Fox Biz Net sues Paulson over bailout secrecy
Speaking of lawsuits: The Naked Emperor Hank Paulson and his Treasury Department refuse to respond to Freedom of Information Act requests from Fox Business Network concerning the use of bailout funds.
So much for the transparency Paulson pledged to deliver before Congress handed him his crap sandwich.
Good for FBN:
FOX Business Network (FBN) has filed a lawsuit against the United States Treasury Department over failure to provide information on the bailout funds or respond to FBN’s expedited requests filed under the Freedom of Information Act (FOIA).
The initial request, filed on November 25, sought actual data on the use of the bailout funds for American International Group and the Bank of New York Mellon, and an additional request, filed on December 1, sought similar data on the bailout funds for Citigroup, Inc. FBN is asking for the Treasury Department to identify, among other issues, the troubled assets purchased, any collateral extended, and any restrictions placed on these financial institutions for their participation in this program.
Kevin Magee, Executive Vice President, FOX News commented, “The Treasury has repeatedly ignored our requests for information on how the government is allocating money to these troubled institutions. In a critical time like this amidst mounting corruptions and an economic crisis, we as a news organization feel it’s more important than ever to hold the government accountable.”
Steven Mintz, Esq. of Mintz & Gold LLP, and legal counsel for the network added, “Despite the several requests for expedited information filed by FBN, it has become apparent that the Treasury will not cooperate without mounting legal pressure. Therefore, we have filed a complaint in the Federal Court in New York and ask the Court to make the Treasury provide the information sought by the journalists at FBN.”
The FOIA complaint was filed by FOX News Network, LLC, as owner of FBN.
FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York—the business capital of the world—FBN launched in October 2007 and is available in 45 million homes in major markets across the United States. Owned by News Corp, the network has bureaus in Chicago, Los Angeles, Silicon Valley, Washington, DC and London. On the web at www.foxbusiness.com.
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It’ good to see that Newscorp has some stones. Go get ‘em Cavuto!
Unfortunately, it will take groups with assets as large as Fox, to afford said challenges. I applaud their move whole heartedly, but I’m angry and have vindictive visceral feelings towards a government so blatantly operating outside the law and quite possibly the Constitution.
Wasn’t this money supposed to go to the banks so they could loosen their credit to companies like, for instance, the auto industry? Why has the auto industry fallen so quickly? I know they have had problems for a long time. But all of a sudden, they can’t get credit and will now go broke in one month? I thought that was the purpose of the initial bailout. And now we can’t even get information as to where that money went??? How can one man have that much power? He takes billions of OUR money and won’t even tell us where it is going? If we can’t hold Paulson accountable for this, we are totally screwed! My God, what is happening to my country? Go Cavuto and FOX! You are the only ones doing anything about this corruption.
You knew this whole bailout was a scam when congress NEVER demanded that Paulson resign.
I hope they blow the lid off of this scam!
Oh, and memo to the Big 3: just because people keep change in their car ashtrays doesn’t make you guys a bank and eligible for TARP gummint cheese, capisce?
We The People would have had more support for this if we had not re-elected 89% of the people who voted for TARP.
I wish a House member would sue for an injunction to stop the bridge loan.
That says it for me.
The anger comes from helplessness, hopelessness and sheer frustration that I can do nothing but sit here and watch my country go down. All the protections built to protect the American people from their own government have been wiped away.
Screw Paulson, Reid, PUlosi, Frank, Rangel, Schumer, Dodd, et al. They are all so evil and corrupt, I can hardly believe they are this powerful! How has it come to this? The liberal citizens of our country are so brainwashed, they keep electing these buffoons over and over! They all belong in prison, not congress! I truly believe that 90% of these problems stem from our educational system and the brainwashing of two generations of our children!
What an amazing fustercluck.
In deed. Why did wall street fall so fast? And why in september on the eve of the election? This massive looting by our rulers is a scam. The time for the second revolution is now!!
DON’T TREAD ON ME!!!!
Meanwhile: Payraise for congress
they will get a $4,700 pay increase, amounting to an additional $2.5 million that taxpayers will spend on congressional salaries, and watchdog groups are not happy about it.
Hey, why shouldn’t our ‘leaders’ get payraises? They aren’t doing any worse than most of the idiot CEO’s out there, running their companies into the ground while collecting massive salaries and bonuses.
What the hell ever happened to performance based pay? Isn’t that what all of us peons get to compete for? That and, if we are lucky, a 2% or 3% raise?
Is there some symbolic item we could throw into Boston Harbor in protest for this “taxation without representation”? Paulson was not voted for and he is not a representative of the people. We need to lodge a HUGE protest. I would fly to Boston and take part in this!
happyscrapper – How about paulson?
Yep … all the idiots that voted for “Hope and Change” in D.C. are finding out that what they will get is “Hopeless and Changeless” in D.C. …
Seems they are “Clueless” in a lot more of the country than Seattle …
I wish NPS would hurry up and get Fox Business Channel in their lineup. I’m tired of getting my financial info from Bloomberg and CNBC.
Franken takes vote lead.
Dam
I don’t care about them, since I don’t have to pay their salary (well except now I do, thanks to our congressmen and president.).
SWEET!
Yeah!! In fact, we could each pick out our favorite idiot and make ‘em walk the plank! I love it! Since I live in Minnesota, I would choose Al Freaky Franken.
happyscrapper
Do you get the same feelings I do when I see Franken’s mug? Like you just wanna reach back and land a fist right in that gelatinous puss?…..lol
If only I had the chance!! He is one of the most disgusting creeps on the planet. And to think that my Son-in-Law was one of the dumbos who voted for him. You can be sure he got an earful from his Mother-in-Law from hell. If he wins this election, I will seriously consider moving, but not sure where…it is starting to look pretty bleak everywhere.
i wish dish network would get fox news also. cnbc and bloomberg are both painful.
Isn’t it interesting that the New York Times will sue under FOIA in an attempt to get access to classified information, but on financial matters which should be transparent, they and other liberal rags are silent?
If you can’t get FOX News, it is time to change providers!! Seriously, FOX is everywhere, even in all the hotel rooms we stayed at last winter.
Those people are as traitorous to this country as Jihad Johnny. And they apparently don’t seem to mind that it is their money that is being stolen too!
I am once again astounded by the lack of financial accumen displayed by the readers of this blog.
Wall Street FELL because of the market rules which dictated that mortgage-based assets on company books must be valued AT the lowest market value of the MOST RECENT sale of similar assets. When Lehman Bros collapsed while holding a crapload of these mortgage-based assets, the net worth of those assets for EVERYONE became a big, fat collective ZERO.
Now, are they worthless? No. What Paulson is doing is releasing a little bit of funds to various companies in return for stock. When the mortgage-based assets regain their value, the value of those companies will rise, and the gov’t will be able to sell off their stocks for a profit. Pan the man all you want now, but this COULD reap big benefits for our gov’t down the road. It’s a genius plan really, as the gov’t is the only entity which can afford to hold stocks in these companies at the moment.
It would appear that Paulson and Bush are attempting the same sort of plan with the automakers. Realize that the Big Three were doing FINE while people were buying cars, trucks, and SUVs. When the banks shot themselves in their collective feet, and no longer had the liquidity to lend money to the BIG Three for their operational loans, and tightened the consumer credit market to the point where only 750 and above scores get adequate auto financing, sales for ALL brands dropped like a rock.
Toyota was down 45% last month! Does that mean Toyota’s executives are butt-heads too? What did they do wrong? The obvious answer, which seems to escape all of you is this; they operate a business which manufactures and distributes high-dollar items which REQUIRE (in most all cases) BANK FINANCING!
Of course, that’s just toooooo simple, right? I mean, it’s not like the Big Three do the same thing, right?
One other aspect y’all haven’t considered is this; if the Big Three go under, or even into Chapter 11 and stop operating for a short amount of time, here’s a short list of peripherial businesses which might also fail:
Rental Car Companies
Tire MFG Companies
Car Dealerships (we’re already seeing this just as a result of slow sales)
MORE BANKS! Banks like Bank of America have “floorplan financing” whereby they underwrite a dealer’s cost of acquiring and holding a fleet of vehicles available for sale. If the dealers fail due to slow sales (and the collapse of MFG-paid warranty work) then those vehicle inventory dollars will simply evaporate, leaving distressed banks reeling once more. It doesn’t take many dealerships to rack up a billion dollars worth of autos siting around awaiting purchase.
Unions and the Big Three will have to come to agreements on their own, outside of Chapter 11. Using bankruptcy to restructure would, inevitably, plunge this country into a vast depression the likes of which we’ve never seen in the modern age.
Everyone’s been willing (on the conservative side) to give Pres. Bush kudos for running the War on Terror and keeping us safe, but y’all honestly believe that YOU know better than Paulson and his advisors on how to help out our economy at this point? You who can’t see the difference between a bridge loan exchanged for stock options, and a “bailout” where money is simply handed away? Sure, these companies might still fail. We don’t really know yet. The point is, until YOU’VE got a Master’s in Economics hanging on your wall in your Washington D.C. office and YOU’RE the one making these tough decisions, STFU!
And on a final note; You’re willing to applaud Fox News for suing over financial disclosures when we’ve just elected someone to the office of the President who is essential a cipher? We don’t know his medical history, educational records, financing records, or even his original, authentic State of Hawaii Birth Certificate! And you want to talk about financial records? Jesus, Joseph, and Mary help us, because relying on Fox News at this point obviously won’t!
Freedom of Information, my ass!
Your sarcasm is unseemly and unnecessary. Butt out. Thanks.
AND PLEASE STOP SHOUTING.
Masters in Economics doesn’t prove squat, as is evidenced by the actions of our illustrious Paulson. It doesn’t take a Phd to see that labor and macro economic theory was thrown out the window. You can pontificate all day about the supposed catastrophic effect if the Big 3 fail, but who wanted them to fail? What on God’s green earth is wrong with requiring a plan prior to dumping money into a non binding lined hole. No one is not forgetting about obama and his cloak room shenanigans with his birth and such, but if you think what paulson did is admirable… then you’re going to love what happens under Obama. No, we don’t need MA’s in Economics…. we live our lives every day trying to survive the economy. It’s your and my money that is being used without rationale and transparency and I want answers…. NOW.
no one is forgetting … I mean
How about starting with Bush and Paulson, they symbolic enough for you?
Exactly, and, I doubt if anyone posting here is saying they are smarter than Paulson (although some probably are), we just want transparency and honesty, something we are not getting at this time!
I have a feeling there are hundreds of candidates for the plank! We all have our favorites. I am upset with Bush on a few things, but I still wouldn’t throw him overboard. Not when we have The One coming into office. We are about to look on the Bush years as those “good old days”.
You don’t need an MS in Economics to know hooey when you see it. The govt is using our money to meddle in natural market forces to prop up another failing business. A business, in fact, failing due to a flawed business model and undesirable product. It doesn’t matter how much collateral damage a lack of a bailout will cause. Anyone working in allied trades to automakers should have been looking for other work years ago and should have seen this coming.
Now, they’ll be looking for work while the smart ones had a head start. Economic Darwinism again at work.
rotarymunkey,
How about the notion that Paulson does not have the authority to spend TARP funding on the UAW and the Big Three.
Even if you like his plan (assuming he has one and it won’t all change tomorrow), he didn’t have the right to spend money that was not designated for the auto industry.
Are you really that comfortable with one person having that level of authority over billions of taxpayer funding?
Are you just as comfortable when Obama’s Treasury Secretary inherits the second half?
I want to know who to boycott.
The IRS.
RE: #27 rotarymunkey
What ever you say man. But just for the heck of it, even it the stocks rise to the heavens, what do you think the tax payers chances are of ever benifiting from it. Our moronic government will only find more idiotic ways to waste it.
On December 19th, 2008 at 1:26 pm, happyscrapper said:
I prefer starting where the damage was created, place blame where it belongs. True neither did it by themselves but together what a team.
Your upset with Bush about a few things? You must be a centrist at best, IMO he has done but 2 things right in 8 years, excluding tax breaks he’s been terrible in regards to financial matters.
I agree Bush has made some collosal mistakes. One of the biggest, in my opinion, is turning a blind eye to the illegal alien issue. Another is not fighting HARD to get more drilling in this country when he had the majority in Congress. He frittered away some opportunties that may never come back in our lifetime! If we got rid of the illegal alien problem, and opened up the drilling, our economic problems would be solved and we would be a prosperous country again!!!
rotarymunkey,
The car makers have a 6-12 month supply of cars at the dealers. They have absolutely no reason to continue building cars at this point. As GM stated this morning, they have been paying their suppliers to this point. And with no reason to want more parts, they will not be paying them much in the next several months regardless of this handout.
Handing them cash will only allow them to pass it over to the UAW. Notice how the UAW has already started to lean on Obama for more cash handouts.
This auto deal is NOT about the US economy or the auto business, it is about supporting the UAW.
Look for UAW demands to include some sort of punative government measure against all non-union competitors.
Regarding the bank bailouts making money, the banks will never make or return any money to the US govt. They have absolutely no reason to even try. They are now part of the government banking monopoly and they will never have ANY new competition as nobody is going to start any new banks in this country!
Get it?
Rotarymunkey appears to be a liberal with a huge ego and a mean-spirited, sarcastic way of trying to make a point. I doubt he “gets it”.
Is it true that some Democrats suggested Paulson be named the car industry bailout “Car Czar?”
You know that this is a logical fallacy. It is called argument by intimidation. Sorry it doesn’t fly. If Paulson knows so much then why didn’t he see this problem coming and get the SEC to get rid of that arcane Mark to Market evaluation of homes?
We may not know as much as Greenspan either, but he admitted that if his models had 30 years or more of data he would have seen the melt down coming. Well instead of models we used common sense and saw this coming. He kept interest rates TOO LOW!
You may buy into the “Save the free market” argument, but most of us see it for what it is: Socialism.
Agreed, not to keep harping on him but i’m so disappointed in Bush, tho I should not be…it’s a rare occasion this great country actually has a freedom loving, conservative president to guide us.
If one thinks about it is amazing we’ve been so successful as a world leader all these years with what we’ve had as our leaders.
I forget who it was that said, para phrasing now, “democracy is the greatest form of government, but will only succeed untill the citizenry finds they can vote themselves financial gains, at which time that government will fall from within.”
Think we’re about there. Is it time for the 2nd American Revolution?
Wow. Yay!
Cavuto/2012!
TERM LIMITS…THROW THEM ALL OUT…..
TERM LIMITS…..
Are you aware that the union workers will be paid 95% of their wage during the 4 week shut-down
per CNBC, as they do each year for the 2 week shutdown for retooling over the holiday period. The
media fails to mention this. Non-union workers are not paid, i.e., white collar and management.
I hope I know where the Minuteman organization is in MN… I’m a member of the national version….. to the liberals…. you want a fight…. you’ve got your wish… if you want.
Are you REALLY interested in knowing why the bank stocks tanked? Hedge funds have been “naked short-selling” stocks for over a year. Must be nice to profit from selling shares of stock you don’t own, and have no intention of owning!
I guess, the CEO of Overstock.com was right and, the MSM isn’t covering this either…Michelle? Feel free to investigate…
Same with Taser Int’l
The SEC won’t investigate because, they want high-paying private sector jobs.
I don’t think he’s liberal. I can recall previous posts of his that I appreciated.
I believe he just might be a bit passionate about it and it spilled out on some of us. The elitist style remarks, however, were a bit too much. He should retract the whole “Masters in Economics” remark as there are many doctors of economics that disagree with Paulson.
I assumed he was a liberal because I have never encountered a conservative with such sarcasm. That trait is usually reserved for the left. Sarcasm and elitism in one post led me to believe he was liberal. He never came back and apologized for his tone either. He just slunk away. Ashamed of himself, maybe?
One thing sticks out in my mind..all this stuff that has happened THIS YEAR from John McCain’s ascendency in the Republican Party for presidential nomination to the bailouts of late seems to have been..dare I say it ARRANGED as in set up like a conspiracy.
Rotarymonkey I have a Batchelor Of Science in Economics as of now with several graduate courses to boot, and I too don’t agree with your interpretation of Paulson’s actions-especially the secrecy-it’s unncessary.
But then I want as many people to succeed on their own in a capitalist economy not just a guilded few who think they are inherently superior.
#38
Even Al Capone had his StrongArm…
The Fed has the IRS…
Amazing isnt it? A PRIVATELY OWNED BANK having that much pull.
RotaryMonkey,
You are not a regular here so perhaps I should catch you up to speed.
1. Millions of those mortgaged based assets you described should not have been given loans to begin with. Bad policy by bad polititians and bad lenders.
2. The lack of transparency and accountablity with regard to the bailout money is a very serious issue (thus the reason for his thread).
3. Bank bailout $$ are being used to buy other banks to get more bailout $$, not to loosen up the credit markets as intended.
4. Union contracts have a great deal to do with the automaker’s financial problems.
While I do not have a Master’s in Economics, I do have an Master’s in Public Administration (MPA from Univ. of Colo.) and had to take graduate level Government Economics as required. I can assure you the level of economic discourse here is quite high. So if you cant get with the program and have to leave, we will understand.
P.S. I agree with you about Obama.
Yes, and they also don’t want to jeopardize their chances for future bailout $$$. Money talks.