Not unexpected. Still the takeaway from the latest round of disclosures should be that the Fed actively tried to cut other federal entities out of the loop as the deal came down to the wire.

This should scare the bejebus out of anyone looking to a pumped up Fed to function as the uber-regulator under Obama’s financial regulatory plan. In fact, what we are moving towards is a sort of Kremlinization of the financial sector with the Fed acting as an arm of the White House, freed of the checks-and-balances of separated regulatory powers.

If you think this is an accident with Larry Summers lurking behind the scenes, you best just lay your pretty little head back down and not trouble yourself.