March 19 (Bloomberg) -- The Federal Reserve Board must disclose documents identifying financial firms that might have collapsed without the largest U.S. government bailout ever, a federal appeals court said.
The U.S. Court of Appeals in Manhattan ruled today that the Fed must release records of the unprecedented $2 trillion U.S. loan program launched primarily after the 2008 collapse of Lehman Brothers Holdings Inc. The ruling upholds a decision of a lower-court judge, who in August ordered that the information be released.
The Fed had argued that it could withhold the information under an exemption that allows federal agencies to refuse disclosure of “trade secrets and commercial or financial information obtained from a person and privileged or confidential.”
The U.S. Freedom of Information Act, or FOIA, “sets forth no basis for the exemption the Board asks us to read into it,” U.S. Circuit Chief Judge Dennis Jacobs wrote in the opinion. “If the Board believes such an exemption would better serve the national interest, it should ask Congress to amend the statute.”
If today’s ruling is upheld or not appealed by the Fed, it will have to disclose the requested records.
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Grandpa: It is about time Mr. Bernanke. Your idea of "transparency" shall soon be redefined and your banking buddies deserve a squirming weekend. This is a small step for a grandchild and a giant leap for grandchildren!
I hope your bear avatar doesn't symbolize that this is a bear market. Enjoyed your article
ReplyDeleteThanks for taking the time to view the post and comment as both are genuinely appreciated.
ReplyDeleteI believe this is beyond a bear market rally as the market has been and continues to be controlled by the Quant robots. Unfortunately, I believe when all is said and done, it will end very badly for the bullish cheerleaders as fundamentals will get their day in court.
Thank you again for the comments!!