Tuesday, August 25, 2009
Court Orders Federal Reserve to Disclose Emergency Loan Details
This was the suit filed by Bloomberg LP that sought to force the Fed to disclose who it was lending money to. The Fed has the right under Section 13 article 3 of the Federal Reserve Act to lend in any amount against virtually anything it deems to be satisfactory collateral, but now it must disclose names.
Just as an aside, I had many email conversations with one of the Bloomberg journalists who covered this lawsuit and he admitted that his articles did not explain that the amounts and they types of collateral the Fed accepted were already all available to the public.
Read one of those exchanges here.