Whose Streets? NYPD Officer Paid by Deutsche Bank To Empty Atrium Early

By Matthew Russell Lee

UNITED NATIONS, December 15 -- In the 60 Wall Street atrium, where Occupy Wall Street used to meet, uniformed New York City police officers order people to leave at 9:30 pm, despite a sign on the glass windows saying “Open to the Public” until 10 pm.

 Inner City Press, using the atrium on December 14 as before as a newsroom -- this time covering a glitzy and historically corruption UN Correspondents Association event at Cipriani across the Street -- was told by an NYPD officer to leave, at 9:30 pm on the dot.

  When Inner City Press pointed to the Open to the Public until 10 pm, the NYPD officer insisted; a group of other guards assembled. They said to calls the number of the sign (212-250-2000, DBAB LCC) but insisted it be done from outside. All other having been using the atrium just minutes before had left, some on the sidewalk of Wall Street outside.

  After several threats by the NYPD officer, and needing to continue to file stories and photos about the UN Corruption Association event, Inner City Press went out onto the sidewalk. Some of those who'd left said this happens every night.

  Inner City Press asked the NYPD officer for her name and badge number, but she rushed away. Another guard said “the precinct knows about it,” also adding that the officer “makes extra money.”

   So NYPD officers, or at least this one, are paid extra by Deutsche Bank to throw people out of a public atrium they are required, due to zoning variances, to have? We'll have more on this.

 Across Wall Street: With the UN embroiled in scandals including the indictments of the former President of the General Assembly John Ashe and Macau businessman Ng Lap Seng and the founder of South South News, on December 14 the UN Correspondents Association sold seats with Ban Ki-moon at Cipriani at 55 Wall Street for $6000.

UN corruption, never reformed, rises from the Ashes, courtesy of UNCA, now the UN Corruption Association.

  And yet, from inside Cipriani Wall Street, one of the musicians paid to play has an open mind, and when shown reporting on UN corruption asks, Should I make a scene? Tweet here.

 Just ask, who here paid $6000 as solicited by UNCA to sit with Ban Ki-moon. And why pay it? With Ng Lap Seng, it's clear.

 Since UNCA previously at such an event at Cipriani sold photo ops with Ban Ki-moon to now-indicted Ng Lap Seng, who will be this year's Ng Lap Seng?  Into Cipriani, this time the one on Wall Street, passed many tuxedoed individuals never seen at the UN. What were they buying? What safeguards had been added since Ng Lap Seng and John Ashe? None.

  New PGA Mogens Lykketoft arrived, as did Deputy Secretary General Jan Eliasson and David Nabarro, who stopped in the rain to speak with Inner City Press, as did another Under Secretary General. How can the UN and its group of scribes remain so UNreformed, despite indictments and public scandal?

The bureau chief of Voice of America, who previously tried to get Inner City Press thrown out of the UN after it reported on UNCA corruption, the boss Giampaolo Piolirenting one of his apartments to Sri Lanka's ambassador then screening his war crimes denial film in the UN, this time seemed to give the finger, flip the bird to the press. Ah, journalism.

Is it journalism to solicit and take money from those you ostensibly cover? Where does it go? We'll have more on this.

  Earlier on December 14 UNCA lobbed three softball questions to Ban -- none on Burundi, for example -- from the former president of UNCA Pamela Falk, then the current vice president and finally the current questioner for UNCA. Inner City Press loudly asked a question about the killings in Burundi, which Ban declined to answer. Vine here.

  Inner City Press for the new Free UN Coalition for Access asked Ban's spokesman Stephane Dujarric about the propriety of UNCA selling seats with Ban. Dujarric said, "As long as it's transparent." Is that the standard?


One would expect the UN press corps, even the entity the UN itself chooses to set aside first questions for, to be pursuing rather than be involved in the scandals.

 One might also expect UN Secretary General Ban Ki-moon to be more cautious of colluding in events in which access to him  has been sold.

  But with the UN Correspondents Association, this year more than ever, that is not the case. The group or its leadership, headed by Italian paparazzi scribe Giampaolo Pioli who after trying to get the investigative Press thrown out of the UN now covers actors like Morgan Freeman while others at his paper cover the UN, is selling seats with Ban Ki-moon for $6,000.

  In response to Press questions about this UNseemly sale of access, Ban's spokesman said "as long as it's transparent." Will that keep the indictments from expanding?

Inner City Press on December 11 spoke with indictee Frank Lorenzo, pictured here with Ban Ki-moon, aswritten up by "Italian News."


This year's sale of Ban, like to Ng Lap Seng in 2011, is an Italian job, run by pazarazzi / "correspondent" / landlord Giampaolo Pioli.

 How does this UNCA sleaze fest differ from the South South Awards, inextricably linked to the indictments of Ng Lap Seng, South South News' Frank Lorenzo and former President of the General Assembly John Ashe? Hardly at all. So what will happen? We'll have more on this.

Here is a photo of Ban Ki-moon at South South Awards with several indictees, here.

 For now we can report that at the December 11 closed door session on "Revitalization of the General Assembly," both the UN's Controller and Ban Ki-moon's new chief of staff Edmond Mulet made arguments for post-Ashe reforms that a number of member states found far too little. And Ban is slated to have seats next to him sold for $6000. We'll have more on this too.

  On December 10, days after Pioli used the large room the UN gives to UNCA, its UN Censorship Alliance, tocampaign for a Security Council seat for his native Italy by giving out free meats, the view into the Club was blocked. So much for transparency.

  Here is a photo of the Clubhouse:



  The flier on the glassed-in bulletin board, under the "election" results, is of fine recently deceased journalist Haider Rizvi. Inner City Press' obituary hinted at it, but now we're compelled to say: UNCA, or its sidekick, tried to get him thrown out of the UN. There'll be a memorial for Haider, which can be participated in online,  on December 12 - in Lahore. Truth is what journalism is about. But here's Pioli on Morgan Freeman:



 UNCA's "elections" had no competition at all for the officer seats, now doled out to AFP, France 24, the US Broadcasting Board of Governors and ANSA fromholdover president Giampaolo Pioli's native Italy.

  This UNCA "leadership" represents Italy and France, and old media -- tellingly, those new media which chose to run (Inner City Press quit UNCA after its censorship bid) for lesser UNCA seats were not selected. Also tellingly, the UN Spokesperson's office promoted the scam election, using its loudspeaker to try to get out the vote (for candidates who had no opponents.)

 The ringmaster, Giampaolo Pioli, came through the UN Security Council stakeout not to ask any question or even listen to answers on South Sudan or Syria; he glad handed his unopposed slate and then headed to the UN bar. He has arranged more Italian toasting, seeingly part of Italy's actually-opposed campaign for a Security Council seat (more on this in future dispatches).

  It's become the UN's Censorship Alliance - having tried to get the investigative Press thrown out of the UN - and the UN Corruption Association, selling photo ops and seats with Ban Ki-moon.  Call them Ban Ki-moon shots.

  While calling for an audit of sale of UN access under John Ashe, should Ban openly allow access to him to be sold? He appears intent on doing so, or operating by inertia, on automatic pilot. Inner City Press now learns that Ban's twice delayed report on the cover up of peacekeepers' rapes in the Central African Republic will be pushed further back, after the sell-out, buried. We'll have more on this.

 UNCA's awards, such as they gave to South South Newsfor money, include awards and payments to entities who've served on their own Board.

  In 2011 under then (and now) president Giampaolo Pioli, UNCA took money from the South South News of now-indicted Ng Lap Seng, then gave South South News an UNCA award and gave Ng Lap Seng a photo op with Secretary General Ban Ki-moon.

  Now in November 2015, Pioli has solicited $6000 from UN Ambassadors for seats at the “VIP” table at the UNCA “Ball” on Wall Street: to sit with Ban Ki-moon. Here is UNCA's pitch:

"Dear Ambassador,

The United Nations Correspondents Association is honored to invite you to participate and contribute to the 20th annual UNCA Awards event with guest of honor U.N. Secretary-General Ban Ki-moon and H.S.H. Prince Albert II of Monaco, recipient of the 2015 Global Advocate of the Year Award for climate change.  Exclusive raffle prizes include business class airline tickets around the world with hotel accommodations and a grand prize FIAT 500X car. As your esteemed presence will ensure the success of this event, we are pleased to send you the below opportunities to attend the gala dinner:

Mission Table Special Price / $6000 (half-table) 5 seats at VIP table at the gala event
                                      
Special Ambassador Contribution / $2,000 -1 VIP ticket for Ambassador with premium seating to dinner + 1 complimentary VIP ticket for spouse or guest -Special acknowledgement of the Ambassador and the Mission in the UNCA Awards Journal of the evening -Additional tickets for UN Diplomats of the Mission can be purchased at the special price of $750 each

Giampaolo Pioli, UNCA President
Please make all checks payable to 'UNCA Awards Committee'
Contributions to the UNCA Awards Committee are tax deductible.
The UNCA Awards Committee is a 501-c(3)"

 This is precisely the type of sale of access involved in the indictments of Ng, Sheri Yan and Frank Lorenzo.

  While others are announcing audits and freezing such contacts, UNCA under Pioli is bulling forward, charging ever more money, getting ever further from journalistic purposes.

  On November 20, Pioli's UNCA circulated a list of candidates with no competition for any of the six officer positions. It also pre-announced its awards, including to Reuters (on its Board) and others. We'll have more on this.

    For the three running unopposed for five president slots, two were already on the UNCA board during the relevant time period; the other is Pioli's former protege at Quotidiano Nazionale. It's an Italian thing.

   Running for Treasurer? It's Agence France Presse, whose previous correspondent tried to use a position on the UNCA board to censor Press coverage of Herve Ladsous, the fourth Frenchman in a row atop UN Peacekeeping.

  Reuters is in the mix, too, and another which joined Pioli in trying to censor coverage of Pioli unilaterally approving a Sri Lankan government war crimes denial film for a “UN” screening, after Pioli rented one of his apartments to Palitha Kohona, Sri Lanka's Ambassador to the UN. This is UN. But amid the new scandals at the UN, this is something new: watch this site.



Footnote: Inner City Press after Pioli's and others censorship bid, and attempt to get Inner City Press thrown out of the UN (uncovered along with documents still to be published by a Freedom of Information Act request, here, and questioned by the New York Civil Liberties Union), quit the UNCA board and co-founded, with another who'd quit UNCA as corrupt, the Free UN Coalition for Access.

 FUNCA does not seek any automatic first questions, butopposes the UN setting aside first questions for an entity which, as now shown, is enmeshed in the very UN scandals that must be asked about. Watch this site.

As Deutsche Bank Evades Fed, Tarullo Airbrushes "Some Private Actors," Blurs FOIA and Volcker Rulemaking

By Matthew Russell Lee

UNITED NATIONS, May 2 -- When the Federal Reserve's Daniel Tarullo spoke Wednesday at the Council on Foreign Relations about regulatory reform, he did not mention a single bank or financial institution.

  Inner City Press asked him about Deutsche Bank, which earlier this year split off its investment banking business so as to avoid Fed regulation. Tarullo on March 22 told the Senate the Fed would have to "respond" to this, that it had some impact on this thinking on regulation.

  Tarullo replied, "Matthew, what I said was it effected my thinking, not change, that implies a dramatic shift." Then he answered, six minutes in all, without once mentioning Deutsche Bank. He said that "the kind of changes some private actors are engaged in will have to effect the scope of our regulations."

  These regulations, he said, will be "under 165... to make sure we can implement Congressional concern."

  Inner City Press also asked Tarullo if he claimed the Fed has gotten more transparent since the financial meltdown, noting the Fed's recent denial in full of access to over 2000 pages responses to an Inner City Press FOIA request.

  Here now is an online copy of the Fed's FOIA denial

  Tarullo, which has previously heard of FOIA problems at the Fed, said he didn't know which FOIA request was referred to, then answered about administrative rule making. He said "for rule making, we get comments" and now distinguish "unique comments -- that is, not form letters."

He said there have been "17,000 Volcker Rule submissions... Absorbing all the comments is a substantial undertaking. If it takes longer to give due respect to comments," so be it.

  The FOIA request referred to was about Capital One's compliance, since the Fed's approval order on Capital One - ING DIRECT, including with Capital One's commitments to open branches and lend $180 billion" and about Capital One firing 490 assistant branch managers despite having made representations about increasing service.

  Amazingly, the Fed found 2200 pages responsive but provided not a single document, instead saying that "your request is denied in full," including as to each and every record "regarding with the Approval Order" of Capital One - ING DIRECT. ICP commented extensively on that application, as did NCRC, and the Fed's order cites the comments and Capital One's responses and representations. Now the Fed denies access to every record about compliance with the representations. 

 

Inner City Press' request included a specific reference to branch closings, for example, which are not confidential. Additionally, information submitted and reviewed about compliance with Capital One's representations would contain HMDA data, which is public and not withholdable.

Even since the April 10 request, ICP on April 22 submitted to the Fed information about an admission by Capital One of fraud on consumers:

"Earnings power of HSBC card deal to drown out near-term noise, says Capital One CEO," April 19, 2012

Fairbank also reported a $75 million accrual for customer refunds stemming from what he described as 'instances in which phone sales people didn't adhere to our scripts and sales policy when cross-selling products to our credit card customers.' He said it is very important that Capital One ensures customers bought the unspecified products in the manner the company intended."

Just because it SOUNDS like the responsive records might include some withholdable information, it is outrageous to withheld each and every responsive record, citing the catch-all Exemption 8. The Fed is increasingly abusing and evading FOIA. Watch this site.

May Day with Occupy Wall Street, at Deutsche, Bank of America: Belated Bailout Blow Back

By Matthew Russell Lee

UNITED NATIONS, May 1 -- At ten pm the NY Police Department moved in on Occupy Wall Street's new General Assembly spot on Water Street, threatening arrest and then blocking exits from the plaza.

  First up Coehties Slip then north on even more narrow Pearl Street, the marchers were repeatedly blocked by riot police, to stop them from heading to Zuccotti Park or Liberty Square, its once and perhaps future name.

  On Beaver Street a surreal scene developed, in which diners from Delmonico's restaurant came out to ask the marchers what they were protesting. After some verbal interchange, the answer was clear a few blocks north as the march passed bailed-out JP Morgan Chase, and predatory lender Deutsche Bank which has decertified as a financial services holding company to escape regulation.

  "Banks got bailed out, we got sold out!" went the chant. Inner City Press has dubbed it the Belated  Bailout Blowback, even on a three year delay.

  Photo stream here; video here

  May Day 2012 began with a picket of Bank of America on 42nd Street, and ended at least for some in a park at the foot of Wall Street by the river, where plans to block the Stock Exchange were hatched. It was tried in the Fall right after the first eviction of Zuccotti Park. May the questioning continue.

  The interplay with the so-called Arab Spring, and with the United Nations a mere 100 blocks north, remained ever shifting. At the UN on May Day, UNFPA presented a study in which consumption and pollution by the developed world was decried, as it would be later south on Water Street.

  Inner City Press asked the study's author about the poor's right to development. He claimed the study was misread. But was it?

  Then as Security Council political coordinators met about a trip to West Africa, the White House held a background press call about Barack Obama's flash trip to Afghanistan. The briefer, self-described as a Senior Administration Official, claimed that the burning of Korans and urinating on corpses did not make reaching the agreement with Hamid Karzai more difficult. How not?

  The agreement has no enforcement, of course, other than more diplomat consultations. The UN is mentioned only as a way to define sovereign states. The world remains as it was -- but another world is possible, they say. Watch this site.

IMF Claims that Icesave Commitments Were "Not Critical," Dismisses Citigroup and Deutsche Bank Role

By Matthew Russell Lee
www.innercitypress.com/imf2iceland042110.html

UNITED NATIONS, April 21 -- The $160 million the IMF is disbursing to Iceland was delayed for months. In Iceland's Letter of Intent leading to the disbursement, the government commits" to ensure that the United Kingdom and the Netherlands will be reimbursed in respect of deposits of Landsbanki [Icesave] branches in those two countries."

When the IMF's IMF mission chief to Iceland Mark Flanagan held a conference call on April 21, Inner City Press asked him to discuss the commitment of the government to pay principal and interest, and "reimburse" the UK and Netherlands.

Flanagan argued that the above quoted Paragraph 20 of the Letter of Intent was "not from us." He said, "any language was fine with us" and that the language was "not critical."

Some may find this hard to believe, akin to other IMF claims that it does not impose conditions any more, but simply makes suggestions. Inner City Press followed up by asking Flanagan to describe the IMF's -- including the Executive Board's -- communications with the Netherlands and UK.

Flanagan replied that IMF staff are "not involved in bilateral disputes." But what about the Executive Board, which in turn communicates with the IMF staff?

Inner City Press asked Flanagan for the IMF's thoughts on Iceland Central Bank governor Mar Gudmundsson April 16 statement to state TV station RUV that "a bank could collapse without me knowing of it. There haven’t been any changes, and all the problems that arose in the run up to the collapse and in the collapse are unsolved."

Flanagan said he wouldn't respond to the Central Bank governor's quote, because he didn't know its context. It seems pretty clear -- "there haven't been any changes."

The most recent report on Iceland identifies Citigroup, Deutsche Bank and Morgan Stanley among others as having fueled the crisis. Inner City Press asked Flanagan about these three companies and what is being done to see it doesn't happen in the future. While not responding directly, Flanagan said that there is nothing in the new report he wasn't aware of, and that he is confident that the government is dealing with all of it. We'll see -- watch this site.

And see, www.innercitypress.com/imf2iceland042110.html

Pachauri's Opaque Moonlighting Critiqued by Figueres, of 2 Costa Ricans and the Alba Group, UNFCCC

By Matthew Russell Lee
www.innercitypress.com/fccc1figueres032210.html

UNITED NATIONS, March 22 -- The embattled chairman of the Inter-governmental Panel on Climate Change, Rajendra Pachauri, refuses to disclose how much money he makes from his simultaneousconsultancies with Deutsche Bank, Credit Suisse and other institutions. Now, a candidate to head the UN's Framework Convention on Climate Change, Christiana Figueres of Costa Rica, has announced she would cease all outside consulting if given the "full time and a half" post.

Inner City Press asked Ms. Figueres on Monday for her view of Pachauri's side business and other IPCC matters. "That would not be my choice," Ms. Figueres said, of Pachauri's side work for business. She also said diplomatically that "Doctor Pachauri I believe is at freedom to allocate his time as he sees fit." Video here, from Minute 27:18.

But shouldn't Pachauri at least be required to formally disclose who he works for on the side, and how much he gets paid? He has resisted even this.

Inner City Press asked Ban Ki-moon and his spokesman for the UN view on this lack of transparency. The answer was that the IPCC is not a UN body, and that Pachauri would answer the questions himself. But when he came to the UN, seeking to use Ban Ki-moon as a prop and character witness, neither took any questions from the press.

Ms. Figueres, the daughter of a former Costa Rican president, is viewed as a serious contender to replace Yvo de Boer, who is moving to KPMG (some are calling it cashing in). Inner City Press asked her if the recent appointment of another Costa Rican, Rebecca Grynspan, to the number two post at the UN Development Program might make it less likely she will get this job.

"It may be a stretch," Ms. Figueres agreed, that a country of four million people could get two high posts. India's candidate is said to also have the support of China.

Inner City Press asked Ms. Figueres about the opposition to the Copenhagen process by the five Latin American countries in the Alba Group. Surprisingly to some, Ms. Figueres responded that the Alba Group was "correct in the moment," that all now agree with them. An Alba Group-er afterwards said skeptically to Inner City Press, "Costa Rica never gets along with the Alba Group." Hey -- climate change bring everyone together...

And see, www.innercitypress.com/fccc1figueres032210.html

As UN's Ban "Divides and Rules" G-77, Pachauri's Bank Links Unexamined

By Matthew Russell Lee
www.innercitypress.com/ipcc1pachauri122109.html

UNITED NATIONS, December 21 -- While most observers and even participants describe the Copenhagen global warming talks as a disappointment, UN Secretary General Ban Ki-moon on Monday told the Press that they "sealed the deal" and were a success.

Inner City Press asked Mr. Ban about the scandal erupting around the undisclosed business interests of the chairman of the UN's Intergovernmental Panel on Climate Change Rajendra Pachauri, from the Tata Group through Deutsche Bank to Credit Suisse, and about the criticism by the chairman of the Group of 77 and its now 130 member states.

Mr. Ban entirely dodged the first question, paradoxically using it as an opportunity to praise business. On the second, he asserted that the chairman of the Group of 77 was not, in fact, speaking for the Group, since others' of its members spoke more positively.

Moments later, Inner City Press asked Sudan's Ambassador to the UN about Mr. Ban's comments. "Divide and rule," he answered, calling the Copenhagen process "climate apartheid." This phrase steps back from his counterpart in Copenhagen who analogized it to the Holocaust.

Pachauri's conflicts of interest are extensive and emblematic of the UN's lack of transparency and safeguards.

As detailed in the Telegraph

In 2008 he was made an adviser on renewable and sustainable energy to the Credit Suisse bank and the Rockefeller Foundation. He joined the board of the Nordic Glitnir Bank... This year Dr Pachauri joined the New York investment fund Pegasus as a ‘strategic adviser’... He is on the climate change advisory board of Deutsche Bank... One subject the talkative Dr Pachauri remains silent on, however, is how much money he is paid for all these important posts, which must run into millions of dollars.

So, notwithstanding the non-responsive answer Monday morning, does Mr. Ban believe that Pachauri should make public financial disclosure of these interests? Watch this site.

And see, www.innercitypress.com/ipcc1pachauri122109.html

IMF Murky on Angola's Oil, Bond and China Deals, Doles Out $1.4 Billion

By Matthew Russell Lee
www.innercitypress.com/imf1angola112509.html

UNITED NATIONS, November 25 -- Days after announcing a $1.4 billion arrangement with Angola, the International Monetary Fund held a press conference call to offer explanations. At the end, things were murkier than before. Inner City Press asked if the IMF had been able to fully assess the income and distribution of revenue from the state owned oil company Sonangol.

The IMF's Lamine Leigh, who led the Fund's missions to Angola in August and September, replied that "in the context of our negotiations, Sonangol participated fairly well." Inner City Press asked, since Sonangol has accounts in off shore financial centers and tax havens, if the IMF had gotten to the bottom of these accounts.

After a long pause, Lamine Leigh proffered another answer, that the government has "committed to steps in the more general area of resource revenue transparency." But what about the Sonangol accounts?

Inner City Press asked about the statement by IMF Deputy Managing Director and Acting Chair Takatoshi Kato that in Angola "measures will be taken to strengthen further the regulatory and supervisory framework." The IMF's Senior Advisor on Africa Sean Nolan replied that the IMF analyzed the effect of the exchange rate on borrowers and "on the banks."

In fact, Angola's government has gotten billions in pre-export oil loans from, for example, BNP Paribas, Standard Chartered and Deutsche Bank. The latter has made similar loans in Turkmenistan, assailed by transparency and human rights advocates. How much of the IMF's new arrangement benefits these banks?

In fact, the questioner after Inner City Press, cutting off follow up, was from Standard Bank. Other than Inner City Press, the only other media questioner was from Reuters.

Before the call ended, Inner City Press was able to ask about Angola's reported $4 billion bond sale planned for December. Sean Nolan said that the IMF's "understanding" with Angola does involve a "fundraising effort," but that the timing was not agreed to, the IMF does not "micromanage" to that extent. Nolan added that there is an agreement on an "overall limit."

"Is it four billion dollars?" Inner City Press asked.

Nolan replied that the precise limit will be "clear in the documents," which have yet to be released. Why play hide the ball?

Nolan praised the country for "appointing reputable financial and legal advisers for the transaction" -- JPMorgan Chase will be the manager.

Nolan continued that the actual size of the bond sale will depend on how much "concessionary lending" Angola gets from "countries with a strong record of financial support to Angola."

Inner City Press asked if the size of China's loans to Angola -- China gets 16% of its foreign oil from Angola -- were known by the IMF or considered.

"That hasn't figured in our discussions," the IMF's Nolan responded. Why not? Watch this site.

And see, www.innercitypress.com/imf1angola112509.html

Geithner Promotes Megabanks' Monopoly, in DC as at Fed, 17 Cut to 7 on Derivatives

Byline: Matthew R. Lee of Inner City Press on Wall Street
www.innercitypress.com/bb1monopoly032809.html

NEW YORK, March 28 -- Seven megabanks' renewed grab for monopoly power in the over the counter derivatives market shows how little Wall Street's real power has changed in the transition from the Bush to Obama administrations.

The banks, including Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse and Deutsche Bank, are paying over $1 million to p.r. firm Prism Public Affairs to "educate" the voters weary of bonus and bailouts that those who caused the crisis should benefit from it.

Already, Congress members hungry for campaign contribution have submitted to closed door briefings by Ed Rosen of the law firm Cleary Gottlieb, who drafted the legislative language for monopoly.

The connector in this story is Timothy Geithner, under Bush the president of the Federal Reserve Bank of New York and now Obama's Treasury Secretary. Geithner in June 2008 convened closed door meetings with 17 banks, essentially allowing them to propose and draft their own rules for the derivatives market.

This led to advocacy by the Fair Finance Watch that Geithner's meetings were in fact rule making that excluded the public in violation of the Administrative Procedure Act, and by Inner City Press, as media, to get the meetings opened to journalists and the public.

The Administrative Procedures Act (5 U.S.C. Section 553) and related laws require that when the government engaged in rule-making, it must provide notice to the public, and allow and weigh public comments. The New York Fed under Geithner tried to rule-make without any involvement by the public, even the public most impacted by the subprime lending that underlies these processes. The New York Fed on June 9, 2008 met with a group of the largest banks to discuss, according to the Geithner himself

"Regulatory policy. These are the incentives and constraints designed to affect the level and concentration of risk-taking across the financial system. You can think of these as a financial analog to imposing speed limits and requiring air bags and antilock brakes in cars, or establishing building codes in earthquake zones. Regulatory structure. This is about who is responsible for setting and enforcing those rules. Crisis management. This is about when and how we intervene and about the expectations we create for official intervention in crises."

Press accounts made clear that the financial instruments and regulatory issues discussed behind closed doors are related to issues of public interest, which in fact are disproportionately impacting low- and moderate- income people and communities of color -- subprime and predatory mortgages.

The financial institutions invited, in mid 2008, were:

Bank of America, N.A. - Barclays Capital - BNP Paribas - Citigroup - Credit Suisse - Deutsche Bank AG - Dresdner Kleinwort - Goldman, Sachs & Co. - HSBC Group - JPMorgan Chase - Lehman Brothers - Merrill Lynch & Co. - Morgan Stanley - The Royal Bank of Scotland Group - Societe Generale - UBS AG - Wachovia Bank, N.A.
Buy-Side Firms: AllianceBernstein - BlueMountain Capital Management LLC - Citadel Investment Group, L.L.C.

Fast forward to March 2009, with Geithner despite tax evasion installed as Obama's Secretary of the Treasury, and with Lehman have failed and Wachovia been swallowed by Wells Fargo. Now he is promoting monopoly powers in the market for an even smaller group of banks, just seven: Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse and Deutsche Bank -- which despite European headquarters received billions of dollars in U.S. Troubled Assets Relief Program bailout funds through AIG.

Now the idea is to formalize the monopoly through legislation, not rule making. Industry friendly Congress people like Connecticut's Chris Dodd are supporting the monopoly for the privileged. The fig leaf policy argument is that derivatives should runs through regulated banks. The push is made now, before it is formalized that non-banks, too, are regulated. It is a pure power grab, with Timothy Geithner as the connector. And who is fighting this monopoly of the morally if not financially bankrupt? To be continued.

And see, www.innercitypress.com/bb1monopoly032809.html