Bloomberg Opposes Fed's Request For Stay In FOIA Case

Bloomberg News filed a brief with the U.S. Second Circuit Court of Appeals on Monday opposing the U.S. Federal Reserve's request for a stay delaying the release of public records containing information about banks' lending activities during the financial crisis.

The Fed filed for a notice of appeal and requested an emergency stay last week, arguing that disclosing records containing sensitive lending information could cause "irreparable harm" to the financial institutions who borrowed money.

Bloomberg sued in November 2008 after the Fed withheld requested records from the Federal Reserve Bank of New York, arguing the regional banks' records were exempt from the Freedom of Information Act. The public records request asked for information from April and May 2008, revealing which financial institutions borrowed money from the Fed's discount window and primary-dealer credit facility and what they pledged as collateral for the loans.

The Southern District Court of New York ruled in favor of Bloomberg in August and ordered the Fed to disclose the withheld records. Two days later, the Fed filed for a temporary stay pending appeal, which the district court granted.

Both Fox News Network LLC and Dow Jones & Co. made similar public-record requests, which were denied. News Corp. (NWS,NWSA) owns both Fox News and Dow Jones, publisher of this newswire.

-By Kristina Peterson, Dow Jones Newswires; 202-862-6619; [e-mail]