| Federal Reserve Defended
Terminating Master Accounts Now BSJI
Cites Fed on Debanking
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
Feb 17 – The Federal Reserve -
both the Board of Governors in
Washington and the FRBNY -
have been sued by Banco San
Juan International for the
terminal of its master
account(s).
On the motion to
dismiss, oral arguments were
held on December 12 before
U.S. District Court for the
Southern District of New York
Judge John G. Koeltl. Inner
City Press was there. Thread:
Fed's lawyers
from Simpson Thacher law firm
cite Custodia (crypto) case.
Does this outside counsel rep
raise conflicts of interest on
mergers?
Note:
Simpson Thacher represents
many banks applying to the Fed
for merger approvals - why did
the Fed, which has many
in house lawyers, have to hire
them? And isn't there now a
conflict of interest on the
merger applications? Fed: The
Reserve Banks are not govt
Plaintiff: The
Fed never closed the master
accounts of Deutsche Bank,
despite wrongdoing - and what
about "Toronto Dominion, which
pled guilty to money
laundering"?
[Note: TD's
Leonardo Ayala is being
prosecuted in the District of
NJ]
On January 8,
2025 Judge Koeltl dismissed
the amended complaint, setting
a time to further amend: "the
defendants' motions to dismiss
are granted. All of BSJI's
claims are dismissed without
prejudice as discussed above.
At oral argument, counsel for
BSJI indicated that BSJI may
wish to file a second amended
complaint. Tr. 16. The time to
file a motion to amend,
attaching a copy of the second
amended complaint and
explaining how the second
amended complaint solves the
deficiencies noted in this
opinion, is January 27, 2025.
The defendants may respond by
February 10, 2025. The
plaintiff may reply by
February 17, 2025. If the
plaintiff does not file any
such motion by January 27,
2025, the Court will issue an
order directing that judgment
be entered dismissing the
Amended Complaint."
On February 17
BSJI through counsel Abbe
Lowell wrote in citing Fed
Chair Jerome Powell's recent
testimony that he is
(belatedly) troubled by
de-banking by the Reserve
Banks. Full letter on Patreon
here
Inner City
Press will stay on these
cases.
This case is
Banco San Juan Internacional,
Inc. v. The Federal Reserve
Bank of New York, et al.,
1:23-cv-06414 (Koeltl)
***
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