Federal Reserve Bank refuses to disclose loan recipients

Federal Reserve Bank refuses to disclose loan recipients

Bloomberg News has filed a federal lawsuit under the U.S. Freedom of Information Act to force disclosure of the details of almost $2 trillion in emergency loans from American taxpayer money to the nation's banks.

The Federal Reserve Bank is refusing to identify the recipients of loans. Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson had said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system.

Two months later, as the Fed lends far more than that in separate rescue programs that did not require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return, according to Bloomberg.

Bloomberg files lawsuit to disclose terms of federal bank loans (Small Business Times, 10 November 2008)