RonPaulGeorge&Ringo
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http://web.archive.org/web/20121215....gov/newsroom/pressreleases/2010-05-11-01.cfm
Successful Webb-Backed Measure Adds Greater Transparency to Financial Lending
May 11, 2010
Washington, DC—Transparency in financial lending was strengthened today when the Senate passed a measure, originally cosponsored by Senator Webb last August, to audit the Federal Reserve and make public which banks received more than $2 trillion in taxpayer-backed emergency aid during the financial crisis. The “Fed” will be required to disclose which banks received most of this assistance, how much they received, and how they plan to spend it. Senator Webb also voted for a similar, but more comprehensive measure introduced by Senator Vitter, which failed to pass.
“The American people deserve to know where their money went,” said Senator Webb. “Congress must restore to our financial system a regulatory structure that will prevent this regrettable chapter in American history from ever happening again. To do that, we need to know what really happened on Wall Street and what deals the Fed made behind closed doors.”
For the first time, under this amendment, the American people will know exactly which institutions received the more than $2 trillion in zero or near zero interest loans from the Fed and the exact terms. The amendment explicitly would require the Government Accountability Office (GAO) to investigate what many Americans believe were serious conflicts of interest involving the Fed and CEOs of the largest financial institutions in the country.
The Federal Reserve continues to use taxpayer dollars to support big banks and financial institutions with little transparency. It is currently bailing out European banks by re-establishing swap lines to funnel U.S. dollars to the Bank of England, the European Central Bank, and the Swiss National Bank. In 2008, the Fed distributed more than $500 billion to foreign central banks through these emergency loans, which were suspended earlier this year.
The Federal Reserve Transparency amendment:
Requires the non-partisan GAO to conduct an independent and comprehensive audit of the Federal Reserve within one year after the date of enactment of the financial reform bill;
Requires the GAO to submit a report to Congress detailing the findings and conclusions of its independent audit of the Fed; and
Requires the Federal Reserve within one month after the date of enactment to disclose the names of the financial institutions and foreign central banks that received financial assistance from the Fed since the start of the recession, how much they received, and the exact terms of this taxpayer assistance.
The amendment is supported by a wide range of organizations, including the AFL-CIO, AARP, Americans for Tax Reform, Citizens Against Government Waste and the Rutherford Institute.
Senator Webb has pressed for greater transparency and reporting at the Federal Reserve for the last two years since the onset of the financial crisis. Starting from the basic principle of fairness for all Americans, Senator Webb will continue to fight to improve and pass the financial reform bill. The reckless practices on Wall Street that led to the financial meltdown were unfair to the average worker and risked the United States’ economic position in the world. The regulatory structure in place failed to protect both our financial system and the U.S. taxpayer. Senator Webb believes Congress must act to prevent another financial crisis and future bailouts. Americans need a reformed financial system that puts their homes and retirements before Wall Street bonuses.
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Successful Webb-Backed Measure Adds Greater Transparency to Financial Lending
May 11, 2010
Washington, DC—Transparency in financial lending was strengthened today when the Senate passed a measure, originally cosponsored by Senator Webb last August, to audit the Federal Reserve and make public which banks received more than $2 trillion in taxpayer-backed emergency aid during the financial crisis. The “Fed” will be required to disclose which banks received most of this assistance, how much they received, and how they plan to spend it. Senator Webb also voted for a similar, but more comprehensive measure introduced by Senator Vitter, which failed to pass.
“The American people deserve to know where their money went,” said Senator Webb. “Congress must restore to our financial system a regulatory structure that will prevent this regrettable chapter in American history from ever happening again. To do that, we need to know what really happened on Wall Street and what deals the Fed made behind closed doors.”
For the first time, under this amendment, the American people will know exactly which institutions received the more than $2 trillion in zero or near zero interest loans from the Fed and the exact terms. The amendment explicitly would require the Government Accountability Office (GAO) to investigate what many Americans believe were serious conflicts of interest involving the Fed and CEOs of the largest financial institutions in the country.
The Federal Reserve continues to use taxpayer dollars to support big banks and financial institutions with little transparency. It is currently bailing out European banks by re-establishing swap lines to funnel U.S. dollars to the Bank of England, the European Central Bank, and the Swiss National Bank. In 2008, the Fed distributed more than $500 billion to foreign central banks through these emergency loans, which were suspended earlier this year.
The Federal Reserve Transparency amendment:
Requires the non-partisan GAO to conduct an independent and comprehensive audit of the Federal Reserve within one year after the date of enactment of the financial reform bill;
Requires the GAO to submit a report to Congress detailing the findings and conclusions of its independent audit of the Fed; and
Requires the Federal Reserve within one month after the date of enactment to disclose the names of the financial institutions and foreign central banks that received financial assistance from the Fed since the start of the recession, how much they received, and the exact terms of this taxpayer assistance.
The amendment is supported by a wide range of organizations, including the AFL-CIO, AARP, Americans for Tax Reform, Citizens Against Government Waste and the Rutherford Institute.
Senator Webb has pressed for greater transparency and reporting at the Federal Reserve for the last two years since the onset of the financial crisis. Starting from the basic principle of fairness for all Americans, Senator Webb will continue to fight to improve and pass the financial reform bill. The reckless practices on Wall Street that led to the financial meltdown were unfair to the average worker and risked the United States’ economic position in the world. The regulatory structure in place failed to protect both our financial system and the U.S. taxpayer. Senator Webb believes Congress must act to prevent another financial crisis and future bailouts. Americans need a reformed financial system that puts their homes and retirements before Wall Street bonuses.
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