In September 2008, We The People Foundation For Constitutional Education Chairman Robert Schulz brought the lawsuits within hours of actions taken by the U.S. Treasury and the (privately-owned) Federal Reserve in order to block, via emergency injunction, the government multi-billion dollar bailouts of insurance giant AIG and numerous privately-held financial corporations.
The corporations were under distress due to substantial losses stemming from their involvement in highly-leveraged, high-risk, “toxic” financial instruments such as credit default swaps (CDS), mortgage backed securities (MBS), etc.
Schulz has demanded that the Government and Federal Reserve produce legal evidence of its authority under the Constitution to use public monies for such definitively private purposes.
The U.S. District Court in New York refused to issue any injunction and dismissed the lawsuits claiming that Schulz had no legal standing to challenge the Government's bailouts.
Readers are urged to review the legal pleadings linked in the article to learn the nature of the questionable arguments put forth to justify the continuing bailouts and ongoing violations of the Constitution.