Fed asks court to reconsider ruling to release documents

The Federal Reserve Board asked a federal appeals court Monday to reconsider a ruling that ordered it to disclose documents related to borrowing from its discount window and other ‘last resort’ lending programs.

Brent Kendall of Dow Jones Newswires writes, “In separate rulings in March, the New York-based 2nd U.S. Circuit Court of Appeals upheld a lower court’s decision granting a request by Bloomberg LP’s Bloomberg News for documents related to usage of the Fed’s discount window and other programs and vacated a ruling denying a request for documents by Fox News Network LLC’s Fox Business Network. Fox News Network is a unit of News Corp., which owns Dow Jones & Co., publisher of this newswire.

“Both news organizations had sought Fed documents under the Freedom of Information Act and ultimately brought lawsuits after the Fed denied their requests.

“On Monday, the Fed’s board of governors asked the 2nd Circuit to consider the case again, and it warned of serious consequences if the earlier ruling stands.

“‘The decision, which will require the immediate disclosure of the identity of financial institutions that seek short-term ‘last resort’ loans, will severely undermine the board’s ability to implement lending programs critical to the economy and monetary policy, and will cause serious harm to borrowers at these lending facilities,’ the board said in a 16-page petition that was filed jointly with lawyers from the Justice Department.”