In its original request for a stay, the Fed argued that disclosing lending information would undermine confidence in the banks borrowing through its programs.
"Public disclosure is likely to cause substantial competitive injury to these financial institutions including the loss of public confidence in the institution, runs on banks, and possible failure of some institutions," Associate General Counsel Yvonne Mizusawa wrote.
I think that's true, but that doesn't mean the Fed shouldn't be required to release those names for the sake of transparency. Yet, I do think it's logical that these names not be released until the ruling is final. In the end, if the Fed loses, then that's too bad for those banks.
As I said before, I have mixed feelings on what the ultimate outcome should be. But I'm also a little unsure if this is a question really best answered by the courts. I'd like to see Congress weigh in and force the Fed's hand, if that's the appropriate outcome.
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