by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Dec 12 – The Federal Reserve - both the Board of Governors in Washington and the FRBNY - have been sued by Banco San Juan International for the terminal of its master account(s).
On the motion to dismiss, oral arguments were held on December 12 before U.S. District Court for the Southern District of New York Judge John G. Koeltl. Inner City Press was there. Thread:
Fed's lawyers from Simpson Thacher law firm cite Custodia (crypto) case. Does this outside counsel rep raise conflicts of interest on mergers?
Note: Simpson Thacher represents many banks applying to the Fed for merger approvals - why did the Fed, which has many in house lawyers, have to hire them? And isn't there now a conflict of interest on the merger applications? Fed: The Reserve Banks are not govt
Fed / Simpson Thacher: Congress has not provided these [edgy] banks any remedy. Anyway we've shown good faith in closing their master account. [Isn't this now a variant of the de-banking legislation in Congress?]
Fed / Simpson Thacher: The FRBNY, like me, is not subject to the 5th Amendment, as a private citizen.
FRBoard Joshua: We don't know why the Board is in this case. Judge: The plaintiff argues that the Board controlled the decision FRBoard: We're not responsible
Plaintiff: The banks is down to 10 accounts, with $20,000 in them. It is for all intents & purposes closed. We may appeal to the Supreme Court, now that deference to agencies [Chevron]. The court in Custodia denied the Fed's [Simpson Thacher's?] motion to dusmiss
Plaintiff: The Fed never closed the master accounts of Deutsche Bank, despite wrongdoing - and what about "Toronto Dominion, which pled guilty to money laundering"?
[Note: TD's Leonardo Ayala is being prosecuted in the District of NJ]
Inner City Press will stay on these cases.
This case is Banco San Juan Internacional, Inc. v. The Federal Reserve Bank of New York, et al., 1:23-cv-06414 (Koeltl)
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