| Federal Reserve Defends
Terminating Master Accounts Using
Simpson Thacher in SDNY
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
Dec 12 – 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
Fed /
Simpson Thacher: Congress has
not provided these [edgy]
banks any remedy. Anyway we've
shown good faith in closing
their master account. [Isn't
this now a variant of the
de-banking legislation in
Congress?]
Fed / Simpson
Thacher: The FRBNY, like me,
is not subject to the 5th
Amendment, as a private
citizen.
FRBoard Joshua:
We don't know why the Board is
in this case. Judge: The
plaintiff argues that the
Board controlled the decision
FRBoard: We're not responsible
Plaintiff: The
banks is down to 10 accounts,
with $20,000 in them. It is
for all intents & purposes
closed. We may appeal to the
Supreme Court, now that
deference to agencies
[Chevron]. The court in
Custodia denied the Fed's
[Simpson Thacher's?] motion to
dusmiss
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]
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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