I don’t understand why the Fed is fighting the Bloomberg lawsuit to disclose who got funds from the bail out.

Here is the link to the actual court paperwork.

http://www.zerohedge.com/sites/default/files/Clearinghouse_Decl.pdf

The lawsuit is Bloomberg L.P. (Plaintaff) vs Board of Governors of the Federal Reserve System (Defendant). The Fed is protecting “The Clearing House”, which is the name of the organization that consists of the banks borrowing the funds.

Starting in paragraph 4, it states in a declaration from the executive vice president and general counsel of “The Clearing House”,

“4. Our members have accessed the New York Fed’s Discount Window with the understanding that the Fed will not publicly disclose information about their borrowing, especially their identity. Industry experience, including very recent searing experience, has shown that negative rumors about a bank’s financial condition- even completely unfounded rumors- have caused competitive harm, including bank runs and failures.

5. If the names of our member banks who borrow emergency funds are publicly disclosed, the likelihood that a borrowing bank’s customers, counterparties and other market participants will draw a negative inference is great.”

Meanwhile, at the top of the document it states the members of the Clearing House as being ABN Amro Bank N.V., Bank of America, National Association, The Bank of New York Mellon, Citibank, N.A., Deutsche bank Trust Company Americas, HSBC bank USA, National Association, JP Morgan Chase Bank, National Association, UBS AG, U.S. Bank National Association, and Wells Fargo Bank, National Association.

They divulge who is borrowing the money anyway.

There must be something else to this besides just finding out who is borrowing.

Something is not right here.

Something is up.

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