Bloomberg LP v. Board of Governors of the Federal Reserve System

[slipslidingaway]

9 pages

http://www.cjr.org/docs/Complaint_-_Fed_FOIA.PDF


Let’s Go to Court!

A call to news organizations: Join Bloomberg’s suit vs. Fed

http://www.cjr.org/the_audit/lets_go_to_court.php

"There will time later to assess who’s ahead and who’s behind in the coverage of the financial crisis and the unprecedented scandal it represents, but for now it is important for all news organizations to put aside their rivalries and do one thing: Join the Bloomberg lawsuit.

On Friday, Bloomberg LP, in the finest traditions of American investigative reporting, sued 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 kind of collateral are taxpayers getting to support them?

No, that’s not a typo. 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? CDOs? Three milk cows and a ’69 Camaro?—they’re getting to support the federal loans..."

[slipslidingaway]

1. Bloomberg suing Fed to find out who’s getting the bailout cash

http://www.nbr.co.nz/article/bloomberg-suing-fed-find-out-who-s-getting-bailout-cash-37698

"...Bloomberg argues the Fed's lending is significant because it stepped into a rescue role that was also the purpose of the $700 billion Troubled Asset Relief Program, or TARP, bailout plan – but without safeguards put into the TARP legislation by Congress.

Bloomberg reports total Fed lending topped $2 trillion for the first time last week and has risen by 140%, or $1.172 trillion, in the seven weeks since Fed governors relaxed the collateral standards on September 14...


...The difference includes a $788 billion increase in loans to banks through the Fed and $474 billion in other lending, mostly through the central bank's purchase of Fannie Mae and Freddie Mac bonds. New Zealand’s annual GDP is roughly $US120 billion.

The reason for the lack of transparency appears to be Wall St Banks, who oppose releasing information because it might signal weakness and spur a run by depositors or short-selling..."

[slipslidingaway]

2. ...