The Federal Reserve does not want the world to know details of “emergency loans” it made to banks in the financial panic of 2008, but the Supreme Court today effectively said the Fed must tell us. It did this by today rejecting an appeal of a lower court ruling to force the Fed to reveal the information. This leaves intact a court order that gives the Fed five days to release the records.
Bloomberg News pushed the case in its demands to see the records. Bloomberg News Editor in Chief Matthew Winkler put the issue well in this statement:
“At some point long before the credit markets seized up in 2007, financial markets collapsed and the economy plunged into the worst recession since the 1930s, the Federal Reserve forgot that it is the central bank for the people of the United States and not a private academy where decisions of great importance may be withheld from public scrutiny. As only Congress has the constitutional power to coin money, Congress delegates that power to the Fed and the Fed must be accountable to Congress, especially in disclosing what it does with the people’s money.”