Challenges to FOIA

When it comes to FOIA, the Freedom of Information Act, we’d like to think that there’s not such thing as “too much.” Which is why its great news to hear that the Federal Reserve must release documents that disclose what banks are seeking help from the banking system.

The Fed had argued making that knowledge public would stigmatize borrowers and thus discourage banks in distress from seeking help. A three-judge panel of the appeals court unanimously rejected that argument, stating FOIA “sets forth no basis for the exemption the Board asks us to read into it.” There’s no part of FOIA that allows information to be withheld in order for a bank to save face.

Senator Bernie Sanders, an Independent from Vermont, stated “This money does not belong to the Federal Reserve. It belongs to the American people, and the American people have a right to know where more than $2 trillion of their money has gone.” A lovely justification for more information.

Another case of open government is in Little Rock, Arkansas, where the state FOIA law is being challenged. Greene County Technical School District is challenging the constitutionality of a FOIA provision that allows public employee evaluation records (which serve the basis for a suspension or termination) to be released. The Attorney General’s office has come out in support of the provision, stating “there is no reason to doubt that the constitutionality of the challenged statute will be fully and completely defended.”

Still, more information is not always justifiable. Recently, the DC Circuit’s Court of Appeals had to restrict the FOIA response of the Defense Contract Management Agency (DCMA), which apparently acted a little too transparently. The exemption was based on protecting trade secrets and privileged commercial or financial information. With FOIA response backlogs becoming an issue of some concern, it may be ok for governments to be strict about what it will not disclose. And FOIA isn’t always the only, nor the best, source of information.

Sunshine Review has information about your state’s FOIA law, and we have also started #FOIAchat Friday on Twitter, every Friday at 2 pm EST. Join the conversation!

Sunlight needed for the Federal Reserve

[Editors Note: This is a post from one of our Sam Adams Alliance interns, Kasia Rada]

For the proponent of limited government, this year has been entirely baffling. The notion of expanding powers for the Federal Reserve is just the icing on the cake. Fortunately, alarm bells are going off for nearly 60% of House members as HR 1207, a bill enabling the GAO to audit the Federal Reserve, gains support on both sides of the aisle.

Fed Chairman Bernanke’s retort equates an honest and open audit with frivolously exposing the money supply to short-term political pressures. Really? I hadn’t noticed that it wasn’t already. Privileges granted the Federal Reserve in monetary policy resemble executive privileges in national defense, only there we have real enemies to combat. In that case, secrecy regarding the money supply may as well be taken as a war against the American public. If the Fed is going to be exposed to political pressures, I’d rather it be out in the daylight than behind closed doors.

As it is, the hope for HR 1207 is bleak. Even if by some miracle it passes through a legislature and executive approving of government-corporate paternalism, chances are efforts to shine some light on the Fed will be diluted to uselessness once again. Regardless, we need to keep public momentum for transparency going. Hold your representative accountable. In the end it is likely HR1207 will amount to no more than striking a match in a dark room, but on the bright side we still have until it that fire burns out to flick on the light switch.