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The FOI Advocate is a compendium of ideas, edited story excerpts and other materials from a variety of Web sites, as well as original concepts and analysis. When the information comes directly from another source, it will be attributed and a link will be provided whenever possible. The blog relies on the accuracy and integrity of the original sources cited. We will correct errors and inaccuracies when we become aware of them.

Monday, September 14, 2009

Federal Reserve Ordered to Disclose Recipients of Emergency Loans

Bloomberg LP won a FOIA suit against the Federal Reserve System for disclosure of the financial firms it lent to or disclose the amounts or the assets put up as collateral under emergency lending programs.

In ordering the Fed Reserve to comply with the FOIA request, the court accepted Bloomberg's arguments that U.S. taxpayers need to know the terms of Fed lending because the public became an “involuntary investor” in the nation’s banks as the government began shoring up companies with capital injections and loans. The court rejected the central bank's argument that loan records aren’t covered by the law because their disclosure would harm borrowers’ competitive positions.

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