Secret Dodd Hearings

(Conspiracy Nation, 04/07/08) – The Committee on Banking, Housing, and Urban Affairs hearing held on Thursday, April 3, 2008 was not a secret hearing. But it may as well have been. No gavel-to-gavel coverage of the assemblage, headed by Senator Chris Dodd (image, left), was provided apparently. Conspiracy Nation has searched in vain for a complete transcript. What we know of the hearing comes via mass media filtering: they are the gatekeepers, choosing what snippets to convey. So it is not far-fetched to call the April 3rd hearings “Secret Hearings.”

Frustrated by the dearth of coverage, Conspiracy Nation attempted a fictional portrayal of the interplay. “[Ben] Bernanke began to sweat at the sight of Dodd's bushy eyebrows, even before the senator had spoken,” reported this publication. A disclaimer was included, pointing out the report was fact mixed with fiction. (Background: “Dodd Turns Eyes On Bernanke,” http://www.shout.net/~bigred/DoddBernanke.html)

The Secret Dodd Hearings were crucial for those wanting to get to the bottom of the Ides of March Bear Stearns deal. Dodd had promised in an earlier interview on National Public Radio (NPR) to raise questions about an evident conflict of interest in the Bear Stearns negotiations. James Dimon, CEO of J.P. Morgan, is also a “Class A Director” of the “Federal” Reserve. The “Fed” had been seen as a “neutral party” in brokering an arrangement between J.P. Morgan and Bear Stearns. But how “neutral” could it be, since Dimon basically sat on both sides of the negotiating table? Did Dodd, as promised, delve into the apparent conflict of interest? We do not know. Such a snippet, if it occurred, did not get past the filters of the mainstream gatekeepers.

To reiterate the situation, as nearly as can be fathomed:

  1. Unknown persons bet heavily that Bear Stearns stock would sink in value. They “went short” on Bear Stearns (BSC).

  2. Unknown rumor mongers spread dire tales about the solidity of BSC (Bear Stearns).

  3. A panic set in. Was it a “Bear Raid”? BSC crashed.

  4. BSC, however, was not alarmed. It was a temporary liquidity problem brought on by a “bank run” precipitated by unfounded rumors. Naturally, BSC tried to raise cash from other Wall Street firms. But those other firms banded together and stonewalled BSC. At that point, things did become serious.

  5. BSC obtained money from the “Federal” Reserve. One of the major owners of the “Federal” Reserve has been J.P. Morgan. A list of owners for the “Fed”, like a transcript of the Secret Dodd Hearings, is hard to come by.

  6. On Friday, March 14th, BSC thought it had 28 days to repay the “Fed.” Then on March 15th, the Ides of March, a “switcheroo” was pulled: the oldest trick in the book. Suddenly BSC had to repay the “Fed” by tomorrow, not next month. There was thereby high pressure on Bear Stearns.

  7. High-pressure sales, like the “switcheroo”, are also an old trick in business. There is an appearance of collusion between the “Fed” and J.P. Morgan in suddenly chopping off BSC at the knees, on the Ides of March.

  8. Finally, in an amazing circumstance, Wall Street investment “banks” suddenly became allowed to get emergency money from the “Fed,” with no “switcheroos” attached. Others have pointed out that if Bear Stearns had been allowed this same courtesy, it would not have been gobbled up by J.P. Morgan.

  9. One last point of interest: The “Federal” Reserve, consequent to its mid-March turnaround on investment “banks” policy, now has its regulators inside the various firms, poring over the books. This means the “Fed” has even greater access now to inside information, thereby increasing its power.

Maybe the Dodd hearings asked hard questions of the assembled participants in the Bear Stearns possible shake-down when it met on April 3rd. But we don't know for sure. We are having to trust the mainstream news outlets on this one.

Conspiracy Nation

http://www.shout.net/~bigred/cn.html