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Banksters Rally Round Fed To Keep Bailout Trillions Secret

The largest commercial banks in the U.S. are ready to go all the way to the Supreme Court to block the public release of details pertaining to the Federal Reserve's 2008 secretive $2 trillion bailout.

Bloomberg News reports that The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., have teamed with the Fed to rally against a lawsuit, brought by Bloomberg itself, to disclose records of the Fed's emergency lending.

The fight for disclosure has been ongoing following the Fed's failure to comply with congressional demands for transparency.

The Fed has consistently refused to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank accepted as collateral.

A New York District ruling last August declared that the destination of around $2 trillion dollars in bailout funds must be revealed after the Fed failed to convince the Judge that the records should be exempt from the Freedom of Information Act.

Citing the fact that the US taxpayer is an "involuntary investor" in the nation's banks, Bloomberg argued that the risks behind the $2 trillion in lending needed to be made public.

Following more stalling, a further ruling by the U.S. Court of Appeals in Manhattan on March 19 ordered the central bank to release the documents. The Fed once again argued that disclosure would be harmful to its independence, would stigmatize borrowers and discourage banks from seeking further emergency help.

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