Judicial Watch Forces Release of Bank Bailout Documents

WASHINGTON, DC--(Marketwire - May 13, 2009) - Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that it forced the Obama administration to release documents about the October 13, 2008, Treasury Department meeting that coerced major banks to allow the government to take $250 billion equity stakes. Among the other news, the documents confirm former Treasury Secretary Hank Paulson told the CEOs of nine major banks that they had no choice but to allow the government to take equity stakes in their institutions. The documents show Obama Treasury Secretary Tim Geithner, FDIC Chairman Shelia Blair, and Fed Chairman Ben Bernanke co-hosted the meeting with Paulson.

Judicial Watch filed a Freedom of Information Act (FOIA) request about the bankers meeting on October 16, 2008. After months of stonewalling, a FOIA lawsuit was filed against the Obama Treasury Department on January 27, 2009. Incredibly, on February 4, Treasury responded it had no documents about the historic meeting. Pressure from Judicial Watch forced Treasury to reevaluate its response, which resulted in this document release last month. Included in the new documents are:

--  "CEO Talking Points" used by former Treasury Secretary Hank Paulson
    confirming that the nine bank CEOs present at the October 13 meeting had no
    choice but to accede to the government's demands for equity stakes and the
    resulting government control. The talking points emphasize that "if a
    capital infusion is not appealing, you should be aware your regulator will
    require it in any circumstance." Suggested edits of the "talking points" by
    Tim Geithner, then-New York Fed President, were withheld by the Obama
    Treasury Department.
--  "Major Financial Institution Participation Commitments" signed by the
    nine bankers on October 13. The CEOs not only hand wrote their
    institution's names but also hand wrote multi-billion dollar amounts of
    "preferred shares" to be issued to the government.
--  Email documenting that, on the very day of the meeting, the Chief of
    Staff to the Treasury Secretary and other top Treasury staff did not know
    the names of any of the banks that would be in attendance.
--  Email showing Treasury officials wanted to use the Secret Service to
    help keep the press away from the CEOs arriving at the meeting.
--  Email showing a public relations effort, run in part out of the Bush
    White House, to tamp down public concerns about "nationalizing the banks."
--  Email showing that Paulson was able to brief Barack Obama about the
    bankers meeting almost immediately, but could not reach Senator John
    McCain.
    

The CEOs present at the October 13 meeting were Vikram Pandit of Citigroup, Jamie Dimon of JP Morgan, Richard Kovacevich of Wells Fargo, John Thain of Merrill Lynch, John Mack of Morgan Stanley, Lloyd Blankfein of Goldman Sachs, Robert Kelly of Bank of New York, and Ronald Logue of State Street Bank.

"These documents show our government exercising unrestrained power over the private sector. Despite promises of transparency, the Obama administration tried to cover up the very existence of these smoking-gun documents. And the cover-up continues, as the Obama administration protects Timothy Geithner by withholding a key document about his role in this infamous bankers meeting," stated Judicial Watch President Tom Fitton.

Visit www.JudicialWatch.org to view the FOIA documents obtained by Judicial Watch.

Contact Information: Contact: Jill Farrell 202-646-5188