Tuesday, May 11, 2010

Fed Audit

Passed the Senate 96-0.


The Senate today voted overwhelmingly to adopt an amendment, authored by Sen. Bernie Sanders (I-VT), forcing a comprehensive review of the Federal Reserve's emergency lending activities. The amendment passed by a 96-0 vote.

Though the measure was always popular, it faced extraordinary opposition from the White House, Wall Street and the Fed itself. Late last week, in a move that defused the opposition, and may have saved Wall Street reform legislation, Sanders agreed to limit the scope of the audit to emergency lending only, exempting other Fed activities.

That preserved the broad intent of the plan, which was always aimed at bringing the Fed's shadowy activities during the financial crisis into the daylight. Under the terms of the proposal, the Fed will also be required to make public which companies received upwards of $2 trillion in aide from the Fed, and under what terms.

There is an interesting interview with Dean Baker regarding the audit. There are many thoughts out there about whether the original drafted audit would have caused financial havoc on Wall St., however it might give us a better understanding of what the hell happened. A good thing in my opinion.

I am Frank Chow and I approved this message

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