Bloomberg News Sues The Federal Reserve To Disclose Bailout Info
Wall Street Journal
November 7, 2008
Bloomberg News is going to court to compel the Federal Reserve to disclose securities the central bank is accepting as collateral for its raft of new lending. The company is filing its suit based on the U.S. Freedom of Information Act.
Bloomberg News on May 21 asked the Fed to provide data on the collateral posted between April 4 and May 20. The central bank said on June 19 that it needed until July 3 to search out the documents and determine whether it would make them public. Bloomberg never received a formal response that would enable it to file an appeal. On Oct. 25, Bloomberg filed another request and has yet to receive a reply.
The Fed staff planned to recommend that Bloomberg’s request be denied under an exemption protecting “confidential commercial information,” according to Alison Thro, the Fed’s FOIA Service Center senior counsel. The Fed in Washington has about 30 pages pertaining to the request, Thro said today before the filing of the suit. The bulk of the documents Bloomberg sought are at the Federal Reserve Bank of New York, which she said isn’t subject to the freedom of information law.
“This type of information is considered highly sensitive, and it would remain so for some time in the future,” Thro said.
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