UPDATE 2-Fed asks US court to revisit bailout ruling

* Fed seeks rehearing by entire Second Circuit

* “Irreparable harm” possible absent reversal, Fed says
(Adds Fox Business Network comment)

NEW YORK, May 3 (BestGrowthStock) – The U.S. Federal Reserve on
Monday asked a federal appeals court to reconsider its ruling
ordering the central bank to disclose records on emergency
lending programs to banks that were bailed out by the
government.

A three-judge panel of the U.S. Second Circuit Court of
Appeals in New York had on March 19 ordered the Fed to release
details of programs it began in late 2007 to shore up and avoid
a meltdown of financial markets.

Bloomberg LP, the parent of Bloomberg News, and News Corp’s
(NWSA.O: ) Fox News Network had sought details of the programs
under the federal Freedom of Information Act.

In its request for the entire 10-judge Second Circuit to
reconsider the case, the Fed said the original panel erred in
not excusing it from having to disclose borrowers’ names, loan
amounts and loan dates for transactions at its discount window
and from its emergency lending facilities.

The Fed maintained that releasing such information could
stigmatize participants in both programs, perhaps causing a
loss of confidence that could lead to bank runs and even the
demise of various borrowers.

“The real-world consequence of the panel’s decision will be
serious, perhaps irreparable harm to the institutional
borrowers,” the Fed said.

Dennis Jacobs, chief judge of the Second Circuit, wrote the
March 19 ruling.

Bloomberg spokeswoman Judith Czelusniak declined to
comment. Kevin McGee, an executive vice president of Fox
Business Network, said his company “will continue in our quest
to hold the government accountable for their actions
surrounding the allocation of the bailout funds.”

The Clearing House Association, a group of major U.S. and
European banks, supported the Fed’s position in the case.

The cases are Bloomberg LP v. Board of Governors of the
Federal Reserve System et al and Fox News Network LLC v. Board
of Governors of the Federal Reserve System, U.S. Court of
Appeals for the Second Circuit, Nos. 09-4083, 09-4097 and
09-3795.

Stock Market Today

(Reporting by Jonathan Stempel; Editing by Bernard Orr)

UPDATE 2-Fed asks US court to revisit bailout ruling