By Greg Hunter’s USAWatchdog.com
The Fed is currently fighting tooth and nail in a federal appeals court to keep its bailout of big banks secret. In August of last year, the Fed lost a lawsuit in federal court that would force the 97 year old Central Bank to say who it bailed out during the financial crisis in 2008. The Fed gave a half trillion dollar bailout to foreign banks alone during the financial meltdown.
What foreign banks and why? The Fed also bailed out many domestic banks. Which ones and how much did the Fed give them? Those are are just a few of the questions the Fed will be forced to answer if it loses its latest appeal. A loss would, at the very least, cause a major public outcry if those secrets were revealed. Also, a loss might even end the Fed, and that is why it’s fighting so hard to keep its bailout actions secret.
This is a huge story! Why this is not a lead story on every mainstream media outlet is beyond me. I have been writing about the media’s near total lack of coverage of the Fed’s fight to keep bailout secrets from the public. Two of the stories I have posted about the Fed bailout secrets are “Tale of Two Stories” and “The Biggest Story Not Covered in the News.” The mainstream media is either clueless or complicit, I don’t know which. One thing is for sure, this is a very big story with even bigger implications for every dollar you spend and save. Bravo Bloomberg for having the guts to do real journalism! Bloomberg ’s latest ”Fed Bailout Secrets” story follows:
Federal Reserve Seeks to Protect U.S. Bailout Secrets
January 11, 2010
By David Glovin and Thom Weidlich
“Jan. 11 (Bloomberg) — The Federal Reserve asked a U.S. appeals court to block a ruling that for the first time would force the central bank to reveal secret identities of financial firms that might have collapsed without the largest government bailout in U.S. history. “This case is about the identity of the borrower,” said Matthew Collette, a lawyer for the government, in oral arguments today. “This is the equivalent of saying ‘I want all the loan applications that were submitted.” Bloomberg argues that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money. Banks and the Fed warn that bailed-out lenders may be hurt if the documents are made public, causing a run or a sell-off by investors. Disclosure may hamstring the Fed’s ability to deal with another crisis, they also argued. The lower court agreed with Bloomberg…” (For more on the Bloomberg story click here.)