A Paralyzed Fed Defers Decision On Monetary Policy To Primary Dealers In An Act That Can Only Be Classified As Treason

http://www.zerohedge.com/article/paralyzed-fed-defers-decision-monetary-policy-primary-dealers

I think it's safe to say the FED has no idea of what it's doing.
The reason being, that it has to ask the investment banks how big QE2 should be and how often they think it should be monitored.
Or maybe they're just taking an order for the next catered event in the "to big to fail" investment banking series.
I seriously guess they are to big, since it looks as though they're are running the show.
Hell they don't even bother to hide it any more.


the New York Fed has issued a survey to Primary Dealers, which asks for suggestions on the size of QE2 as well as the time over which it would be completed. It also asks firms how often they anticipate the Fed will re-evaluate the program, and to estimate its ultimate size. This is nothing short of a stunning indication of three things: i) that the Fed is most likely completely paralyzed due to the escalating confrontation between the Hawks and the Doves, and that not even Bernanke believes has has sufficient clout to prevent what Time magazine has dubbed a potential opening salvo into a chain of events that could lead to civil war: in effect Bernanke will use the PD's decision as a trump card to the Hawks and say the market will plunge unless at least this much money is printed, ii) that the Fed is effectively asking the Primary Dealers to act as underwriters on whatever announcement the Fed will come up with, and thus prop the market, and, most importantly, iii) that the PDs will most likely demand the highest possible amount, using Goldman's $2-4 trillion as a benchmark, and not only frontrun the ultimate issuance knowing full well what the syndicate of 18 will decide in advance of what the final amount will be, but will also ramp stocks on November 3 to make the actual QE announcement seem like a surprise. This also means that the Primary Dealers of America, which include among them such hedge funds as Goldman Sachs, such mortgage frauds as Bank of America, such pathological liars as Wells Fargo, such insolvent foreign banks as Deutsche, RBS, UBS and RBS, and such middle-market excuses for banks as Jefferies, are now in control of US monetary, and as we explain below fiscal, policy.

Who was paidoff in the AIG bailout

http://www.huffingtonpost.com/2010/01/27/revealed-see-who-was-paid_n_438933.html

It wasn't just Goldman this little present was given to.
But by and large Goldman made out like a bandit

A key question at the heart of the controversial bailout of AIG is just how much money the government lost. The Federal Reserve and Treasury Department have worked to keep that number secret and to conceal who was on the winning end.

An unredacted document obtained by the Huffington Post list the damage in detail. Goldman Sachs alone, for instance, got $14 billion in government money for assets worth $6 billion at the time -- a de facto $8 billion subsidy, courtesy of taxpayers.

The list was produced as part of a congressional investigation led by the House Oversight and Government Reform Committee into the federal bailout of AIG.

The Federal Reserve Bank of New York, then led by now-Treasury Secretary Tim Geithner, purchased a slew of souring assets from the world's biggest banks for 100 cents on the dollar in November and December 2008. A scathing report by a government watchdog

AIG and NY FED: Who's involved

http://market-ticker.denninger.net/archives/1906-AIG-and-NY-Fed-Whos-Involved.html

There is a big rush on now to have Bogus Ben reconfirmed for his position as head of the FED.
The vote is set to be cast tomorrow in spite of the turbulent weather of fraud and coercion accusations that seem to be growing daily.
The hand holding that can actually be seen deserves to be delved into with the highest scrutiny.
Bogus Ben's scent left at the scene of the crime is still found lingering in the air.
Collusion at this time seems to be a very strong point that can't be ruled out, and until it is, Bogus Ben's position should NOT be voted on for reconfirmation.
lest Congress wishes themselves to be seen as willing participants in the collusion, and cover up of the fraud that has now reared it's ugly head

Things like this are a tad hard to rebury, Hank worked very hard to make sure that you'd never see what the makeup of "the real deal was"

•It appears that The Fed was neck-deep in all of this - Zerohedge published an article which appears to document that Soc Gen had pledged reference securities at the Fed Discount Window that had a value of 49 cents on the dollar, probably without a material haircut! In other words this French firm was funding itself with money from our Federal Reserve with securities pledged at "par" that were in fact worth less than half and for which the taxpayer was on the hook for.

Two at Fed Had Doubts Over Payout by A.I.G.

http://www.nytimes.com/2010/01/27/business/27aig.html?hp



Weeks after rescuing the American International Group with an $85 billion taxpayer loan in late 2008, Federal Reserve Board officials rejected a proposal that would have forced the insurer’s trading partners to return $30 billion in cash that they had received from A.I.G. in the preceding months.

The Fed chose instead to let the banks keep the cash and to receive additional billions from taxpayers. This decision was made, internal documents show, after two Fed governors expressed concern that such a plan might be “a gift” to the company’s trading partners, including Goldman Sachs and Société Générale, a major French bank. The documents were provided to Congressional investigators by the Federal Reserve and were obtained by The New York Times.

Lawyers for the Fed argued in the documents that it did not have the legal authority to guarantee A.I.G.’s obligations

SEC mulled national security status for AIG details

http://www.reuters.com/article/idUSTRE60N1S220100124

This just gets better and better lol
They use the term "national security" for everything they want to keep secret don't they.

U.S. securities regulators originally treated the New York Federal Reserve's bid to keep secret many of the details of the American International Group bailout like a request to protect matters of national security, according to emails obtained by Reuters.

AIG more NY FED concealment

http://market-ticker.denninger.net/archives/1868-AIG-More-NY-Fed-Concealment.html


Karl's definitely got a case going on.
I can clearly see where the NY FED has a very serious case of conflicting interests going on, very much like the Federal Reserve itself.
It's becoming very obvious and seriously can't be denied as to whose interest come first.
The question is, how much longer will "The People" settle for this back stabbing garbage?


The New York Fed has said its focus in AIG disclosures has been "ensuring accuracy and protecting taxpayers interests during a time of severe economic distress."

Accuracy only occurs with scrutiny and disclosure. With the public generally and market participants specifically, being able to view the transactions that took place, including their terms.

Without that there is no "accuracy" - only corruption, secrecy and deceit. With secrecy comes mischief and and cover to permit lies.

The NY Fed argues it has the right to do this, as does the FOMC.

I disagree.

The NY Fed may be a bank with commercial interests but when it acts at the direction of, directly or indirectly, the FOMC and The Fed generally it acts as a fiduciary of the Taxpayer and Congress.

New York Fed to be subpoenaed for AIG bailout docs

http://finance.yahoo.com/news/New-York-Fed-to-be-subpoenaed-apf-3658793558.html?x=0&sec=topStories&pos=1&asset=&ccode=

It never ceases to amaze me regarding the given powers to the FED considering that they are really only a private corporation.

Issa asked Towns to subpoena the New York Fed after the Federal Reserve blocked a separate request for documents.

The Fed told the special inspector general for the financial bailout not to provide documents Issa had requested as part of his investigation.

Geitner's handwriting on the call?

http://market-ticker.denninger.net/archives/1833-Aig-And-Geithner-More-Lies.html

Oh my my, look what Karl found.
Are we ready to prosecute yet?


“Matters relating to AIG securities law disclosures were not brought to the attention of Mr. Geithner,” Thomas Baxter, general counsel of the New York Fed, said yesterday in a letter to Representative Darrell Issa, a California Republican, and Edolphus Towns, Democrat of New York. “In my judgment as the New York Fed’s chief legal officer, disclosure matters of this nature did not warrant the attention of the president.” Geithner, who helped orchestrate the bailout of AIG when he led the New York Fed, is now Treasury Department secretary.

Oh really?