Saturday, August 20, 2011

Blowing Another Door Open on the GAO's Phony Fed audit

EPJ's  Bob English is at it again.

Putting some pieces together of the puzzle where the GAO feared to tread, English concludes: looks like Jamie Dimon signed off on hiring BlackRock for no justifiable reason to trade the very Maiden Lane portfolio that could have caused his bank, JP Morgan, to lose up to $1 billion. And, it was entirely possible that BlackRock saved the portfolio by trading the MBS portion of ML with the NY Fed directly as part of QE1.

Unfortunately, the GAO's work product is not subject to public request, but it can be compelled to be released by Congress. The next time Congress decides to subpoena the Fed or Bloomberg decides to file a FOIA, they might request the acquisition file for the BlackRock Maiden Lane contract containing the officer approval and justification letter, as well as the minutes of the director meeting with Friedman, Dimon, Immelt et al.
Read the full Bob English investigative report here.

1 comment:

  1. If only Bob English subpage would be properly rendered on Google Chrome or even Firefox...