The Federal Reserve refuses to disclose $30 billion contract with BlackRock

James Dimon of JPMorgan Chase
and Alan Schwartz of Bear Stearns.
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From: National Freedom of Information Coalition

Officials refuse to disclose details of Bear Stearns bailout

Posted By Stephanie Detillier for Charles Davis on Monday, October 6, 2008

The Federal Reserve contracted with BlackRock Financial Management Inc. to manage $30 billion in financial assets from the collapse of Bear Stearns, in order to facilitate its purchase by J.P. Morgan Chase. But those are all the details officials are giving up. The Federal Reserve maintains that: "Our general principle is we don't disclose contracts we make with outside contractors." Top government officials are refusing to provide details on a secretive deal it made to manage billions in assets from an earlier bailout. Sen. Charles Grassley, R-Iowa, has been pressing top officials for months to provide details on a deal the Federal Reserve made for a private firm to manage $30 billion in financial assets from the collapsed investment bank Bear Stearns, as part of an arrangement to facilitate J.P. Morgan Chase's purchase of the bank in March. The Federal Reserve announced at the time that it had contracted with BlackRock Financial Management Inc. to manage the assets. Since then, it has declined to share any further details on the arrangement with anyone – not reporters, not the public, and not Sen. Grassley. More here.

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