Big Banks to Back Fed Secrecy

By admin | Published: April 14, 2010

Bloomberg reports that the biggest U.S. banks have allied themselves with Federal Reserve secrecy.  They will take the issue of the Fed having to reveal details of its lending in 2008 to the Supreme Court, if necessary.

The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., joined the Fed in defense of a lawsuit brought by Bloomberg LP, the parent company of Bloomberg News, seeking release of records related to four Fed lending programs.

The U.S. Court of Appeals in Manhattan ruled March 19 that the central bank must release the documents. A three-judge panel of the appellate court rejected the Fed’s argument that disclosure would stigmatize borrowers and discourage banks from seeking emergency help.

Read the rest here.

Coalition members are still pressing for transparency.  Pressure is being applied to key Senators to pass S 604.  Take part in these efforts here.

Posted in Coalition, Government, S 604 | Leave a comment

“Fed loses appeal; must disclose bailout details”

By admin | Published: March 19, 2010

The Federal Reserve will finally be required to disclose the names of banks that could have collapsed if they had not received emergency loans.  The story from Ronald D. Orol of MarketWatch.com:

WASHINGTON (MarketWatch) – The Federal Reserve will be required to identify the names of banks that could have collapsed if not for the central bank’s emergency lending, a federal appeals court said Friday. The U.S. Court of Appeals for the Second Circuit in New York ruled on Friday that the Fed needs to disclose documents in response to Freedom of Information Act requests by Bloomberg L.P. and other news organizations. “We are reviewing the decision and considering our options for reconsideration or appeal,” said Fed spokeswoman Barbara Hagenbaugh.

 

 

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“Fed Audit Bitterly Opposed By Treasury”

By admin | Published: March 9, 2010

Ryan Grim of the Huffington Post reports that the Treasury Department does not want its partner, the Federal Reserve, to undergo a thorough audit by the GAO.

Asked whether he supports the House-passed measure to open the Fed to an audit, which was cosponsored by Reps. Alan Grayson (D-Fla.) and Ron Paul (R-Texas), a senior Treasury official said he is intensely opposed to it.

The official said the measure would undermine the independence of monetary policy and could restrict the ability of the Fed to act in times of crisis. He said that the GAO already has audit authority and that the chairman routinely testifies before Congress.

Congressman Alan Grayson, a cosponsor of HR 1207, responds to the criticism that a thorough audit would undermine the Federal Reserve’s independence:

The idea that the Fed’s mission would be undermined by an audit, said Grayson, “is a scarecrow erected by people who want to cover up the actions of the Fed for their own purposes, including those who actually have worked at part of the Fed, to prevent accountability at any cost.”

Read the rest here.

Posted in Government, HR 1207 | Leave a comment
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