Banks say they will go to Supreme Court to block transparency
Thursday, April 15th, 2010
The largest commercial banks in the U.S. are ready to go all the way to the Supreme Court to block the public release of details pertaining to the Federal Reserve’s 2008 secretive $2 trillion bailout.
Bloomberg News reports that The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., have teamed with the Fed to rally against a lawsuit, brought by Bloomberg itself, to disclose records of the Fed’s emergency lending.
The fight for disclosure has been ongoing following the Fed’s failure to comply with congressional demands for transparency.
The Fed has consistently refused to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank accepted as collateral.
A New York District ruling last August declared that the destination of around $2 trillion dollars in bailout funds must be revealed after the Fed failed to convince the Judge that the records should be exempt from the Freedom of Information Act.
Citing the fact that the US taxpayer is an “involuntary investor” in the nation’s banks, Bloomberg argued that the risks behind the $2 trillion in lending needed to be made public.
Following more stalling, a further ruling by the U.S. Court of Appeals in Manhattan on March 19 ordered the central bank to release the documents. The Fed once again argued that disclosure would be harmful to its independence, would stigmatize borrowers and discourage banks from seeking further emergency help.
“Our member banks are very concerned about real-time disclosure of information that could cause a run on the banks,” said Paul Saltzman, the group of bank’s general counsel, in an interview yesterday. “We’re not going to let the Second Circuit opinion stand without seeking a review.”
If the appeal for a review is turned down, the bank group will then petition the Supreme Court, Saltzman added.
Banks incorporated by the New York-based Clearing House group also include Citigroup Inc., Bank of New York Mellon Corp., Deutsche Bank AG, HSBC Holdings Plc, PNC Financial Services Group Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.
The Fed Board of Governors’ “refusal to disclose the names of borrowers renders public oversight of its actions impossible — it prevents any assessment of the effectiveness of the Board’s actions and conceals any collusion, corruption, fraud or abuse that might have occurred,” Bloomberg states in a letter to the appeals panel.
The amount of US taxpayer money committed to bailouts since 2007 is thought to be close to $25 trillion. The figures by far exceed the combined cost of major historical events, accounting for inflation, dating back over 200 years.
Taxpayers have been left completely in the dark as to who has received the money and what they are doing with it.
The public has watched in disbelief for close to eighteen months as Federal Reserve Chairman Ben Bernanke has arrogantly refused to state where any of the bailout money has gone, despite repeated questioning during Congressional and Senate hearings.
There is no accounting for the spending. The Federal Reserve, which is owned and run for the most part by European banking elites, has never been audited and is accountable to no one, as former chairman Alan Greenspan has explained:
It comes as little surprise that the offshore bankers who continue to benefit from the looting of the U.S. economy would support Fed secrecy.
Henry Paulson and his fellow ex-Goldman Sachs executive Neel Kashkari both ensured that Bernanke and their banker gangster friends were well looked after, while Paulson himself brazenly pocketed $200 million in Goldman Sachs profits tax free.
All this following Paulson’s monumental “bait and switch” when he deceived Congress into passing the bailout bill under the proviso that the $750 billion dollar package would be used to purchase toxic debt, when in fact it was used to bail out failing financial institutions.
A monolithic private corporation and a gaggle of bastard banker children sucking on its teat, have effectively gobbled up trillions plus in taxpayers’ money and figuratively stuck the middle finger up regarding questions over where that money has gone.
Quite inconceivably this outright theft has been termed a “rescue”, yet it has had no effect whatsoever other than to actually increase the severity of the financial downturn, allowing the same elites to exploit the crisis as a pretext for centralizing control of the world economic system.
Save for Ron Paul’s Federal Reserve Transparency bill, America’s elected representatives have laid down to the Fed, with the Washington elite even attempting protecting the Fed from any real examination.
This article was posted: Thursday, April 15, 2010 at 10:23 am