Where’s Lumpy?

From Bloomberg:

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

…

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.

Good for Bloomberg.  Perhaps Michael has an ulterior political motive here, but inquiring minds do want to know.

Of course, not everyone thinks transparency is a good idea.  Exhibit A, Barney Frank:

In an interview Nov. 6, House Financial Services Committee Chairman Barney Frank said the Fed’s disclosure is sufficient and that the risk the central bank is taking on is appropriate in the current economic climate. Frank said he has discussed the program with Timothy F. Geithner, president and chief executive officer of the Federal Reserve Bank of New York and a possible candidate to succeed Paulson as Treasury secretary.

“I talk to Geithner and he was pretty sure that they’re OK,” said Frank, a Massachusetts Democrat. “If the risk is that the Fed takes a little bit of a haircut, well that’s regrettable.” Such losses would be acceptable, he said, if the program helps revive the economy.

Barney, Barney, Barney, you just don’t get it.  If you think that the public trusts you and Geithner, you’re delusional.  We’re not worried that the Fed will “take a haircut.”  We’ve suspected all along that your proven ineptitude, coupled with the Fed’s uncontrolled power, is a recipe for theft.  Get this through your thick head:  the US Constitution requires full accounting of public funds.

No money shall be drawn from the treasury but in consequence of appropriations made by law; and a regular statement and account of the receipts and expenditures of all public money shall be published from time to time.  (United States Constitution, Article I, Section 9)