Sen. Shaheen says Federal Reserve needs to be audited
DOVER - U.S. Sen. Jeanne Shaheen says the Federal Reserve
needs to be audited because the institution has been operating in the shadows
for too long.
"Taxpayers have a right to know how their money is being spent," Shaheen
said in a statement after the Senate voted for the measure 96-0 Tuesday.
"The Federal Reserve has not been forthcoming about which big banks they
have helped out. This is unacceptable, and this amendment will help provide the
transparency and accountability the American people deserve."
Shaheen, who cosponsored the measure, said the audit will be included in Wall
Street reform legislation and require the Fed to identify amounts that banks,
financial institutions and foreign central banks that are receiving or have
received emergency financial assistance from the Fed. The information needs to
be posted on the Fed's website by Dec. 1.
The Associated Press reported the Fed's short-term lending, designed to
increase the liquidity of banks reeling from the crisis, grew dramatically at
the height of the Wall Street meltdown. At its peak at the end of 2008, the
Fed's lending totaled $1.16 trillion. Overall, the Fed's balance sheet
ballooned to $2.3 trillion, more than double where it stood before the crisis
struck.
The measure authorizes the Government Accountability Office to conduct a
one-time audit of all emergency actions taken by the Fed since Dec. 1, 2007,
including its mortgage-backed securities program, foreign currency liquidity
swap lines and all other emergency programs, according to Shaheen's office.
Obama administration and Fed Chairman Ben Bernanke had resisted a broader
effort.