Tuesday, September 1, 2009

Fed urges secrecy on banks in bailout programs

Remember just a couple of days ago I said that I have noticed that almost all the bank closings have been announced after banking hours on a Friday... and some kind of shell game going on?

Well, now Reuters reports that the Fed has gotten a delay in revealing bank information requested under The Freedom of Information Act.

"NEW YORK, Aug 27 (Reuters) - The U.S. Federal Reserve asked a federal judge not to enforce her order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received, saying such disclosure would threaten the companies and the economy.

The central bank filed its request on Wednesday, two days after Chief Judge Loretta Preska of the U.S. District Court in Manhattan ruled in favor of Bloomberg News, which had sought information under the federal Freedom of Information Act.

Underlying this case and a similar one involving News Corp's (NWSA.O) Fox News Network LLC is a question of how much the public has a right to know about how the government is bailing out a financial system in a crisis.

The Clearing House Association LLC, which represents banks, in a separate filing supported the Fed's call for a delay. It said speculation that banks' liquidity is drying up could cause runs on deposits, and trading partners to demand collateral.

The next day after the above story, Rueters posted the update story that the Fed’s received a delay. Preska directed the Fed's board of governors to file a notice of appeal and an emergency stay application with the 2nd U.S. Circuit Court of Appeals.

The Fed was not immediately available for comment."

My thought is that the money the government is using is our money, and we have a right to know how it is being used. 'Nuff said.

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