Citizen Pittman
Mark Pittman is a guy whose life should be made into a Hollywood movie.
Actually, it already has, sort of. He’s one of the chief commentators to appear in an indie documentary, American Casino, about the subprime-mortgage debacle. His encyclopedic knowledge of the events of 2008 contributed handsomely to what the film’s directors called its “thriller-like exposition.”
Pittman’s own story, however, is even more thrilling than some of the Wall Street scams he spent 15 years of his life exposing. He’s the guy, you see, who dared to sue the Fed. And he won. Vindicated, with all the justice in the world on his side, in the eyes of no less august an institution than the U.S. Federal Courts.
The tragedy is that he didn’t live to enjoy the spoils of his battle with America’s most powerful bank.
It all started with a series of articles Pittman, a veteran financial reporter, wrote for Bloomberg News back when the witches’ brew of Wall Street malfeasance was still coming to a boil. In them, he was among the first to point out the precariousness of the financial markets, with their endless, incomprehensible repackagings and resellings. Later he was the first to detail how Goldman Sachs, Morgan Stanley, and the rest profited from the government’s bailout of AIG. Still later, not one to rest on his laurels, he demonstrated Hank Paulson’s curious double role in the crisis, as one who had both made the mess and later been hired to clean it up.
Award-winning work, all of it, but Pittman was just getting started. In late 2008, as the financial system was hemorrhaging and the government was scrambling to perform triage, Pittman wrote some numbers on a dry-erase board, scratched his head, and asked a simple question: How much money was the government spending, and where was the money going? Doing some simple math, he arrived at a figure of some $12.8 trillion, not all of it clearly accounted for. Later analysts have contested this sum, but correct or no, it’s indisputable that the Federal Reserve in particular refused to disclose who exactly was receiving the $2 trillion it had earmarked for distribution.
Pittman’s next move was to file a Freedom of Information Act request. He reasoned that it was the taxpayers’ money, and that those taxpayers therefore had a right to know just what the Fed was doing with it. The bank stonewalled. Pittman filed another request. Again the Fed refused to play ball.
So Pittman sued. Together with Bloomberg News, he brought the case to federal court, where a judge found that the Fed was indeed obliged to hand over the data requested, and gave the bank five days to comply. Still the Fed didn’t want to do the right thing. It filed appeal after appeal, until finally it was given a stay of implementation until the case could be heard by the Supreme Court. The latter, however, declined to get involved, thus effectively upholding the lower courts’ anti-Fed ruling.
At this point, one would think the Fed would be gracious and concede the victory to its opponents, but still the data were not forthcoming. They began to publish printouts of e-mails, communications logs—anything and everything but the data requested. So that when Pittman died on November 25, 2009, his soul may have gained access to paradise, but his case was still in bureaucratic limbo, endlessly waiting.
But his determination wasn’t for nothing. Some two years later, just before Christmas of 2011, the Fed finally released spreadsheets that detailed the amounts borrowed by some 400 banks. Some have argued that the data actually make the Federal Reserve look good, but all agree the information represents a victory for those in favor of greater government transparency. Scholars and financial analysts can better sort through the wreckage now that one of the black boxes has come to light.
One of Pittman’s friends, Congressman Brad Miller, eulogized the intrepid reporter thus in The Huffington Post:
What made it so entertaining to talk with him was his irreverence for the financial industry, which was a refreshing contrast to the industry’s self-reverence. He didn’t have an angry, confrontational ‘Speak Truth To Power!’ attitude towards the industry; he just saw them as grifters. Mark didn’t see much difference between selling AAA-rated bonds backed by subprime mortgages and sending e-mails claiming to be African royalty in need of help transferring a fortune to a U.S. bank, and he was amused by the financial industry’s pretensions that they were making a great contribution to our economy.
Hollywood would barely have to doctor Pittman’s story to sell it to audiences. Its narrative arc is as perfect as its protagonist’s integrity.
Posted by Eddy Elfenbein on May 14th, 2013 at 8:55 am
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
- Tweets by @EddyElfenbein
-
Archives
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- June 2006
- May 2006
- April 2006
- March 2006
- February 2006
- January 2006
- December 2005
- November 2005
- October 2005
- September 2005
- August 2005
- July 2005