banks/hedgies doing this gratis?  Of course not, they're always figuring ways to make money off of policy/plans.  But they're in tow.  That's what all these meetings are about.  Help us lead the plan or you will be taken out.  Do you think the Goldman trial was all for show?  Some, sure but I think Obama/Geitner were making a statement......play ball or this will be you in spades.  They all know there is enough dirt around to put them all out of business.

 

Do I like it?  It sickens me.

Thu, 12/30/2010 - 16:23 | Link to Comment Cursive
Cursive's picture

TD, this is what makes ZH so great. Where else are we going to not only get this news, but the unvarnished commentary? I know Dudley and Ball Sack and Blankfiend (all 3.5 feet of him) read this and it must drive them crazy. Thanks for that visual.

Thu, 12/30/2010 - 16:24 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The financial implosion is an inside job.  The banks needed to loot money before peak oil hit, because after that, it would be hard for them to maintain their ponzi scheme.

Thu, 12/30/2010 - 16:27 | Link to Comment TooBearish
TooBearish's picture

Comon guys - the FED is owned by the member banks fer chrissake - why wouldn't they meet with the member's heads?  The FED is conflicted BY DEFINITION...jeeze....

Thu, 12/30/2010 - 16:31 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yes and when they meet in Europe all at once they get beat up.

Thu, 12/30/2010 - 16:37 | Link to Comment BennyBoy
BennyBoy's picture

Dudley is just following orders of the owners of the private bank know as the "FED".

 

 

 

Thu, 12/30/2010 - 16:42 | Link to Comment chinaguy
chinaguy's picture

"amusing, if not very surprising, disclosures......"

Plutocracy, Kleptocracy....call it what you wish.....

CD is all over this. A fool could connect the dots....a fool who wished to...it's too painful for the sheeple to realize they are screwed & can't do a damn thing about it...so they watch the MSM, vote in elections and have strong opinions about political parties.

Chumps

 

Thu, 12/30/2010 - 16:46 | Link to Comment gwar5
gwar5's picture

They had to meet because destruction of the USD and convincing international trading partners to go along with a new world reserve currency might take weeks. 

 

Thu, 12/30/2010 - 17:47 | Link to Comment unununium
unununium's picture

Not one mention of Wells Fargo, or Bank of America.  It's ever clearer who are the rule-makers, and who are the rule-takers.

Thu, 12/30/2010 - 18:22 | Link to Comment greenewave
greenewave's picture

Bank of America is a Public Disgrace and Should be PUT OUT OF BUSINESS!! The BANKING ELITE have cost TAXPAYERS TRILLIONS in FUTURE BAILOUT MEASURES and the AMERICAN PEOPLE are SUFFERING!

To find out more about the TRUTH of the recent MORTGAGE SCAM, watch the YouTube video “BANK OF AMERICA ~ A PUBLIC DISGRACE” at (http://www.youtube.com/watch?v=cXDpOBOS94A).

Anonymous-

This is absolutely appalling and I am dumbfounded why the American people aren’t RIOTING in the STREETS as we speak. Thw civil and political unrest we’ve seen in Europe is without a doubt coming to the United States!

Bend over America and enjoy getting SCREWED by the BIGGEST BAILED OUT BANK in the Country!!

Thu, 12/30/2010 - 21:02 | Link to Comment Amish Hacker
Amish Hacker's picture

To call this a "conflict of interest" would be correct only in a world of real markets, honest banks and uncorrupted government. But in what laughably passes for the real world these days, when Brian Sack is presented like a debutante to the Goldman FX committee, what you have is a "confluence of interests." The people playing this evil game are all on the same team, and are committed to the same outcome.

Fri, 12/31/2010 - 00:33 | Link to Comment dcb
dcb's picture

geither is gulity of just being an idiot, the real action is with dudley. this is the guy with the dirt on  his hands

Fri, 12/31/2010 - 01:04 | Link to Comment dcb
dcb's picture

Over two years ago I fingured dudeley as the real guy running the NYfed.  he ran operations under Timmy, who either turned a blind eye, or was just too stupid to know what was going on underneath him, Told what to do by dudley, he did it. Dudley is the one who knows where all the bodies are buried, and has all the dirty little secrets. I was always surprised never to see him testify on capitial hill in the crisis hearnings. I think they didn't want him there to testify under oath

I will bet you he has his dirty little hands in everything. as part of goldman, he had to know about the window dressing, etc. who was exposed to what (AIG). This is the guy who really runs fed monetary policy and translates what wall street wants into bernanke's ear, who makes sure they can front run, etc.

Fri, 12/31/2010 - 03:54 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

And this arrangement with the FED being set up in existence as an "independent, a-political" entity is supposedly in place because it would be a terrible, terrible thing if the central bank were under the control of the people through Congress. More like: Hands off, We control the money, not you, you stupid fuckers.  Laughing all the way to the Central Bank.

Wed, 05/04/2011 - 18:31 | Link to Comment nkktwotwozero
nkktwotwozero's picture

Anyone know what the "2-B" means in the first symbol/seal?

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