Fed to Disclose Bank Crisis Borrowing

NEW YORK ( TheStreet) -- The Federal Reserve will release data on bank borrowing during the financial crisis of 2008, after the Supreme Court rejected an appeal by the banking industry aimed at preventing the disclosures, Bloomberg News reported Monday.

Bloomberg sued the Federal Reserve to get it to release the data, and a Fed spokesman said the U.S. central bank will comply with the decision and release the records within the next five days.

It will be the first time a court has forced the central bank to disclose borrowing at its discount window, according to the report.

The Clearing House Association, which represents U.S. banking subsidiaries of Bank of America ( BAC), Bank of New York Mellon ( BK), Citigroup ( C), Deutsche Bank ( DB), HSBC ( HBC), JPMorgan Chase ( JPM), U.S. Bancorp ( USB) and Wells Fargo ( WFC) had argued such disclosures would make banks less likely to borrow at the discount window in the future for fear disclosure of those actions would attach a stigma to the institution, the report stated.

After two lower courts ruled the Fed would have to disclose the borrowing information, the banking group appealed to the Supreme Court. However, according to the Bloomberg report, the Obama Administration urged the Supreme Court not to hear the appeal because new rules under the Dodd Frank financial reform legislation passed last year will change the rules on Fed disclosure of bank borrowing.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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