Wall St. Bailout: $9 trillion disaster….
Posts Tagged ‘banks’
Get Ready For Wednesday’s Big Announcement: Fed Set To Release Bailout Documents…
We’ll be all over those docs too…so stay tuned as America sinks~jude
Courtney Comstock
Tomorrow, the Fed will begrudgingly release documents that may reveal which banks would have failed without a bailout.
Ever since the Fed bailout in 2008, the public has only known that nearly every major US bank was bailed out. But of course that’s because the Fed shielded us from the knowledge of which banks actually needed a bailout.
A little background: In 2008, the Fed is said to have loaned to banks that didn’t need bailouts in order to remove the stigma of being insolvent from the banks that needed one, which could have rendered the bailouts worthless.
The Feds didn’t want it to be one group of “insolvent, very risky” banks versus one group of “solvent, solid” banks.
The documents released tomorrow may distinguish one group from the other.
So it’s no surprise that after Bloomberg’s Mark Pittman requested the forms back in 2008 (before he died in 2009) as part of the freedom of Information Act, the Federal Reserve Board appealed to the court to avoid releasing the requested information.
Here’s what we’l find out:
- The amount of assistance each entity received
- The terms under which funds were disbursed
But that’s not what we’re most excited for.
These are the “hot” items Bloomberg requested, the info the Fed really doesn’t want to release:
- 231 “term sheets” documenting Fed loans to financial firms during 2008. The records, which include the banks’ names, the amounts borrowed and the collateral posted in return.
Of course the banks don’t want these details revealed. The info could seriously damage the banks that would have failed without a bailout.
The Fed tried to use the potential havoc the data could wreak in a bid to keep the data under wraps six months ago:
“[In their appeal, the Fed said that] disclosure of the documents threatens to stigmatize borrowers and cause them “severe and irreparable competitive injury.”
But their appeal was denied.
A consortium of banks (including JP Morgan, BofA and Citi) called the Clearing House Association then filed another appeal, however, which the Fed did not join. But because the decision was appealed, the lower court’s ruling was put “on hold” until the high court returns a verdict – hence the Fed did not have to release the documents right away.
So does that mean we will definitely find out which banks needed bailing out and which didn’t? No. There’s no way of knowing.
Plus, while Dodd-Frank financial reform law mandates the Fed release details on emergency programs during the crisis, it apparently it not required to release information on discount window, which is the window that Bloomberg is sued over.
So after tomorrow, we could still be as clueless as we are now.
OR, as an Oppenheimer bank analyst put it in March:
[The release could have] “catastrophic” results, including demands for the instant disclosure of banks seeking help from the Fed, resulting in a “death sentence” for such financial institutions.
The release is set for 12 pm, and Senator Bernie Sanders is holding a conference call at 4 pm to discuss the findings with the media.
We’ll be all over the documents starting at noon tomorrow, so stay posted.
Related articles
- JPMorgan, BofA, Citi, And More Plead With Supreme Court To Keep THEIR Bailout Details Secret, Too (businessinsider.com)
- QE2-as-bank-bailout (ftalphaville.ft.com)
- EU: No Bailin – Just Eternal Bailout (thewapper.wordpress.com)
Federal Reserve Directors: A Study of Corporate and Banking Influence…
Published 1976
Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.
N.M. Rothschild , London – Bank of England
TARP Investigator: The Treasury Is Using Unusual And Misleading Accounting Practices To Hide TARP Losses…
Remember…It’s *for our *OWN GOOD* that they don’t tell us everything…after all…Who are we to meddle with the great powers [CCE =Corrupt Corporate Elitist] and information??? ~jude
Earlier this month, everyone was
talking about the wild success of the Troubled Asset Relief Program (TARP), with recent reports from the Treasury estimating that it could cost taxpayers in total as little as $50 billion, or less.
In an early October report, the Treasury approximated that taxpayers would lose just $5 billion on their investment in American International Group (AIG), a tiny fraction of the $182 billion bailout AIG was originally extended.
But the New York Times reports that according to special inspector general for TARP Neil Barofsky, the Treasury has concealed $40 billion in losses on AIG alone.
The Treasury, apparently, has been using unusual and misleading accounting practices.
“In our view, this is a significant failure in their transparency,” said Barofsky.
The Treasury denies this…
Treasury Hid A.I.G. Loss, Report Says
The United States Treasury concealed $40 billion in likely taxpayer losses on the bailout of the American International Group earlier this month, when it abandoned its usual method for valuing investments, according to a report by the special inspector general for the Troubled Asset Relief Program.
“In our view, this is a significant failure in their transparency,” said Neil M. Barofsky, the inspector general, in an interview on Monday.
In early October, the Treasury issued a report predicting that the taxpayers would ultimately lose just $5 billion on their investment in A.I.G., a remarkable outcome, since the insurance company was extended $182 billion in taxpayer money in the early months of its rescue. The prediction of a modest loss, widely reported as A.I.G., the Federal Reserve and the Treasury rushed to complete an exit plan, contrasted with an earlier prediction by the Treasury that the taxpayers would lose $45 billion.
“The American people have a right for full and complete disclosure about their investment in A.I.G.,” Mr. Barofsky said, “and the U.S. government has an obligation, when they’re describing potential losses, to give complete information.”
On the Edge with Gerald Celente – 20 August 2010 (1/3)…
Gerald Celente On The Edge With Max Keiser (Finance, War and Revolt) Part 2 of 3
To rob a country, own a bank….loll
TheRealNews — March 19, 2010 — William Black, author of “Best way to rob a bank is to own one” talks about deliberate fraud on Wall St.
Tribute to the Porcelain God: This economy should be making you sick
By The Ans
Ralphing up Dollars.
Lunch (revisited).
Upchucking for fun and profit.
Regurgitating Godot.
Tossing up dimes.
Losing dinner.
Why the subject line?
We are riding on the thinnest of the razor’s edge. One false move and over we go. Wheeee!!!
The 07/08 patch was a warning, we need to change our ways but yet, we don’t. The next patch won’t be so … tame.
Most sense it but can’t put their finger on it, others are well aware but spin their wheels chasing this or that nostrum on the net and finally just get acrimonious. This constant state of upset usually includes some gastronomical event(s).
Hence the tag line.
Me, I’m mildly amused.
Hey, we got our tickets punched, might as well watch the show. Besides that I liked lunch so I prefer to keep it. It never tastes as good the second time anyway.
Planet Finance..To put everything in order that’s happening all over the world…
Do your self a favor ~ watch this to help
put all the pieces of the puzzle together!!
~jude
~Please Watch~
http://www.pbs.org/video/program/1155680272/
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