Actual line is something like:
“We are the Federales! We don’t need no stinkin’ badges!”
From The Treasure of the Sierra Madre, by John Huston.
Early in the movie, prospectors Dobbs, Curtain and Howard are still together. They encounter bandits, who pretend to be police, and they utter this line. Things degenerate quite a bit after this part of the movie.
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