Goldman Wins Again As European Union Court Rules To Keep ECB Involvement In Greek Debt Fudging A Secret

Tyler Durden's picture

Three years ago, a hard fought landmark FOIA lawsuit was won by the great Bloomberg reporter, the late Mark Pittman, in which the Fed was forced to disclose a plethora of previously secret bailout information, which in turn spurred the movement to "audit the Fed" and include a variety of largely watered down provisions in the Frank-Dodd bill. This victory came despite extensive objections by the Fed and the threat that the case may even escalate to the highly politicized Supreme Court, which lately has demonstrated conclusively that not only is justice not blind, but goes to the highest ideological bidder. Moments ago, Europe just learned that when it comes to secrecy of its supreme monetary leaders, in this case all originating from Goldman Sachs and defending data highly sensitive to the same Goldman Sachs, the European central bank's secrecy is not only matched by that of the Fed, but even more engrained in the "judicial" system of the Eurozone, after the European Union General Court in Luxembourg just announced that the European Central Bank will be allowed to refuse access to secret files showing how Greece used derivatives to hide its debt. Why? Simple: recall that it was Goldman Sachs who was the primary "advisor" on a decade worth of FX swaps-related deals which allowed Greece to outright lie about both its fiscal deficit and its total debt levels, and that it was a Goldman alum who became head of the same Greek debt office just before the country imploded. And certainly the ECB was involved and knew very all about the Greek behind the scenes shennanigans. And who happens to be head of the ECB? Why yet another former Goldman worker, of course. Mario Draghi.

And with yet another ex-Goldmanite taking over the BOE, any hopes of bank transparency in the UK have just been crushed as well. Goldman is taking over the world one central bank, and Supreme Court at a time, and leaving not a trace behind, even as it manages to create ever more debt out of thin air to keep the population occupied chasing trinkets, gadgets, and other unneeded stuff, while the real wealth plunder by Goldman et al enters its terminal phase.

From Bloomberg:

Disclosure of those documents would have undermined the protection of the public interest so far as concerns the economic policy of the EU and Greece,” the European Union General Court in Luxembourg said today, rejecting a challenge by Bloomberg News. The news organization initially sought the documents in August 2010.


The same excuse always and forever: the common man should not know what is truly going on behind the scenes, as the truth would "undermine protection of the public interest" - just leave it to the smart men in tweed suits to fret about the details; it is best if the general ignorant herd remains in the dark, or else its "protection" may be impaired...

Today’s ruling by three judges denies European taxpayers, on the hook for the cost of Greece’s 240 billion-euro ($311.5 billion) bailout, the opportunity to see whether EU officials knew of irregularities in Greece’s public accounts before they became public in 2009.


The decision underscores the lack of accountability at the ECB as it expands its powers to become the region’s lender of last resort and chief banking regulator. The central bank, which puts greater limits on its disclosures about its decision making than its British and U.S. equivalents, is under pressure from policy makers including governing council member Erkki Liikanen to boost transparency. ECB President Mario Draghi last month defended the Frankfurt-based bank, telling reporters it was already a “very transparent” institution.


Bloomberg News sought two internal papers drafted for the central bank’s six-member Executive Board. The first document is entitled “The impact on government deficit and debt from off- market swaps: the Greek case.” The second reviews Titlos Plc, a structure that allowed National Bank of Greece SA (ETE), the country’s biggest lender, to borrow from the ECB by creating collateral.

And just to complete the farce, perhaps the Fed will tell us how its own investigation launched in February of 2010(!) looking at Goldman's behind the scenes involvement in faking the Greek debt numbers for a decade, is going. Recall: "We are looking into a number of questions related to Goldman Sachs and other companies and their derivatives arrangements with Greece," Bernanke said in testimony before the Senate Banking Committee. It is now nearly three years later and still nothing...

Naturally, we won't hold our breath.

Sadly, little can be added here: Goldman wins again, and justice for the common man is long dead.

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ak_khanna's picture

Goldman Sachs will never be implicated in any criminal activity because the too big to fail bunch of banksters can get away with murder, fraud, coercian, harassment of the general public and any other illegal activity under the sun. They have a lot of influence on the political class, the rule makers and the rule enforcers due to their enormous purchasing power, so irrespective of the position in the government, everyone works for their benefit. 

The politicians around the world are nothing more than auction items which can be sold to the highest bidder. They will do whatever they can for the lobbyist paying them the maximum amount of money or votes, be it the unions, the banksters, the richest corporations or individuals. They are in the power seat to extract maximum advantage for themselves in the small time frame they occupy the seat of power.

The rest of the population is least of their concerns. The only activity they do is pacify the majority of the population using false statistics and promises of a better future so that they do not lynch them and their masters while they are robbing the taxpayers.

NewThor's picture

" the too big to fail bunch of banksters can get away with murder, fraud, coercian, harassment of the general public and any other illegal activity under the sun. "


Soooooo many people bet that this is the only life that they will ever live.

Some bet EVERYTHING on this guess. 

History is filled with people who got away with everything,

until they didn't.

And then even after death,

and on and on.

It pays to be good.

Supernova Born's picture

I'm simply surprised they still allow us to read about the thievery and rampant government corruption.

They must be waiting for the REALLY juicy stuff to break to pull the plug on ZH.

economics9698's picture

I do not think justice is that far off.  10 maybe 15 years when the Chinese are the economic power, the petro dollar is dead, and millions of goyim wake up and figure out who the squid is.

Just think of all the baby boomers with no social security, all the government workers with no pension, all the bull shit, all the promises broken.

There will be lots of dead squids.

Too much information on the internet.  The ponzi game played one too many times. 

Its old and when the government workers don’t get their money they will retaliate.  I suspect a few know what a 7.62x54 is.

DaveyJones's picture

Proving once again if our bankers are evil, our leaders are satanic. Thanks again Tyler for the Fiscal Cliff Notes

Squid Vicious's picture

Plutocrats always win at their own game...

saturn's picture

This marks the end of the EU, when the officials openly admit to or declare the inevitability of concealing things in oreder to suppress the truth, to which everyone's life needs to be anchored to, from appearing.

falak pema's picture

regulatory capture at its purest!

This guy Count Draghi has an appropriate name amongst the seemingly innocent, in reality deadly, fungi of this world :

Amanita Phalloides; name of greek origin of evocative imagery; the most deadly of mushroom species. Death Cap!

Yikes, that delicious fry ensures you a very quick goodbye! 

amanitas phalloides - Recherche Google

asteroids's picture

Greece ows 340Billion Euro. Working population is 7Million. Half of which is unemployed. Hmmm I get that each worker needs to pay out amount 1Million Euro. It'll never happen.

cramers_tears's picture

Actually 3.5 million workers would need to pay 97k Euros to get to 340Billion.  Which is actually better than the US, where National Debt per Taxpayer is now $141,987 or 109,540 Euro.  So hell, Greece is getting off easy.

falak pema's picture

funny how knowing how to divide can save a country! 

They should elect you Hegemon of Athens! 

If you are any good at haircuts, as was the barber of Seville, you could be named for life! 


Peter Pan's picture

I agree that scerets should not be released. If all the secrets relating to war, banking, missing central bank gold, funds stashed in havens etc ever became known, it would be impossible for the Kardashians of this world to receive any air time or space in the media.

I am just waiting for some goofy employee to accidentally email the whole bloody file to someone by mistake. Then it will be on for young and old.

jekyll island's picture

I read a legal report several years ago that gave some insight into european law.  The author highlighted a case in which a man and woman divorced and she sued for alimony, which was granted.  The woman took up with an artist and they lived together for several years before she unexpectedly died.  The artist/painter sued the ex-husband to continue the support payments and was able to show he depended on the money and won the case.  Now the ex is/was paying his wife's lover alimony.  This is probably not the normal bias for the court system, but there are similarly bizarre cases in the US system.  If this is how the legal system can be manipulated, then the vampire squid have nothing to fear.   

EscapeKey's picture

To be perfectly honest, I hear scare stories like this all the time. But pretty much the one constant is that some critical piece of information is always conveniently left out.

Having said that, however, that does sound fucked up.

Ghordius's picture

exactly. there is no such thing as EU law for divorces

we are still trying to somehow compact this but the whole is splitting up in

a 15 country conservative-continental part (were those claims would be deemed as frivolous) and

a progressive UK-Ireland-Scandinavian-Dutch-etc. part where divorce is a feeding feasts for the "weaker parties" and their lawyers (as in the US)

the progressives will keep their own national laws, the conservatives did some minor streamlining changes

see more on it here


compare with the Telegraph/Nigel Farage rant here


btw, the article is very, very suggestive. but it's a bit weak on certain facts and strong in the usual conflation of EU and ECB

damn the Squid

jekyll island's picture

You are correct, it was in Germany, I didn't mean to imply all of the Eurozone.  I'm gonna go back through my files and see if I can find the article. 

Joe A's picture

It is so fucked up in Europe that when someone breaks into your home and you beat him into the hospital, it will be YOU who will be in court. Another example: if someone squads your house while you are away, you don't have the right to kick him out. If you do so, you will be found violating 'the peace' and YOU will be either fined or prosecuted. If you eventually manage to get the person out of your house via litigation, you will be a few years down the road, spent a lot of money and you will find your house destroyed. And there is nothing you can do a bout it. You see, in Europe we see the purpotrators of crimes as victims. It is all part of a system -one of the trias politicas- aimed at keeping people at their place.

jekyll island's picture

My favorite worst case is a guy who sued a homeowner for false imprisonment because he tried to break into their home while they were away.  They had left their reinforced garage door raised up 24 inches to provide access for their dog.  The guy slid under the door and closed it, causing the security lock to engage.  They had a metal door guarding the house entrance and he couldn't break through it.  He apparently was too stupid to get the garage door open so he was in the garage for 4 days.  There was a case of Pepsi and a bag of dogfood that he consumed until the family returned and found him in their garage.  He was arrested but sued and won a judgment against the homeowner.  That's our legal system here in the US.  Awesome. 

Joe A's picture

That is just insane. So, you're pretty screwed as well in the US?

Well, that gives a message to home owners who find themselves in the same situation that at the moment they find someone locked up in their garage because that person broke in, to turn the car around and move in with family or check in a hotel for two weeks. Mind you, the garage will be smelly for a while.

Gohn Galt's picture

Just once I would like to go to court and not have the Judge in open courtroom have to ask what the law and the statue is. 

Anyone who has any real authority knows that you can pay the United States / UN to do anything(except for stop squeezing and screwing their people).  Sometimes they have a court trial, where your victim surrenders their will to the court and gets bitch-slapped by the Judge.  I don't even have to show up. 

The victims call themselves honest and "playing by the rules" and graciously accept whatever has been bought upon them.  Wow!!  I don't understand all of this, nor do I like it.  It is very easy to understand that if the judge is honorable and judge's actions does not meet your definition, maybe honorable means something different.  It's hard to watch.

cashcow's picture

Check out the files #anonymous leaked. last time I checked they had lots of details of Goldman swaps :)

EscapeKey's picture

Which files? Haven't heard anything about GS leaks.

Dre4dwolf's picture

But its not a secret if we all know that its a secret.... uh? do they think we are all brain dead or something?



goldenbuddha454's picture

Dear Zero Hedge, I love ya the most, but your use of flowery and verbose phrasing to introduce most of your stories is a bit much!  We're not going for a pulitzer here, but are a very useful and well read financial blog, so get into your topics a little faster as I'm not getting any younger and there are only so many hours in a day.  Sincerely, Buddha

NewThor's picture

Pulitzer? No.


maybe if Tyler kills a few of the commentators 

and collapses the $ 

he can win a Nobel peace prize.


DaveyJones's picture

think of it as a psychological release.  God knows we need one

Zero Govt's picture

Right so Govt's make the rules then Govt's break the rules and the investigation gets squashed

this is known as anarchy, Govt being the single biggest exponent of it by far

theondoxazo's picture

"while the real wealth plunder by Goldman et al enters its terminal phase."  Oh, Please!  Tell me more about your views on this!

NewThor's picture

Here is what I'd like to ask Goldman Sachs...

....Ok. So you've got Comet ISON/Nibiru/Planet X inbound...

Why would you feel safe inside a bunker inside the Earth?

A) You're in a bunker underground with all Goldman Sachs people/types

B) YOU ARE INSIDE THE EARTH. It's spewing lava, methane and having crustal displacement galore.

C) You were pampered your whole life in a little baby bubble, you really think you're going to stay sane in an underground box where money, the thing you worshipped your whole life is DEAD?

That's retarded. 

Just my opinion, but for all the power and money Lloyd Blankenfien has, he's still 1/1000th the man Jimi Hendrix was.

He knows this. He remembers it the 1st second of every day he wakes up,

then spends the rest of the day trying to forget it.

No offense, bro.

But you could have been so much more,


You should have forgiven God for making you so short.



Yen Cross's picture

 Squid/ hooked arthripod

Yen Cross's picture

 Tyler, the cell phone adds?   I have a screen shot for you! I'm just saving it....

BlackholeDivestment's picture

JustU.S., the U.N.becoming Calamari Dessert, it's the new world order recipe for ''Disaster'', a Greek Gyro with no meat.

Yen Cross's picture

The SQUID! 36 months of terror/  Life Span of a squid!

Yen Cross's picture

 Suction cup "CENTRAL"! Bitchez

overmedicatedundersexed's picture

coldfire HL and mark twain, giants in comparison to todays talking heads..shows how far we have fallen.