Damn, I almost got excited about a potential game-changing event. Bloomberg had won the right to release details of how much the Fed is pumping into particular banks through its emergency lending programs, alas it appears I got excited too early:
NEW YORK (Reuters) – The U.S. Federal Reserve won a delay of a federal judge’s order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received.
Chief Judge Loretta Preska of the U.S. District Court in Manhattan stayed her August 24 order in favor of Bloomberg News, which had sought the information under the federal Freedom of Information Act, so that the central bank could appeal.
The Fed’s board of governors has worried that disclosure would stigmatize the participating banks, threatening both them and the U.S. economy.
The fact that the Fed thinks the release of this information would be so devastating should surely ring some warning bells for those who think the current recovery is based on sound fundamentals.