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Showing posts with label refusal to disclose. Show all posts
Showing posts with label refusal to disclose. Show all posts

Friday, November 30, 2012

THIS BEARS REPEATING UNLESS YOU'VE SEEN IT BEFORE...TSA BOWS TO NO ONE...CLAIMS CONGRESS HAS NO CONTROL OVER IT AND REFUSES TO ATTEND HEARINGS

Just WTH is going on around here?

 

TSA claims Congress has no control over it; refuses to attend hearings

TSA
Officials who lead a federal agency created and funded by Congress seem to no longer feel obligated to appear before the congressional committee charged with overseeing the daily operations of that agency, then tyranny must exists.
The Notorious John Pistole, the Obama Administration's top Dog of the Transportation Security Agency. It seems he is refusing to appear before the House Transportation and Infrastructure Committee, but he's even gone over the line and said the congressional committee possesses "no jurisdiction over the TSA."
We don't answer to you or anyone!!!!!
According to the committee's website, Pistole was requested to appear before the panel's subcommittee on Aviation Nov. 28, to provide testimony at a hearing titled, "How Best to Improve Our Nation's Airport Passenger Security System Through Common Sense Solutions."
Chaired by Rep. Thomas Petri, R-Wis., the focus of the hearing was to "examine the impact that the regulations and policies of the Transportation Security Administration have on aviation passenger experience and the free flow of aviation commerce," according to a summary posted on the panel's website.
Despite being requested by a duly authorized congressional committee, Pistole, via a statement issued by the agency on its website, refused to comply:
By U.S. House of Representatives rules which state that the Transportation and Infrastructure Committee has no jurisdiction over the Transportation Security Administration (TSA), no representative from TSA will be present at the Subcommittee on Aviation hearing scheduled for Nov. 29.
----------------------------------------------------------------------------------------------
Well there you have it....As in Nazi Germany leading up to and including WWII, the GESTAPO was an agency which ran with the blessing of Heir Hitler and with impunity, it did not need to ask for permission, it followed its mandate which was to Search and Seize at its pleasure any and all suspected enemies of the state, whether it be Jews, gentiles, artists, gypsy's, intellectuals, resistors of any kind, they could arrest them, hold them indefinitely with out due process, interrogate them for days, torture them , and have them vanish, and or have them executed what ever they wanted. sound familiar Folks?

 Now listen up people, you had better get a handle on this agency or they will be knocking on your door asking you for your flippin papers, and members of your family will start disappearing!
Defund the TSA
In the upcoming 113th Congress, which convenes Jan. 9, Mica steps down and will be replaced by Rep. Bill Shuster of Pennsylvania. When asked by reporters for a reaction to the TSA's refusal to show up and testify at the scheduled hearing, as well as the agency's declaration it did not fall under the auspices of the committee, Shuster explained: "I don't think we have direct jurisdiction but when they impede commerce, when they impede the traveling public, they need to answer to the committee."
In an interview with Bloomberg News, Shuster said he "absolutely" expects the agency's officials to appear at Transportation committee hearings. When asked what he would do if they refuse, Shuster was cryptic: "We'll cross that bridge when we get there."
As we've reported often - and will continue to do so - the TSA is a rogue agency being run by unelected bureaucrats who believe they don't have to answer to anyone - the public, which has grown tired and wary of the behavior of its agents, or the elected congressional representatives charged with overseeing it.
No bureaucracy is above reproach. Congress has the power of the purse strings; it should exercise that power and defund the TSA.
While I personally despise the TSA, its statement clearly says that it will work the with committees that actually do have jurisdiction over it, which would be the House Committee on Homeland Security.
America - everything you have stood for is going down the gurgler. They say there are three types of people in the world - Those who MAKE things happen, Those who WATCH things happen, and Those who WONDER what happened. Which are you going to be?
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The TSA is getting its marching orders from Barack Obama, the great dictator. That's why they're brazenly ignoring their subpoena to appear. If Americans don't hold Congress accountable and force them to defund this illegitimate organization, then the USA as we know it has ended and has fallen into tyranny. No doubt about it.

Friday, June 4, 2010

OIL SPILL/SEA WATER SEPARATION TECHNOLOGY EXISTS - DO A GOOGLE OF YOUR OWN! OBAMA - ARE YOU NOT TRYING HARD ENOUGH? HAVE YOU NOT ASKED ABOUT THIS

PREVENTION OF OIL SPILL POLLUTION IN SEAWATER USING

LOCALLY AVAILABLE MATERIALS


Nasser Al Hashar Dr Syed Anisuddin

Tabassum Sadik Dr Sofia Tahseen

Caledonian College of Engineering

(A University College)

2322, CPO Seeb 111

SULTANATE OF OMAN

anis_adil@hotmail.com

A b s t r a c t

Oil spill pollution, a severe environmental problem which persists in marine environment or in inland water across the world, has grown to an alarming magnitude with increased levels of oil production and transport. Its causes are either accidental or due to operation wherever oil is produced, transported, stored and used on sea or land. Hence, it is almost impossible for marine life to be free from the danger of an oil spill, though the discharge of oil is controlled by international convention. Prime concern for marine health life has created an instinct for undertaking this type of study by the authors. Objectives of the present work include testing of four different materials in separating oil from water having different oil concentrations along with its efficiency of removal. The work focuses on effect of time of contact and dosage of materials used for oil removal. Corchorus depressus, which is locally available, has proven to be more effective in addressing this problem and at the same time its byproduct does not give rise to unwanted hazards to the marine life.

Introduction

Oil has long been used as a source of heat and light but due to the advent and innovations in automobile technology it has become a source of power for transport. Developments in the petrochemical industry warrants increased oil supply carried through pipelines and ships from places where it is found to the most convenient sites for refineries and chemical manufacturing plants. The quantity of oil transported over the sea has enormously increased in volume, encompassing tankers from capacity of 100,000 to 500,000 tonnes, resulting in increased possibility of spillage by accident or due to operation. In the event of an accident, oil pollution will be encountered in the marine environment or in inland water.

Sources of Oil Pollution

The major sources of oil spill pollution are the following:

Tanker accidents: Large tankers carrying oil over the sea increase the possibility of more oil spillage in the event of an accident.

Ballast water: When unloaded, returning tankers fill sea water as ballast to be carried in the compartments previously occupied by oil. The walls of compartments are cleaned with dinging oil by powerful seawater jets hence ballast water inevitably acquires a considerable quantity of oil, which when discharged causes unacceptable oil spill pollution.

Literature Review

Moller (1997) studied the Nakhodka oil spill and suggested improvements with respect to shippers' perspective defining the role of industry in dealing with oil spill pollution. Dicks (1998) summarized impact of oil spills on different components of the marine environment as well as potential for natural recovery and manmade restoration/re-instatement measures envisaged according to international compensation conventions. Kerambrun and Parker (1998) dealt with shorelines inundated with thick black oil pollutants. Results of the study focus on the society to accept responsibility for repair of damage to environment through human intervention and carefully targeted clean-up activities. Wadsworth, Dicks & Lavigne (1999) stated that oil spills contaminate both agricultural facilities and livestock, which can be prevented by innumerable self-help response options like relocation of cages, transfer of stock and early harvest. He elucidated cooperation between ship owners, government and private bodies involved in addressing hassles due to oil spillage. Moller, Dicks, Whittle & Girin (1999) explored approaches for managing activity bans in fisheries and aquaculture sectors following oil spills.

White (1999, 2000, 02) stated that considerable improvement is desired in spill response technology, highlighting technical and organizational problems associated with major marine oil spills. Also he reported that cost of incidence in coastal waters, shorelines and seas depends on factors like type of oil coupled with physical, biological and economic characteristics of spill locations, other factors being rate of spillage, weather, time of year and effectiveness of clean-up. Purnell (1999, 2002) examined costs associated with low technology shoreline clean-up methods that were used in response to Sea Empress incident. At the same time he categorized incidents according to their cause, type of ship, oil spilt and location. He also highlighted Amorgos incident in Taiwan.

Dicks, Parker, Moller, Purnell & White (2000) examined a wide range of technical, organizational, logistic and financial problems faced by the people managing shoreline clean-up operations due to oil spills around the world. Anderson (2001) sketched the characteristics of black oils that normally do not break down readily after spills and remain long enough in the environment to necessitate response. Ansell, Dicks, Guenette, Moller, Santner & White (2001) concluded that lessons learnt from the past provide a basis for the selection of more effective response techniques and equipment. White & Molloy (2001, 03), while discussing accidental oil spills, reported that incidents provide a good basis for examining technical factors giving rise to cost variations. Dicks, Parker, Purnell & Santner (2002) explained aggressive cleaning techniques like hot water washing and use of chemicals to remove viscous oils or weathered residues from rocks and commented that environmental sensitivity of the shore has to be borne in mind during such operations.

Brien (2002) compared effectiveness of state-of-the-art equipment with non-specialized equipment such as mechanical grabs. It is concluded that while heavy oils often warrant special attention, large investment in specialized equipment and R&D is likely to be less beneficial than improved planning and preparation with locally available resources. Moller, Molloy & Thomas (2003) reviewed partnership between government and industry for dealing with oil spills arising from transportation of oil by sea in the event of risk of spills, environmental sensitivity and capabilities for dealing with oil spills in different regions of the world.

Critical Appraisal

The following observations were made reviewing the literature:

  • It is inappropriate to make cost comparisons between fundamentally different oil spill events referring to a single parameter, such as total amount of oil spilled.
  • Various response techniques such as booms and skimmers, chemical dispersion, protective booming and shoreline cleanup has many limitations.
  • Marine health life was not properly addressed due to adverse effects of oil spill pollution.
  • Many at times locally available materials were not used for removing oil spilled in seawater.
  • Major marine oil spills were rarely dealt with as effectively as current technology should allow due to lack of shortcomings in the organization, management and equipment of spill response.
  • There has been no dramatic reasonable reinstatement measures for oil spills in past.
  • Most of the methods adopted were rather heuristic/ adhoc in nature in the past.

Need for the study

Around 5 million tonnes of petroleum hydrocarbons reach the world's seas and oceans each year and 140 incidents of oil spills were reported in 75 countries. These incidents throw light on shortcomings of the organizations, employment of equipment and management of spill response and contingency planning for improving the usage of locally available materials. It is almost impossible to say that the marine life is likely to be free from the danger of an oil spill, though the discharge of oil is controlled by international convention. Therefore the environmental authorities must be aware of this particular risk and must have enough knowledge to deal with priority to remove the oil as quickly as possible. This is to reduce the dangers caused by oil spill pollution, which affect economic development of a country. Hence this work is aimed to achieve the following tasks.

  • To test naturally available local materials in removing the oil spill from water having different oil concentrations and its associated oil removal efficiency.
  • To study effect of time and dosage on oil removal efficiency and compare with standard adsorbents.

Methodology

Oil tends to form insoluble layers with water as a result of its hydrophilic characteristics, which can be easily separated from seawater by gravity and skimming. When it forms emulsion with water as a result of turbulent mixing it becomes difficult to break, hence there are a number of methods which may apparently be used to deal with oil spills in seawater. Some options used for marine protection from oil pollution include:

*Mechanical collection *Chemical dispersants *Natural removal.

Setting fire to the oil spill: Frequently crude oil is set on fire in a wrecked ship when an accident occurs. The problem of burning surface oil is very difficult due to less thickness of the layer and large surface area. The volatile fraction evaporates quickly and makes it impossible to ignite without doping special measures.

Skimming: It can be performed by employing devices for collecting oil from a large area of water to make it a thicker layer in harbour sheltered places.

Gelling: Spraying gelling agents with a certain amount of mixing energy into the oil spill causes formation of gel or coagulation. The resulting lumps can be collected easily in the vicinity of a wrecked ship.

Sinking: Mixing small fine granular solids of fairly high density (sand) culminates into slurry, sinking the oil spill to the bottom of the seabed.

Absorbing: Floating oil can be separated due to absorbsion applying chemicals.

However, many of the methods described above have limited usage and at times prove to be expensive in view of regional conditions and other influencing parameters. But in reality to achieve cost effectiveness in prevention of oil spill pollution, the selection of materials should be based on the following factors:

* Efficiency in removing oil * Local availability

* Relatively cheap cost * Ability to regenerate and reuse.

*Environment friendly byproduct.

Naturally available local materials utilized for removing oil spills from seawater in the present work are Corchorus depressu and Arachis hypogea.

Corchorus depressus: This plant, whose Arabic name is Mulukhia EI Bar (Desert queen), is embossed of a flat prostrate compact perennial pink herb 25 cm long. The leaves are small elliptic crenate 0.3 -1 x 2.0 -0.5 cm, flowers are yellow, calyx 5 lobed, 7 mm long, corolla S-lobed. The plant has stamens 10 and capsule is oblong cylindrical 1-2 x 0.2 mm, curved, beaked with dark green seeds. It is commonly available in Oman whereever compact sandy soil is present. It is used for grazing animals. Powdered Corchorus depressus sieved on No. 40 sieve contains AlCl3 40-70 %, NaSo4 0 to +8, H3Bo3 +13 (band 11) and considerable amount of ethanol, which gives the plant the ability to coagulate. This material acts as a sinking material when used in the powder form for removal of oil from seawater by absorbing oil and settling to the bottom.

Arachis hypogaea: This plant, 450- 600 mm high with short branches known as groundnut, has golden-yellow pentads about 10mm long. The pods are long with 2 or 3 seeds oblong, roughly cylindrical with rounded ends. The solid pulp that remains after edible oil is extracted from it as a high protein live stock feed which enables it to absorb the oil spill from sea water which gets collected on the surface.

Materials used for comparison

Some materials good for removing oil from water were tested with the same restraint to compare their efficiency with naturally available local materials.

Bentonite clay: It acts as a sinking material when added to oil spill polluted water sample.

Activated carbon: This material causes the oil spill to form a gel or coagulate, however due to its chemical composition it may have negative side effects on marine health life environment.


Experimental Work

A standard partition-gravimetric method was applied for extracting dissolved or emulsified oil from seawater having volatile hydrocarbons that otherwise would have lost in solvent-removal operation of the gravimetric procedure.

Oil spilled seawater with predetermined levels of oil concentration was collected for the experimentation employing Datasonde hydrolab equipment with data logger. This sample was thoroughly mixed with the powdered locally available material by varying dosages and time of contact. The material in this case reacted with the mixture by adsorbing oil and settling at the bottom of the water (sedimentation). Hydrochloric acid (HCL) was used with dilute amount of 4 ml and 30 ml of trichlorotrifluoroethan to separate the remaining amount of oil, which was not removed by the material. Trichlorotrifloroethan extracts unsaturated fats and fatty acids and oxidizes the sample but precaution has to be taken to control temperature and solvent vapor displacement. It has the ability to dissolve not only the oil and grease, but also other organic substances. Hence as a result oil is separated from the seawater. The results help in determining the optimum usage of the material and its associated efficiency in separating oil from the seawater.

However in order to establish the effectiveness of the locally available materials (Corchorus depressus and Arachis hypogaea), the results obtained are compared with the other adsorbents (Bentonite clay and Activated carbon).

Tests Results and Conclusions

The set of experiments carried out helps to compute the oil removal efficiency by above mentioned selected materials and the effect of time and dosage on it.

Details of quantity of oil separated from seawater having 90, 160 and 360 mg/l oil concentrations when Corchorus depressus was used are presented in Table-1 and Fig-1. The following formula was used for the computations:

Oil remained = (total gain in weight * 1000) /sample in ‘ml’

Oil removed = initial oil concentration - oil remained.

Details of results obtained adopting the above procedure for removing oil from seawater having 90, 160 and 360 mg/l oil concentrations when other locally available material (Arachis hypogaea) and the materials used for comparison (Bentonite clay and Activated carbon) were used are presented in Table-2, 3 & 4 and Fig-2, 3 & 4 respectively.

The following conclusions were drawn analyzing the test results:

The optimum removal efficiency of oil from the sample when Corchorus depressus was used yielded 99.4% at 160mg/l oil concentration and 20g of material, contact time being 20 min. The results show that removal efficiency increases at the beginning and subsequently decreases with increase in dosage quantity and time of contact.

The optimum removal efficiency of oil from the sample when Arachis hypogaea was used yielded 70.3 % at 360mg/l oil concentration and 20g of material, contact time being 20 min. The results show that removal efficiency increases at the beginning and subsequently decreases with increase in dosage quantity and time of contact.

The optimum removal efficiency of oil from the sample when Bentonite clay was used yielded 85.5% at 90mg/l oil concentration and 20g of material, contact time being 20 min. The results show that removal efficiency increases at the beginning and subsequently decreases with increase in dosage quantity and time of contact.

The optimum removal efficiency of oil from the sample when Activated carbon was used yielded 66.87% at160mg/l oil concentration and 20g of material, contact time being 20 min. The results show that removal efficiency increases at the beginning and subsequently decreases with increase in dosage quantity and time of contact.

It has been deduced that locally available herb Corchorus depressus used for separation of oil from seawater was the most effective and efficient and at the same time proved to be economical, Results conclude optimum dosage as 20g of it having a contact time of 20 min. Finally comparison of oil removal efficiency for all the four materials with their individual dosage and the time of contact are presented through Table-5 and Fig- 5, 6 and 7 respectively.

Scope for further study

The following points can be considered for undertaking future research work. More experiments can be conducted by selecting appropriately locally available natural materials employing innovated experimental techniques. Further these materials may be used in combination with chemical reagents, in order to achieve economy in experimentation. It is felt appropriate to consider the chemical composition of materials employed and consumption of by products formed addressing oil spill pollution.

References

  1. J.A. Butt, D.F Duckworth and S.G. Peuy (1986), Characterization of spilled oil sample, Institute of Petroleum, London.
  2. Anthony G.M (1988), Plants of Dhofar, Diwan of Royal Court, Oman.
  3. Robert J. Meyers (1989), Oil spill Response Guide, Nages Data Corporation, New Jersey.
  4. J W Doeffer (1992), Oil Spill response in the marine environment, Pergamon press, New York.
  5. Dr Tosh Moller (1997), Paper presented at ARPEL Seminar 'Managerial Strategy for Oil Spills in Latin America, Kingston, Jamaica.
  6. Dr Brian Dicks (1998), Paper presented at the International Seminar on Tanker Safety, Pollution Prevention, Spill Response and Compensation, Rio de Janeiro, Brazil.
  7. Dr Brian Dicks, Dr Tosh Moller, Mr Richard Santner (1998), Paper presented at the Petroleum Association of Japan (PAJ) Oil Spill Symposium, Tokyo, Japan
  8. Loic Kerambrun and Hugh Parker (1998), Paper presented at '20 Years after the Amoco Cadiz' Symposium, Brest, France
  9. Catherine Grey (1999), Paper presented at The International Oil Spill Conference, Seattle, USA.
  10. Dr Ian White (1999), Paper presented at Shipping in the New Millenium, Brisbane, Australia.
  11. Dr Karen Purnell (1999), Paper presented at The International Oil Spill Conference, Seattle, USA.
  12. Prof. Ron Edwards and Dr Ian White (1999), Paper presented at The International Oil Spill Conference, Seattle, USA.
  13. Tim Wadsworth (1999), Paper presented at The International Oil Spill Conference, Seattle, USA.
  14. Tim Wadsworth, Dr Brian Dicks and Clément Lavigne (1999), Paper presented at The International Oil Spill Conference , Seattle, USA.
  15. Dr Tosh Moller, Dr Brian Dicks, K.J. Whittle and M. Girin (1999), Paper presented at The International Oil Spill Conference, Seattle, USA.
  16. Dr Brian Dicks, Mr Hugh Parker, Dr Tosh Moller, Dr Karen Purnell, and Dr Ian White (2000) Paper presented at INTER SPILL, UK.
  17. Dr Ian White (2000), Paper presented at SPILLCON, 8th International Oil Spill Conference, Darwin, Australia.
  18. D.V. Ansell, B. Dicks, C.C. Guenette, T.H. Moller, R.S. Santner and I.C. White (2001) Paper presented at: International Oil Spill Conference Tampa, Florida.
  19. Caryn Anderson (2001) Article in Beacon (Skuld Newsletter).
  20. Dr Ian White & Mr Fionn Molloy (2001), Paper presented at: Maritime Cyprus Conference.
  21. Dr Brian Dicks, Hugh Parker, Karen Purnell and Richard Santner (2002) Paper presented at CEDRE "Technical Lessons Learnt from the Erika Incident and Other Spills" seminar, Brest, France.
  22. Dr Ian White (2002), Paper presented at GAOCMAO Conference, Muscat, Oman.
  23. Dr Karen Purnell (2002), Paper presented at Spillcon, Sydney, Australia.
  24. Dr Michael O'Brien (2002), Paper presented at IMO 3rd R&D Forum, Brest, France.
  25. Dr Ian White & Fionn Molloy (2003), Paper presented at the International Oil Spill Conference, Vancouver, Canada.
  26. Dr Tosh Moller, Fionn Molloy & Helen Thomas (2003), Paper presented at the International Oil Spill Conference, Vancouver, Canada.
















Table – 1. Oil removing efficiency using Corchous depressus (CD)

Dosage (g) &

Time (min)

360mg/l Oil Conc.

Removing Efficiency %

160mg/l Oil Conc.

Removing Efficiency %

90mg/l Oil Conc.

Removing Efficiency %

5 60.0 62.0 65.0
10 79.0 83.1 86.6
15 95.0 99.3 99.2
20 95.6 99.4 99.2
25 95.1 99.1 99.0
30 94.8 98.7 97.8

Table – 2. Oil removing efficiency using Arachis hypogaea (AH)

Dosage (g) &

Time (min)

360mg/l Oil Conc.

Removing Efficiency %

160mg/l Oil Conc.

Removing Efficiency %

90mg/l Oil Conc.

Removing Efficiency %

5 12.3 10.0 8.7
10 20.5 16.2 12.4
15 55.0 52.2 25.3
20 70.3 63.8 32.2
25 64.4 63.2 38.7
30 61.2 60.6 32.6

Table – 3. Oil removing efficiency using Bentonite clay (BC)

Dosage (g) &

Time (min)

360mg/l Oil Conc.

Removing Efficiency %

160mg/l Oil Conc.

Removing Efficiency %

90mg/l Oil Conc.

Removing Efficiency %

5 60.0 8.7 66.6
10 61.0 16.2 69.4
15 66.0 50.0 73.3
20 68.8 80.6 85.5
25 62.2 75.6 84.1
30 61.3 72.3 83.7

Table – 4. Oil removing efficiency using Activated carbon (AC)

Dosage (g) &

Time (min)

360mg/l Oil Conc.

Removing Efficiency %

160mg/l Oil Conc.

Removing Efficiency %

90mg/l Oil Conc.

Removing Efficiency %

5 16.6 6.2 11.1
10 18.0 18.7 15.5
15 55.4 51.8 23.3
20 66.5 66.8 27.7
25 62.2 58.7 25.5
30 61.7 55.8 24.3

Table- 5. Removal of oil efficiency % using different materials

Dosage (g) &

Time (min)

360mg/l Oil Conc.

Removing Efficiency %

160mg/l Oil Conc.

Removing Efficiency %

90mg/l Oil Conc.

Removing Efficiency %


CD AH BC AC CD AH BC AC CD AH BC AC
5 60.0 12.3 60.0 16.6 62.0 10.0 8.7 6.2 65.0 8.7 66.6 11.1
10 79.0 20.5 61.0 18.0 83.1 16.2 16.2 18.7 86.6 12.4 69.4 15.5
15 95.0 55.0 66.0 55.4 99.3 52.2 50.0 51.8 99.2 25.3 73.3 23.3
20 95.6 70.3 68.8 66.5 99.4 63.8 80.6 66.8 99.2 32.2 85.5 27.7
25 95.1 64.4 62.2 62.2 99.1 63.2 75.6 58.7 99.0 38.7 84.1 25.5
30 94.8 61.2 61.3 61.7 98.7 60.6 72.3 55.8 97.8 32.6 83.7 24.3













Monday, November 10, 2008

Federal Reserve defines transparency aim in refusal to disclose in the bailout

Fed Defies Transparency Aim in Refusal to Disclose (Update1)

By Mark Pittman, Bob Ivry and Alison Fitzgerald

Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

``The collateral is not being adequately disclosed, and that's a big problem,'' said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. ``In a liquid market, this wouldn't matter, but we're not. The market is very nervous and very thin.''

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.

The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.

``It's your money; it's not the Fed's money,'' said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. ``Of course there should be transparency.''

Federal Reserve spokeswoman Michelle Smith declined to comment on the loans or the Bloomberg lawsuit. Treasury spokeswoman Michele Davis didn't respond to a phone call and an e-mail seeking comment.

$2 Trillion

The Fed's lending is significant because the central bank has stepped into a rescue role that was also the purpose of the $700 billion Troubled Asset Relief Program, or TARP, bailout plan -- without safeguards put into the TARP legislation by Congress.

Total Fed lending topped $2 trillion for the first time last week and has risen by 140 percent, or $1.172 trillion, in the seven weeks since Fed governors relaxed the collateral standards on Sept. 14. The difference includes a $788 billion increase in loans to banks through the Fed and $474 billion in other lending, mostly through the central bank's purchase of Fannie Mae and Freddie Mac bonds.

Before Sept. 14, the Fed accepted mostly top-rated government and asset-backed securities as collateral. After that date, the central bank widened standards to accept other kinds of securities, some with lower ratings. The Fed collects interest on all its loans.

`We Need Transparency'

The plan to purchase distressed securities through TARP called for buying at the ``lowest price that the secretary (of the Treasury) determines to be consistent with the purposes of this Act,'' according to the Emergency Economic Stabilization Act of 2008, the law that covers TARP.

The legislation didn't require any specific method for the purchases beyond saying mechanisms such as auctions or reverse auctions should be used ``when appropriate.'' In a reverse auction, bidders offer to sell securities at successively lower prices, helping to ensure that the Fed would pay less. The measure also included a five-member oversight board that includes Paulson and Bernanke.

At a Sept. 23 Senate Banking Committee hearing in Washington, Paulson called for transparency in the purchase of distressed assets under the TARP program.

``We need oversight,'' Paulson told lawmakers. ``We need protection. We need transparency. I want it. We all want it.''

Banks Resist Disclosure

At a joint House-Senate hearing the next day, Bernanke also stressed the importance of openness in the program. ``Transparency is a big issue,'' he said.

The Fed lent cash and government bonds to banks, which gave the Fed collateral in the form of equities and debt, including subprime and structured securities such as collateralized debt obligations, according to the Fed Web site. The borrowers have included the now-bankrupt Lehman Brothers Holdings Inc., Citigroup Inc. and JPMorgan Chase & Co.

Banks oppose any release of information because it might signal weakness and spur short-selling or a run by depositors, said Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a Washington trade group.

Frank Backs Fed

``You have to balance the need for transparency with protecting the public interest,'' Talbott said. ``Taxpayers have a right to know where their tax dollars are going, but one piece of information standing alone could undermine public confidence in the system.''

The nation's biggest banks, Citigroup, Bank of America Corp., JPMorgan Chase, Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley, declined to comment on whether they have borrowed money from the Fed. They received $120 billion in capital from the TARP, which was signed into law Oct. 3.

In an interview Nov. 6, House Financial Services Committee Chairman Barney Frank said the Fed's disclosure is sufficient and that the risk the central bank is taking on is appropriate in the current economic climate. Frank said he has discussed the program with Timothy F. Geithner, president and chief executive officer of the Federal Reserve Bank of New York and a possible candidate to succeed Paulson as Treasury secretary.

``I talk to Geithner and he was pretty sure that they're OK,'' said Frank, a Massachusetts Democrat. ``If the risk is that the Fed takes a little bit of a haircut, well that's regrettable.'' Such losses would be acceptable, he said, if the program helps revive the economy.

`Unclog the Market'

Frank said the Fed shouldn't reveal the assets it holds or how it values them because of ``delicacy with respect to pricing.'' He said such disclosure would ``give people clues to what your pricing is and what they might be able to sell us and what your estimates are.'' He wouldn't say why he thought that information would be problematic.

Revealing how the Fed values collateral could help thaw frozen credit markets, said Ron D'Vari, chief executive officer of NewOak Capital LLC in New York and the former head of structured finance at BlackRock Inc.

``I'd love to hear the methodology, how the Fed priced the assets,'' D'Vari said. ``That would unclog the market very quickly.''

TARP's $700 billion so far is being used to buy preferred shares in banks to shore up their capital. The program was originally intended to hold banks' troubled assets while markets were frozen.

AIG Lending

The Bloomberg lawsuit argues that the collateral lists ``are central to understanding and assessing the government's response to the most cataclysmic financial crisis in America since the Great Depression.''

The Fed has lent at least $81 billion to American International Group Inc., the world's largest insurer, so that it can pay obligations to banks. AIG today said it received an expanded government rescue package valued at more than $150 billion.

The central bank is also responsible for losses on a $26.8 billion portfolio guaranteed after Bear Stearns Cos. was bought by JPMorgan.

``As a taxpayer, it is absolutely important that we know how they're lending money and who they're lending it to,'' said Lucy Dalglish, executive director of the Arlington, Virginia- based Reporters Committee for Freedom of the Press.

Ultimately, the Fed will have to remove some securities held as collateral from some programs because the central bank's rules call for instruments rated below investment grade to be taken back by the borrower and marked down in value. Losses on those assets could then be written off, partly through the capital recently injected into those banks by the Treasury.

Ratings Cuts

Moody's Investors Service alone has cut its ratings on 926 mortgage-backed securities worth $42 billion to junk from investment grade since Sept. 14, making them ineligible for collateral on some Fed loans.

The Fed's collateral ``absolutely should be made public,'' said Mark Cuban, an activist investor, the owner of the Dallas Mavericks professional basketball team and the creator of the Web site BailoutSleuth.com, which focuses on the secrecy shrouding the Fed's moves.

The Bloomberg lawsuit is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporters on this story: Mark Pittman in New York at mpittman@bloomberg.net; Bob Ivry in New York at bivry@bloomberg.net; Alison Fitzgerald in Washington at afitzgerald2@bloomberg.net.

Last Updated: November 10, 2008 10:14 EST




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