Bernanke: Fed To Release Details of Emergency Lending Facilities

From the Fed's website:
A final element of the Federal Reserve's efforts to implement the Dodd-Frank Act relates to the transparency of our balance sheet and liquidity programs. Well before enactment, we were providing a great deal of relevant information on our website, in statistical releases, and in regular reports to the Congress. Under a framework established by the act, the Federal Reserve will, by December 1, provide detailed information regarding individual transactions conducted across a range of credit and liquidity programs over the period from December 1, 2007, to July 20, 2010. This information will include the names of counterparties, the date and dollar value of individual transactions, the terms of repayment, and other relevant information. On an ongoing basis, subject to lags specified by the Congress to protect the efficacy of the programs, the Federal Reserve also will routinely provide information regarding the identities of counterparties, amounts financed or purchased and collateral pledged for transactions under the discount window, open market operations, and emergency lending facilities.

If this is true, it would come as a serve blow to the Fed's much prized secrecy. Why the sudden change of heart by the Fed? It was probably the realization by the Fed's lawyers that it was going to lose its appeal to keep the records secret. It seems that we are finally going to get the truth about what really happened during the financial crisis and which institutions needed the most assistance. I bet the major banks don't like this at all!

Black Swan Insights


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