Judicial Watch • Judicial Watch Sues Obama Administration for Records about the Failure of Scandal-Ridden Bankrupt MF Global Holdings Ltd.

Judicial Watch Sues Obama Administration for Records about the Failure of Scandal-Ridden Bankrupt MF Global Holdings Ltd.

Judicial Watch Sues Obama Administration for Records about the Failure of Scandal-Ridden Bankrupt MF Global Holdings Ltd.

AUGUST 07, 2012

(Washington, DC) – Judicial Watch, the public interest group that investigates and fights government corruption, announced today that on July 18, 2012, it filed a Freedom of Information Act (FOIA) lawsuit (Vern McKinley v. Commodity Futures Trading Commission and Securities and Exchange Commission (No. 1:12-cv-01176)) against the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) seeking records related to internal discussions involving the bankrupt company MF Global Holdings Ltd. Judicial Watch’s FOIA lawsuit, filed on behalf of Vern McKinley, focuses specifically on an October 31, 2011, meeting of the Treasury Department’s Financial Stability Oversight Council (FSOC), during which MF Global was reportedly discussed. McKinley is a former employee of the Board of Governors of the Federal Reserve and the Federal Deposit Insurance Corporation and author of Financing Failure: A Century of Bailouts.

Judicial Watch seeks the following records from both the SEC and the CFTC pursuant to the original April 24, 2012, FOIA requests:

…copies of any and all records concerning this update of MF Global, the discussion of the implications for the broader financial system, and any follow up contact and discussions on public statements. Such records include, but are not limited to, detailed meeting minutes, meeting notes, supporting memoranda, communications, and electronic messages and attachments.

 The CFTC acknowledged receiving the FOIA request on April 25, 2012, and was required to issue a final response by May 23, 2012. To date, the CFTC has failed to respond to the request in accordance with FOIA law.

The SEC acknowledged receiving the FOIA request on April 25, 2012, and was required to issue a final response by May 23, 2012. To date, the SEC has failed to respond to the request in accordance with FOIA law. (The SEC indicated in an interim response on May 18, 2012, that it had uncovered a two-page document responsive to Judicial Watch’s request, but withheld the document in full.)

The FSOC was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Council is charged with “identifying threats to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States financial system.”

Per Reuter’s, on October 31, 2011, the FSOC held a conference call to discuss MF Global Holdings Ltd. the same day the company filed for bankruptcy: “The Financial Stability Oversight Council, which is headed by the Treasury Department, received ‘a series of oral reports’ from the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Federal Reserve, the official said. No other details of the call were provided.” Judicial Watch and Mr. McKinley have been sharply critical of the FSOC for failing to anticipate the MF Global meltdown in accordance with its congressional mandate.

MF Global was forced to file bankruptcy after what has been described as “one of the most egregious violations of trust on Wall Street.” The company allegedly stole $1.6 billion from customer accounts in an attempt to cover the company’s losses and lied to bondholders about the financial condition of the company. Former U.S Senator and New Jersey Governor John Corzine was forced to resign as CEO for MF Global for his alleged role in the improprieties at the company.

“The FSOC is yet another expensive bureaucratic boondoggle that has failed to provide the financial stability and oversight promised by its congressional mandate. The American people deserve to know the truth about what FSOC officials knew about the epic failure of MF Global and when they knew it. But once again, the Obama administration refuses to provide basic information related to its ‘oversight’ of the private sector,” stated Judicial Watch President Tom Fitton.

Judicial Watch has launched a comprehensive investigation to determine under what legal authorities and lawful rationales the federal government initiated the Wall Street bailouts and has filed a number of lawsuits on behalf of Mr. McKinley. More information is available in Judicial Watch President Tom Fitton’s new national and New York Times bestselling book, The Corruption Chronicles.

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  • James Corey Goode

    Now is the time to join forces with those you would not normally consider.
    This is all starting to leak out to the main stream media… finally. We just need to KEEP THE HEAT on them. We will soon be posting new petition and email campaign info as well as protest ideas. We just need more people following this group and we can use resources from the Tea Party, Occupy and other groups. THEY win as long as they can keep us arguing with each other.
    WE need to come together with people we wouldn’t normally work with to bring these criminals DOWN! Spread the word, others have carried the load of exposing this activity. Now we the people NEED to come out and make it a major issue in the news and in this political cycle.
    Every day we receive more and more disclosure of Financial Corruption by our Banking Institutions and Politicians from the G8 Nations. The U.S., U.K. and E.U. have been gaming the financial system in their favor to create Trillions of dollars on computer screens and stealing tons of Gold from other nations since at least 1911. The Federal Reserve Bank and other evil clones (IMF, BIS etc…) have plundered the world for quite long enough. The recently revealed evidence needs to be covered in depth by the Main Stream Media (Who is owned by the criminal Cabals).

    We plan to start a huge letter writing, Fax sending and protesting campaign to the MSM and local representatives to get them to get them to bring these “Self proclaimed Elite’s” to justice. When the scope of the manipulation, wars and murder of so many innocents is revealed arrest and imprisonment will be the least of the “Elite’s” concerns. They have make billions of people slaves to debt. We toil, suffer and die in debt to them and unknowingly worship and grovel at their feet. They suppress technology that will conflict with their business model. Many technologies that could increase the quality of life and save lives of the people YOU love who have died of disease.

    Join now, with us to bring the heat to the Media and our “Representatives” to set us free from the financial tyranny that we have been subjects to for generations. Become a member of this movement, there is room for everyone. Once we realize that the Left Wing and Right Wing are what gives flight to the same BEAST. The ideology of Liberal and Conservative thinking is important to our individual morality and beliefs. But the Elite use these differences to cause us to forget what we have in common. They use our differences to keep us at odds with each other and diverted from their corruption. Why deceive us “ignorant and useless eaters”? Because we outnumber them 99 to 1 and they are afraid of OUR power.

    So, now put aside your political or religious differences and band together to expose this corruption and usher our world into a new era. We do not need a “New World Order” ran by self proclaimed rulers. They have no “divine right” to rule. They only have the power we give them. Let’s take that power back and create an “Era of Prosperity for ALL”! It is possible!

    Say NO to any more WAR that is used to divert our attention from corruption when it starts to leak. We can join together and form a world of peace, I refuse to believe we cannot live together with our differences without butchering one another. What do we have in common? We love our families, our friends and we love peace. So, click the LIKE button and spread this web site to everyone you know. Join other movements that you normally would not associate with. The enemy of our enemy is our friend. This is NOT a place for political debate or bickering. It is a place to come together and break these chains.
    Sign this Online Petition as a start to put Bankers in Jail (We need others):
    http://www.avaaz.org/en/bankers_behind_bars_f/
    JOIN US, this is YOUR cause too:
    www.facebook.com/BankAndPoliticianFinancialCorruption




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