Senate Gets Tough On Fed With New Audit Rule
Matt | On 11, May 2010
The Senate voted Tuesday (96-0) to have an audit conducted of the Federal Reserve’s (i.e, The Fed’s) lending activities during the recent financial crisis. Bring it on!
The measure was an amendment authored by Bernie Sanders (I-Vermont) and was obviously very popular in the Senate. They feel, and they’re right, that the American people have a right to know where their money went during all of those bailouts, handouts, etc. The Government Accountability Office (GAO) will conduct the audit.
The White House and Wall Street, in particular, were opposed to this legislation because they are worried about keeping the Fed independent of partisan politics. I honestly think there’s some lending activities that they are trying to cover up and they don’t want them to come to light. How can one give away $787 billion and not ask for some type of accounting of where that’s going?!
The Fed was spared at some points in the amendment. For instance, this is just a one-time audit, not an ongoing series of audits as originally proposed. Also, auditors will not have access to the meetings where the Fed sets interest rates or makes decisions on monetary affairs. It’s a watered-down version of a bill that would have chin-checked the Fed. You’ll be able to see the results of the audit on the Fed’s website by December 2010.
I guess we have to start somewhere, right?