UPDATE: 2d Circ. Orders Federal Reserve Turn Over Loan Info to Media

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In Bloomberg, L.P. v. Board of Governors of the Federal Reserve System (Case No. 09-4083-cv; 09-4097-cv), the U.S. Circuit Court of Appeals for the Second Circuit last Friday rejected the argument by the Federal Reserve Board that it was exempt under exceptions to the Freedom of Information Act from having to turn over records to the news media concerning the $2 trillion emergency lending program.

The appellate court's three-judge panel upheld the decision of Chief Judge Loretta Preska of the U.S. District Court for the Southern District of New York, which ordered the Fed to produce the records to Bloomberg News pursuant to the media outlet's FOIA request [See "TUOL" posting 8/26/09]. The information involves loans made in April and May of 2008 by the Federal Reserve to quell the financial crisis consuming banks.  

The Second Circuit decision said FOIA favors disclosure and found the Federal Reserve had no basis for an exemption under the act. The Court suggested the Fed should look to Congress to amend FOIA if it believes the national interest would be served by such an exemption.

No word on whether the Fed intends to appeal the decision.