Audit the Fed Amendment Modified – Allows Fed To Keep Secrets
Ron Paul: “Bernie Sanders has sold out and sided with Chris Dodd to gut Audit the Fed in the Senate. His “compromise” is what the Administration and banking interests want: they’ll allow the TARP and TALF to be audited, but no transparency of the FOMC, discount window operations or agreement with foreign central banks. We need to take action and stop this!”
The Wall Street Journal provides more details on the Sanders Sellout:
Last-minute maneuvering in the Senate allowed the Federal Reserve to side step legislation that would have exposed its interest-rate decision-making to congressional auditors.
Pressure from the Obama administration led Senate lawmakers to alter a provision pushed by Sen. Bernie Sanders (I., Vt.) that was gaining momentum despite opposition from the Treasury and the Fed. It would have largely repealed a 32-year-old law that shields Fed monetary policy from congressional auditors.
The compromise, endorsed by Senate Banking Committee Chairman Christopher Dodd (D., Conn.) and the Treasury, would require the Fed to disclose more details about its lending during the financial crisis. It would also require a one-time audit of those loans as well as a one-time review of Fed governance. A formal vote was scheduled for later on Thursday.
Thursday’s Senate showdown came after senators on the left and right joined forces to support Mr. Sanders’ provision.
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