Federal Reserve Chair Jerome Powell revealed that the Department of Justice (DOJ) has made threats to potentially indict him and other officials over their roles in the sale of JPMorgan Chase's stake in Washington Mutual, a failed bank that was bailed out by the government.
According to sources close to the matter, DOJ officials have reportedly warned Powell and other executives that they could face criminal charges if the Fed fails to turn over internal documents related to the 2008 bailout. The Federal Reserve had purchased Washington Mutual at an estimated $1.9 billion loss for taxpayers just before it failed in 2008.
The Federal Reserve has resisted releasing these documents, citing concerns about national security and the ongoing litigation with investors who claim the Fed misled them on the state of Washington Mutual's finances at the time of its bailout.
"This is a brazen overreach by DOJ," said one Republican Senator. "The Fed has been transparent about their actions in that crisis, and now they're being bullied into handing over sensitive information."
Powell's comments have raised questions about the increasing pressure from regulators on financial institutions to release sensitive data, potentially leading to further investigations and potential prosecution of top executives.
The Federal Reserve chair's statement is seen as a rare public admission of tension between regulatory agencies.
According to sources close to the matter, DOJ officials have reportedly warned Powell and other executives that they could face criminal charges if the Fed fails to turn over internal documents related to the 2008 bailout. The Federal Reserve had purchased Washington Mutual at an estimated $1.9 billion loss for taxpayers just before it failed in 2008.
The Federal Reserve has resisted releasing these documents, citing concerns about national security and the ongoing litigation with investors who claim the Fed misled them on the state of Washington Mutual's finances at the time of its bailout.
"This is a brazen overreach by DOJ," said one Republican Senator. "The Fed has been transparent about their actions in that crisis, and now they're being bullied into handing over sensitive information."
Powell's comments have raised questions about the increasing pressure from regulators on financial institutions to release sensitive data, potentially leading to further investigations and potential prosecution of top executives.
The Federal Reserve chair's statement is seen as a rare public admission of tension between regulatory agencies.
like what even is going on with the Fed and DOJ? Powell has been keeping it real about their roles in the 2008 bailout, but now they're being threatened with indictments? that's wild! 
and can we talk about how transparent the Fed already was about this whole situation? shouldn't that be enough?
what's next? are they gonna go after Powell too? and what does this say about the pressure on financial institutions to release sensitive data? it feels like they're just waiting for someone to slip up so they can pounce 
. According to latest stats on Fed chairman changes in 2020, there were 3 chairmanships in 2 years - what does that tell us about stability at the Fed? 
They say the Fed's got a good track record of being transparent, but since 2008, we've seen like 5 major bailouts and now they're hiding info again 
. Meanwhile, in related news, JPMorgan Chase paid $25 billion in fines last year alone - maybe some answers are hidden in those docs? 
The DOJ's been investigating Wall St for ages, so this is just another step in that direction. Can't say I'm surprised though - the 1% vs the people has become all too familiar 
. Did you know the 2008 financial crisis led to a 43% increase in regulatory bodies? Time will tell if this move by DOJ changes anything.
. I mean, come on, can't we trust our leaders to handle these kinds of things without being intimidated by bureaucrats? It's like they're more worried about getting caught than doing what's right 
They're making a big deal about national security now? Give me a break! In my day, we didn't have all these regulations and investigations. We just called it "doing business". And you know what? The economy survived just fine without all the fuss. 
. I mean, think about it - they're making threats to indict someone who was just doing their job all those years ago. It's almost like they're trying to send a message that no one is above the law... yet. 
But what really gets me is how this whole thing highlights the blurred lines between national security and corporate accountability 
. I mean, is it really that hard to have a conversation about what documents are necessary to release? 
And what's with all these investigations and prosecutions? Isn't transparency supposed to be a cornerstone of our financial system? 
! The Fed has already taken massive losses for taxpayers, now you're trying to pin them down for more info? That's just too much 
. Powell should just give them the docs and be done with it 
. And what's next? Are they gonna start investigating everyone who worked at the Fed during that time? It's like, chill out DOJ 
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like what is going on with these gov officials?? I mean I know they're trying to hold people accountable but DOJ making threats of indictment over some old bailout documents? 
I'm not saying they shouldn't be transparent, but come on, guys, can't we just move on from 2008 already? 
The Hashtag Hero is on it #FinancialRegulation #FederalReserve #DOJ
. One thing that does concern me though is what this says about the role of regulators in general... are they just trying to cover their own butts, or do they really have our best interests at heart? 
, I mean, who doesn't love a good game of cat and mouse with regulators?
. It seems like everyone's just trying to shift blame and avoid accountability for past mistakes. I mean, the Fed lost an estimated $1.9 billion on Washington Mutual - where did all that money go? 
. Will DOJ really go after Powell and other executives with indictments? Or is this just another case of regulatory agencies playing politics? I'm not sure, but one thing's for sure - it's gonna get messy! 
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. I mean, you'd think that after all these years, we'd have moved on from the bailout drama. But instead, it seems like the DOJ is still trying to pin stuff on some of those old Fed guys 
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. I get it, national security and all that jazz, but at what cost? Transparency is key, you know?
. The DOJ's trying to flex their muscles, and Powell's being pretty open about the fact that they're not gonna play ball. I mean, can't we all just get along and have a good faith discussion? It's 2025 already, let's move on from this drama