The Beard may be coming back for a second tour of duty but, as proven yesterday, that doesn't mean people will listen to him. Chief District Judge Loretta Preska of the federal court in Manhattan decided that despite the warnings from the Fed that allowing disclosure of companies and securities that received some form of government safety net would lead to "imminent competitive harm", she would rather sit back and see some more evidence.
"The board essentially speculates on how a borrower might enter a downward spiral of financial instability if its participation in the Federal Reserve lending programs were to be disclosed," she wrote. "Conjecture, without evidence of imminent harm, simply fails to meet the board's burden."
So after trillions of dollars in losses and damage to the global economy partially attributable to a lack of foresight by central banks and regulatory bodies, the message federal judges want to send is prevention is a bad thing. Either that or the judge wants to see if the Beard can save the day again.