Fed won't reveal names of recipients of $2 trillion

[DainBramaged]

The Federal Reserve refused a request from Bloomberg News to reveal the recipient of $2 trillion in emergency loans paid for by U.S. taxpayers.

After Bloomberg filed an open records request through the Freedom of Information Act, the fed answered by arguing that it's allowed to withhold information, including memos and trade secrets.

Bloomberg has filed a lawsuit against the Federal Reserve system as of Friday, demanding the documents be disclosed.

Representative David Scott, a Georgia Democrat, said Americans had "been bamboozled."

"If they told us what they held, we would know the potential losses that the government may take and that’s what they don’t want us to know," said Carlos Mendez, a senior managing director at New York-based ICP Capital LLC, which oversees $22 billion in assets.

It's possible the Federal Reserve is refusing to name the recipients out of concern that it would have a negative impact on sales in the market.

Some of the borrowers included Lehmann Bros, Citigroup, and JP Morgan Chase. The following is an excerpt from a Digital Journal article:

"The banks definitely don’t like it. They’re worried about a negative sales effect, which could aggravate the existing situation and maybe cause a run on the banks.

"Shades of 1929 in that one, and if nobody’s too happy about this situation, it’s because there’s an unholy smell of frying fat coming from places it’s not supposed to be coming from."

http://www.bloomberg.com/apps/news?pid=20601109&sid=apx7XNLnZZlc&refer=home (Via Raw Story)

[The_Commonist]

1. Well then in that case, I would like to suggest...

...that we don't pay for those "emergency" loans.
And yes, that means not paying federal taxes.
I'll go first...

[KansDem]

2. This is outrageous!

Take our money and give it to anonymous recipients whose malfeasance led to this situation?

It used to be that people robbed banks. Now the banks are robbing the people.

[Marblehead]

3. probably

the money is going overseas to bail out Saudi banks....

[stillcool]

5. Isn't that Citi-bank?

I've read where the Chinese are getting along famously with the Saudi's, and the U.S. is losing some of its influence. But Dick Cheney/ Halliburton's new home base of Dubai is having a little real estate crisis. I'm sure they could use a little bail-out.

[judasdisney]

4. If Bill or Barack refused to disclose, there'd be a media meltdown

But not with us Doormat-o-crats. We know how to SHUT THE FUCK UP.