In another loss for the Federal Reserve, a U.S. appeals court refused to reconsider a ruling that requires the central bank to identify financial firms that took more than $2 trillion in back-door-bailouts. The U.S. Court of Appeals in New York denied a request by the Fed to review a unanimous decision requiring the agency to release records. A Sanders provision in the new Wall Street reform law mandates the central bank by Dec. 1 to disclose which financial institutions benefited from the loans. “It is an outrage that the Fed is still refusing to tell the American people which financial institutions and large corporations received more than $2 trillion in taxpayer-backed loans from the central bank. This money does not belong to the Federal Reserve, it belongs to the American people and the American people have a right to know where their hard-earned taxpayer dollars are going,” Sanders said.
“As a result of an amendment that I successfully offered to the Wall Street reform bill, the Fed is required to post most of this information on its website by Dec. 1,” the senator added.
Sanders' amendment lifting the veil of secrecy at the Fed requires it to divulge details of the loans on its Web site.
A top-to-bottom audit of the Federal Reserve since the beginning of the financial crisis in 2007 also will be performed by the Government Accountability Office under another Sanders provision in the new law.
The Fed said it was reviewing the latest court ruling against the central bank. It reportedly was considering an appeal to the U.S. Supreme Court in the case brought by news organizations under the Freedom of Information Act.