Bloomberg v. the Fed, Round 1
Below is the memo in support of Bloomberg’s MSJ, which was granted and is now subject to a stay pending appeal. This is a very sound and well reasoned legal and policy argument that persuaded the District Judge. We will see what the Government comes up with when they file their appellate briefs, but based on the Government’s REPLY BRIEF, I predict it will be something along the lines of, “if you don’t let the Fed operate in secrecy, then it will reignite a financial crisis, create a banking panic worthy of Hoover, and the Deathstar will destroy Alderan.”
I am tired of that excuse and I believe most americans tire of that excuse. Full disclosure - we have a right to know esp. if you are bankshareholders. Regulation FD requires disclosures of material events for public companies - ask yourself if your bank is secretly being bailed out by the FEDERAL RESERVE. Is that material information? I think so and it must be disclosed.
Runs on banks are protected with insured deposits - we are preventing runs on the corporate shareholder structure (bonds and stocks of banks). There would be runs on those for sure if the truth were to be disclosed bc they are insolvent.