Kasriel: Fed Secretive for Good Reason

Monday, August 31, 2009 5:10 PM

By: Julie Crawshaw

Northern Trust's Paul Kasriel says the real reason the Fed doesn't want us to see its books is not that it fears hampering competition but that The Fed is scared to death that the revelation will trigger another run on some of those banks.

“If the Fed is required to publish the names of financial institutions to which it has extended credit and this publication induces financial institutions to refrain from borrowing from the Fed, one can only speculate if this would be the tinder for another liquidity conflagration in the coming months,â€