Rep. Boehner backs Bloomberg in Fed disclosure case

Bloomberg News, battling to force the Federal Reserve to disclose the names of the banks that are borrowing under the Fed’s emergency lending programs, is getting support from House Republican leader John Boehner of Ohio.

The central bank "should comply with this Freedom of Information Act request, and in the interest of full and fair disclosure, they must begin providing lawmakers and taxpayers all information about how they are using federal tax dollars," Boehner said in a statement.

After the Fed balked at Bloomberg’s request for the names, the news organization on Friday filed a federal lawsuit seeking to force disclosure under the Freedom of Information Act.

As noted in this previous post, the Fed has kept secret the names of the recipients of almost $2 trillion of emergency loans made in recent months, as the credit crisis has deepened.

From Bloomberg:

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry M. Paulson 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 didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

Photo: Rep. John Boehner (Nicholas Kamm / AFP Getty Images)

Comments

[MarkT]

It's possible that this group of buddies, who got us into this mess, may be the only ones who can get us out! Maybe we should just let them re-shuffle the cards.

[fingo]

The banksters and bush&co are looting this country for all we are worth!! Expose them and arrest them all.

Hard time for Bush, Cheney, and everyone who voted for the bailout... which would include both Obama and McCain.

[martscan]

It is understandable that the borrowing companies would want their activities kept secret from the standpoint of losing clients and business to competitors having better balance sheets. However, it is not up to the Federal Reserve to be complicit in this secrecy, at the expense of better managed companies. It is my understanding that the charter of the Fed charges it with protecting the system for the ultimate benefit and safety of the public. Ergo, make the details of the loans public information.

[DAVE S.]

HUH. THE FEDERAL RESERVE IS CORRUPT AS IT GETS. IF YOU THINK THAT OBAMA WILL CHANGE THIS MESS THEN ASK YOURSELF IF WHY HE WOULD APPOINT A GUY LIKE RAHM EMMANUEL AS HIS FIRST PICK. IT IS TO HAMMER LEGISLATION THROUGH THAT TAXPAYERS DON'T NEED. FUNNY BECAUSE RAHM EMMANUEL IS A WALL STREET BANKER. HE MADE 16 MILLION ON WALL STREET BETWEEN CLINTON'S PRESIDENCY AND NOW. THE FEDERAL RESERVE IS RUNNED BY PRIVATE BANKS. NEW MONEY THAT IS CREATED IN OUR COUNTRY COMES IN THE FORM OF A LOAN. THEY CHARGE INTEREST TO CREATE THE MONEY WHICH MEANS WE WILL ALWAYS BE IN DEBT !