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Bloomberg News Sues Fed to Disclose Collateral From Taxpayer Loans to Banks
#1
November 10, 2008 9:25 AM

Bloomberg News today filed a lawsuit to force the U.S. government -- specifically the Federal Reserve -- to disclose which securities it is accepting as collateral for $1.5 trillion of loans to banks, such as Citigroup Inc. and Goldman Sachs Group Inc. (This doesn’t include the $700 billion bailout package).

On May 21, Bloomberg asked the Fed to disclose the collateral. As Bloomberg News reports, the Fed 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.

"The American taxpayer is entitled to know the risks, costs and methodology associated with the unprecedented government bailout of the U.S. financial industry,'' said Matthew Winkler, editor-in-chief of Bloomberg News.

What gives? Why the secrecy?

- jpt

http://blogs.abcnews.com/politicalpunch/...-news.html
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