|  | | 2009 News and Press Releases | | |
HEADLINE NEWS:
Bernanke Initiates ‘Thorough Review’ of Fed Disclosure Policy
Craig Torres
Bloomberg. February 10, 2009
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EXCERPT: Federal Reserve Chairman Ben S. Bernanke initiated a review of the information it provides the public after lawmakers criticized the central bank’s disclosure policies during its unprecedented balance-sheet expansion. “We at the Fed have begun a thorough review of our disclosure policies and the effectiveness of our communication,” Bernanke said. Board Vice Chairman Donald Kohn will lead a committee for the review. Bernanke has invoked emergency authority and more than doubled the size of the Fed’s balance sheet to $1.8 trillion to combat the worst credit crisis in seven decades. His moves have prompted concern the central bank is encouraging excessive risk- taking, distorting pricing in financial markets and jeopardizing the Fed’s independence. The Fed hasn’t disclosed many of the assets and participants in its programs. The Kohn panel will have a “presumption” that the public has a right to know and that “nondisclosure of information must be affirmatively justified by clearly articulated criteria for confidentiality,” he said. Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeing to force disclosure. Bernanke also said the Fed is preparing a Web site where the public can find more details and analysis about the Fed lending effort. He defended the programs, saying they helped restore liquidity and buffer risk during a severe credit crisis. |
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