Appeals Court Rejects Federal Reserve's Appeal...next stop, Ben Bernanke visits the Supreme Court

Chad Bray
Wall Street Journal

Appeals Court Rejects Fed Request in Discount-Window Case

A federal appeals court has declined to reconsider its March ruling that the Federal Reserve must disclose documents regarding borrowing from its discount window and other “last resort” lending programs.

The Fed could appeal next to the U.S. Supreme Court.

In May, the Fed had asked that the full U.S. Second Circuit Court of Appeals review a March decision by a three-judge appellate panel that it must turn over documents related to individual borrowing from those lending programs.

In a one-page order dated Friday, the appeals court denied the request.

Bloomberg LP’s Bloomberg News and Fox News Network LLC’s Fox Business Network separately sued the Fed, seeking access to documents related to discount window usage.

The Fed’s Board of Governors and a banking group had argued, in part, that disclosure would harm the banks who borrowed from one of 12 Federal Reserve banks and could affect the banking system as a whole if struggling banks refused to access the “last resort” lending programs because of disclosure requirements.

“We are reviewing the decision and are considering our options for appeal,” a Fed spokesman said Monday.

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