Banks Attack First Amendment Of Blogosphere

The banking oligarchs and our criminal court system have decided that you are too dumb to have time sensitive financial information.

Bloomberg reports:

Theflyonthewall.com, the online financial news service, was barred from issuing immediate online reports about stock upgrades and downgrades of Barclays Plc, Bank of America Corp.’s Merrill Lynch, and Morgan Stanley…

The banks sought to block publication of their recommendations for four hours from the release or until noon, whichever is later. Cote chose a shorter period. For reports issued before the market opens, the bar will be in effect until 10 a.m. For those issued while the market in New York is open, it will be in effect for two hours after publication.

Hot-News Doctrine

Under that legal doctrine, news organization may not lift and sell time-sensitive information that a rival expended time and resources to gather.

What this really means:

So these banks, all of which still use TALF, and are thus beholden to the taxpayer even though they may argue that TARP has been paid off so they can pay billions in bonuses, are now saying “hey taxpayers, rot in hell – if you want to get access to what is essentially public information, you will have to get in line, and only trade after Fidelity and Vanguard have already put their positions on.” While we are not PR specialists, this is not the right way to gain public support for the next time all the Wall Street kleptorcrats need a bail out.

Of course, the major financial news sources such as Bloomberg do exactly the same thing as Fly was doing, but they have big bank rolls and lots of lawyers to protect them.  As the attorney for Fly comments:

“The plaintiffs’ plan” is “to select probably one of, if not the, smallest player on the street with the most limited resources and pursue this claim so that they then, with that advantage [a winning case precedent], can go to Bloomberg and others”

Eventually the mega-banks will succeed in destroying all the rights of bloggers and news aggregators on the web.  They want total top down control over financial information.  They hate the fact that there are still people out there that aren’t dumb enough to fall inline with their casino operations.

“No one should have equal odds with the house.”

-Jamie Dimon, CEO JP Morgan, during a secret executive board meeting held at Joe’s Italian Deli in a dimly lit smoke filled room while playing a game of 5 card draw.