Friday, 4 September 2009

The Fed must cough

A lot of people have been trying to get the US Federal Reserve Bank to spill the beans on what they did with the trillion dollars plus that they've handed out to various institutions since the start of the credit crunch in Autumn 2007.

Senator Ron Paul (Rep, Texas) is pushing a Bill requiring a full audit of the Fed: how much? To which companies? For what collateral? There have also been freedom of information requests (FOI) to the Fed, which it has stone-walled.

The Fed's position is basically that the public couldn't take the bad news; there would be mass flight from institutions which have been helped and this would trigger a(nother) banking melt-down.

Unfortunately for the Fed:

Aug. 25 (Bloomberg) -- The Federal Reserve must for the first time identify the companies in its emergency lending programs after losing a Freedom of Information Act lawsuit.

Manhattan Chief U.S. District Judge Loretta Preska ruled against the central bank yesterday, rejecting the argument that loan records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions.

So, finally we get to follow the money.

Link: Bloomberg


Unrepentant British Nationalist said...

What? No comment on the BIG news pertaining to the party?

Nationalist said...

I suppose I should get around to writing something on that. Probably no hurry though - this one will run and run.