Friday, November 07, 2008
This report just in from ... Bloomberg. It appears that some inquiring minds want to know some of the particulars behind the recent government spending spree on toxic securities.
Bloomberg Sues Fed to Force Disclosure of CollateralApparently the details Bloomberg seeks are Top Secret (I'm not kidding - go read the article) and if nothing else, probably somewhat embarrassing.
Bloomberg News asked a U.S. court today to force the Federal Reserve to disclose securities the central bank is accepting on behalf of American taxpayers as collateral for $1.5 trillion of loans to banks.
The lawsuit is based on the U.S. Freedom of Information Act, which requires federal agencies to make government documents available to the press and the public, according to the complaint. The suit, filed in New York, doesn't seek money damages.
Bloomberg News on May 21 asked the Fed to provide data on the collateral posted between April 4 and May 20. The central bank said on June 19 that it needed until July 3 to search out the documents and determine whether it would make them public. Bloomberg never received a formal response that would enable it to file an appeal. On Oct. 25, Bloomberg filed another request and has yet to receive a reply.