Bloomberg Sues The Fed For Disclosure

by talentedchimp | November 16, 2008 at 05:43 pm
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Lost in the wake of Henry Paulson’s announcement Wednesday that Treasury is “changing direction” in how it doles out money in the bank rescue plan is a little-noticed lawsuit filed last Friday by Bloomberg LP, the business news wire service. It is suing the Federal Reserve Board’s governors for public records that would answer two simple questions: Who is receiving $2 trillion in Fed loans and what collateral are taxpayers getting to support them?

That’s trillion, with a “t.”

And, yes, as hard as it is to believe, taxpayers don’t know the identity of the borrowers to whom they are lending. They also don’t know what kind of junk — Stocks? Bonds? Three milk cows and a ’69 Camaro? — they are getting to collateralize the federal loans.


Is this the final "parachute clause" of a dying presidency?

The Bloomberg lawsuit is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).

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Rhonda J Mangus
First Flagged at 7:41 PM, Nov 16, 2008 by Rhonda J Mangus

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