David Kirkpatrick

August 24, 2010

Fed must reveal details of bailout

Filed under: Business, Politics — David Kirkpatrick @ 1:38 pm

Bloomberg News won in court to require the Federal Reserve to disclose the nuts and bolts of the financial bailout when the U.S. Court of Appeals in New York turned down an appeal of Fed court loss in March. I’m with Bloomberg on this. Public money was used and there’s no conceivable reason why the public should be kept in the dark on the who’s and how muches went into the bailout. If some businesses (or the government) get embarrassed, so be it. And if financial institutions didn’t want make any business details public, they shouldn’t have taken any public money. That public thing ought to be a two-way street. Looks like the New York Appeals Court agrees.

From the link:

The full U.S. Court of Appeals in New York has refused to review a March decision by three of its judges requiring the Fed to release records of the $2 trillion in emergency loans it extended to banks and other institutions beginning in 2008.

From Bloomberg:

Unless the court stays its decision, the Fed will have seven days to disclose the documents. In the event of a stay, the central bank and the Clearing House Association LLC, an organization of 20 commercial banks that joined the Fed in defense of the lawsuit, will have 90 days to petition the Supreme Court to consider their appeal. The Clearing House has already said it will ask the high court to rule on the case.

A Fed spokesman said the central bank was “considering our options.”

Bloomberg sued the Fed in November 2008, arguing that the public has the right to know the names of the banks that borrowed from the agency, the amounts of the loans and what kind of collateral was posted.

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