Fed to Reveal Recipients of $3.3 Trillion in Emergency Aid

Federal ReserveThe Federal Reserve plans to publish the names of companies that received a total of $3.3 trillion in emergency aid during the financial crisis.

The Fed will publish the names on its website at 12 noon ET, Bloomberg News reported.

The information will span six different loan programs, currency swaps with other central banks, the purchases of mortgage-backed securities and rescue packages for Bear Stearns and American International Group (AIG).

The Fed has come under increasing scrutiny since it played an active role in the financial crisis, providing emergency aid to banks and buying up illiquid assets.

Last month, many Republicans criticized the central bank for its decision to pump $600 billion into the U.S. economy via asset purchases. Republican lawmakers and economists warned the move could lead to inflation.

"It is quite conceivable it is going to stir up the political pot," Ward McCarthy, chief financial economist at Jefferies & Co. Inc. told Bloomberg News. "But political criticism isn't going to prevent them from doing what they need to do. An important part of being a Fed official is to understand whatever you do is going to come under scrutiny."

Congress ordered the Fed to publish the information, but excluded information about which banks accessed Fed fund through the discount window. A group of banks is appealing to the Supreme Court over lower-court decisions that ordered the Fed to make the information available.

"We see this not as the end of a process but really a significant step forward in opening the veil of secrecy that exists in one of the most powerful agencies in government," Senator Bernard Sanders, the Vermont Independent who wrote the provision on Fed disclosure, said Nov. 17.

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butteparts1

Bernie, you show your EXTREAM lack of knowledge with this statement- - - "We see this not as the end of a process but really a significant step forward in opening the veil of secrecy that exists in one of the most powerful agencies in government," - - - Let me let you in on a very well kept secret- - - -PSSST-- - The FED is a PRIVATE BANK!- - it is not run by nor beholding to Congress or the US government. It is mostly owned by ENGLAND!- - - - - Are you so stupid that you don't know that or do you think we lemmings out here are so stupid we don't know it and you can pull the wool over our eyes as you run us to the Cliff?

December 01 2010 at 9:56 AM Report abuse -1 rate up rate down Reply
jkennedy806

Thank you Julian, the modern day Woodward and Bernstein, a day after it was announced that a certain bank was targeted, Washington is now playing it transparency trump card. OOOHHH please, damage control. I hope this administration and all the Washington scum bags get there's for Christmas. Crooks and banksters alike.

December 01 2010 at 9:42 AM Report abuse +3 rate up rate down Reply
matthewhgrant

surpised it didn't take assange to cause this, or maybe it did. now let the big bank leak out, and watch too big to fail go down. where are the marshmallows?

December 01 2010 at 9:18 AM Report abuse +4 rate up rate down Reply
matthewhgrant

let the veil be lifted. it is OUR money afterall.

December 01 2010 at 9:18 AM Report abuse +3 rate up rate down Reply
4 replies to matthewhgrant's comment
marine1942

Good thing the GOP won last election or you would not see this--

December 01 2010 at 8:15 AM Report abuse -4 rate up rate down Reply