After Supreme Court Ruling, Federal Reserve Agrees To Reveal Loan Data
"The Federal Reserve Board on Monday said it is preparing to release sensitive emergency lending data from the peak of the 2008 financial crisis after the Supreme Court rejected a bid by major banks to keep the information secret," Dow Jones Newswires writes.
At The Atlantic, associate editor Daniel Indiviglio looks at the pluses and minuses of the court's decision and the new requirement that the Fed be more open about what help it's giving to banks:
"To be sure, once the financial crisis lending is made public, reporters, financial analysts, and Fed watchdog Rep. Ron Paul (R-TX) staffers will scrutinize it, looking for dirt," he writes. "This may, indeed, cause some people to question the financial condition of some banks — but it should. If you're an investor, this information will enhance your understanding of the financial industry's players. ...
"The problem, however, can occur with timing. If the Fed hopes to stabilize markets in times of turmoil, then it needs secrecy to remain intact in the short-term. ... But once that panic has subsided, this data can be released. Although investors may look at banks that needed more assistance than average with a wary eye, they won't shun them altogether."
Bloomberg News was a driving force behind the case that eventually made its way to the Supreme Court. There's a Bloomberg video report on the news here.
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