The Federal Reserve Bank headquarters, Washington, D.C.
The Federal Reserve Bank headquarters, Washington, D.C. AP Photo
A federal appeals court has ordered the Federal Reserve to make available to news organizations that requested them through the Freedom of Information Act documents related to loans it made to ailing banks at the height of the financial crisis.
NPR's Yuki Noguchi reported the following for the network's newscast:
The federal government launched its unprecedented bailout of financial firms in late 2008. It struck deals to lend trillions of dollars of public money to troubled banks largely behind closed doors.
The Fed sought to keep details about those controversial loans private, even after Fox News and Bloomberg News requested more information under the Freedom of Information Act. The Fed argued disclosure would reveal confidential trade secrets that might trigger a fresh sell off by investors.
The Manhattan Circuit court of appeals disagreed. It said the agency had not justified its protections of the information.
The Fed is reviewing the decision and whether to appeal.