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US Fed Files Appeal in Bloomberg FOIA Case
By Kristina Peterson
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Forcing the U.S. Federal Reserve Bank to disclose confidential lending information could undermine the institution's ability to maintain market stability, the Fed argued in an appeal filed Friday.
The Fed filed an appeal with the U.S. 2nd Circuit Court of Appeals on Friday challenging a lower court's ruling that the central bank must turn over records about its discount window and other "last resort" lending programs to Bloomberg News. The news and information company sued the Fed last November when it withheld 231 pages of sensitive reports in response to a public records request. Bloomberg sought information aboutwhich financial institutions borrowed money from the Fed's lending facilities between April and May 2008.
Releasing the tightly-held information could stigmatize borrowers, making them less willing to borrow money, the Fed argued in its most comprehensive legal argument to date.
If banks with shaky finances are reluctant to borrow, "particularly in time of economic crisis, the Board's ability to administer lending programs crucial to maintaining national financial and economic stability will be severely undermined," Fed attorneys wrote.
In August, the Southern District Court of New York ruled in favor of Bloomberg. The lower court rejected the Fed's assertion its data was protected under an exemption in the Freedom of Information Act for confidential information, arguing that ensuring "program effectiveness" does not meet the threshold for withholding information.
Though the district court ordered the Fed to disclose the records, theSecond Circuit granted the central bank an emergency stay pending appeal on Oct. 6.
-By Kristina Peterson, Dow Jones Newswires; 202-862-6619; kristina.peterson@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=eK%2FoC0VnMKIcpQjLj5%2BcGg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 06, 2009 18:18 ET (23:18 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Forcing the U.S. Federal Reserve Bank to disclose confidential lending information could undermine the institution's ability to maintain market stability, the Fed argued in an appeal filed Friday.
The Fed filed an appeal with the U.S. 2nd Circuit Court of Appeals on Friday challenging a lower court's ruling that the central bank must turn over records about its discount window and other "last resort" lending programs to Bloomberg News. The news and information company sued the Fed last November when it withheld 231 pages of sensitive reports in response to a public records request. Bloomberg sought information aboutwhich financial institutions borrowed money from the Fed's lending facilities between April and May 2008.
Releasing the tightly-held information could stigmatize borrowers, making them less willing to borrow money, the Fed argued in its most comprehensive legal argument to date.
If banks with shaky finances are reluctant to borrow, "particularly in time of economic crisis, the Board's ability to administer lending programs crucial to maintaining national financial and economic stability will be severely undermined," Fed attorneys wrote.
In August, the Southern District Court of New York ruled in favor of Bloomberg. The lower court rejected the Fed's assertion its data was protected under an exemption in the Freedom of Information Act for confidential information, arguing that ensuring "program effectiveness" does not meet the threshold for withholding information.
Though the district court ordered the Fed to disclose the records, theSecond Circuit granted the central bank an emergency stay pending appeal on Oct. 6.
-By Kristina Peterson, Dow Jones Newswires; 202-862-6619; kristina.peterson@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=eK%2FoC0VnMKIcpQjLj5%2BcGg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 06, 2009 18:18 ET (23:18 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
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