UPDATE: Banking Group Asks US Supreme Court To Hear Federal Reserve Bailout Case
This is not the same case as Mark Pittman's FOIA request to the Treasury for Citigroup asset-guarantee details. The issue here is much larger in scope and would require the Federal Reserve to disclose information on all emergency programs and recipients.
This is the real transparency test.
And it's incredibly infuriating. Few even care about the bailout details any more. We're just pissed off that the Federal Reserve won't tell us what they did. It's an affront to an open Democracy, but also proof that all along we've never had an open Democracy. Jefferson rots in his grave.
And count me as one of the few who still cares about the details. I want to know what's been stuffed inside Maiden Lane I, II and III, and what type of toxic assets the Fed took as collateral. We already know they own Red Roof Inns. Let's see what else is in there.
Story inside. Plus legal briefs. And 2 videos - one new, one classic. Very classic.
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By Brent Kendall
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- An association of large commercial banks on Tuesday asked the U.S. Supreme Court to review a ruling that ordered the Federal Reserve to disclose information about the banks that borrowed from its discount window and other emergency lending programs during the financial crisis.
In its petition to the high court, the Clearing House Association said disclosure of the information "threatens to harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences--whether justified or not--about their current financial conditions."
Justice Department spokeswoman Tracy Schmaler said the U.S. solicitor general, the government's lawyer at the high court, would not be seeking Supreme Court review on behalf of the Fed.
But since the banking group is pressing forward with the case, the Supreme Court will later have the option to invite the federal government to file a brief expressing its views on the case.
Bloomberg LP's Bloomberg News sought the Fed disclosures under the Freedom of Information Act and sued the Fed when it denied their requests. The news organization sought the names of the borrowing banks, loan amounts, origination dates and the collateral involved.
The New York-based 2nd U.S. Circuit Court of Appeals ruled in March that the Fed was required to disclose documents about bank borrowing from its last-resort lending programs.
The Fed's Board of Governors and the Clearing House Association have argued that the ruling could severely undermine the Fed's ability to implement lending programs critical to the economy and monetary policy.
After the 2nd Circuit refused in August to reconsider the case, it stayed its ruling for 60 days to give the parties the opportunity to petition the high court.
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Legal trail of links provided by reader 'Cheyenne':
The district court decision ordering the Fed to comply with Pittman's FOIA request...
http://scholar.google.com/scholar_case?case=595858462510045956&q=federal+reserve+bloomberg+freedom+preska&hl=en&as_sdt=400002
The 2nd Circuit Court of Appeals' decision affirming the district court's order...
http://scholar.google.com/scholar_case?case=3477959921372842887&q=federal+reserve+bloomberg+freedom+preska&hl=en&as_sdt=400002
Related: the 2nd Circuit Court of Appeals' decision reversing another district court judge who ruled against Fox in its FOIA case against the Fed...
http://scholar.google.com/scholar_case?case=16783570369097718250&q=federal+reserve+bloomberg+freedom+preska&hl=en&as_sdt=400002
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Video: Dylan Ratigan with TARP Inpsector General Neil Barofsky - Oct. 26, 2010
Ratigan starts out hot, though Barofsky won't take the bait. Fed transparency, Mark Pittman, the Citigroup asset guarantee, lies from Obama -- it's all in here.
- "Keep printing Mr. Ben."
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Video: The Federal Reserve owns the bankrupt Red Roof Inns
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The historic battle for FED transparency - complete story background:
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Oct 27, 2010 at 4:14 PM
Reader Comments (11)
http://www.independent.ie/business/irish/anglo-offer-on-subordinated-debt-tantamount-to-default-2394045.html?service=Print
there you go pitch...
http://whatreallyhappened.com/WRHARTICLES/wildbankers.php
Gomp...you will enjoy this,.. a great look at the history of fiat money and the fed...and the 150 years before the Fed...
http://scholar.google.com/scholar_case?case=595858462510045956&q=federal+reserve+bloomberg+freedom+preska&hl=en&as_sdt=400002
The 2nd Circuit Court of Appeals' decision affirming the district court's order...
http://scholar.google.com/scholar_case?case=3477959921372842887&q=federal+reserve+bloomberg+freedom+preska&hl=en&as_sdt=400002
Related: the 2nd Circuit Court of Appeals' decision reversing another district court judge who ruled against Fox in its FOIA case against the Fed...
http://scholar.google.com/scholar_case?case=16783570369097718250&q=federal+reserve+bloomberg+freedom+preska&hl=en&as_sdt=400002
Foreclosure Lawyers Go to Gardner's Farm for Edge on Lenders
"He charges $7,775 for the program, which covers 3,000 pages of materials, lodging, food and unlimited wine, beer and single-malt Scotch."
http://www.bloomberg.com/news/2010-10-27/foreclosure-woodstock-lures-lawyers-to-max-s-farm-seeking-edge-on-lenders.html
"The central bank’s decision not to appeal makes it less likely the high court will hear the case, said Tom Goldstein, a Washington lawyer who has argued 22 cases before the high court since 1999 and whose Scotusblog Website tracks the panel."
http://www.bloomberg.com/news/2010-10-26/fed-won-t-join-banks-appeal-to-high-court-over-emergency-loan-disclosures.html
Query what "less likely" means? That the odds dipped from 99% to 95% that SCOTUS will step in? Place your bets.
Make note of the cowardice on the Fed's part here: it won't join in on appeal, but will instead piggyback on any reversal by the Supreme Court obtained by the CHA. If the Fed is so happy with the multiple holdings against it, why doesn't it start coughing up the bailout docs right now? Answer: the Fed is a sociopathic coward hiding behind the skirt of the banks.
That's where things stand now: it is the Law of the Land that the Fed must comply fully with FOIA requests. Got that? You wanna know what kind of toilet paper Bernanke uses? Fire away. The FOIA is for you.
Now, fuckin legal scholars will tell you SCOTUS won't be interested. Problem with scholars is they don't take into account stakes, as in, who loses and how big if SCOTUS does NOT step in? The answers are (1) the Fed and (2) instantaneous opacitya-to-transparency characteristic, consequences be damned!
I just don't see (2) as realistic at all, and thus if forced to bet would go mid-bankroll on seeing the Supremes take this one up.