The Board of Governors contends that it’s separate from its member banks, including the Federal Reserve Bank of New York which runs the lending programs. Most documents relevant to the Bloomberg suit are at the Federal Reserve Bank of New York, which the Fed contends isn’t subject to FOIA law. The Board of Governors has 231 pages of documents, which it is denying access to under an exemption under trade secrets.
Once again, B, over at Moon Of Alabama cuts through the bullshit obfuscating language and gets to the heart of the greatest robbery in History in clear text. It would be wise to read him.
Also see,
Scholes Advises ‘Blow Up’ Over-the-Counter Contracts (Update2)
March 6 (Bloomberg) -- Myron Scholes, the Nobel prize- winning economist who helped invent a model for pricing options, said regulators need to “blow up or burn” over-the-counter derivative trading markets to help solve the financial crisis.
The markets have stopped functioning and are failing to provide pricing signals, Scholes, 67, said today at a panel discussion at New York University’s Stern School of Business. Participants need a way to exit transactions and get a “fresh start,” he said.
The “solution is really to blow up or burn the OTC market, the CDSs and swaps and structured products, and let us start over,” he said, referring to credit-default swaps and other complex securities that are traded off exchanges. “One way to do that, through the auspices of regulators or the banking commissioners, is to try to close all contracts at mid-market prices.”
Scholes also recommended moving the trading of credit- default swaps, asset-backed securities and mortgage-backed securities to exchanges to allow for “a correct repricing” of the assets. The securities are currently traded between banks and investors, without any price disclosure on exchanges.
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The estimated downside exposure for taxpayers is $531T[*], if no solution is found.
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Donald Kohn of the Fed Governors told the Senate Finance Committee the Fed pledge of "full transparency" will "have to be modified" and the Fed now no longer has any intention of revealing the beneficiaries to full-par bailout of hedge speculators.
*That's a T, as in 531 Trillion.
As rapt, a commenter over at MOA says, ...
What that says is govt may have to borrow that much for the Big Bailout. $531T equals 1.8 million dollars for each American if you keep the debt domestic. Spread the pain globally and you get 88.5 thousand dollars for each human on the planet.
So can we assume that the game is essentially over now? I mean you know, the numbers don't work any more.
Further, "The new feature of Manhattan streets should be bankers hanging from lampposts. [The] lot of them."
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