NEW YORK (Reuters) - A federal judge on Monday ruled against an effort by the U.S. Federal Reserve to block disclosure of companies that participated in and securities covered by a series of emergency funding programs as the global credit crisis began to intensify.
In a 47-page opinion, Chief District Judge Loretta Preska of the federal court in Manhattan said the central bank failed to show that disclosure would cause borrowers in the Federal Reserve System to suffer "imminent competitive harm," by stigmatizing them for using Fed lending programs.
"The board essentially speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed," she wrote. "Conjecture, without evidence of imminent harm, simply fails to meet the board's burden."
Monday's ruling comes as lawmakers and investors demand greater disclosure in how the government manages a series of programs designed to lift the economy out of its deepest recession in decades.
How did this ever get to the point the Fed Reserve would feel able to make disclosure demands of their own to our government. Who do they think they are???
A PRIMER ON MONEY
COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES
WRIGHT PATMAN Chairman 1964
......In mid-August of 1950, however, the Federal Reserve raised the discount rate and short-term Treasury bills jumped toward 11/2 percent, although there were requests from the Secretary of the Treasury and the President for the System to continue a low-rate policy. It was later revealed by testimony of some of the Federal Reserve officials to committees of Congress that the Open Market Committee had held a meeting on August 18 and decided not only t o raise the discount rate, but to "go their own way" on the Government longer term bond rate as well, despite what the President, the Secretary of the Treasury, and the head of the Office of Defense Mobilization might do....
Since the signing of the so-called accord, in March of 1951, this event has been widely interpreted as an understanding, reached between the Treasury and the Federal Reserve, that the Federal Reserve would henceforth be "independent." It would no longer " peg Government bond prices. It would raise or lower interest rates as it might see fit, as a means of trying to prevent inflation or deflation. These are understandings which have been grafted onto the accord over the years. Certainly, no such understandings were universal at the time the accord was signed. ....
At the end of 1951, then, the Federal Reserve had both self-proclaimed independence, as a result of the accord, and an operational policy which aimed at maximum credit effects through minimum changes in interest rates..... the Federal Reserve people were quite sure that they could do a better job of running the country than the President, and with only slight increases in interest rates. ...
It then added another string to its bow- the “bills only" policy. ... Henceforth when the Treasury issued bonds or medium-term securities, it was to dump these issues on the market and watch the natural consequences-first a drop in bond prices, then a gradual recovery as the market absorbed the bonds. Any private rigging or manipulations of the market were to go without interference from the Federal Reserve, as were any speculative booms or panics short of a "disorderly" market. The “bil1s-only” policy had only one reservation: The Federal Reserve would buy long-term bonds in the event that the Open Market Committee made a findings that the market was disorderly. [ full details starting on pg 103]
The [Eisenhower ] administration announced at the outset that it would re1y on monetary policy exclusive1y for its economic regulation and would respect the complete independence of the Federal Reserve to carry out these policies as it saw fit .....
Thirteen years have now passed since the accord and the liberation of the Federal Reserve. What have been the results? The major result is shockingly obvious. Interest rates have climbed steadily, with slight interruptions, during the entire post accord period. (See table 3.) The period has been marked, then, by a continual shift of income to the banks, other major financial institutions, and individuals with significant interest income. The rest of the country provided this income........
Another result of post accord monetary policy is that the U.S. economy has unwittingly become a low investment economy... The Federal Reserve has chosen the high interest, slower growth option for this country.
Originally posted by Ex_MislTech
reply to post by David9176
Star and Flag of course.
It is good to see the Thieves in nice clothes not being teflon dons for once.
The audit the Fed bill passed the house, if they can just get it by
the lobbyist lackeys in the Senate now.
She gave the Fed five days to turn over documents it told the reporters it located, including 231 pages of reports, and said it must look for more at the Federal Reserve Bank of New York, which runs most of the loan programs.
The Federal Reserve is regarded as a quasi-public banking system, since it has aspects of both a government run system and private enterprise.