Fed Forced to Disclose Weak BanksST
A federal appeals court has sided with a lower court ruling forcing the Federal Reserve to disclose the names of banks that would have collapsed had they not been bailed out. The Fed has obstructed this required disclosure every step of the way, citing concerns that disclosing the names of the banks will stigmatize them and cause them competitive injury.
God, I hope so.
This court ruling is a big win for the free market, and might clear the path for poorly managed banks to see their stock prices get pummeled. Maybe some heads will even roll. That said, I don't really expect the Fed to hand the data over. I'm sure they were willing to play along with the due process charade to keep up appearances, but now that the court has ruled against them more than once, I fully expect the Fed to give the judiciary a lesson in who's really the boss -- rule of law be damned.
So what are the odds that the Fed complies with the court order? And what would you do if your bank showed up on the list?