Collateral, we don't need no stinkin' collateral...

It seems the Fed doesn't want to tell us what collateral they are accepting for their sweetheart loans to the banks. Bloomberg has filed an FOIA lawsuit.

The Fed staff planned to recommend that Bloomberg's request be denied under an exemption protecting ``confidential commercial information,'' according to Alison Thro, the Fed's FOIA Service Center senior counsel.

The confidential commercial information is undoubtedly that the collateral is shit, so the US now is the proud possessor of $1.5 trillion worth of the stinky substance. Enjoy!
(h/t naked capitalism)