NY Judge Decides Fed Transparency is Totally Overrated

Pic credit: me!
Can you believe they let me skeeze on over
to the Board and wave hello?

Just when you thought transparency had a snowball's chance in hell, the Fed has successfully cockblocked Bloomberg's attempt to dig into the "secrets of the temple" and get at the meat of the bailout madness.



The U.S. Federal Reserve won a delay of a federal judge's order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received.

Chief Judge Loretta Preska of the U.S. District Court in Manhattan stayed her August 24 order in favor of Bloomberg News, which had sought the information under the federal Freedom of Information Act, so that the central bank could appeal.

The Fed's board of governors has worried that disclosure would stigmatize the participating banks, threatening both them and the U.S. economy.

It argued disclosure threatened "irreparable harm to these institutions and to the board's ability to effectively manage the current, and any future, financial crisis."

The case and a similar one involving News Corp's (NWSA) Fox News Network LLC raise the issue of how much the public has a right to know about how the government is bailing out a troubled financial system.

The Fed was not immediately available for comment.

Preska directed the Fed's board of governors to file a notice of appeal and an emergency stay application with the 2nd U.S. Circuit Court of Appeals.

She also said Bloomberg will not, for now, insist on a search of "official files" at the Federal Reserve Bank of New York, after the central bank's representation that a search would likely be fruitless.
Shit! Here I thought we were WINNING!!

Back to the drawing board. Who wants to see if we can get some indictments?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Stigmatize these banks? I get it. These banks are banking "affirmative action" beneficiaries trying to pass themselves off as if they were admitted to Harvard without it. It's the CPAs fault. Why? These banks should have filed 8-Ks within three days of getting the TARP funds.



Well that's exactly it, isn't it? They tell us "oh, we can't tell you who is running to us for *emergency liquidity* because it might cause a panic"... a panic? PLEASE! If these banks are running to Uncle Ben for a handout, depositors deserve to know how dangerously close to insolvency they are!

This is why I don't have a bank account.

Case closed.

Caveat emptor, Pop. And if the buyer is too clueless to get it... well, can we blame Zimbabwe Ben for trying to protect the banks? He just wants us all to go back to the days when we were all a bunch of blind sheep. If the buyer doesn't care either way, be it Bank of America or BB&T or whomever, then doesn't some of that fall on the buyer?

revolt against the entire system and bypass ZB's attempt to obscure the truth.


senior said...

If the Emperor has no clothes, then even an FOIA request will redact the private parts.

LossAngeles said...

It's already started and you can see heavy buying in gold contracts as some people are hedging that the Fed might actually lose this one.

Still, I don't buy it. They'll keep up the game until the physics of math cause the dollar to collapse.

Except for the computer in the basement that directs the printing press to expand the supply of money at 3% per year, the rest of the Fed is acutally a snake oil factory.