Tuesday, August 25, 2009

Federal Reserve Ordered To Disclose Names Of Banks Receiving Emergency Loans

As reported here by Bloomberg.com, the Chief Judge in the Southern District of New York ordered the Federal Reserve Bank to disclose information about emergency loans given to banks. The order can be found here. The Federal Reserve had argued disclosing the information would potentially create a run on the bank receiving the emergency loan. The Bloomberg article begins:
The Federal Reserve must for the first time identify the companies in its emergency lending programs after losing a Freedom of Information Act lawsuit.

Manhattan Chief U.S. District Judge Loretta Preska ruled against the central bank yesterday, rejecting the argument that loan records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions....

The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).
Other articles can be found at the Wall Street Journal, the Washington Post, the LA Times and Reuters. Each of the articles indicate that the Federal Reserve indicated it is still determining whether it will appeal the decision to the Second Circuit.


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