Sunday, April 18, 2010
Despite losing two court decisions, banks have decided to continue the fight against the media publishing the names of institutions bailed out by the Federal Reserve during the worst of the financial crisis in 2008.
The Clearing House Payment Company, a group that includes Bank of America, JPMorgan Chase, Citibank and Wells Fargo, has decided to appeal a New York federal court decision in March ordering the Fed to comply with requests from Bloomberg News and Fox Business Network to release the identities of financial institutions rescued with $2 trillion in loans
The Fed, which has not decided whether to appeal as well, and the banks have contended the disclosure would stigmatize borrowers and discourage banks from seeking emergency help in the future.
If unsuccessful with its appeal, the Clearing House will petition the U.S. Supreme Court.
-Noel Brinkerhoff
Fed Shouldn’t Reveal Crisis Loans, Banks Vow to Tell High Court (by Bob Ivry, Bloomberg News)
Appeals Court Orders Federal Reserve to Release Bank Bailout Records (by Noel Brinkerhoff, AllGov)
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