Federal Reserve Must Disclose Emergency Loans To Banks, Supreme Court Rules

WASHINGTON: The Supreme Court let stand a ruling that the U.S. Federal Reserve must disclose details about its emergency lending programs to banks during the financial crisis in 2008.

A group representing major commercial banks had asked the high court to reverse a ruling by a federal appeals court that required disclosure of the lending records.

The justices rejected the banks' appeals.

The Obama administration said the appeals should be denied. It said the financial overhaul law adopted last year set new standards on releasing information about emergency lending programs and the law required the disclosure in
December of much of the data at issue in the cases.

Bloomberg LP, the parent of Bloomberg News, and News Corp's Fox News Network had sought the bailout details under the federal freedom of information law, which requires government agencies make certain documents public.

The two news organizations opposed the appeals, telling the Supreme Court the appeals court decision was correct on the merits and that further delay in releasing the remaining records would be unwarranted under the law.

The appeals court ordered the disclosure of borrowers' names, loan amounts and loan dates for transactions at the Fed's discount window and from its emergency lending facilities.

The Clearing House Association, representing the largest commercial banks that hold more than half of all U.S. deposits, appealed to the Supreme Court, arguing that the emergency lending data should be kept secret.
It said the appeals court ruling threatened numerous federal programs that depend on keeping commercial transactions confidential and could unjustifiably harm the reputation of banks that borrowed from the Fed's discount window.

Clearing House members include Bank of America Corp, Bank of New York Mellon Corp, Citigroup Inc, JPMorgan Chase & Co, UBS AG and Wells Fargo & Co.

The Supreme Court declined to hear the appeals without comment. When the Supreme Court refuses to hear an appeal, it does not represent a ruling on the merits of the dispute.

The Supreme Court cases are Clearing House Association v. Bloomberg, No. 10-543, and Clearing House Association v. Fox News Network, No. 10-660.
(Reporting by james Vicini; Editing by Gerald E. McCormick and John Wallace)

Copyright 2010 Thomson Reuters. Click for Restrictions.

Comments

[Justan Olfrend]

10:33 AM on 03/23/2011

How is this not news? I have only heard it at HuffPo. What's up with that?

[Xcentric News]

08:48 PM on 03/31/2011

because, the political climate is inherently fascist along with the media.
ALso, americans dont want to hear the truth, they are too busy degrading each other and fighting for class protections.

[james rimes]

12:59 AM on 03/23/2011

The Coast of Carolina had a Flaming ball of paper sited in the sky around 7:15 est.

[CAMBEL]

03:59 PM on 03/22/2011

They accomplished what they wanted, they stalled the publication of the names until the crises is somewhat in the past.

[pa30]

02:53 PM on 03/22/2011

Privitized profits, communised losses.Heads they win, tails we lose.The Fed is releasing a few bb in mortgage backed securities today,and over the next few months.How exciting ;maybe the start of a new dip.

[CountryBeforeParty]

01:09 PM on 03/22/2011

"We stand equally against government by a plutocracy and government by a mob."

~~ Theodore Roosevelt

[santiago sherwood]

02:34 PM on 03/22/2011

so now we can all discover who can manage cash flow. this should add some volatility to the market. Who needs quiet stability

[CountryBeforeParty]

02:45 PM on 03/22/2011

You think we have quiet stability right now? If so, you're not paying attention.

A policy of "Do what we say, and no one gets hurt" hasn't worked out very well.

[Whigist]

09:15 AM on 03/22/2011

A victory however bit late though, no? If disclosure is made years after the fact, then how can it be useful?

[sonofsamphm1c]

11:16 AM on 03/22/2011

It will not be useful because it it is not useful. They loaned Bank of America money. BoA paid it back. They loaned Wells Fargo money. WF paid it back. They loaned Goldman Sachs money. Goldman Sachs paid it back. They loaned 100s of banks money many multiple times. 100s of banks paid it back many multiple times. You want the whole list. To do what?

[madrediterra]

12:55 AM on 03/23/2011

I'd like to know how much they loaned the US and at what interest rates. Actually, I'd like to examine all of it.

[halfpricefaustian]

11:06 AM on 03/23/2011

If you don't think it's important to disclose that these megabanks got hundreds of billions in free loans from the taxpayers and trillions of guarantees from the treasury for their forex games all the while not making that capital available to main street businesses, while Bernanke himself is begging them to start loaning money again, then I don't suppose anything will change your mind.

[Tootsie56]

09:01 AM on 03/22/2011

Oh boy! How fast do you think they will pay themselves those bonuses they spoke of last week and take off for new uncharted territories in another country? This is going to be VERY INTERESTING!

[jo smith456]

08:12 AM on 03/22/2011

LOBBYING, COLLUSION, SECRECY, POLITICAL-CONNECTIONS, DUBIOUS TRANSACTIONS:
-Fed lends 3.3 TRILLION (90%, to few biggest banks): http://www­.huffingto­npost.com/­2010/12/01­/federal-r­eserve-doc­uments_1_n­_790433.ht­ml
-SECRETIVE ELITE BANKERS rule Derivatives Market:
http://www.nytimes.com/2010/12/12/business/12advantage.html?_r=1
-Geithner would exempt currency-derivatives market from TRANSPARENCY provision of the Dodd-Frank Law:
http://prospect.org/cs/articles?article=blowing_a_hole_in_doddfrank
- WALL-STREET-CONTROLLED Congress AGAIN REMOVE amendments to "audit FED" http://www.ronpaul.com/legislation/audit-the-federal-reserve-hr-1207/
-FED details REVEALED: http://www.huffingtonpost.com/rep-bernie-sanders/a-real-jaw-dropper-at-the_b_791091.html
-SHOCKING: Incoming GOP House Finance Panel Chair says: Gov’t Should "Serve Banks"! http://www.democracynow.org/2010/12/14/headlines#5
-Super-rich borrow for "NOTHING" from Fed! : http://www­.huffingto­npost.com/­2010/12/01­/wall-stre­et-borrowe­d-from_n_7­90709.html

[themodernleader]

05:58 AM on 03/22/2011

   Our banking oligarchy has convinced themselves that they are a law into themselves.  Surprisingly, the Obama Administration denied their secrecy claims.  That denial of economic totalitarianism is the first major support of the public interests that I have recognized from this banking embraced and stilted Administration.  Is this a shift in Administration policy towards the common interests and away from the plutocratic interests?

[james rimes]

05:15 AM on 03/22/2011

“Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” U.S. Attorney Tompkins
http://charlotte.fbi.gov/dojpressrel/pressrel11/ce031811.htm

REALLY>............

[breakingpoint]

01:40 AM on 03/22/2011

here are the crooks here are the crooks
http://financialterrorists.org

[Steve Rockett]

01:28 AM on 03/22/2011

Amazing. The Supremes actually supported Obama. Will wonders never cease? Hey, you regressives who are always claiming that Obama is not about transparency. Here you go. Put this in your private jets and blow it out your exhausts.

[Agatha Kerry]

10:45 AM on 03/22/2011

You mean the back room "Obama Health Care" deals that were SOoooo transparent??
The bribery deals that took our democracy back to the stone age??

As a once long time Democrat, I am no longer surprised at how some ' Democratic pots like calling the Republican kettle black.'

[Steve Rockett]

11:29 AM on 03/22/2011

Yes, Agatha, the Health Care Reform discussions, meetings, and planning was quite transparent. The AMA and other stake holders participated in the process. The AARP reviewed the law and gave its support and approval. The republicans, of course, said the bill was too long and that it was forced down their throats. They were invited to participate over a period of approximately 18 months, but refused. Some of them read it and voted for it. Some aspects were negotiated. Obama has been very open about the process of his administration, but people are not listening and reading.

[Lolie Culley]

12:51 AM on 03/22/2011

They decided to disclose emergency loans to banks because to what is happening in Japan and turmoil in the Middle East. They finally feel guilty of them doing nothing, they are finally being Human again.

[Steve Rockett]

01:29 AM on 03/22/2011

Let's not go that far yet.