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  • On Goldman Sachs, Freedom of Information Act Appeal Ruling by Federal Reserve Gov Powell To Inner City Press, Dec 3, 2015

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    Matthew Russell Lee
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    Goldman Sachs Email Was Wrongfully Withheld by Fed, Gov Powell Ruling By Matthew R. Lee NEW YORK, December 5 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed, documents released to Inner City Press under the Freedom of Information Act (FOIA) show, is inappropriately bent on helping, including by closing its comment period. On a FOIA appeal Inner City Press filed in October, on December 3 Fed Governor Jay Powell, previously of Deutsche Bank and the Carlyle Group, issued a ruling that declined to deal with the irregularities in the processing of the application but acknowledged that basic information like what Goldman is seeking to acquire was wrongfully withheld. Appeal decision online here. But the Fed has yet to re-open the comment period. On December 2, Goldman Sachs sent Inner City Press a heavily redacted copy of its submission to the Federal Reserve. Inner City Press has put it online, here, and immediately submitted this under FOIA: "This is a FOIA request for the entirety of the December 2 submission in connection with the 'Application by Goldman Sachs Bank USA for the Acquisition by Purchase and Assumption of Certain Deposit Liabilities and Certain Very Limited Non-Financial Assets of GE Capital Bank,' of which a heavily redacted copy was sent to Inner City Press, as a timely commented, by Goldman Sachs' outside counsel past 10 pm on December 2. On the cover letter, referring to a “Confidential Application,” much is redacted; four exhibits are withheld in full. Given this, ICP contests and is hereby request all of this information. On Response 1, after the words “Strategic Plan,” there are heavy redactions. Later, Goldman Sachs tries to withhold even what is seeks to acquire. Exhibits A, B, C and D are withheld in full. ICP is requesting all of them." Inner City Press / Fair Finance Watch also immediately commented on this to the Federal Reserve. On November 19, Goldman Sachs submitted a purported reply to the Federal Reserve, stating among other things that "Certain Comment Letters express concern with the contact between GS Bank and Board staff prior to GS Bank submitting the Application. GS Bank respectfully submits that the contact was both appropriate and ordinary in the context of the Board’s own guidance on pre-filing communications.11 Additionally, the allegations of contact are not germane to the scope of the statutory factors set forth for Board consideration under the Bank Merger Act." The 2012 Fed letter Goldman Sachs cites was meant to benefit smaller banks - and did not envision Additional Information letters before the public was even notified of the proposal. The misuse of small bank "regulatory relief" by the likes of Goldman Sachs casts new light of legislative riders being considered for the US spending bill due December 11. Going forward, KeyCorp is trying to buy First Niagara, and NY Community Bank wants to buy Astoria; there will be opposition.

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    On Goldman Sachs, Freedom of Information Act Appeal Ruling by Federal Reserve Gov Powell to Inner City Press, Dec 3, 2015

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    Goldman Sachs Email Was Wrongfully Withheld by Fed, Gov Powell Ruling By Matthew R. Lee NEW YORK, December 5 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed, documents released to Inner City Press under the Freedom of Information Act (FOIA) show, is inappropriately bent on helping, including by closing its comment period. On a FOIA appeal Inner City Press filed in October, on December 3 Fed Governor Jay Powell, previously of Deutsche Bank and the Carlyle Group, issued a ruling that declined to deal with the irregularities in the processing of the application but acknowledged that basic information like what Goldman is seeking to acquire was wrongfully withheld. Appeal decision online here. But the Fed has yet to re-open the comment period. On December 2, Goldman Sachs sent Inner City Press a heavily redacted copy of its submission to the Federal Reserve. Inner City Press has put it online, here, and immediately submitted this under FOIA: "This is a FOIA request for the entirety of the December 2 submission in connection with the 'Application by Goldman Sachs Bank USA for the Acquisition by Purchase and Assumption of Certain Deposit Liabilities and Certain Very Limited Non-Financial Assets of GE Capital Bank,' of which a heavily redacted copy was sent to Inner City Press, as a timely commented, by Goldman Sachs' outside counsel past 10 pm on December 2. On the cover letter, referring to a “Confidential Application,” much is redacted; four exhibits are withheld in full. Given this, ICP contests and is hereby request all of this information. On Response 1, after the words “Strategic Plan,” there are heavy redactions. Later, Goldman Sachs tries to withhold even what is seeks to acquire. Exhibits A, B, C and D are withheld in full. ICP is requesting all of them." Inner City Press / Fair Finance Watch also immediately commented on this to the Federal Reserve. On November 19, Goldman Sachs submitted a purported reply to the Federal Reserve, stating among other things that "Certain Comment Letters express concern with the contact between GS Bank and Board staff prior to GS Bank submitting the Application. GS Bank respectfully submits that the contact was both appropriate and ordinary in the context of the Board’s own guidance on pre-filing communications.11 Additionally, the allegations of contact are not germane to the scope of the statutory factors set forth for Board consideration under the Bank Merger Act." The 2012 Fed letter Goldman Sachs cites was meant to benefit smaller banks - and did not envision Additional Information letters before the public was even notified of the proposal. The misuse of small bank "regulatory relief" by the likes of Goldman Sachs casts new light of legislative riders being considered for the US spending bill due December 11. Going forward, KeyCorp is trying to buy First Niagara, and NY Community Bank wants to buy Astoria; there will be opposition.

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    95 views8 pages

    On Goldman Sachs, Freedom of Information Act Appeal Ruling by Federal Reserve Gov Powell To Inner City Press, Dec 3, 2015

    Uploaded by

    Matthew Russell Lee
    Goldman Sachs Email Was Wrongfully Withheld by Fed, Gov Powell Ruling By Matthew R. Lee NEW YORK, December 5 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed, documents released to Inner City Press under the Freedom of Information Act (FOIA) show, is inappropriately bent on helping, including by closing its comment period. On a FOIA appeal Inner City Press filed in October, on December 3 Fed Governor Jay Powell, previously of Deutsche Bank and the Carlyle Group, issued a ruling that declined to deal with the irregularities in the processing of the application but acknowledged that basic information like what Goldman is seeking to acquire was wrongfully withheld. Appeal decision online here. But the Fed has yet to re-open the comment period. On December 2, Goldman Sachs sent Inner City Press a heavily redacted copy of its submission to the Federal Reserve. Inner City Press has put it online, here, and immediately submitted this under FOIA: "This is a FOIA request for the entirety of the December 2 submission in connection with the 'Application by Goldman Sachs Bank USA for the Acquisition by Purchase and Assumption of Certain Deposit Liabilities and Certain Very Limited Non-Financial Assets of GE Capital Bank,' of which a heavily redacted copy was sent to Inner City Press, as a timely commented, by Goldman Sachs' outside counsel past 10 pm on December 2. On the cover letter, referring to a “Confidential Application,” much is redacted; four exhibits are withheld in full. Given this, ICP contests and is hereby request all of this information. On Response 1, after the words “Strategic Plan,” there are heavy redactions. Later, Goldman Sachs tries to withhold even what is seeks to acquire. Exhibits A, B, C and D are withheld in full. ICP is requesting all of them." Inner City Press / Fair Finance Watch also immediately commented on this to the Federal Reserve. On November 19, Goldman Sachs submitted a purported reply to the Federal Reserve, stating among other things that "Certain Comment Letters express concern with the contact between GS Bank and Board staff prior to GS Bank submitting the Application. GS Bank respectfully submits that the contact was both appropriate and ordinary in the context of the Board’s own guidance on pre-filing communications.11 Additionally, the allegations of contact are not germane to the scope of the statutory factors set forth for Board consideration under the Bank Merger Act." The 2012 Fed letter Goldman Sachs cites was meant to benefit smaller banks - and did not envision Additional Information letters before the public was even notified of the proposal. The misuse of small bank "regulatory relief" by the likes of Goldman Sachs casts new light of legislative riders being considered for the US spending bill due December 11. Going forward, KeyCorp is trying to buy First Niagara, and NY Community Bank wants to buy Astoria; there will be opposition.

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