[Peace-discuss] Fed Refuses to Disclose Recipients of $2 Trillion

[E. Wayne Johnson]

*Fed Refuses to Disclose Recipients of $2 Trillion*

Dec. 12 (Bloomberg) -- The Federal Reserve refused a request by 
Bloomberg News to disclose the recipients of more than $2 trillion of 
emergency loans from U.S. taxpayers and the assets the central bank is 
accepting as collateral.

Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act 
requesting details about the terms of 11 Fed lending programs, most 
created during the deepest financial crisis since the Great Depression.

The Fed responded Dec. 8, saying it's allowed to withhold internal memos 
as well as information about trade secrets and commercial information. 
The institution confirmed that a records search found 231 pages of 
documents pertaining to some of the requests.

"If they told us what they held, we would know the potential losses that 
the government may take and that's what they don't want us to know," 
said Carlos Mendez, a senior managing director at New York-based ICP 
Capital LLC, which oversees $22 billion in assets.

The Fed stepped into a rescue role that was the original purpose of the 
Treasury's $700 billion Troubled Asset Relief Program. The central bank 
loans don't have the oversight safeguards that Congress imposed upon the 
TARP.

Total Fed lending exceeded $2 trillion for the first time Nov. 6. It 
rose by 138 percent, or $1.23 trillion, in the 12 weeks since Sept. 14, 
when central bank governors relaxed collateral standards to accept 
securities that weren't rated AAA....

more...

http://www.bloomberg.com/apps/news?pid=20601109&sid=aXNaCKxb.oIs&refer=home# 
<http://www.bloomberg.com/apps/news?pid=20601109&sid=aXNaCKxb.oIs&refer=home#>


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