The Federal Reserve lost an appeal March 19 in a bid to keep hidden the details of its estimated $2 trillion in bailouts to bankers around the world, prompting celebration among anti-Fed campaigners and promises of a continued fight from the banking cartel.

A lower court ruled in August last year that the central bank must release the information under a Freedom of Information Act request filed by the Bloomberg media empire. But the Fed refused. Bloomberg had argued that the public had a right to know what was going on since U.S. taxpayers were “involuntary investors.”

“When an unprecedented amount of taxpayer dollars were lent to financial institutions in unprecedented ways and the Federal Reserve refused to make public any of the details of its extraordinary lending, Bloomberg News asked the court why U.S. citizens don’t have the right to know,” said Bloomberg editor-in-chief Mathew Winkler after the lower court’s ruling. “We’re gratified the court is defending the public’s right to know what is being done in the public interest.”

But the Fed fought back, demanding a stay of the lower-court order until an appeals court could take up the case. It argued that disclosing the documents could “damage” the rescued firms and that a FOIA exemption for “trade secrets” was applicable to the bailouts.

In a supplementary brief filed by the Fed Board of Governors, the cartel also argued that since the New York Federal Reserve Board was basically a private institution, it was not obligated to comply with FOIA requests. “The FRBNY is not an establishment of the executive branch because it is a corporation whose stock is privately held,” explained the brief, also noting that it “is overseen by a board of directors the majority of whom are privately appointed” and that “none of the stock of the FRBNY is government-owned.”

A group of banks including Bank of America, Citigroup, Deutsche Bank, and JPMorgan Chase also joined the Fed in battle through the Clearing House Association. None of the banks offered comments when requested by Bloomberg.

After losing again on appeal in the U.S. Court of Appeals for the Second Circuit, a Fed spokesman said the cartel was reviewing the decision and considering its options for reconsideration or yet another appeal. Some analysts have suggested that the central bank could be preparing to take the case all the way to the Supreme Court to maintain its secrets — and considering the fact that it has virtually unlimited financial resources, it does not have anything to lose by doing so.

But legislators have become increasingly frustrated with the Fed. “This money does not belong to the Federal Reserve. It belongs to the American people, and the American people have a right to know where more than $2 trillion of their money has gone,” said Senator Bernie Sanders of Vermont in a statement, adding that the appeals court’s decision was a “major victory” for American taxpayers.

A significant majority in Congress has also signed on to a wildly popular proposal by Representative Ron Paul to “Audit the Fed.” And though the effort is encountering fierce resistance from the central bank, it already passed as an amendment in the House of Representatives. It also has support from over three-fourths of Americans, according to polls.

Lawyers in the FOIA appeal litigation against the Fed cheered the March 19 ruling. “We’re obviously pleased with the court’s decision, which is an important affirmation of the public’s right to know what its government is up to,” said Thomas Golden, an attorney for Bloomberg. “Bloomberg has been trying for almost two years to break down a brick wall of secrecy in order to vindicate the public’s right to learn basic information,” he wrote in a court filing.

Various media organizations also celebrated the court ruling, including Fox News, which unsuccessfully sought Fed documents in another case. The executive director of the Reporters Committee for Freedom of the Press told Bloomberg: “It’s gratifying that the court recognizes the considerable interest in knowing what is being done with our tax dollars.”

Mark Pittman, the Bloomberg reporter who originally inspired the suit against the Fed, died late last year at 52. But his legacy lives on. As reported previously by The New American, the Fed has been waging an aggressive propaganda campaign to maintain its secrecy and power. But thanks to the tireless efforts of people like Pittman and Congressman Ron Paul, the days of Fed secrecy, bailouts, and unconstitutional monetary tyranny may soon be coming to an end.

The central bank simply must be held accountable. The amount of influence it wields over the American economy cannot be overstated. And the fact that it carries on its operations in secret is deeply unsettling. Congress should exercise its authority and find out what has been going on behind closed doors all these years, followed by completely abolishing the institution and restoring lawful, sound money. Using the American people’s resources in an illegitimate attempt to hold onto power and maintain secrecy is simply unacceptable. It must end. The Fed has no right no influence policy using the American people’s money. But fortunately, with public and congressional ire increasing every day, the time has never been better to bring down the monetary monster once and for all.

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ponomo said:

... Such an elementary constitutional item. Hard to imagine that some believe that a "private corporation (FED)" should be allowed with our borders let alone within our government.

March 21, 2010

maxfan said:

Wasn't it $9 trillion they stole? Thank you Ron Paul!

March 21, 2010 | url

Flu-Bird said:

Take that obama Too bad but it looks like OBAMA and BIG BROTHER have lost a attempt to hide some of their dirty secrets

March 21, 2010

ShakinT said:

ShakinT I agree that Ron Paul and the campaign for liberty movement had a lot to do with this, but this article understates the role of having a large corporation like Bloomburg willing to get behind this and fund the appeals. As I recall, this whole thing started with a freedom of information act request that Bloomburg made to the Fed that of course was denied... So Michael Bloomburg is probably on our side in this one. Hooray for big capitalistic corporations!

March 21, 2010

ShakinT said:

Silly me... For some reason I seem to think that Michale Bloomberg is connected to Bloomburg news. lol Scratch the line about him...

March 21, 2010

Dena said:

... Did they ever find out what the guy from Bloomberg died from? Funny how people connected with "finance" keep dying from these mysterious illnesses, all over the world. Wonder if anyone has made an effort to connect them?

March 23, 2010

Laneylue said:

... Oooohhh Yeeaaahhhhhhhh! Could this POSSIBLY mean that the real chain of money in the USA could be exposed all the way down to the "Comprehensive Annual Financial Reports", (aka 'Annual Financial Reports') from every state down to all local levels so the people can see the REAL records of the money system?? WOW! www.cafr1.com or see google video "The Biggest Game in Town", or "The Only Game in Town", by Walter Burien. People, you are in for ONE MAJOR EYEOPENER if that is exposed. Remember the saying "As Above, So Below". Thankyou for the article!

March 25, 2010

Franktruth said:

Abolish the FED - Restore the Republic. Great report Greg! No nation, community, business or person can be secure in its (artificial or natural) person, house, papers and effects without a predictable and universally recognized standard of value in their current coinage. The United States enjoyed such a standard in gold and silver coinage from 1792 until 1913. The Federal Reserve Act of 1913 (written by the instigators of the "Federal Reserve" central bank) charged the FED with the duty of maintaining public confidence in the Dollar (currency). This it attempts to do by concealing every act and policy that would erode that confidence. Fiat currencies are and always have been frauds perpetrated upon the people and entities using those currencies. Fiat money steals the value of the labor and intellectual property from the people and entities that uses it. It also robs the people of any voice in their government. Fiat Currency is incompatible with republics of free people. If the Tea Party movement or the nation as a whole fails to rectify the damage inflicted by the FED's fiat currency the Republic is lost. Ron and Rand Paul know this. Do any other major party Congressional candidates know it? We who vote must ask every candidate whether they support or oppose the Federal Reserve. Any response other than opposition to the FED is unacceptable.

March 28, 2010

mbt shoes said:

Great Fiat currencies are and always have been frauds perpetrated upon the people and entities using those currencies. Fiat money steals the value of the labor and intellectual property from the people and entities that uses it. It also robs the people of any voice in their government. Fiat Currency is incompatible with republics of free people.

March 28, 2010 | url

Coach bags said:

... No nation, community, business or person can be secure in its (artificial or natural) person, house, papers and effects without a predictable and universally recognized standard of value in their current coinage. MBT Shoes The United States enjoyed such a standard in gold and silver coinage from 1792 until 1913. The Federal Reserve Act of 1913 (written by the instigators of the "Federal Reserve" central bank) charged the FED with the duty of maintaining public confidence in the Dollar (currency). This it attempts to do by concealing every act and policy that would erode that confidence.

March 28, 2010 | url

ray-ban sunglasses said:

... I agree that Ron Paul and the campaign for liberty movement had a lot to do with this, but this article understates the role of having a large corporation like Bloomburg willing to get behind this and fund the appeals. Ray-Ban Sunglasses As I recall, this whole thing started with a freedom of information act request that Bloomburg made to the Fed that of course was denied

March 28, 2010 | url

Dave Wenta said:

What about the stalling time? This long drawn-out 'appeals process' serves another function...stalling. I wonder how many paper shredders the Fed has purchased in the last month or so. The time that this process takes also gives them time to destroy, delete or "lose" d**ning documents. It reminds me of the stall leading up to the "inspection" "search" for Weapons of Mass Destruction (oops, nothing here)...plenty of time to move them somewhere else.

March 30, 2010

coffe4closers said:

... I FIND IT INTERESTING THAT THE 16TH AMENDMENT(FEDERAL INCOME TAX)AND THE CREATION OF THE FED HAPPENED IN 1913. THE SLIPPERY SLOPE CONTINUES. WE'LL AUDIT THE FED AND RUN TO THE NEAREST BANK ATM MACHINE...

April 07, 2010