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Fed Refuses to Disclose Recipients of $2 Trillion

Posted By admin On December 12, 2008 @ 10:19 am In Featured Stories | Comments Disabled

Mark Pittman
Bloomberg [1]
Friday, December 12, 2008

Dec. 12 (Bloomberg) — The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral.

Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act requesting details about the terms of 11 Fed lending programs, most created during the deepest financial crisis since the Great Depression.

The Fed responded Dec. 8, saying it’s allowed to withhold internal memos as well as information about trade secrets and commercial information. The institution confirmed that a records search found 231 pages of documents pertaining to some of the requests.

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Fed Refuses to Disclose Recipients of $2 Trillion  161008pptv1 [2]

“If they told us what they held, we would know the potential losses that the government may take and that’s what they don’t want us to know,” said Carlos Mendez, a senior managing director at New York-based ICP Capital LLC, which oversees $22 billion in assets.

The Fed stepped into a rescue role that was the original purpose of the Treasury’s $700 billion Troubled Asset Relief Program. The central bank loans don’t have the oversight safeguards that Congress imposed upon the TARP.

Total Fed lending exceeded $2 trillion for the first time Nov. 6. It rose by 138 percent, or $1.23 trillion, in the 12 weeks since Sept. 14, when central bank governors relaxed collateral standards to accept securities that weren’t rated AAA.

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[1] Bloomberg: http://www.bloomberg.com/apps/news?pid=20601109&sid=apx7XNLnZZlc&refer=home

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] Federal Reserve Appeals Order to Disclose Emergency Bank Loans: http://www.prisonplanet.com/federal-reserve-appeals-order-to-disclose-emergency-bank-loans.html

[4] Fed Names Recipients of $3.3 Trillion in Crisis Aid: http://www.prisonplanet.com/fed-to-name-recipients-of-3-3-trillion-in-aid-during-crisis.html

[5] Fed Defies Transparency Aim in Refusal to Identify Bank Loans: http://www.prisonplanet.com/fed-defies-transparency-aim-in-refusal-to-identify-bank-loans.html

[6] Fed Refuses to Release Bank Lending Data, Insists on Secrecy, Says it Isn’t Subject to FOIA Law: http://www.prisonplanet.com/fed-refuses-to-release-bank-lending-data-insists-on-secrecy-says-it-isn%e2%80%99t-subject-to-foia-law.html

[7] Financial Rescue Nears GDP as Pledges Top $12.8 Trillion: http://www.prisonplanet.com/financial-rescue-nears-gdp-as-pledges-top-128-trillion.html

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