Public deserves bank bailout details
Federal Reserve Chairman Ben Bernanke Credit: AP
In the dark days of the financial crisis, shaky banks borrowed taxpayer money from the Federal Reserve when they couldn't get loans anyplace else. Now, finally, the public will be told which banks and other details.
The U.S. Supreme Court saw to that Monday when it decided not to hear an appeal from an association of bankers trying to keep the information private. That's as it should be.
It is our money.
The Fed's policy had long been to keep the details of emergency, "discount-window" loans, confidential. It argued that identifying the banks would undermine confidence in them, discourage use of the loans of last resort and hurt the economy.
But, it is our money.
In a post-crisis financial reform law, Congress required that future loans be made public after a two-year lag. And some information about crisis-era loans has already been released.
But the Clearing House Association Llp, which represents commercial banks, appealed lower court rulings that ordered full disclosure in lawsuits brought by Bloomberg News and other media companies.
Delaying release of potentially embarrassing documents for two years was a victory, of sorts, for the banks. But now the public will be privy to this information. It could shed new light on what went wrong in the financial sector, what crippled the nation's economy, and the Fed's response.
And, it is our money.
