Bloomberg sueing Fed

[*T*]

Via naked capitalism

Bloomberg News asked a U.S. court today to force the Federal Reserve to disclose securities the central bank is accepting on behalf of American taxpayers as collateral for $1.5 trillion of loans to banks.

The lawsuit is based on the U.S. Freedom of Information Act, which requires federal agencies to make government documents available to the press and the public, according to the complaint. The suit, filed in New York, doesn't seek money damages.

``The American taxpayer is entitled to know the risks, costs and methodology associated with the unprecedented government bailout of the U.S. financial industry,'' said Matthew Winkler, the editor-in-chief of Bloomberg News, a unit of New York-based Bloomberg LP, in an e-mail.

The Fed has lent $1.5 trillion to banks,.... Collateral is an asset pledged to a lender in the event that a loan payment isn't made.

The Fed made the loans under 11 programs in response to the biggest financial crisis since the Great Depression...

[Tulpen]

Re: Bloomberg sueing Fed

Academic, but interesting nevertheless.

[blazespinnaker]

Re: Bloomberg sueing Fed

Purely a symbolic gesture. Come on, we already know it's all toxic assets. Like we need FOIA to tell us that!

Though, kinda weird that the fed isn't making this available already. What do they think they need to hide?

Wild.

Bloomberg for sec treas

[D-Mack]

Re: Bloomberg sueing Fed

Fed Defies Transparency Aim in Refusal to Disclose (Update2)

By Mark Pittman, Bob Ivry and Alison Fitzgerald


Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

``The collateral is not being adequately disclosed, and that's a big problem,'' said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. ``In a liquid market, this wouldn't matter, but we're not. The market is very nervous and very thin.''

...

http://www.bloomberg.com/apps/news?p...oeg&refer=home

[Charles Mackay]

Re: Bloomberg sueing Fed

Purely a symbolic gesture. Come on, we already know it's all toxic assets. Like we need FOIA to tell us that!

Though, kinda weird that the fed isn't making this available already. What do they think they need to hide?

Wild.

Bloomberg for sec treas

Wonder if Michael B will get as big a run around as the rest of us do when we request FOIA ?? :eek: