See also Karl Denninger's Blog:
"Make 'Em Eat It - Personally 4/24/2009
Excerpt:
Quote:
The Federal Reserve had no lawful authority to take on these "assets" and cannot acquire it "ex-post facto."
These acts were in fact direct violations of the law in that there was no legal basis for the actions taken. As such every single person at The Fed (and The Federal Reserve banks involved, such as Geithner at the NY Fed) must be held to legal account and not one taxpayer dollar must be allocated to bail out these blatantly unlawful acts.
I raised this back when Bear Stearns collapsed and pointed to the black-letter law and the fact that there was absolutely no authority under the law for what was being done.
Oh by the way, The Fed has also purchased $355 billion in MBS and $61 billion (cumulatively about $410 billion) from Fannie and Freddie - which are not guaranteed as to interest and principal under full faith and credit. Those purchases are also illegal.
THE LAWLESSNESS IN OUR GOVERNMENT MUST STOP.
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Complete commentary: http://market-ticker.denninger.net/