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News Link • Corruption

JPMorgan, BofA, and Citi, Plead To Keep Bailout Details Secret

The consortium, named the Clearing House Association, filed the appeal today. The CHA is hoping the court will overule an August judgement demanding the Fed turn over documents to Bloomberg News under the Freedom of Information Act (FOIA). Bloomberg is demanding the release of 231 term reports that would expose who borrowed money via four emergency lending programs in April and May of 2008, and how much. If the appeal is denied, it will be the first time since 1914 that emergency borrowers are named publicly. And actually, BofA, Citi and JPMorgan, desperate to keep their documents locked up, referenced that fact in their argument as to why the documents should be suppressed, via Bloomberg: The central bank has never disclosed the identities of borrowers since the creation in 1914 of its Discount Window lending program, which provides short-term funding to financial institutions, the Clearing House said in its petition. “Disclosure of this information threatens to harm the borrowing banks by allowing the public to observe their borrowing patterns during the recent financial crisis and draw inferences -- whether justified or not -- about their current financial conditions,” the group said in its appeal.

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