Tuesday, August 25, 2009

The Fed Loses Case and Must Disclose Who It Loaned $2T To.

A small victory for tax payers in the case of Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).

Bloomberg resports that Manhattan Chief U.S. District Judge Loretta Preska said the central bank “improperly withheld agency records” by “conducting an inadequate search” after Bloomberg News reporters filed a request under the information act. The Fed was given five days to turn over documents, including 231 pages of reports, and must look for more at the Federal Reserve Bank of New York, which runs most of the loan programs.

The Fed had said that disclosing the recipients of the #2T may hurt them. It may still appeal the decision. As many of the readers here know, but most people in the world don't, the Federal Reserve is a separate entity from the Government and amazingly does not have to answer to Congress, nor to the President.

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