Federal Reserve Forced To Release Information Following Court Decision

August 25, 2009

US (ChattahBox) – The Federal Reserve has lost their court case, which asked that transparency be ignored in the case of companies that had sought financial help from government emergency lending programs.

The lawsuit had stated that it would prove risky to those who had been given funds to have their details become public knowledge. The courts disagreed.

“The board essentially speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed. Conjecture, without evidence of imminent harm, simply fails to meet the board’s burden,” Manhattan Chief District Judge Loretta Preska said in a 47-page opinion report.

The case stems from a lawsuit by two reporters from Bloomberg. They had requested information from the Federal Reserve on programs in 2007 and 2008 that were designed to assist in the increasing financial crisis.

They were met with resistance, and so filed a motion with the Manhattan courts, claiming that the Federal Reserve was required under the Freedom of Information Act (FOIA) to comply with their request.

Now, the Federal Reserve will be required to provide that and other information on companies who received emergency funds, as well as details on the programs those funds came from. The decision also sets precedence for future requests.

Source


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