Federal Reserve loses suit demanding transparency

NEW YORK (Reuters) - A federal judge on Monday ruled against an effort by the U.S. Federal Reserve to block disclosure of companies that participated in and securities covered by a series of emergency funding programs as the global credit crisis began to intensify.

In a 47-page opinion, Chief District Judge Loretta Preska of the federal court in Manhattan said the central bank failed to show that disclosure would cause borrowers in the Federal Reserve System to suffer "imminent competitive harm," by stigmatizing them for using Fed lending programs.

"The board essentially speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed," she wrote. "Conjecture, without evidence of imminent harm, simply fails to meet the board's burden."

Monday's ruling comes as lawmakers and investors demand greater disclosure in how the government manages a series of programs designed to lift the economy out of its deepest recession in decades.

www.reuters.com...

Nice.

This is a nice hit to the Federal Reserve and their continued opposition to transparency of our monetary system and where all the money has gone to..including corporations and banks.

I'm not sure exactly where this ruling will lead....but it's a step in the right direction.

This is good news and it looks like thing are going to get very interesting from here on. I just hope it sticks and ALL FEDs are brought down to the level they deserve. Who knows, there may even be suicides.
Nice find man S&F

You looks different man,,,did you shave

johnny rosin up your bow and play your fiddle hard cause hell's broke looss in Georgia and the devil plays it hard.................

reply to post by David9176


Hey David, Long time no see! Had a baby, gorgeous

enough asskissing

Great article, some of the best feel good news Ive aehrd all day. WIll amek bed time that much sweeter. ahhh...

reply to post by David9176


Huzzah!! Time to spread this through the grapevine. (i.e. my bank and clearing house contacts. )

Star and flag!

I can't believe there was ever any question as to if the Fed Reserve would have to disclose anything. They should have to disclose everything!

How did this ever get to the point the Fed Reserve would feel able to make disclosure demands of their own to our government. Who do they think they are???

reply to post by huntergatherer


Huntergatherer, are you just going to different topics and posting that Charlie Daniels? Lyric?? Its getting annoying, seen it in at least two tiopics including this one. Really has NOTHING to do with anything.

That being said, I hope so much dirt is found that they exile everyone that was "in" on it to the "fema camps." (maybe the coffins are for expected suicides of fat cats...lol)

Nice! A big hit to the private corporation that is the Federal Reserve.

Nice to see a judge has the nuts for this kind of ruling.

I'm practically giggling with glee.

Hopefully this will expose every criminal in the organization for what they are; something tells me this feeling won't last though. I pray that this will stick, that every goon in the fed is thrown into prison with general population and their personal bank accounts are looted and returned to the people.

This really does sound like great news, but I'm not so convinced this will actually bring any effective change. I just have this feeling...

reply to post by Sundancer

How did this ever get to the point the Fed Reserve would feel able to make disclosure demands of their own to our government. Who do they think they are???

This excerpt answers that question. For anyone who wants to know something about the Federal Reserve Banking system, I highly recommend A PRIMER ON MONEY It is well written, easily understood, interesting and informative.

A PRIMER ON MONEY
COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES
WRIGHT PATMAN Chairman 1964

......In mid-August of 1950, however, the Federal Reserve raised the discount rate and short-term Treasury bills jumped toward 11/2 percent, although there were requests from the Secretary of the Treasury and the President for the System to continue a low-rate policy. It was later revealed by testimony of some of the Federal Reserve officials to committees of Congress that the Open Market Committee had held a meeting on August 18 and decided not only t o raise the discount rate, but to "go their own way" on the Government longer term bond rate as well, despite what the President, the Secretary of the Treasury, and the head of the Office of Defense Mobilization might do....

Since the signing of the so-called accord, in March of 1951, this event has been widely interpreted as an understanding, reached between the Treasury and the Federal Reserve, that the Federal Reserve would henceforth be "independent." It would no longer " peg Government bond prices. It would raise or lower interest rates as it might see fit, as a means of trying to prevent inflation or deflation. These are understandings which have been grafted onto the accord over the years. Certainly, no such understandings were universal at the time the accord was signed. ....

At the end of 1951, then, the Federal Reserve had both self-proclaimed independence, as a result of the accord, and an operational policy which aimed at maximum credit effects through minimum changes in interest rates..... the Federal Reserve people were quite sure that they could do a better job of running the country than the President, and with only slight increases in interest rates. ...

It then added another string to its bow- the “bills only" policy. ... Henceforth when the Treasury issued bonds or medium-term securities, it was to dump these issues on the market and watch the natural consequences-first a drop in bond prices, then a gradual recovery as the market absorbed the bonds. Any private rigging or manipulations of the market were to go without interference from the Federal Reserve, as were any speculative booms or panics short of a "disorderly" market. The “bil1s-only” policy had only one reservation: The Federal Reserve would buy long-term bonds in the event that the Open Market Committee made a findings that the market was disorderly. [ full details starting on pg 103]

The [Eisenhower ] administration announced at the outset that it would re1y on monetary policy exclusive1y for its economic regulation and would respect the complete independence of the Federal Reserve to carry out these policies as it saw fit .....


Thirteen years have now passed since the accord and the liberation of the Federal Reserve. What have been the results? The major result is shockingly obvious. Interest rates have climbed steadily, with slight interruptions, during the entire post accord period. (See table 3.) The period has been marked, then, by a continual shift of income to the banks, other major financial institutions, and individuals with significant interest income. The rest of the country provided this income........

Another result of post accord monetary policy is that the U.S. economy has unwittingly become a low investment economy... The Federal Reserve has chosen the high interest, slower growth option for this country.

reply to post by David9176


Star and Flag of course.

It is good to see the Thieves in nice clothes not being teflon dons for once.

The audit the Fed bill passed the house, if they can just get it by
the lobbyist lackeys in the Senate now.

Surely if it happens it's because it needs to happen to carry on the plan, I don't see any justice being done here or anything that helps out the little man. If the disclosure comes its because it needs to.

Well now, isn't that interesting...

I wonder what the everyday common man is going to do when the MSM has to report the finds of all the graft, corruption and just outright becoming aware of the boldfaced theft of our money over the years?

And that was a rhetorical question, BTW. People will indeed be far less than civil about it. All the questions about gun sales and "uneasy" feelings will be answered very soon it would appear....

Nice find, now lets give credit where credit is due.

It was Bloomburg who filed the lawsuit and here is their story that is also posted on Drudge.

They were suppose to give out all this back in March and have put it off. Lets see what happens now. If people put lots of pressure on this, it will crack it wide open.

www.bloomberg.com...

Originally posted by Ex_MislTech
reply to post by David9176

 

Star and Flag of course.

It is good to see the Thieves in nice clothes not being teflon dons for once.

The audit the Fed bill passed the house, if they can just get it by
the lobbyist lackeys in the Senate now.

This should help clear the way. Maybe we can get credit back out to small business and get things moving. The Fed is the only thing standing in our way of building jobs back up.

They have only 5 days. Yes 5 days to cough it up...............

She gave the Fed five days to turn over documents it told the reporters it located, including 231 pages of reports, and said it must look for more at the Federal Reserve Bank of New York, which runs most of the loan programs.

Even if they disclose everything they should... They will have a team of lawyers and financiers drawing up 10,000 page documents to describe a simply act of lending and borrowing. I don't think anyone can claim this a success until there is actual disclosure and said is disclosure is written in English.

My prediction> A giant handbook is released which may as well be written in pig Latin, anyone involved in oversight goes through the motions, claims the Fed gave disclosure and for the people who are interested in understanding it... It will take years to decipher.

I mean seriously, I'm from Canada, has anyone read over the Ministry of Finances disclosure on where tax dollars go?. The public version is like reading a childrens' pop up novel that has no real information in it. And if you really want the juicy information you can find that too, but be prepared to analyze pages and pages of documents that are purposely written in code....

reply to post by David9176


I have to say that this is completely laughable that they think, or want to portray that they will lost their competiveness as their entire reason for being is to squash the competition of any banks who do not toe their party doctrine line.

The thread below was made after the book of the same title and the book explains in detail about how the Federal Reserve, being neither federal nor a reserve was created in 1913 to guarantee that the rich get richer and the poor stay that way, poor.

The Creature from Jekyll Island : A Second Look at the Federal Reserve

The Federal Reserve is regarded as a quasi-public banking system, since it has aspects of both a government run system and private enterprise.

[atsimg]http://files.abovetopsecret.com/images/member/2ebb93f8315e.jpg[/atsimg]

[edit on 25-8-2009 by SpartanKingLeonidas]

Good, good...( as you roll your hands around ) At least it is a start in the right direction. May wake some more people up.
My question is what are they gonna find when the vaults at Fort Knox are opened for inspection. Just been a lot of gold gone missing this last decade. Just a thought.