FED Appeals Court Order to Identify Banks Receiving Loans

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Bloomberg reports the Federal Reserve is appealing a judge’s order requiring the central bank to identify the financial institutions that benefited from its emergency loans, according to a lawyer representing Bloomberg LP.

The central bank refused to divulge details about the companies participating in its 10 remaining lending programs, saying that doing so might set off a run by depositors. The Fed had until today to seek a reversal of the Aug. 24 decision by Manhattan Chief U.S. District Judge Loretta Preska, who ruled the Fed must release the identities, as well as disclose loan amounts and the assets put up as collateral.

Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, filed suit against the Fed on Nov. 7 on behalf of its Bloomberg News unit. Scott Rose, a lawyer with New York-based Willkie Farr & Gallagher LLP, who represents Bloomberg, said the appeal is being filed with the U.S. Court of Appeals in New York. The filing couldn’t be immediately confirmed in court records.