Fed Unable To Comply With Congressional Subpoena Due To Criminal Probe

Tyler Durden's picture

On October 3, 2012, consulting firm Medley Global Advisors sent a newsletter to clients entitled “Fed: December Bound.” The "special report" essentially constituted an early leak of the minutes from the FOMC's September meeting, at which the central bank launched the third installment of QE.

An internal investigation by then-Chairman Bernanke revealed that indeed, some members of the committee had met with the firm that year but the names were not disclosed.On April 15, Congress sent Yellen a letter requesting that the Fed furnish a list of names no later than April 22.

That deadline came and went with no response. 

On May 4, the Fed acknowledged a DoJ and OIG criminal investigation into the leak, and in the same letter, Yellen admitted that indeed, she had met with the analyst who penned the newsletter at the center of the controversy:

Subsequently, The Committee on Financial Services subpoenaed the Fed for records related to the central bank’s review. Now, the Fed has declined to comply in full citing the ongoing criminal investigation. More specifically, Yellen says the OIG has advised the Fed that providing access to the information requested by congress would risk "jeopardizing the investigation."

Note the irony: the Fed says it cannot comply with a Congressional subpoena regarding an alleged leak due to the fact that producing the requested documents could ultimately result in... a leak. In any event, the full letter is below. 

Hensarling Letter 20150604

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FlacoGee's picture




prefan4200's picture

Congressional subpoena.  Ha !  Yellen sees it for the fucking toilet paper it is.  Yellen has bigger balls than Congress, which obviously does not take much at all.  Congress will get their subpoenaed info from her when cows fly.

LawsofPhysics's picture

okay, fine.  As a "limited liability person" I will not comply with congress, neither will my tribe, our country, or our state...

moral hazard is a real motherfucker!!!

Manthong's picture

If the Fed was FIFA, they would be overrun in a heartbeat.

But then again, this is a nation of men, not of laws

and Yellen is the cross-dressing secret twin brother of Krugman.

knukles's picture

Oh, never mind.
At this point what does it matter, anyhow?

max2205's picture

I smell rotting tuna.......

Oh wait...

MonetaryApostate's picture

That would be English Salmon.... with extra extra lemon.. :D

J S Bach's picture

What does Proverbs tell us?

"The borrower is servant to the lender".

Therefore, using logic - the Fed is more powerful than the Congress.  They will not comply in any substantial way to a Congressional subpoena.  How they must inwardly laugh at the gullibility of the American electorate and their belief that the Fed is actually an arm of representative government.

Took Red Pill's picture

How about this proverb;

  "Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild 

SafelyGraze's picture

house+senate joint resolution:

the federal reserve system, its board(s), its branches, and any and all of its other agencies are hereby dissolved. its assets are hereby transferred to the treasury.

ATM's picture

Assets...... if it actually had any.

rlouis's picture

In banking, assets are loans.  The Fed has plenty of loans secured by assets worth pennies on the $. 

Miffed Microbiologist's picture

I don't know Knuks. I'm inspired by this. I think I will try this approach on my jury summons seeing I am rather engaged at the moment and don't feel like participating. As a tax paying citizen they will surely respect that. They work for me right?


StychoKiller's picture

You can get off the Jury pool list by revoking your voter registration.

centerline's picture

Well, if corporations are people then people are corporations.  Fuck em all.

Trucker Glock's picture

If Congress was investigating steroids in baseball, the subpoena would be enforced - no excuses.

11b40's picture

Or MF Global.

Oh, wait!

Tom Servo's picture

Because it's a pretty open and shut case of at LEAST a Sarbanes Oxley violation from "The Honorable" Mr. Corzine.


Oh, wait...


F0ster's picture

It's all theatre for the media to broadcast that the legal system is working and justice is being served. Congress knew this would be the response and will now only move if the public grow some balls and find a way to rise above the brainwashing power of the MSM.

Dollarmedes's picture

Now we see the real reason for the DoJ investigation: it allows the Fed to stonewall.

kchrisc's picture

Guillotine the Fed. Audit the heads.

Liberty is  a demand. Tyranny  is submission.

MonetaryApostate's picture

That's precisely what they plan to do, guillotine the Fed & America... (You'll see)


NoDebt's picture

"No matter how cynical you become, it's never enough to keep up"

-Lily Tomlin


"And now you know why."

- NoDebt

nuubee's picture

That's awesome, can I use that excuse? Sorry, I can't submit to a subpoena, I'm complying with another investigation at the moment.

NoDebt's picture

It's like a legal tesseract.  "Can't help you right now, I'm busy folding 4th dimensional space." 

booboo's picture

And I can't tell you who is investigating me as it would constitute a leak

Salsipuedes's picture

I'm totally sympathetic. Once upon a time, the dog ate my homework and then a Martian ate the dog!

Cautionary Tale's picture
Cautionary Tale (not verified) Salsipuedes Jun 5, 2015 2:28 PM

I hate it when that happens!

SillyWabbits's picture

So the fed isn't a sieve.

It’s a filtered conduit.


I was worried.

lordbyroniv's picture

"Do what thou wilt shall be the whole of the Law. Love is the law, love under will."  - Aleister Crowley

kchrisc's picture

"Sometimes the law defends plunder and participates in it. Thus the beneficiaries are spared the shame, danger, and scruple which their acts would otherwise involve. Sometimes the law places the whole apparatus of judges, police, prisons, and gendarmes at the service of the plunderers, and treats the victim — when he defends himself — as a criminal. In short, there is a legal plunder..." -- Bastiat The Law

Think of that the next time a gun and badge thugs tells you, "It's the law."

Liberty is a demand. Tyranny is submission.


Bastiat's The Law may be the greatest 60 or so pages ever written on tyranny and tyranny's instrument of oppression, the law.

SillySalesmanQuestion's picture

Hmmm, could it be:

They're not done shredding yet

They're not done deleting yet (gotta keep up with Hillary)

They've been hacked

They've lost the info and can't find it

They've told Congress to go fuck themselves


Pick any, pick all.

Colonel Klink's picture

CONgress has made itself irrelavent through corruption and cowardice.  The prezident runs roughshot over them.  The Fed tells them to fuck off.  And the people no longer believe they serve them.  Reap what you sow.

LawsofPhysics's picture

Okay, end the fucking fed!!!!!


As a "limited liability person" (remember corporation=person) I will not comply either...

MonetaryApostate's picture

So you support cashless societies then?

LawsofPhysics's picture

Still don't understand what real money is?  Sigh, like most people, you will re-learn what real value is.

Mae Kadoodie's picture

Can't they just bundle these investigations?

stormsailor's picture

yeah like greece, then spoon afterwards.

Seasmoke's picture

SovIt pays to have lots of fraud going on at once. That's a convenient excuse for the Tribe. I guess that why they become lawyers.

TeethVillage88s's picture

Pretty Apparat-cheeky of her if you ask me.

Normalcy Bias's picture

That pic of Yellen along with the word "Probe" is too HOT! Mmmm!!

VWAndy's picture

The FED has done gone insane. God complex and all.

matinee55's picture

you know these criminals get away with this chit only because 98% of sheeple are ignorant as F & now like being that way.  Prepare for the total enima!!

Government needs you to pay taxes's picture

When the Fed has sufficiently fattened the sheeple on siZIRP, they'll make their 25% wealth tax move.

B2u's picture

The FED just told Congress...."Fuck you"...

TeethVillage88s's picture

FED is just asking to be Regulated, Audited, and Terminated.

Government needs you to pay taxes's picture

I'd vote for skipping the regulate (unless it's the Young Guns/Warren G 'regulation') and audit portions, and stragiht gun for the termination.

Trucker Glock's picture

Isn't that their answer to every question?

Goldbugger's picture

The NSA did the same thing