Wednesday, October 20, 2021

The Wall Road Journal and New York Occasions Censor But One other Main Information Story on the Fed and the Mega Banks It Supervises

Pam Martens and Russ Martens: October 19, 2021 ~ A.G. Sulzberger, Chairman and Writer of the New York Occasions On October…

By Staff , in Gold , at October 20, 2021

Pam Martens and Russ Martens: October 19, 2021 ~

A.G. Sulzberger, Publisher of the New York Times

A.G. Sulzberger, Chairman and Writer of the New York Occasions

On October 13, Wall Road On Parade broke the story that the Federal Reserve had quietly launched the names of the mega banks that had grabbed tens of billions of {dollars} of repo loans underneath the Fed’s emergency repo mortgage operations that started on September 17, 2019 – months earlier than there was a COVID-19 case in the US or wherever else on the planet.

Repos (repurchase agreements) are a short-term type of borrowing the place firms, banks, securities corporations and cash market mutual funds safe loans from one another by offering protected types of collateral corresponding to Treasury securities. Repos are speculated to perform with out the help of the Federal Reserve. However on September 17, 2019, the outsized demand for the repos and the shortage of obtainable funds to satisfy the demand drove the in a single day rate of interest on repo loans to an unprecedented 10 % at one level. Usually, the in a single day repo price trades according to the Federal Funds price, which was at the moment focused at 2 to 2.25 % by the Fed.

The newly launched information from the Fed confirmed that three of the most important debtors throughout the repo disaster of September 2019 had been the buying and selling models of Nomura (a Japanese agency), Goldman Sachs and JPMorgan. The Fed had been closely criticized after a authorities audit of its secret loans throughout the 2008 monetary disaster revealed that tens of billions of {dollars} went to overseas banks. Why was a Japanese agency on the prime of the checklist this time round? Why had been U.S. mega banks Goldman Sachs and JPMorgan on the checklist in any respect? Fed Chair Jerome Powell had constantly testified to Congress that these banks, which the Fed supervises, had been properly capitalized and a “supply of power” heading into the pandemic.

There had been main hypothesis by company media within the fall of 2019 when the Fed launched these emergency repo loans as to which monetary establishments is perhaps in hassle. One would have thought that the identical company media would have been anxious to be taught the names of the banks that borrowed and share the breaking information with their readers. Think about our shock when the story was censored by each main enterprise media outlet.

On Friday, we emailed the enterprise editors of the Wall Road Journal and New York Occasions, asking why they’d fail to publish such an necessary story. We gave them greater than 48 hours to reply. There was no response.

This newest censorship is a part of a sample. Simply yesterday, the fearless Robert Kuttner at American Prospect broke the story that Fed Chair “Jerome Powell Bought Extra Than a Million {Dollars} of Inventory because the Market Was Tanking.” Whereas different media shops like Yahoo! Finance, Fox Enterprise, the Each day Beast, and Searching for Alpha headlined the story from American Prospect, the Wall Road Journal talked about the breaking information within the 15th paragraph of a narrative that carried a headline about Senator Elizabeth Warren and the Fed. The New York Occasions didn’t run the breaking information in any respect.

Kuttner wrote this in his evaluation of how a “collusive press” covers the Fed:

“The doc displaying Powell’s October 1 inventory sale is public report. In the midst of researching my piece, I shortly grew to become conscious that different reporters from mainstream media had been sniffing round this story. The truth that it took the Prospect to interrupt it speaks volumes in regards to the cozy collusion between Powell and the beat reporters who recurrently cowl him.”

We witnessed this identical kind of censorship in April 2019 when the general public curiosity group, Higher Markets, printed an in-depth report on “Wall Road’s Six Greatest Bailed-Out Banks: Their RAP Sheets & Their Ongoing Crime Spree.” Every of those mega financial institution holding firms is supervised by the Fed. Failing to report this necessary information supplied extra cowl for the Fed as a failed supervisor of those banks. We wrote the next three days after the Higher Markets research was launched:

“We checked the Wall Road Journal, the New York Occasions, Monetary Occasions, Bloomberg Information, Reuters, CNBC, and CNN. We may discover no point out of the Higher Markets report. (We checked once more this morning. There may be nonetheless a information blackout.)

“We all know that the Wall Road Journal was conscious of the report as a result of Lalita Clozel, a banking regulation reporter for the Wall Road Journal, Tweeted on April 10 that Democrats within the Home Monetary Providers Committee room had been handing out the report back to journalists whereas the Chair of the Committee, Congresswoman Maxine Waters, was introducing the financial institution CEOs.

“There are 4 phrases on this excellent report from Higher Markets that rendered it unpalatable to company enterprise media: ‘rap sheets’ and ‘legal enterprise.’ We searched Bloomberg Information, the Wall Road Journal and the New York Occasions again to 2004 to see if at any time that they had used the phrases ‘rap sheet’ to explain the unprecedented serial crime sprees of those Wall Road mega banks. That they had not.”

On the New York Occasions, the censorship consists of failing to appropriate openly faulty reporting by a Wall Road reporter. On Could 12, 2012, Andrew Ross Sorkin of the New York Occasions wrote one of the vital factually-challenged articles we have now ever learn in a significant U.S. newspaper. Sorkin tried to rewrite the info of the 2008 monetary disaster and knock down efforts on the time by Senator Elizabeth Warren to revive the Glass-Steagall Act, which might have damaged up the Wall Road mega banks which are supervised by the Fed. Wall Road On Parade wrote to the New York Occasions’ Public Editor, the Managing Editor, and the Writer of the New York Occasions to appropriate Sorkin’s grossly faulty report. Nothing has been corrected to today. What occurred as an alternative was the New York Occasions ceased having a Public Editor to research complaints from the general public. (Learn our report on the New York Occasions shilling for Wall Road and the Fed right here.)

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