Federal Reserve vs Bloomberg:Federal Reserves & Bailout Secrets
Call it Round Two of the U.S. Federal Reserve vs Bloomberg News in case that is working its way through the U.S. Courts concerning the Wall Street Bailout and the what Federal Reserve can or can not keep secret.
The Federal Reserve does not want to reveal secrets about the US Governments Bailout of Wall Street and it is asking the U.S. Appeals Court to block a ruling that would "force the central bank to reveal secret identities of financial firms that might have collapsed with the larges" bailout in American history, according to Bloomberg News.
The Bloomberg news service "argues that the public has the right to know basic information about the 'unprecedented and highly controversial use of public money. Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or sell-off by investors.'"
The Government argues that "This case is about the identity of the borrower,” said Matthew Collette, a lawyer for the government, in oral arguments today. “This is the equivalent of saying ‘I want all the loan applications that were submitted.’”
Round One of the U.S Federal Reserve vs Bloomberg occurred in August with a judges' ruling that secret records fill under the Freedom of Information Act and should be disclosed.
Now, with the appeal, the Federal Reserve says the court must protect the confidentiality of borrowers.