Bloomberg sues Federal Reserve, alleges bailout secrecy
Bloomberg LP, the business data service controlled by billionaire New York Mayor Michael Bloomberg, sued the Federal Reserve today, alleging it has failed to respond to a six-month-old inquiry about collateral, pricing and contracts related to the government bank bailouts.
Is the government hiding key details of the bank bailout -- including the risk to taxpayers' money?
Bloomberg LP, the business data service controlled by billionaire New York Mayor Michael Bloomberg, sued the Federal Reserve Board of Governors in federal court last Friday, alleging it has failed to respond to a six-month-old inquiry by veteran bond reporter Mark Pittman about collateral, pricing, and contracts related to the government bank bailouts. According to Bloomberg, the Fed answered its initial inquiries with delays, then stopped talking, and wouldn't discuss the lawsuit.
"While the taxpayers are the ultimate counterparty for the collateral, they have not been given any information regarding the kind of collateral received, how it was valued or by whom," says the suit, filed by Wilkie Farr & Gallagher lawyers Thomas H. Golden and Jared Cohen with help from Bloomberg media lawyer Charles J. Glasser. Story here.