Federal Reserve Refuses To Disclose Loan Recipients

(Bloomberg) — The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry 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.

When the Fed was created there were worries that the central bank would be used to provide funds to member banks, like JPMorgan Chase, to purchase assets during economic busts. Bloomberg News is now suing the Federal Reserve under the Freedom Of Information Act to find out who they loaned the money to. According to the business news network “The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ahdVHk_Ccoeg

More Bailouts, Bigger Bailouts. Fed Says No End In Sight.

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  1. November 13th, 2008
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