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Why Is The Fed Redacting Bank Of Canada's Presence In FX Swap Lines, And Hiding The Terms Of Its Currency Transactions?
While many will focus on the borrowings by various insolvent banks from the Discount Window (yes, we know Bank of America/Merrill Lynch was broke and went to town with taxpayer money after Lehman blew up, and it also was the bank most impacted by the quant blow up in August 2007 when it borrowed $500 million from the Fed on 3 occasions), a possibly far more important question is why does the Fed persist in its secrecy even when supposedly forced to disclose unredacted data. While total discount window borrowings peaked at just over $110 billion, this is nothing compared to FX swap lines between the Fed and other banks, which as we said before was the means by which the Fed bailed out the world (even as Belgian Dexia and German Defma were the biggest borrowers from the Discount Window in those days in early November) amounted to $529.4 billion at the peak. So we decided to look at just what the terms were on these various borrowings and to our surprise were met with a whole lot of "NR", aka redacted data. The data on par lent out, par received, net change, limit and undrawn available, which is critical to determine whether the Fed actually lost money on its FX swap transactions is not available. And what is even more stunning is that one of the banks in the list, which we believe can only be the Bank Of Canada is purposefully and diligently redacted out of the 977 pages in the document highlighting the currency swap data. We have a simple question: why? And why pretend that the Fed is following court transparency orders if it continues to censor such critical information on how it actually impacts markets through its operations.
Exhibit A: the email from Brian Candler highlighting bank participation including on NR bank - Bank of Canada?
Exhibit B: the full breakdown of FX transaction on the peak day of FX swap transactions: November 3, 2008.
Full filing for those who wish to scratch their heads some more.
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"I'll trade you my junk for your junk, and save the world."
If that Fed download had a "flag as junk" button we Zhers would have blowed it up.
If anyone has the order handed down by the court regarding compelling disclosure under Bloomberg LLC's FOIA Request, please post it -
- I won't be able to look at it until later tonight, but I would love to know if the Federal Reserve was provided permission by that Federal Court to redact specific information such as this.
edit - Here is the 2nd Circuit COA Decision/Order:
http://www.ca2.uscourts.gov/decisions/isysquery/82a5b2e2-0f56-47b5-9d4f-...
http://www.supremecourt.gov/Search.aspx?FileName=/docketfiles/10-543.htm
Party name: The Clearing House Association L.L.C. Attorneys for Respondents: Thomas H. Golden Willkie Farr & Gallagher LLP (212) 728-8000 Counsel of Record 787 Seventh Avenue New York, NY 10019tgolden@wilkie.com
You could probably get it from the above - I got it off the supreme court docket
Right, that's the docket sheet for the application for certiorari that was denied by the SCOTUS, which left the lower courts' rulings in effect, essentially.
I have the caption and will look it up when I get back.
I need to see the exact FOIA Requests sent to the Federal Reserve by both Bloomberg News LP and Fox, too.
here is bloombergs
http://www.scribd.com/doc/12760404/Bloomberg-News-FOIA-Request-Federal-R...
http://www.ghostofwamu.com/documents/09-00272/09-00272-0010.pdf
Found Fox's in this court document .
People need to download that whole file asap. They may have accidently not redacted something else criminal.
that was easy. Because Mark J. Carney, the Governor of the Bank, is a Goldman's operative.
ok, hit me with another one; but make it more challenging this time
Really? Not that I'm surprised, but could you provide some details?
It's frustrating for me, living in Canada, to have the US situation covered to well, and our own hardly at all. I want to build a picture of all the Canadian financial insiders.
Any discount borrowings by JPM or GS?
I'd like to see Bloomberg & Fox's court order on this. The Fed may just be in contempt. What are they going to argue, national security? I cannot tell you how much joy I would get seeing the Fed Chair thrown in jail for lack of transparency.
Criminal bitchez!
I think Brian's phone line is going to get awful busy in about 30 seconds...
CON-fuse, Obfuscate, Defecate on our Constitution. It was a great run America.
Tragic that leadership is non existent.
Strike that
Tragic that nutsack is non existent
I thought the bank of Canada was run by the same crowd who ran the FED? Is this betrayal within the family? Omerta being torn to shreds?
This is what has been puzzling me for a while, and I have a still sketchy understanding of it, so if I'm wrong, please correct me anyone.
The Bank of Canada is technically owned by the Government of Canada. It actually has the power to create sovereign money - in fact it did so during WWII - though in practice it doesn't do it, allowing the commercial banks to loan out money (as debt). But the Anglo-American cartels might not fully own our monetary system, just control it through the Parliament, which is means we might be able to get out from under their thumb, with the right government.
How does it go?
"On a long enough time line, the survival rate for everyone is zero"
When will we get there daddy...are we there now...can we stop now?
It might be a good idea to request the info from the Bank of Canada like ASAP to see if the terms are the same .
The biggest criminals the world has ever ever ever seen...
... whatch'ya gonna do?
That gray color has more of an opaque quality than a transparent one, but who am I to judge? I don't even hold a PhD in eCONomics.
If there is no outstanding swap balance the bank is blocked out.
For instance see page 426 in
FOIA Request No. 2010-282/Category 16/FX Swap Activity Reports.pdf
and compare it with
http://www.federalreserve.gov/monetarypolicy/SOMA_holdings_liquidity_swa...
The FED operates in secrecy and when told to provide data to Congress, simply ignores them.
This nation is in the clutches of an unaccountable, criminal banking cartel.
Banks are allowed to steal the nations gold through unpayable swaps, and it's not treason?
Absolute power corrupting absolutely. Elites deciding in their infinite wisdom which ends justify applying which means, whether legal or not.
And getting it wrong, to the detriment of the "common folk."
The Second American Revolution is going to look a lot like the first French Revolution. Quite messy. The elite would be wise to begin leaving now.
Follow the money, ahem, swaps! To which foreign commercial banks did the Bank Of Canada provide liquidity over the same period?
UBS? Lloyds? Barclays? Bank of Ireland? Deutsche Bank?
I mean, I'm just asking...Does transparency exist north of the border?
About as much as it does south of the border
I personally would say there is less transparency and freedom up here than in the U.S.. After all, Canada still does not grant inalienable rights to its citizens. The Charter of Rights and Freedom, which is similar to the Bill of Rights in the U.S., can be suspended at any time by an act of Parliament, or in an extreme case a declaration by the British Crown. Unfortunately for Canadians, the Divine Rights of Kings, and Queens still applies to Canadian law, as the priniciple was never revoked in the Canadian constitution during repatriation in 1982.
So, to answer the question. In apperences, Canadians have similar rights than American citizens, however, these rights can be suspended (read revoked, and your ass hung at the discretion of a Crown representative). The reason for this is quite clear, our "Rights" in Canada are not guaranteed by our creator, they are instead granted by the grace of the King, or the Queen.
The argument that these rules are archaic, and no longer observed today is made moot by the simple fact that since they are still in the books, I have no doubt the Queen would try to use them if she felt she needed to. Trust me folks, they would have no problems reinstalling a strict despotic monarchy if they (TPTB) feel they are losing control of the population. They would have no problem with "depopulation" also if they feel there survival is threatened.
British subjects do not have real freedoms, only percieved ones.
The Bill of Rights has been shit on so many times that it is unrecognizeable. We have no real rights here in the US.
None.
The easy thing is to say your name in the same sentence as terrorist or suspected enemy combatant, and your "rights" go right out the window.
It's all a sham.
Just signing a driver's license is a relinquishment of your rights.....it's a sick sham.
We did not save the world...we just delayed the end.
shot of lidocaine as the knife goes in further.
How much went to MENA?
Which PD shares was Paulson holding at the time? How much did they get??
Ahh... fuk it, who cares? just BTFD.
Don't touch my JUNK!
tweren't nuttin impotant
Probably a deal was worked out to make sure the Bank of Canada wasn't implicated in anything. The Harper government, not known for its transparency, has made much of their alleged great handling of the economic crisis. The same thing has been repeated about Canadian banking since then, that it is more responsible and risk averse and therefore things are different here.
as one of the fellow citizen "sheeple" north of the border...
I think the Bank of Canada probably borrowed from the Fed (fellow criminal banker to Fellow Criminal Banker ...just to make sure they had some free money too). Canada announced 50B in new program spending without announcing where they were borrowing it from.
Free USD's work ...especially with a strengthening CAD currency and a probable default in the actual currency before they are paid back.
Maybe the smart Goldman folks are now off the US mother island and sucking from afar.
I also noticed that the Royal Bank of Canada (one of the top 10 banks in the world these days) is a relatively new authorized "reseller" of US Treasuries. To claim that honor you must be prepared to buy these bonds on issue and re-sell them at your own risk.
Nice to know that the US's LARGEST trading partner is going to catch the same debt disease rampant south of the border.
Goldman Sachs, Goldman Sacks, Goldman sucks ....all together now.
One central bank covering for their pals? Just par for the course. In the broader context, this facilitates co-inflation.
This is pretty consistent with the BIS report posted on ZH last year. I imagine the fed was in near panic that the meltdown was causing an appreciation of the dollar. They've always misinterpretted this as a "demand for dollars" scenario. But it's always the condition of an acute margin call unwind.
I think the $20 trillion backstop number may be off by a factor of 50.
transparency right !
Remarks by Sheryl Kennedy
Deputy Governor of the Bank of Canada
jan 2008
"At the Bank of Canada, we do not believe in constructive ambiguity, nor in saturating the market with a lot of information that has no clear message. Real transparency involves judgment: communicating what is important, what clarifies, and not what obscures "
transparency right !
Remarks by Sheryl Kennedy
Deputy Governor of the Bank of Canada
jan 2008
"At the Bank of Canada, we do not believe in constructive ambiguity, nor in saturating the market with a lot of information that has no clear message. Real transparency involves judgment: communicating what is important, what clarifies, and not what obscures "
Transparency right !
Remarks by Sheryl Kennedy
Deputy Governor of the Bank of Canada
jan 2008
"At the Bank of Canada, we do not believe in constructive ambiguity, nor in saturating the market with a lot of information that has no clear message. Real transparency involves judgment: communicating what is important, what clarifies, and not what obscures "
Maybe amero is already here and USD already history?
How about FED - Banco de Mexico transactions?
NOTICE – Tuesday, 21 December 2010, 09:00 (ET)
The Federal Open Market Committee has authorized an extension through 1 August 2011, of its temporary U.S. dollar liquidity swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. The swap arrangements, established in May 2010, had been authorized through January 2011.
Bank of Canada ActionThe Bank of Canada and the Federal Reserve have agreed to extend their US $30 billion swap facility (reciprocal currency arrangement) to 1 August 2011. This swap facility, re-established in May 2010, was set to expire in January 2011.
The Bank of Canada continues to judge that it is not necessary for it to draw on this swap facility at this time, but that it is prudent to maintain the agreement. Should the swap be drawn on, the details of the liquidity facilities provided would depend on the specific market circumstances at the time.
The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets.
Information on Related Actions Being Taken by Other Central BanksInformation on the actions taken by other central banks is available at the following websites.
Bank of England
European Central Bank
Federal Reserve System
Bank of Japan
Swiss National Bank
For further information, please contact:
Jeremy Harrison
613 782-8782
I thought by the law/rules the FEDERAL RESERVE has in place for swaps... No matter what the currency exchange rates be at the time of the swap with Foreign Central Banks, the protection to THE FED is the currency valuation(Exchange Rate) at the time of the swap, is the protection of that exchange rate when payment is received back.
SWAPS
http://www.ny.frb.org/FXC/2010/FXC_Letter_113010.pdf
http://www.federalreserve.gov/monetarypolicy/bst_table11popup.htm
Canada has been sucking up US banks for 2 years. The swap lines are pretty shifty. But Canada has a long term plan with medium sized US bank aquistions.
Indict Bernanke. I want to see that criminal hanging by his neck from a telephone pole.
Indict Bernanke. I want to see that criminal hanging by his neck from a telephone pole.
Disclosure like this during an election? Don't think so.