- Home
- Premium Memberships
- Lottery Results
- Forums
- Predictions
- Lottery Post Videos
- News
- Search Drawings
- Search Lottery Post
- Lottery Systems
- Lottery Charts
- Lottery Wheels
- Worldwide Jackpots
- Quick Picks
- On This Day in History
- Blogs
- Online Games
- Premium Features
- Contact Us
- Whitelist Lottery Post
- Rules
- Lottery Book Store
- Lottery Post Gift Shop
The time is now 2:17 pm
You last visited
May 4, 2024, 1:33 pm
All times shown are
Eastern Time (GMT-5:00)
"Racketeering 101: Bailed Out Banks Threaten Systemic Collapse If Fed Discloses Information
Published:
Updated:
Source Zero Hedge
As a reminder, The Clearing House Association consists of ABN Amro, Bank Of America, The Bank Of New York, Deutsche Bank, HSBC, JP Morgan Chase, US Bank and Wells Fargo.
In a declaration filed in the Bloomberg Case (08-CV-9595, Southern District of New York), the banks demonstrate no shame in attempting to perpetuate the status quo with regard to the Federal Reserve and demand that the wool over the eyes of the general population remain firmly planted in perpetuity.
The Clearing House submits this declaration because the Court's Order threatens to impair the ability of our members to access emergency funds through the New York Fed's Discount Window without suffering the severe competitive harm that public disclosure of their identity will cause.
Our members have accessed the New York Fed's Discount Window with the understanding that the Fed will not publicly disclose information about their borrowing, especially their identity. Industry experience, including very recent and searing experience, has shown that negative rumors about a bank's financial condition - even completely unfounded rumors - have caused competitive harm, including bank runs and failures.
Surely transparency would facilitate rumor-mongering to an unprecedented degree. After all rumors spread much easier when everyone knows the true financial condition of banks.
And here, in plain written Times New Roman, you see what racketeering by a major bank consortium looks like:
If the names of our member banks who borrow emergency funds are publicly disclosed, the likelihood that a borrowing bank's customers, counterparties and other market participants will draw a negative inference is great. Public speculation that a financial institution is experiencing liquidity shortfalls - which would be a natural inference from having tapped emergency funds - has caused bank customers to withdraw deposits, counterparties to make collateral calls and lenders to accelerate loan repayment or refuse to make new loans. When an institution's customers flee and its credit dries up the institution may suffer severe capital and liquidity strains leaving it in a weakened competitive position.
Pardon me if I am a broken record here, but would rumors not spread much less if there was more transparency, if investors and other financial intermediaries were fully aware of the conditions of their counterparties, if banks did not have to cover their billions in reserve losses by pretending they are viable and essentially being constant wards of the state?
The Banks' racketeering has gone on for far too long.
And yet, it does not stop: the conclusion from the banks' letter:
In sum, our experience differs from the factual conclusions the Court appears to have reached about the nature of competition in the banking industry:
- The competitive harm to institutions that are publicized as needing emergency funding is not "speculative," but demonstrated by the recent multiple failures of financial institutions whenever information about their funding difficulty has been disclosed.
- The disclosure does not involve mere "embarassing publicity" but information that could result in the immediate demise of an institution.
- The disclosure would not merely "stigmatize [ ]"the institution or make it "look [ ] weak," but goes to its very viability.
- The disclosure of accessing emergency funding is not an "inherent risk" of market participation, but an extraordinary risk in extraordinary circumstances.
- Competitors can use the disclosure to advertise or publicize that they are financial stronger because they don't need emergency funding.
In a nutshell - the banks want their complete opacity cake and eat it too, or else, the racket goes, the transparency that will somehow promote massive rumor mongering will again destroy capitalism. In the meantime, the Ken Lewises of the world can continue touting how stable their businesses are based on optimistic future projections, while implicitly, they continue to survive merely thanks to the cash granted them by you, taxpayers.
Full filing here: (live link) "
Comments
A couple good video titles: The Creature from Jekyl Island, Freedom to Fascism by Aaron Russo.
let the bankers speak their minds after they gobbled up the peoples money? The Obamaknights will lurk over them like the Brown shadow of DOOM, and glue their lips sealed with crazyglue. The trials and tribulations of Monopoly that " Hope and Change " is playing..
Hope & Change have turned into .... wish in one hand, see the other turn into a sewage overflow.
Post a Comment
Please Log In
To use this feature you must be logged into your Lottery Post account.
Not a member yet?
If you don't yet have a Lottery Post account, it's simple and free to create one! Just tap the Register button and after a quick process you'll be part of our lottery community.
Register