Wednesday, September 30, 2009

The All Supreme Fed Appeals Order to Release Infomation: Who is the Boss?

This just coming off the wires: Fed appeals the judge's decision to release information of who received bailout money. Today was the deadline, and they did it. Is the Fed above all in the U.S.?

The Fed alleges that releasing information could cause a run on the banks. If that is their fear they seem to be admitting that the banks insolvent, althought they claim they are sound and safe. Which one is it? Technically the banks are insolvent indeed, they all are. The fed is now saying that transparency is not a good thing! Isn't full disclosure one the SEC rules? Oh, but not for the Fed.

"The Federal Reserve is appealing a judge’s order requiring the central bank to identify the financial institutions that benefited from its emergency loans, according to a lawyer representing Bloomberg LP. The central bank refused to divulge details about the companies participating in its 10 remaining lending programs, saying that doing so might set off a run by depositors. The Fed had until today to seek a reversal of the Aug. 24 decision by Manhattan Chief U.S. District Judge Loretta Preska, who ruled the Fed must release the identities, as well as disclose loan amounts and the assets put up as collateral. "

Until when will everyone in the U.S. bow to the Fed?

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