Bloomberg Gets Stonewalled By The Fed

Bloomberg is taking on the Fed. The news service has filed a Freedom of Information Act suit against the New York Fed. Bloomberg had asked for information on the collateral that the bank is accepting from borrowers under its various lending facilities and the Fed told them to take a hike.

It is somewhat curious that the government should want to stonewall this request. I think just about everyone assumes that they have been taking junk as collateral so a little light on the situation isn't going to come as a big shock. At the same time, maybe there's something they need to hide. I can't think of what it might be but if anyone reading this has an idea let me know.

Tom Lindmark