Wednesday, January 13, 2010
The Federal Reserve continues to block attempts by the business newswire Bloomberg to obtain the names of banks rescued by the federal government since the beginning of the financial crisis. Bloomberg won a lower court ruling that instructed the Fed to comply with the Freedom of Information Act request filed by the news agency in 2008. Government attorneys, however, have appealed to a U.S.
appellate court to block the ruling.
Bloomberg claims the public is entitled to know the identities of those banks that were in danger of collapsing when the U.S. government stepped in with the “unprecedented and highly controversial use” of public money. Banks and the Fed oppose the publication of rescued institutions for fear it will lead to consumers pulling their money from accounts.
The appeals court ruling is not expected for months, and likely will not be the final word. Whichever side loses the next round will probably appeal that decision, and the case could go all the way to the U.S. Supreme Court.
-Noel Brinkerhoff
Federal Reserve Seeks to Protect U.S. Bailout Secrets (by Thom Weidlich and David Glovin, Bloomberg)
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