Tyler Durden
zerohedge.com
Thursday, Nov 19th, 2009

Goldman Sachs, which lately has been caught in a toxic spiral of potential misrepresentations (courtesy of the SIGTARP report which plainly refuted the firm’s claims that it was not on the hook vis-a-vis AIG, and by the way, Ms. Tavakoli, we are waiting for you to retract your apology to the 85 Broad team) and horrendous PR (first Blankfein apologizing for something, then Gasparino telling Lloyd he should step down), may be the final straw that finally breaks open the Fed’s “book of death” (for the middle class, f/k/a “book of life” for the banker cartel). Ahead of tomorrow’s hearings on various Fed transparency initiatives, Rep. Elijah Cummings is calling for a complete tear down of the existing Fed structure, and demands an overhaul to the “minimal accountability” that the Fed is subject to courtesy of the current Wall Street perpetuated (and lobbied) status quo.

Full Cummings letter below.

Frank_Dodd Letter Re Fed *

In the words of Bullet Tooth Tony, it would be sadly ironic if it ends up being Goldman Sachs that gets the fed into the pickle of complete transparency. At the end of the day, if we want to even have a chance of preventing another system collapse, one of the two has to happen: i) Goldman has to be dismembered, with the very least being its prop trading being ripped apart from the firm’s agency core operations, or ii) the Fed has to be not only audited, but to provide constant information on who it is that is the recipient of generous taxpayer bailouts day in and day out, as well as what securities make up the collateral the various bail out programs, as well as what marks these securities are ascribed by the Fed’s less than spectacular trading desk. No exceptions. If neither of these changes, and the status quo persists, then another occurrence of an AIG type blow up is not a question of if but when.

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