Senate Votes to Audit the Fed

May 17, 2010  |  

(TheNation.com) — “The Fed can no longer operate in virtual secrecy,” declared Vermont independent Bernie Sanders Tuesday after the Senate voted 96-0 to add his “Audit the Fed” amendment to the financial regulatory reform bill. The Senate amendment is not as muscular as the bipartisan legislation backed by the House, which was sponsored by Florida Congressman Alan Grayson, an aggressive progressive, and Texas Congressman Ron Paul, an equally agressive conservative with libertarian leanings. The Grayson-Paul bill authorizes audits by the Government Accountability Office of every item on the Federal Reserve’s balance sheet, including all credit facilities and all securities purchase programs; there would be exemption only for unreleased transcripts, minutes of closed-door meetings and the most recent decisions of the central bank. The Senate measure is narrower in its focus, but it would require the GAO to scrutinize some several trillion dollars in emergency lending that the Fed provided to big banks after the September, 2008, economic meltdown.

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