Where The Sun Never Shines


Where The Sun Never Shines

Posted by Karl Denninger

I’m sure you can figure out where that might be.

Of course we must include the NY Fed and The Federal Reserve generally, which apparently believes it is either above the law or has a “special exemption”, as evidenced here:

Jan. 7 (Bloomberg) — The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

Remember, this was when Geithner was the head of the NY Fed.  Remember too that President Obama promised us that his administration would operate entirely “above board” and “in the sunshine.”

This, of course, is why he later nominated (and The Senate approved) a man who intentionally concealed what AIG had done – and what The Fed had covered up.

I suppose this is the sort of thing we should have expected to discover, given that our President-elect (at the time) did indeed nominate an admitted tax cheat to be the nation’s chief tax collector!

“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.” President Barack Obama selected Geithner as Treasury secretary, a post he took last year.

It is not just Taxpayers who deserve disclosure. 

Stockholders not only deserve disclosure, they have a LEGAL RIGHT to it!

AIG’s Dec. 24, 2008, filing was challenged privately by the U.S. Securities and Exchange Commission, which polices the adequacy of disclosures by publicly traded firms. The agency said in a letter to then-CEO Edward Liddy six days later that AIG should provide a Schedule A, which lists collateral postings for the swaps and names the bank counterparties that purchased them from the company. The Schedule A was disclosed about five months later in a filing.

Five months later.  By which time the damage to those who were harmed was “all done.”  And what did the NY Fed say in its own defense?

“Our position has always been that if AIG’s securities lawyers determine that AIG is legally obligated to make a particular filing or disclosure, then that is what AIG must do,” said Jack Gutt, a spokesman for the New York Fed, in an e- mailed statement. Gutt said it was appropriate for the New York Fed, as party to deals outlined in the filings, “to provide comments on a number of issues, including disclosures, with the understanding that the final decision rested with AIG’s securities counsel.”

Uh huh.

Here’s my position Mr. Gutt. 

The entirety of the Federal Reserve structure must be gutted and replaced with a monetary authority that acts, in each and every case, in the sunshine, not hiding in the shadows and scurrying with the roaches. 

It is not THE FED’S money that they’re playing with (in which case it would be entitled to do whatever the devil it wanted), it is OUR money.  The sovereign credit of The United States, for which WE THE PEOPLE are ultimately responsible in the form of levied taxes upon our labor and investments.

Those who argue otherwise should be run out of town on a rail by the people of this nation – the people who have the ultimate right to veto, by any means desired (and necessary) THE ACTIONS OTHERS TAKE THAT IN TURN OBLIGATE THEM.

The NY Fed (and indeed Bernanke’s Federal Reserve) has clearly forgotten where their authority to act actually comes from.  It does not come from God, it does not come from The Rothchilds and it does not come from Ben Bernanke, Congress, or even President Bush (or Obama.) 

IT COMES FROM THE PEOPLE and it is time for those very same people to tell you, Mr. Gutt, along with the rest of The Fed “structure”, that your authority is being revoked.