Bloomberg's Winkler Says Fed Had Become Used to Secrecy
Fed Must Release Loan Data as High Court Rejects Appeal
sorry It will not let me embed and I tried to add to playlist and share the embed of that but it would not work. Here is the 2 above in my playlist here
Federal Reserve going down March 21 2011
Thanks too Poofness for this one in his edited post below shortened for the news only that is relevant.
I wish I didn't have to write today but the week was very eventful, tho it escapes public knowledge. Anybody notice that the pres has been showing up places without fringe flags behind him? A situation has been activated that takes the bad guys out of a position to tap anybody's account after they've accessed, they must drop their ill gotten gains into the pile or find themselves zeroed out money wise and since last monday, trillions have come in. They are auditing and placing the money into accounts to pay humanity. There will be some stipulation that go with accessing the huge funds being distributed, levels if you will, that represents how much becomes available to one. IT really comes down to how much one is going to help out, this is how they've decided to deal with the lottery mentality of some of the receivers. Don't buy another double wide. Help out the babies and the elderly. The more you assist, the more comes into your account. My bag is free energy a 100 yr old technology the gov has used for themselves while they've strapped society to oil and the the rest of the dirty tech. They already have a free energy car ready for mass production, it uses magnetics and runs so fast they had to put a governor on it , so folks wouldn't kill themselves driving it.
Beck Interviews Griffin, Exposes Fed
SEE BELOWS LINK BELOW WITH THE VIDEOS FROM IT ABOVE
Over the weekend the 'kill the fed' thing was rising in the public debate. The time has come and I understand that moment arrives on Apr 1. The moment when the last 100+ years goes thru a public hose down no more public money being used to pad rich folks back pockets, on the backs of the common people. How come since the republicans got the house back is everything turned towards making the middle class poorer, more upper bracket tax cuts, whipipng out women's rights over their own bodies. I thought this was about jobs. I think the leader of the House has reached his water level and the tea party still doesn't know what the Boston tea party was really about yet. What were they throwing in the water? Do a little research and find out what the east indian tea company was really into. Same thing vietnam was really about. It has been suggested a lot of info is going to get dropped this coming week as other events are taking place behind the curtain leading up to the end of this sojourn. They are dropping info in tidbits so folks don't get their heads ripped off all at once.
SOURCED FROM WHERE FULL VERSION ISPoofness 3-27-11 - THE MOMENT OF TRANSITION
http://nesaranews.blogspot.com/2011/03/poofness-3-27-11.html
HERE IS THE LINK TO THE ABOVE LINK INBETWEEN THE PARAGRAPHS
Fed Will Release Bank Loan Data as Top Court Rejects Appeal
Under the trial judge’s order, the Fed must reveal 231 pages of documents related to borrowers in April and May 2008, along with loan amounts. Photographer: Joshua Roberts/Bloomberg
March 21 (Bloomberg) -- Matthew Winkler, editor-in-chief of Bloomberg News, talks about today's U.S. Supreme Court ruling that upholds a lower court order requiring the Federal Reserve to disclose details of emergency loans it made to banks in 2008. The central bank has five days to release the records, sought by Bloomberg News's parent company, Bloomberg LP. Winkler speaks with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)
March 21 (Bloomberg) -- The Federal Reserve must disclose details of emergency loans it made to banks in 2008, after the U.S. Supreme Court rejected an industry appeal that aimed to shield the records from public view. The justices today left intact a court order that gives the Fed five days to release the records, sought by Bloomberg News’ parent company, Bloomberg LP. Margaret Brennan and Michael McKee report on Bloomberg Television's "InBusiness." (Source: Bloomberg)
The Federal Reserve will disclose details of emergency loans it made to banks in 2008, after the U.S. Supreme Court rejected an industry appeal that aimed to shield the records from public view.
The justices today left intact a court order that gives the Fed five days to release the records, sought by Bloomberg News’s parent company, Bloomberg LP. The Clearing House Association LLC, a group of the nation’s largest commercial banks, had asked the Supreme Court to intervene.
“The board will fully comply with the court’s decision and is preparing to make the information available,” said David Skidmore, a spokesman for the Fed.
The order marks the first time a court has forced the Fed to reveal the names of banks that borrowed from its oldest lending program, the 98-year-old discount window. The disclosures, together with details of six bailout programs released by the central bank in December under a congressional mandate, would give taxpayers insight into the Fed’s unprecedented $3.5 trillion effort to stem the 2008 financial panic.
“I can’t recall that the Fed was ever sued and forced to release information” in its 98-year history, said Allan H. Meltzer, the author of three books on the U.S central bank and a professor at Carnegie Mellon University in Pittsburgh.
Unprecedented Disclosure
Under the trial judge’s order, the Fed must reveal 231 pages of documents related to borrowers in April and May 2008, along with loan amounts. News Corp. (NWSA)’s Fox News is pressing a bid for 6,186 pages of similar information on loans made from August 2007 to November 2008.
The records were originally requested under the Freedom of Information Act, which allows citizens access to government papers, by the late Bloomberg News reporter Mark Pittman.
As a financial crisis developed in 2007, “The Federal Reserve forgot that it is the central bank for the people of the United States and not a private academy where decisions of great importance may be withheld from public scrutiny,” said Matthew Winkler, editor in chief of Bloomberg News. “The Fed must be accountable to Congress, especially in disclosing what it does with the people’s money.”
The Clearing House Association contended that Bloomberg is seeking an unprecedented disclosure that might dissuade banks from accepting emergency loans in the future.
Obama Administration
“We are disappointed that the court has declined our petitions, which deal with the protection of highly confidential bank information provided to the Federal Reserve,” the group said in a statement after the high court acted.
A federal trial judge ruled in 2009 that the Fed had to disclose the records in the Bloomberg case, and a New York-based appeals court upheld that ruling.
The Clearing House Association’s chances at getting a Supreme Court hearing suffered a setback when the Obama administration urged the justices not to hear the appeal. The government said the underlying issues had limited practical significance because Congress last year laid out new rules for disclosing Fed loans in the Dodd-Frank law.
“Congress has resolved the question of whether and when the type of information at issue in this case must be disclosed” in the future, the administration said in a brief filed by acting Solicitor General Neal Katyal, President Barack Obama’s top Supreme Court lawyer.
Discount Window
The Fed had previously fought alongside the banks in opposing disclosure. It also sought to join the industry group in seeking high court review, only to be overruled by Katyal, according to court documents.
Justice Elena Kagan, formerly Obama's top Supreme Court lawyer, didn’t take part in the court’s consideration of the appeal. Since joining the court last year, she has disqualified herself from cases in which she took part as a government lawyer.
Bloomberg initially requested similar information for aid recipients under three other Fed emergency programs. The central bank released details for those facilities and others in December, after Congress required disclosure through the Dodd- Frank law.
The legislation didn’t apply retroactively to the discount window lending program, which provides short-term funding to financial institutions. Discount window loans made after July 21, 2010, must be released following a two-year lag.
Clearing House Association
“Fortunately, Congress was well aware of the sensitivity of disclosing this information,” the Clearing House Association said in its statement. “As part of the Dodd-Frank Act, Congress adopted a specific rule to ensure that in the future this confidential information will not be disclosed prematurely to the detriment of our financial system.”
The New York-based Clearing House Association, which has processed payments among banks since 1853, includes Bank of America NA, Bank of New York Mellon, Citibank NA, Deutsche Bank Trust Co. Americas, HSBC Bank USA NA, JPMorgan Chase Bank NA, U.S. Bank NA and Wells Fargo Bank NA.
In trying to shield the documents from disclosure, the Clearing House invoked a FOIA exemption that covers “trade secrets and commercial or financial information obtained from a person and privileged or confidential.”
The cases are Clearing House Association v. Bloomberg, 10- 543, and Clearing House Association v. Fox News Network, 10-660.
To contact the reporters on this story: Greg Stohr in Washington at gstohr@bloomberg.net; Bob Ivry in New York at bivry@bloomberg.net.
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net; Gary Putka at gputka@bloomberg.net.
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Fed's Court-Ordered Transparency Shows Americans `Have a Right to Know'
A woman walks past the Marriner S. Eccles Federal Reserve Board Building at 20th And C Streets in Washington, D.C. Photographer: Andrew Harrer/Bloomberg
March 21 (Bloomberg) -- Matthew Winkler, editor-in-chief of Bloomberg News, talks about today's U.S. Supreme Court ruling that upholds a lower court order requiring the Federal Reserve to disclose details of emergency loans it made to banks in 2008. The central bank has five days to release the records, sought by Bloomberg News's parent company, Bloomberg LP. Winkler speaks with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)
Ben S. Bernanke, chairman of the U.S. Federal Reserve. Photographer: Joshua Roberts/Bloomberg
A Supreme Court order that forces unprecedented disclosures from the Federal Reserve ended a two- year legal battle that helped shape the public’s perceptions of the U.S. central bank.
The high court yesterday let stand a lower-court ruling compelling the Fed to reveal the names of banks that borrowed money at the so-called discount window during the credit crisis. The records were requested by Bloomberg LP, the parent company of Bloomberg News. In July, Congress passed the Dodd-Frank law, which mandated the release of other Fed bailout details.
Fed Chairman Ben S. Bernanke “now must finally understand that this money doesn’t belong to the Federal Reserve, it belongs to the American people and the American people have a right to know how their taxpayer dollars are being put at risk,” said Senator Bernard Sanders, a Vermont Independent who wrote Fed transparency provisions in Dodd-Frank.
The financial crisis, which began in August 2007 and peaked after the bankruptcy of Lehman Brothers Holdings Inc. in September 2008, focused the public’s attention on the Fed and its $3.5 trillion effort to rescue the banking system, said U.S. Representative Ron Paul, who heads the House subcommittee that oversees the central bank.
“People wanted to know more about what the Fed was doing,” said Paul, a Texas Republican. “It’s been a significant change and the American people won’t ever be complacent about this.”
While Congress required the Fed in December to reveal details of assistance it provided through various emergency programs during the crisis, discount window loans were exempt. The central bank, which was created in 1913, has resisted transparency for the discount window, its oldest lending tool.
‘Reluctant to Borrow’
“The presumption is that the borrowers were to be kept private,” said William Poole, former president of the St. Louis Fed. “Other loans are another matter but banks that borrow at the discount window are often presumed to be in financial trouble. That might create a run on those banks and will make banks in the future reluctant to borrow.”
The high court’s order means the Fed will have to reveal an unprecedented level of detail about its discount window lending during the financial crisis -- including borrowers’ names and amounts. Officials are preparing to comply, said David Skidmore, a spokesman for the central bank. He declined to elaborate.
Attorneys for the Fed have not yet decided how or precisely when they will provide the information, said Thomas Golden, a partner with Willkie Farr & Gallagher LLP who represents Bloomberg LP in the case. Based on discussions with the Fed’s lawyers, Golden said he expects the central bank to comply within the next two weeks, though it’s not yet clear whether officials would post the information publicly on the Fed’s Web site.
Two-Year Lag
Under Dodd-Frank, the central bank will also publish details of discount window loans made after July 21, 2010, on a two-year lag. The new disclosure requirements may limit banks’ use of the window, said Dino Kos, managing director at Hamiltonian Associates Ltd., a New York-based economic research firm.
“I have never been a fan of revealing discount window” borrowers, said Kos, a former head of open market operations at the New York Fed. “Does transparency at such a granular level really add to anybody’s wealth of knowledge?”
More openness and accountability would make it easier for the central bank to do its job of ensuring maximum employment and maintaining stable prices, said Joseph R. Mason, a finance professor at Louisiana State University in Baton Rouge.
Enhancing Independence
“Remaining accountable and transparent enhances independence because it shows that you made the proper moves at the right time,” Mason said.
Paul, who has called for abolishing the central bank, signed up more than 300 co-sponsors for a 2009 bill requiring a Fed audit. The measure passed the House before being dropped by the Senate. It was quite a difference from similar proposals in the 1970s that attracted little attention, he said.
“The Bloomberg lawsuit had a lot to do with the cultural change,” Paul said. “Bloomberg has credibility that politicians don’t have.”
During the financial crisis, Bernanke used Depression-era authority to buy securities from Wall Street investment bank Bear Stearns Cos. and to prop up insurer American International Group Inc. (AIG) The Fed loaned to U.S. government bond dealers, bought the short-term debt of U.S. corporations, and helped finance the purchase of securities backed by loans to small businesses, college students and car buyers.
Lending Soared
Lending through the discount window soared to $111 billion as credit markets nearly froze in the wake of Lehman’s bankruptcy on Sept. 15, 2008. While the loans provided banks with backstop cash, the public has never known which banks borrowed or why.
Bloomberg LP sued for the records after the late Bloomberg News reporter Mark Pittman requested them under the Freedom of Information Act. The media company won at district and appellate courts.
The Fed declined to appeal the case to the Supreme Court; the Clearing House Association LLC, a group of the largest U.S. commercial banks, asked the high court to intervene.
Under the trial judge’s order, which the Supreme Court refused to reconsider, the Fed must reveal 231 pages of documents related to discount window borrowers in April and May 2008, along with loan amounts. After Bloomberg filed suit, News Corp. (NWSA)’s Fox News Network LLC requested similar records over a longer period of time and also filed suit. It stands to receive 6,186 pages of documents on loans made from August 2007 to November 2008.
The Fed must be forced to divulge such information, said Mark Williams, executive-in-residence at the Boston University School of Management and a former Fed bank examiner.
“The Fed has to be held to higher accountability,” Williams said. “It takes lawsuits like this to do that.”
To contact the reporters on this story: Bob Ivry in New York at bivry@bloomberg.net; Craig Torres in Washington at ctorres3@bloomberg.net.
To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; Gary Putka at gputka@bloomberg.net.
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MY COMMENTS
YES and I always thought Bloomberg was a good guy as I had shared their reports in my White Knights confirmation playlist here (video #81 to 84 and 99 now private dam but I got them downloaded as with all my favs Oct 29 to Nov 6 on the K1 Hedge Fund titles K1 Hedge Fund Founder Helmut Kiener Held Under Arrest: Video ,K1 Hedge Fund Probed as Barclays, JPMorgan Face Loss: Video, Hedge Fund Managers, Traders Charged in Galleon Probe: Video) about Banking Fraud linked to the Bush Crime syndicate as shared by both Tom Heneghan my youtube 2009-10-31 2/2 Bush & Vatican Giga funds frozen that funded 911 Al-CIA-da at Deutsche Bank and WorldReports.org Chris Story my youtube 2009-10-30 Bush Crime Syndicate Arrests Major bust Money Laundering Madoff link where you may also find those same videos which confirm their stories.
*PLEASE* look at this video. This relates to the biggest problems with the FED
ReplyDeletehttp://www.youtube.com/watch?v=Q11R56Y0Dx4&nofeather=True