FEDS DEFY TRANSPARENCY AIM IN REFUSAL TO DISCLOSE

[Arun1951]

Friends,
Let us all note two facts: {a} the world leaders are holding a summit (G-20, including India) on 15th November in DC where, as per Tarpley's report, the IMF will seek a total subservience to macro-economic control (over all countries) and (b) at the same time the Federal Reserve that failed (and/or was complicit) in causing financial meltdown, sought US Government intervention to bail out some of the most corrupt banks is NOW REFUSING TO DISCLOSE where US taxpayers' money is going. Mike Ruppert says this is daylight robbery. However, I don't think the American people, mind controlled automatons would rise up in revolt at this grand theft.

Let me just remind you the scale of the theft: One trillion dollar is 1,000,000,000,000 (TWELVE ZEROES AFTER ONE). India's GDP is about that. According to analysts the US Government has already given away over two-three trillion by way of bailout lollipops, not the small change of nice tidy sum of US$700 billion that the Congress approved (perhaps at gun point). But according to one analyst the total amount involved is US$ 185 trillion and according to another group of analyst it is close to 300 trillion. Frankly, no one knows of the scale of this financial crime. That is why I had been warning you all to transfer your accounts to Government of India owned nationalized banks. They are safer. Not completely safe (with Chidambaram lurking around in the corner; remember the Indian Bank scam? He was the cause of it.)

The US Government, instead of cleaning its house and putting it in order, is now refusing to divulge what it is going to do with its tax-payers money without telling the taxpayers. This is the story.
Please also note that "Let Truth Prevail" Times of India is totally silent, so are other 'entertaining news makers" in Zafar Marg. When people of India (and of course that of the US, who are going to be enslaved for generations) get to the truth, they would perhaps rename Zafar Marg as a NEW GB ROAD."

For my overseas friends Zafar Marg or Bahadur Shah Zafar Marg is the Indian Fleet Street and GB Road is famous for its prostitutes.

Sincerely
Arun Shrivastava

THIS IS HUGE! FEDS DEFY TRANSPARENCY AIM IN REFUSAL TO DISCLOSE 

 

<http://carolynbaker.net/site/index2.php?option=com_content&task=view&id=843&pop=1&page=0&Itemid=1#>

 

[See also Naomi Klein's November 6 article "Real Change Depends On

Stopping Bailout Profiteers"

<http://www.commondreams.org/view/2008/11/06-11>

Only days before the Bloomberg story, Klein was warning us that the

Bush administration is going to go out looting everything that isn't

nailed down--starting with the bailout.--CB] 

 

Reprinted from BLOOMBERG

<http://www.bloomberg.com/apps/news?pid=20601087&sid=aatlky_cH.tY&refer=worldwide#>

 

By Mark Pittman, Bob Ivry and Alison Fitzgerald 

 

Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify

the recipients of almost $2 trillion of emergency loans from American

taxpayers or the troubled assets the central bank is accepting as

collateral. 

 

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson

said in September they would comply with congressional demands for

transparency in a $700 billion bailout of the banking system. Two

months later, as the Fed lends far more than that in separate rescue

programs that didn't require approval by Congress, Americans have no

idea where their money is going or what securities the banks are

pledging in return. 

 

"The collateral is not being adequately disclosed, and that's a big

problem,'' said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he

co-manages $17 billion in bonds. "In a liquid market, this wouldn't

matter, but we're not. The market is very nervous and very thin.'' 

 

Bloomberg News has requested details of the Fed lending under the

U.S. Freedom of Information <http://www.usdoj.gov/oip/>

Act and filed a federal lawsuit Nov. 7 seeking to force disclosure. 

 

The Fed <http://www.frbdiscountwindow.org/cfaq.cfm?hdrID=21&dtlID=>

made the loans under terms of 11 programs, eight of them

<http://www.federalreserve.gov/newsevents/press/monetary/20080914a.htm>

created in the past 15 months, in the midst of the biggest financial

crisis since the Great Depression. 

 

"It's your money; it's not the Fed's money,'' said billionaire Ted

Forstmann, senior partner of Forstmann Little & Co. in New York. "Of course

there should be transparency.'' 

 

Treasury, Fed, Obama 

 

Federal Reserve spokeswoman Michelle Smith

declined to comment on the loans or the Bloomberg lawsuit. 

Treasury spokeswoman Michele Davis didn't respond to a phone 

call and an e-mail seeking comment. 

 

President-elect Barack Obama's economic adviser, Jason Furman, 

also didn't respond to an e-mail and a phone call seeking comment

from Obama. In a Sept. 22 campaign speech, Obama promised to "make

our government open and transparent so that anyone can ensure that

our business is the people's business.'' 

 

The Fed's lending is significant because the central bank has

stepped into a rescue role that was also the purpose of the $700

billion Troubled Asset Relief Program

<http://www.ustreas.gov/press/releases/hp1207.htm>, or TARP, 

bailout plan -- without safeguards put into the TARP

legislation by Congress. 

 

Total Fed lending topped $2 trillion for the first time last week

and has risen by 140 percent, or $1.172 trillion, in the seven weeks

since Fed governors relaxed the collateral standards on Sept. 14. The

difference includes a $788 billion increase in loans to banks through

the Fed and $474 billion in other lending, mostly through the central

bank's purchase of Fannie Mae and Freddie Mac bonds. 

 

Sept. 14 Decision 

 

Before Sept. 14, the Fed accepted mostly top-rated government and

asset-backed securities as collateral. After that date, the central

bank widened standards to accept other kinds of securities, some with

lower ratings. The Fed collects interest on all its loans. 

 

The plan to purchase distressed securities through TARP called for

buying at the ``lowest price that the secretary (of the Treasury)

determines to be consistent with the purposes of this Act,''

according to the Emergency Economic Stabilization Act of 2008, the

law that covers TARP

<http://www.ustreas.gov/press/releases/hp1207.htm>

 

The legislation didn't require any specific method for the purchases

beyond saying mechanisms such as auctions or reverse auctions should

be used "when appropriate.'' In a reverse auction, bidders offer to

sell securities at successively lower prices, helping to ensure that

the Fed would pay less. The measure also included a five-member

oversight board that includes Paulson and Bernanke. 

 

At a Sept. 23 Senate Banking Committee

<http://www.banking.senate.gov/>

hearing in Washington, Paulson called for transparency in the

purchase of distressed assets under the TARP program. 

 

'We Need Transparency' 

 

"We need oversight,'' Paulson told lawmakers. "We need protection.

We need transparency. I want it. We all want it.'' 

 

At a joint House-Senate hearing the next day, Bernanke also stressed

the importance of openness in the program. "Transparency is a big

issue,'' he said. 

 

The Fed lent cash and government bonds to banks, which gave the Fed

collateral in the form of equities and debt, including subprime and

structured securities such as collateralized debt obligations,

according to the Fed Web site. The borrowers have included the

now-bankrupt Lehman Brothers Holdings Inc., Citigroup Inc. and 

JPMorgan Chase & Co. 

 

Banks oppose any release of information because it might signal

weakness and spur short-selling or a run by depositors, said Scott

Talbott, senior vice president of government affairs for the Financial

Services Roundtable <http://www.fsround.org/>, a Washington trade group. 

 

Frank Backs Fed 

 

"You have to balance the need for transparency with protecting the

public interest,'' Talbott said. "Taxpayers have a right to know

where their tax dollars are going, but one piece of information

standing alone could undermine public confidence in the system.'' 

 

The nation's biggest banks, Citigroup, Bank of America Corp.,

JPMorgan Chase, Wells Fargo & Co., Goldman Sachs Group Inc. and

Morgan Stanley, declined to comment on whether they have borrowed

money from the Fed. They received $120 billion in capital from the

TARP, which was signed into law Oct. 3. 

 

In an interview Nov. 6, House Financial Services Committee Chairman Barney Frank

said the Fed's disclosure is sufficient and that the risk the

central bank is taking on is appropriate in the current economic

climate. Frank said he has discussed the program with Timothy F.

Geithner, president and chief executive officer of the Federal Reserve 

Bank of New York and a possible candidate to succeed Paulson as Treasury

secretary. 

 

"I talk to Geithner and he was pretty sure that they're OK,'' said

Frank, a Massachusetts Democrat. "If the risk is that the Fed takes

a little bit of a haircut, well that's regrettable.'' Such losses

would be acceptable, he said, if the program helps revive the

economy. 

 

"Unclog the Market"

 

Frank said the Fed shouldn't reveal the assets it holds or how it

values them because of "delicacy with respect to pricing.'' He said

such disclosure would "give people clues to what your pricing is and

what they might be able to sell us and what your estimates are.'' He

wouldn't say why he thought that information would be problematic. 

 

Revealing how the Fed values collateral could help thaw frozen

credit markets, said Ron D'Vari, chief executive officer of NewOak Capital LLC in New York and the

former head of structured finance at BlackRock Inc. 

 

"I'd love to hear the methodology, how the Fed priced the assets,''

D'Vari said. "That would unclog the market very quickly.'' 

 

TARP's $700 billion so far is being used to buy preferred shares in

banks to shore up their capital. The program was originally intended

to hold banks' troubled assets while markets were frozen. 

 

AIG Lending 

 

The Bloomberg lawsuit argues that the collateral lists "are central

to understanding and assessing the government's response to the most

cataclysmic financial crisis in America since the Great Depression.''

 

The Fed has lent at least $81 billion to American International

Group Inc. <http://carolynbaker.net/apps/quote?ticker=AIG%3AUS>, 

the world's largest insurer, so that it can pay obligations to

banks. AIG today said it received an expanded government rescue

package valued at more than $150 billion. 

 

The central bank is also responsible for losses on a $26.8 billion

portfolio guaranteed after Bear Stearns Cos. was bought by JPMorgan. 

 

"As a taxpayer, it is absolutely important that we know how they're

lending money and who they're lending it to,'' said Lucy Dalglish, 

executive director of the Arlington, Virginia- based Reporters

Committee for Freedom of the Press. 

 

Ratings Cuts 

 

Ultimately, the Fed will have to remove some securities held as

collateral from some programs because the central bank's rules call

for instruments rated below investment grade to be taken back by the

borrower and marked down in value. Losses on those assets could then

be written off, partly through the capital recently injected into

those banks by the Treasury. 

 

Moody's Investors Service alone has cut its ratings on 926

mortgage-backed securities worth $42 billion to junk from investment

grade since Sept. 14, making them ineligible for collateral on some

Fed loans. 

 

The Fed's collateral ``absolutely should be made public,'' said Mark Cuban

<http://search.bloomberg.com/search?, an activist investor, the owner of the Dallas Mavericks

professional basketball team and the creator of the Web site

BailoutSleuth.com <http://www.bailoutsleuth.com/>, which focuses on the secrecy shrouding the Fed's moves. 

 

The Bloomberg lawsuit is Bloomberg LP v. Board of Governors of the

Federal Reserve System, 08-CV-9595, U.S. District Court, Southern

District of New York (Manhattan). 

 

To contact the reporters on this story: Mark Pittman

<http://search.bloomberg.com/search?

 

Last Updated: November 10, 2008 15:08 EST 

 

 

Note from Paul:

Why am I surprised?!?

Certainly every American should be up in arms over this. But, I think Mike Ruppert is a bit naive if he thinks they will.

These elite criminals are well advised - they have all the power, all your money, and the legal system in their pockets.

They know very well they can get away with daylight robbery!

 

Paul

 

PS        Although Bloomberg have picked up on this, don't hold your breath waiting for the MSM to follow suit!

URGENT -- THE CRIME IS COMING UNRAVELLED

By Mike Ruppert

The following story is monumental and the days between now and January 20th are going to be non-stop action and, most likely, very bad news. The Treasury is refusing to disclose which institutions are getting taxpayer bailout money. Bloomberg has filed suit to find out. That speaks volumes for Bloomberg. Hank Paulson has completely violated his testimony before Congress when he sought approval of the package. Under oath he begged for the same transparency he himself is now refusing to provide. But bear in mind that most of the Treasury money that is being dispersed is NOT part of the congressional bailout package. There's more than two trillion in Treasury money forked over and the congressional bailout was only $750 billion. This has nothing to do with protecting asset prices or the industry. It has to do with obstructing justice and concealing evidence. If the mainstream media try to brush this over they will lose all credibility with Joe the Plumber and Joe Sixpack. The public will grasp this in a heartbeat. This is a crime being committed in broad daylight, in the middle of Main Street, in perfect weather.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aatlky_cH.tY&refer=worldwide

Now take it one step further and go back to FTW's last economic alert; the one I wrote and published 11 days before our computers were smashed in 2006. In our last-ever alert, I screamed that the collapse was planned, inevitable and imminent because President Bush had just authorized the SEC to exempt certain financial institutions from full and transparent reporting on grounds of national security. Huh?! -- I screamed that the bank vaults had just been opened and the green light given to pump, loot, and pump some more -- based on falsified earnings reports and asset descriptions -- then dump it out and shut the U.S. down, leaving us all broke. Paulson, of course, won't disclose what "assets" were purchased in any bailouts because then it would be discoverable that there are many more paper mortgages than there are actual properties. I would bet just about everything I have that the list of companies exempted from filing complete reports will match --almost perfectly -- the list of firms that are receiving Treasury bailout funds -- our money. The only thing standing between Bush/Cheney and the pokey is their own national-security classification power. That's it. Well there's real good case law about classifying to conceal crimes and the Bloomberg case is a sure-fire winner in the Supreme Court. Not only is the Constitution clear, any other ruling might well start an uprising. Bush/Cheney know this, so their plan -- however far it goes -- must be completed before this case could get to the Supremes.

Here again, is the link to FTW's June 2006 Economic Alert:
http://www.fromthewilderness.com/free/ww3/061406_abyss_awaits.shtml.

If I were still doing investigative reporting I'd be down at the courthouse getting a copy of the Bloomberg suit ASAP. The Reuters story even gives the case number at the bottom. It's a public document. There's a revolt already underway when Bloomberg files suit against TPTB and Reuters appears to be supporting the play. This is High Noon -- one of many to come in the next 60 days.

The Bush/Cheney regime still has that time in office and I may be risking my life to print this. But there will never be a better time and we are not alone. The whole world is watching and a great many influential people read us. Those in the mainstream and elected office who have benefited from our work for years have been silent for too long. I predicted all of this in agonizing detail starting years ago and they know it. You who have been so loyal for so long know it. The only thing that will help us all is to point to the crime and the evidence and scream as loudly as we can. The American people can grasp this in an instant. Bush's popularity is lower than for any president in history. The more people who see and understand this story, especially those in elected office and positions of influence, the safer we all are; the more of a chance we, and especially our children, have. Michael Bloomberg needs back up too. He's doing the right thing here. I need to ask all who are willing to start spreading this blog entry around to the most influential places and people you know. The bad guys are getting ready to leave town with our money, in a slow parade that we're going to pay for and give them. They are banking that we're going to be relieved enough to see them go that we'll let them leave in a motorcade and cheerily wave goodbye.

I pray we make it to the inauguration.The bad guys are following a plan that will run right up until the last second. I think the wheels are coming off it because this news won't sit well anywhere in this country and I smell that they have reached too far. It is far less expensive to prevent the money from leaving the bank than it is to get it back there once it's been stolen. This has got to be stopped. We muist know where that money is going (or went) before January 20th.

Does this remind anyone of the NEPDG? --- I wrote a lot about that too.
MCR (aka Mile Ruppert)

 

Further notes:

 

For those readers who are not aware of what happened during the first year of Bush-Cheney brigade's crimes of the NWO, which was also reported by Mike Ruppert, here's the link.

 

http://www.gao.gov/nepdgchron.pdf

 

The Government Accounting ffice (GAO) was refused to have a copy of National Energy Policy Development Group (NEPDG) proceedings……..a consummate example of crimes and corruptions of the New World Order.

 

Of course, these are beyond the capability of mainstream media and our Secular, Leftist idiots, who are at best complicit, worse, do deals behind the doors. These Leftist - secularists were ensconsed with Henry Kissinger. Does any one know what transpired between Buddhadev Bhattacharya and Henry Kissinger in Kolkata on 6th November 2007...? Manmohan Singh pushed the nuke deal, the opposition of Leftists was political bickering not opposition on facts, and then the Leftists were dumbed and dumped like hot brick.

 

Sincerely

Arun Shrivastava