The U.S. Federal Reserve is seeking to have an appeals court block a ruling that would make public the identities of financial institutions that would have failed without receiving massive loans under the record government bailout program, reports Bloomberg. The U.S. Court of Appeals in Manhattan is to decide whether the public has a “right to know” the details of the “unprecedented,” “controversial” use of public funds.
The Fed, as well as major banks, is concerned that the disclosure of the information could lead to a major sell-off by investors and could hinder regulators’ ability to handle another crisis. The lawsuit was brought under the U.S. Freedom of Information Act (FOIA), which aims to increase government transparency. The news comes as the Obama administration has announced its intention to impose a fee on banks to help recoup losses from the government bailouts.
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