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Police powers expanded for G20
2010-06-25, CBC News
http://www.cbc.ca/canada/toronto/story/2010/06/25/g20-new-powers.html

Police forces in charge of security at the G20 summit in Toronto have been granted special powers for the duration of the summit. The new powers took effect [on June 21] and apply along the border of the G20 security fence that encircles a portion of the downtown core. This area — the so-called red zone — includes the Metro Toronto Convention Centre, where delegates will meet. Under the new regulations, anyone who comes within five metres of the security area is obliged to give police their name and state the purpose of their visit on request. Anyone who fails to provide identification or explain why they are near the security zone can be searched and arrested. The new powers are designed specifically for the G20, CBC's Colin Butler reported Friday. Ontario's cabinet quietly passed the new rules on June 2 without legislature debate. Civil liberties groups are concerned about the new regulations. Anyone who refuses to identify themselves or refuses to provide a reason for their visit can be fined up to $500 and face up to two months in jail. The regulation also says that if someone has a dispute with an officer and it goes to court "the police officer's statement under oath is considered conclusive evidence under the act."

Lawmakers Negotiating Bank Bill Hold Industry Stocks
2010-06-17, Bloomberg/Businessweek
http://www.businessweek.com/news/2010-06-17/lawmakers-negotiating-bank-bill-h...

Lawmakers writing the biggest overhaul of financial regulations since the Great Depression may have a stake in the outcome. Eight of 11 senators and six of 22 House members on a conference committee writing the final legislation own stocks in financial companies affected by the legislation, disclosure statements released yesterday show. One senator and nine representatives who also sit on the committee got extensions of the filing deadline and haven't yet disclosed their holdings. "It's always a concern that personal interests influence legislation," said Lisa Gilbert, a lobbyist for the U.S. Public Interest Research Group, a Boston-based organization pushing for stronger financial regulations. Senator Judd Gregg of New Hampshire reported Bank of America stock holdings and a savings account valued between $1 million and $5 million. The 43 negotiators are trying to iron out differences between the House and Senate versions of the legislation as they respond to an economic crisis that forced the U.S. to provide $700 billion in bailout funds for New York-based Citigroup Inc. ... Bank of America Corp. and other banks.

Note: For abundant reports from reliable sources on government corruption, click here.

End Is Seen to Free Checking
2010-06-16, Wall Street Journal
http://online.wsj.com/article/SB10001424052748703513604575311093932315142.html

Bank of America Corp. and other banks are preparing new fees on basic banking services as they try to replace revenue lost to regulatory rules, in a push that is expected to spell an end to free checking accounts for many Americans. Free checking accounts, which have been widely available for more than a decade, have been a boon to middle-class consumers and attracted low-income customers to the banking system for the first time. Customers will likely be required to pay new monthly maintenance fees on the most basic accounts that don't generate a lot of activity. To avoid a fee, customers will have to maintain certain account balances or frequently use other banking services, such as credit and debit cards, automated teller machines and online accounts. Some consumer advocates warn the new fees will whack consumers who now manage their bank accounts to avoid such charges. The transformation of checking accounts comes at a time when banks are bouncing back from the steepest financial losses in a generation and are facing new regulations. To accelerate that recovery and recoup losses from new banking rules, financial institutions are increasingly leaning on customers who don't now generate enough revenue for the bank.

Note: Why hasn't the federal government protected consumers from this sort of response by the banking industry to new regulations imposed after the massive taxpayer bailout of these failing corporations?

Fed dodges bullet as House drops audit idea
2010-06-15, Reuters News
http://www.reuters.com/article/idUSN1527338120100615

The Federal Reserve scored a political victory ... as Democrats mulling financial reform backed off measures that would expose monetary policy to audits and make the head of the New York Fed a political appointee. The U.S. House of Representatives had approved a bill in December that included a provision, championed by Texas Representative Ron Paul, that would have opened the Fed's interest rate policy to congressional audits. But in a statement on Tuesday, House Democrats participating in negotiations over a final financial reform bill signaled a willingness to live with a narrower Senate audit provision that does not cover monetary policy. The Fed, which has admitted it was too complacent about regulatory oversight in the run-up to the global financial crisis, has come under heavy fire for being too close to the banks it regulates. The House Democrats also said they would try to defeat a plan contained in the Senate bill under debate that would allow the U.S. president to name the head of the New York Fed, a step that Fed officials have argued would undercut the central bank's political independence. The U.S. central bank appears to be emerging largely unscathed by the regulatory reform efforts. It successfully fought off a Senate push last month that would have stripped it of its oversight of smaller banks, and is poised to emerge as the most powerful financial regulator when reforms are complete.

Note: A news search on both Google and Yahoo revealed that MSNBC was the only media to pick up this Reuters story, yet MSNBC then removed the story. Why might that be?

Former Fed chief Volcker backs change in system
2010-05-20, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/19/BU101DHAMC.DTL

The United States must curb consumption and credit and boost production and savings, but its citizens and leaders so far lack the will to change, economist Paul Volcker said. Volcker, 82, an adviser to the Obama administration, ... said the United States spiraled toward the Great Recession through an excess of debt that subsidized an appetite for consumer goods, many of them imported. The chief bugaboo, in Volcker's view, was a runaway financial sector that ... became a factory to make money by manipulating money. He said under-regulated financiers made big profits and bonuses by swapping derivatives and other exotic instruments that produced few of the widespread benefits - like better jobs and wages - that normally flow from investment. Now that this financial house of cards has collapsed, Volcker said, U.S. and world leaders must figure out how to stop powerful mega-banks and hedge funds from engaging in the same shenanigans that forced taxpayers to bail them out to prevent further catastrophe. "The central issue with which we have been grappling is the doctrine of 'too big to fail,' " Volcker said, alluding to how the United States bailed out institutions like insurer AIG to prevent their collapse from further damaging the economy.

Note: For a great collection of reports from major media sources on the hidden realities of the Wall Street crisis and the government bailout of big finance, click here.

Speedy New Traders Make Waves Far From Wall Street
2010-05-17, New York Times
http://dealbook.blogs.nytimes.com/2010/05/17/speedy-new-traders-make-waves-fa...

Inside the humdrum offices of a tiny trading firm called Tradeworx, workers ... tend high-speed computers that typically buy and sell 80 million shares a day. But on the afternoon of May 6, as the stock market began to plunge in the “flash crash,” someone here walked up to one of those computers and typed the command HF STOP: sell everything and shutdown. Across the country, several of Tradeworx’s counterparts did the same. In a blink, some of the most powerful players in the stock market — high-frequency traders — went dark. The result sent chills through the financial world. After the brief 1,000-point plunge in the stock market that day, the growing role of high-frequency traders in the nation’s financial markets is drawing new scrutiny. Over the last decade, these high-tech operators have become sort of a shadow Wall Street — from New Jersey to Kansas City, from Texas to Chicago. Depending on whose estimates you believe, high-frequency traders account for 40 to 70 percent of all trading on every stock market in the country. Some of the biggest players trade more than a billion shares a day. These are short-term bets. Very short. The founder of Tradebot, in Kansas City, Mo., told students in 2008 that his firm typically held stocks for 11 seconds. Tradebot, one of the biggest high-frequency traders around, had not had a losing day in four years, he said.

Note: For key reports on the dubious practices which underlay the financial crisis and the impoverishment of the public treasury, click here.

Bankers jailed, sued as Iceland seeks culprits for crisis
2010-05-13, Daily Telegraph (Australia)/AFP
http://www.dailytelegraph.com.au/business/breaking-news/bankers-jailed-sued-a...

More than a year and a half after Iceland's major banks failed, all but sinking the country's economy, police have begun rounding up a number of top bankers while other former executives and owners face a $US2 billion ($2.24 billion) lawsuit. Since Iceland's three largest banks - Kaupthing, Landsbanki and Glitnir - collapsed in late 2008, their former executives and owners have largely been living untroubled lives abroad. But the publication last month of a parliamentary inquiry into the island nation's profound financial and economic crisis signalled a turning of the tide, laying much of the blame for the downfall on the former bank heads who had taken "inappropriate loans from the banks" they worked for. Overnight, the administrators of Glitnir's liquidation announced they had filed a $US2 billion lawsuit in a New York court against former large shareholders and executives for alleged fraud. "I think this lawsuit is without precedence in Iceland," Steinunn Gudbjartsdottir, who chairs Glitnir's so-called winding-up board, told reporters in Reykjavik. The bank also said it was "taking action against its former auditors PricewaterhouseCoopers (PwC) for facilitating and helping to conceal the fraudulent transactions engineered by [its principal shareholder] and his associates, which ultimately led to the bank's collapse in October 2008."

Note: Yet American and British bankers who played a major role in the economic collapse are getting record pay. For an incisive article in Rolling Stone titled "Why Isn't Wall Street in Jail?" click here. For key reports on financial fraud from major media sources, click here.

Four Big Banks Score Perfect 61-Day Run
2010-05-12, New York Times
http://www.nytimes.com/2010/05/12/business/12bank.html

It is the Wall Street equivalent of a perfect game of baseball — 27 up, 27 down, the final score measured in millions of dollars a day. Despite the running unease in world markets, four giants of American finance managed to make money from trading every single day during the first three months of the year. Their remarkable 61-day streak is one for the record books. Perfect trading quarters on Wall Street are about as rare as perfect games in Major League Baseball. But Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase & Company produced the equivalent of four perfect games during the first quarter. Each one finished the period without losing money for even one day. Their showing ... underscored the outsize — and controversial — role that trading has assumed at major financial institutions. It also drives home the widening lead that a handful of big banks are enjoying over lesser rivals on post-bailout Wall Street. The four banks ... reaped big rewards without necessarily placing big bets that stocks or bonds would go up or down. “This is not about hitting home runs,” said Jaidev Iyer, who runs his own risk management consulting firm, J-Risk Advisors. “This is just, as we call it, milking the market and your captive client base.”

Note: For an astounding list on the Forbes website of the richest companies in the world by assets, click here. All of the top 10 companies are banks, with collective assets of over $22 trillion! Yet we as taxpayers continue to pay to bail them out when they have problems. Is something wrong with this picture? For a graphic representation of this, click here. And for an abundance of deep reporting in major media articles on the hidden realities of Wall Street's shadowy operations, click here.

Stock market time bomb?
2010-05-10, Washington Times
http://www.washingtontimes.com/news/2010/may/10/stock-market-time-bomb/?page=all

Even the world’s most savvy stock-market giants (e.g., Warren E. Buffett) have warned over the past decade that derivatives are the fiscal equivalent of a weapon of mass destruction. And the consequences of such an explosion would make the recent global financial and economic crisis seem like penny ante. But generously lubricated lobbyists for the unrestricted, unsupervised derivatives markets tell congressional committees and government regulators to butt out. While banks all over the world were imploding and some $50 trillion vanished in global stock markets, the derivatives market grew by an estimated 65 percent, according the Bank for International Settlements. BIS convenes the world’s 57 most powerful central bankers in Basel, Switzerland, for periodic secret meetings. Occasionally, they issue a cry of alarm. This time, derivatives had soared from $414.8 trillion at the end of 2006 to $683.7 trillion in mid-2008 - 18 months’ time. The derivatives market is now estimated at $700 trillion. What’s so difficult to understand about derivatives? Essentially, they are bets for or against the house - red or black at the roulette wheel. Or betting for or against the weather in situations in which the weather is critical (e.g., vineyards). Forwards, futures, options and swaps form the panoply of derivatives. Credit derivatives are based on loans, bonds or other forms of credit. Over-the-counter (OTC) derivatives are contracts that are traded and privately negotiated directly between two parties, outside of a regular exchange. All of this is unregulated.

Note: Though not from one of the top U.S. newspapers, this incisive article lays bare severe market manipulations that greatly endanger our world. The entire article is highly recommended. $700 trillion is equivalent to $100,000 for every man, woman, and child in the world! Do you think the financial industry is out of control? For lots more powerful, reliable information on major banking manipulations, click here. For a powerful analysis describing just how crazy things have gotten and giving some rays of hope by researcher David Wilcock, click here.

The Trades of a Lifetime in 20 Minutes
2010-05-08, New York Times
http://www.nytimes.com/2010/05/08/business/08cancel.html

Someone on Wall Street just made a killing. That was the subject of so much chatter among professional investors once the smoke cleared from the sudden panic and recovery on Thursday [May 6] that briefly knocked some stocks down to a penny or two a share. Who had kept his cool during those terrifying minutes and scooped up some dreamlike bargains? One thing, however, is certain: By luck, savvy, lightning speed or all three, there was money — gobs of it — to be made from the bargains that came and went in an instant. On Friday the blogosphere was alight with conspiracy theories suggesting that perhaps the whole thing had been instigated by a big bank or a hedge fund looking to make a quick profit. Some investment pros surely made a fortune from the trillion-dollar market swing. “Somebody got Accenture at a penny. They’re ready to announce their retirement,” joked Daniel Seiver, a finance professor at San Diego State University. Investors who owned gold or United States Treasuries ... saw big gains as global investors sought havens. But even those gains were small compared with those won by options traders who had placed bets on an index that rises in value when volatility increases. “The guys who probably made the most money in this were options players,” said Larry Tabb, chief executive of the Tabb Group, a financial services consulting firm.

Note: This article refers to the record-breaking 1,000 point intra-day drop in the Dow Jones index on May 7. For an abundance of deep reporting on the hidden realities of Wall Street's shadowy operations, click here.

Origin of Wall Street’s Plunge Continues to Elude Officials
2010-05-08, New York Times
http://www.nytimes.com/2010/05/08/business/08trading.html

A day after a harrowing plunge in the stock market, federal regulators were still unable on Friday [May 7] to answer the one question on every investor’s mind: What caused that near panic on Wall Street? The cause or causes of the market’s wild swing remained elusive, leaving what amounts to a $1 trillion question mark hanging over the world’s largest, and most celebrated, stock market. The initial focus of the investigations appeared to center on the way a growing number of high-speed trading networks interact with one another and with venerable exchanges like the New York Stock Exchange. Most investors are unaware that these competing systems have fractured the traditional marketplace and have displaced exchanges like the Big Board as the dominant force in stock trading. In a joint statement issued after the close of trading, the S.E.C. and the Commodity Futures Trading Commission said they were ... looking particularly closely at how different trading rules on different exchanges, which temporarily halted trading on some markets while activity in the same stocks continued on other markets, might have contributed to the problem. The pressure in the less-liquid markets was amplified by the computer-driven trades, which led still other traders to pull back.

Note: For more information on the impact of the new high-speed computer-driven trading methods, click here.

Plan for Congressional Audits of Fed Dies in Senate
2010-05-07, Wall Street Journal
http://online.wsj.com/article/SB10001424052748704370704575228164133105390.html

Last-minute maneuvering in the Senate allowed the Federal Reserve to sidestep legislation that would have exposed its interest-rate decision-making to congressional auditors. Pressure from the Obama administration led Senate lawmakers to alter a provision pushed by Sen. Bernie Sanders (I., Vt.) that was gaining momentum despite opposition from the Treasury and the Fed. It would have largely repealed a 32-year-old law that shields Fed monetary policy from congressional auditors. Thursday's Senate showdown came after senators on the left and right joined forces to support Mr. Sanders' provision. "At a time when our entire financial system almost collapsed, we cannot let the Fed operate in secrecy any longer," Mr. Sanders said. "The American people have a right to know." But Fed Chairman Ben Bernanke ... said in a letter to Congress the Sanders measure would "seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation."

Note: For an abundance of deep reporting on the hidden realities of Wall Street's shadowy operations, click here.

'Goldman Conspiracy' must kill reforms
2010-05-04, MarketWatch (a Wall Street Journal Digital Network website)
http://www.marketwatch.com/story/goldman-conspiracy-must-kill-bank-reform-201...

Capitalism is dead. The economy has a new Invisible Hand, the Goldman Conspiracy of Wall Street bankers. This transfer of power happened suddenly. As recently as late 2008 the Invisible Hand was on life support, near death. Suddenly, miraculously the Treasury secretary, Goldman's former CEO, transferred the power into a new Invisible Hand of God, the free-market ideology of Reaganomics ... a power absolutely essential to the survival of Wall Street's mega-bonus culture. Yes, that's why the Goldman Conspiracy must kill financial reforms ... why they will kill effective reform with the backroom support of Obama. This was predicted back in late 2008, even before the bailouts, back when we thought Reaganomics dead. Shock Doctrine author Naomi Klein warned: "Free market ideology has always been a servant to the interests of capital ... During boom times it's profitable to preach laissez faire, because an absentee government allows speculative bubbles ... When those bubbles burst, the ideology becomes a hindrance and goes dormant while big government rides to the rescue," then a neo-Reaganomics "ideology will come roaring back when the bailouts are done. The massive debts the public is accumulating to bail out the speculators will then become part of a global budget crisis," setting up a new bubble, bigger meltdown, and the Great Depression 2 the world narrowly avoided in 2008.

Note: For a wealth of key reporting on the hidden realities of the Wall Street's shadowy operations, click here.

GM repays federal loan with government money
2010-04-27, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/26/BUS91D55HR.DTL

You'd think that General Motors Co., having been rescued by U.S. taxpayers, would be more up-front with them. In an ad that has been blanketing the airwaves since last week, General Motors Chairman and chief executive Ed Whitacre boasts that "we have repaid our government loan, in full, with interest, five years ahead of the original schedule." In a press release, Whitacre said GM was able to repay the loans "because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse." Neither the ad nor the press release mentioned that GM repaid its government loan with other government money, or that U.S. taxpayers could lose money on the roughly $50 billion they still have invested in General Motors. In a letter to Treasury Secretary Timothy Geithner last week, Sen. Chuck Grassley, R-Iowa, said the repayment "appears to be nothing more than an elaborate TARP money shuffle."

Note: For lots more on the bailout shell game from reliable sources, click here.

Goldman's White House connections raise eyebrows
2010-04-21, Miami Herald/McClatchy Newspapers
http://www.miamiherald.com/2010/04/21/1591442/goldmans-connections-to-white.html

While Goldman Sachs' lawyers negotiated with the Securities and Exchange Commission over potentially explosive civil fraud charges, Goldman's chief executive visited the White House at least four times. White House logs show that Chief Executive Lloyd Blankfein traveled to Washington for at least two events with President Barack Obama, whose 2008 presidential campaign received $994,795 in donations from Goldman's employees and their relatives. He also met twice with Obama's top economic adviser, Larry Summers. Meanwhile, however, Goldman is retaining former Obama White House counsel Gregory Craig as a member of its legal team. In addition, when he worked as an investment banker in Chicago a decade ago, White House Chief of Staff Rahm Emanuel advised one client who also retained Goldman as an adviser on the same $8.2 billion deal. Goldman's connections to the White House and the Obama administration are raising eyebrows at a time when Washington and Wall Street are dueling over how to overhaul regulation of the financial world. Lawrence Jacobs, a University of Minnesota political scientist, said that "almost everything that the White House has done has been haunted by the personnel and the money of Goldman ... as well as the suspicion that the White House, particularly early on, was pulling its punches out of deference to Goldman and its war chest."

Note: For lots more from major media sources on the corrupt relationship between the biggest financial firms and government, click here.

Report Says SEC Missed Many Shots at Stanford
2010-04-17, Wall Street Journal
http://online.wsj.com/article/SB10001424052702303491304575188220570802084.html

The Securities and Exchange Commission suspected Texas financier R. Allen Stanford of running a Ponzi scheme as early as 1997 but took more than a decade to pursue him seriously. The report by the SEC's inspector general says SEC examiners concluded four times between 1997 and 2004 that Mr. Stanford's businesses were fraudulent, but each time decided not to go further. It singles out the former head of the SEC's enforcement office in Fort Worth, Texas, accusing him of repeatedly quashing Stanford probes and then trying to represent Mr. Stanford as a lawyer in private practice. The former SEC official, Spencer Barasch, is now a partner at law firm Andrews Kurth LLP. The inspector general referred Mr. Barasch for possible disbarment from practicing law. Mr. Stanford was indicted last June and accused of orchestrating a Ponzi scheme that swindled investors out of $7 billion. SEC Inspector General David Kotz's report suggests the agency's mistakes in the Stanford case were in part the result of a culture that favored easily resolved cases over messier ones. Cases such as the alleged Stanford fraud weren't considered "quick-hit" and "slam-dunk," and examiners were discouraged from pursuing them, Mr. Kotz found.

Note: For many more examples from major media sources of the astonishing performance of the SEC in the runup to the Wall Street crisis, click here.

How did Big Finance grow so powerful that its hijinks nearly brought down the global economy?
2010-04-16, PBS Bill Moyers Journal
http://www.pbs.org/moyers/journal/04162010/watch.html

Why is it so hard to hold Wall Street accountable? Even as we speak the banking industry and corporate America are fighting against financial reform with all the money and influence at their disposal. Their effort is to preserve a system that would enable them to ransack the country once again. What can ordinary Americans do? That's the question I want to put to my guests, Simon Johnson and James Kwak. They have written this new book, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. It's a must read - already a best seller -- and it couldn't have come at a better time. This book could change the debate over financial reform by tipping it in favor of the public. Together James Kwak and Simon Johnson run the indispensable economic website BaselineScenario.com. [Moyers:] Let me get to the blunt conclusion you reach in your book. You say that two years after the devastating financial crisis of '08 our country is still at the mercy of an oligarchy that is bigger, more profitable, and more resistant to regulation than ever. Correct? SIMON JOHNSON: Absolutely correct, Bill. The big banks became stronger as a result of the bailout. That may seem extraordinary, but it's really true. They're turning that increased economic clout into more political power. And they're using that political power to go out and take the same sort of risks that got us into disaster in September 2008.

Note: For a treasure trove of reports from reliable sources on the hidden methods used by financial corporations to manipulate the world economy and gain huge profits at the expense of taxpayers, click here.

The Great Federal Reserve Bank Con Job
2010-04-13, MSNBC
http://www.msnbc.msn.com/id/21134540/vp/36233217#36233217

[video transcript:] In America today we are getting closer to fully exposing the greatest con and cover-up in this [country's] history. It involves our banks, the federal reserve, our congress, and, of course, you and me. Here's how the con went down. The bankers were operating under an implicit guarantee from the godfather [at] the Federal Reserve, in the form of guaranteed interest rates, guaranteed cheap money exclusively for the con men. Then, Chairman Greenspan, the godfather, would agree to hold those rates -- let's say 2% -- for as far as the eye could see. The banks, or bankers, the con men, would borrow that money from the Federal Reserve, let's say 2%, and turn around and lend it back to [you], and let's say 6%. That encouraged the patsies, you and me, to be drawn into the con because 6% looks like a pretty low rate. Low rates for houses, low rates for cars. Heck, you could join a health club, make that into payments, turn that into bonds, and of course promises of a higher-than-average return for those managing teachers and policemen's and judge's pension funds that are buying into the con as well. And here exactly is where the con comes in. As you and I both know, the banks had no money. They were getting it from the Federal Reserve. It's funny money.

Note: For abundant reports from reliable sources on the hidden realities of what may be the greatest con job in financial history, click here.

Goldman Sachs denies 'betting against clients'
2010-04-07, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/business/2010/apr/07/goldman-sachs-letter-shareholders

Nine months after being labelled "a great vampire squid wrapped around the face of humanity", Goldman Sachs has issued a wide-ranging justification of its conduct before, during and after the financial crisis. In a letter to shareholders issued alongside Goldman's 2009 annual report, the Wall Street bank denied that it "bet against its clients" when it changed its position in the housing market in 2007, shortly before prices began to collapse. The eight-page letter, signed by chief executive Lloyd Blankfein and president Gary Cohn, also contained a detailed defence of the $12.9bn (£8.5bn) payout which Goldman received from AIG after the failed insurance giant was bailed out by the US government. The letter appears to be a detailed response to some of the allegations made nine months ago by Rolling Stone journalist Matt Taibbi. His article, which argued that Goldman had repeatedly profited by inflating unsustainable financial bubbles ... included the claim that the company [is] "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money". Goldman ... actually profited from the fiasco by short-selling the market before the credit crunch struck in summer 2007.

Note: Read Matt Taibbi's article on Goldman Sachs here.

Court Orders Fed to Release Bailout Documents
2010-03-19, ABC News/Reuters
http://abcnews.go.com/Business/wireStory?id=10148656

In a significant victory for news media, a federal appeals court said the Federal Reserve must disclose records on emergency lending programs to banks bailed out by the government in the financial crisis. The Second Circuit Court of Appeals on [March 19] ordered the Fed to release details of programs it adopted starting in late 2007 to shore up the financial system and forestall a complete meltdown of global financial markets. Bloomberg ... and News Corp's Fox News Network sought details of the central bank's actions under the federal Freedom of Information Act. The Fed argued against disclosure, citing an exemption that it said lets federal agencies keep secret various trade secrets and commercial or financial information. Writing for a unanimous three-judge appeals court panel, Chief Judge Dennis Jacobs said, however, that to give the Fed power to deny disclosure because it thinks it best to do so "would undermine the basic policy that disclosure, not secrecy, is the dominant objective." Sen. Byron Dorgan, a North Dakota Democrat, said the rulings will help shed light on the Fed, which he called "the least transparent institution" in government.

Note: Isn't it crazy that the Fed would try to keep secret what it did with nearly $1 trillion of US taxpayer money?

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