Federal Reserve Argues For Less Transparency in Secret Bailout Loans in FOIA Lawsuit

September 10, 2009 by · Leave a Comment
Filed under: Legal News 

Looks like Fox News is getting into the fray with the Freedom of Information Act lawsuit (regarding the $2 trillion+ in secret bank loans and swap agreements)that has been brought as well by Bloomberg LP.  The more I read these press releases the more this start to feel like subtle thuggery on the part of the Federal Reserve.  This is not a baseless statement, here is a quote from this Reuters press release:

Reuters Quote: (Press Release Link)

“The Fed argued in both cases that disclosure could cause “competitive and reputational harm” to participants, potentially triggering bank runs and hurting the economy if information or rumors were allowed to spread.”

Guess what, if you took “secret” loans from the central bank then there is good reason for the public to be concerned about the banks solvency.  Now they are blatantly saying that the information is so bad that it will cause a run in the bank.  First they were saying (link here) “negative rumors” and now it has been upgraded to “information or rumors“.  So it is clear that our taxpayer money is now supporting “zombie banks” that are only in existence because of our central banks ability to make these secret loans and not make them go to the discount window like normal.  We are doing this while we let local and regional banks fail and in my opinion they do more for local communities than these national banks because they know more about their local area they operate in.

I urge my readers to please call their local representatives and bring up this heavy-handed scare tactics that the Federal Reserve is using to prevent this information from seeing the light of day.  Information like this has to come to the public sphere, the Federal Issues our money so we have a “right” to know where they decide to give our money too even if they feel its in our “best interest”.  We need representatives of our people, not a nanny deciding when something is too harmful for our own good.

Let us evaluate this type of information or we are not truly free in my honest opinion.

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