Monday, November 10, 2008
Bloomberg journalists stir needless concerns about Fed actions. Could harm Fed's ability to help financial sector.
An article on Bloomberg.com suggested that the Fed has been hiding behind a lack of transparency. The Bloomberg journalists do not understand that Fed lending is to banks with regulated collateral and all of that is publicly available information.
Here is the article.
The misinformation in the Bloomberg article could put pressure on the Fed that might result in hurting its ability to help the financial markets. We must try to stop journalistic ignorance and complicity in this time of crisis.
Please cut and paste the following letter and send it to the following Bloomberg journalists:
It is clearly stated under Section 13 Paragraph 3 of the Federal Reserve Act that in exigent and unusual circumstances the Fed is allowed to lend to whomever it pleases against any collateral that it deems satisfactory.
Moreover, all banks come under regulatory scrutiny by the Fed and Office of the Controller of the Currency and can only have bank-regulated collateral. The list can be found at the Fed’s Discount Window of Marginable Collateral.
The Fed is not limiting transparency in its actions. All this information is publicly available. Your research and assertions are incorrect and misleading and you should publish a retraction with the proper information.