Fed refuses Bloomberg's FOI request

The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral, according to a Bloomberg story by Mark Pittman.

Pittman reports, “The Fed supplied copies of three e-mails in response to a request that it disclose the identities of those supplying data on collateral as well as their contracts.

“While the senders and recipients of the messages were revealed, the contents were erased except for two phrases identifying a vendor as ‘IDC.’ One of the e-mails’ subject lines refers to ‘Interactive Data — Auction Rate Security Advisory May 1, 2008.’

“Brian Willinsky, a spokesman for Bedford, Massachusetts-based Interactive Data Corp., a seller of fixed-income securities information, declined to comment.

“‘Notwithstanding calls for enhanced transparency, the Board must protect against the substantial, multiple harms that might result from disclosure,’ Jennifer J. Johnson, the secretary for the Fed’s Board of Governors, said in a letter e-mailed to Bloomberg News.

“‘In its considered judgment and in view of current circumstances, it would be a dangerous step to release this otherwise confidential information,’ she wrote.”

Read more here.