Discount window opened up
The discount window information was not disclosed as part of the $3.5 trillion Wall Street bank bailout details of 2008 the Fed reveled as part of the Dodd-Fran financial reform bill. Using the Freedom of Details Act, Bloomberg News filed a request for discount window information in 2008 and the Fed said no. The Fed appealed after Bloomberg won the trial court. This occurred in 2009. About 10 percent of the largest U.S. banks are represented by the Clearing House Association. After the ruling was upheld in appeals court, the Association filed another appeal. The Fed has to give details within five days after a Supreme Court decision on Monday upheld the ruling more. The details on the discount window can be released by the Fed. This can be the first time it takes place since 1913 when the program started.
The discount window to consider
The discount rate and primary credit rate were both lowered during the financial crisis by the Fed while extending to a ninety day discount window the term. The names of banks and amounts borrowed between April and May 2008 with the discount window has to be released in the documents. As the financial services industry trumpets its government-backed return to profitability for investors, the discount window data could embarrass some of the biggest Wall Street banks. If the public knows how much Wall Street had to depend on government bailouts to survive the financial crisis, it might impact investor perception about the leadership of the banks that needed help and just how that could affect their future financial condition.
Always helping Wall Street win in the end
Wall Street seemed really interested in keeping the discount windows between April and May 2008 a secret, which several wonder about. The Clearing House Association said releasing discount window information would make banks think twice about seeking government bailouts in the future. Wall Street lawyers were able to delay the discharge of discount window information for quite a while, over two years, even with the Bloomberg case. The discount window information on financial loans has to be released after a two years grace period if they were made after July 21, 2010 with the Dodd-Frank financial reform bill.
Citations
Wall Street journal
online.wsj.com/article/SB123664681664078731.html
Toronto Star
thestar.com/sports/article/953953--march-madness-a-massive-opportunity-for-players-and-advertisers
MSNBC
money.msn.com/saving-money/article.aspx?post=87aa1afb-e29c-41ce-ac80-49cae0cc9a60
Media Life
medialifemagazine.com/artman2/publish/Sports_TV_52/Why-March-Madness-is-so-hot-this-year-.asp
Article resource - Supreme Court forces Fed to fess up about discount window loans by MoneyBlogNewz.
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