11 May 2010

Fed Audit Approved. But Just This Once.

Reuters: Senate OKs Fed audit as part of bank overhaul

The Senate challenged the Federal Reserve's tradition of secrecy on Tuesday by unanimously approving a measure to expose the details of the central bank's emergency lending during the financial crisis.

As it sought to stabilize the banking sector and economies worldwide, the Fed pumped hundreds of billions of dollars into markets, expanding its balance sheet to more than $2 trillion.

Under a measure approved by a vote of 96 to 0, the investigative arm of Congress would conduct a one-time audit of the central bank's emergency lending since December 2007.

In addition, the Fed would be required to publicly disclose by December 1 of this year detailed information about which financial institutions it assisted with its lending.

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