Plan for Congressional Audits of Fed Dies in Senate

[paparush]

Source: Wall Street Journal

Last-minute maneuvering in the Senate allowed the Federal Reserve to sidestep 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 It would have largely repealed a 32-year-old law that shields Fed monetary policy from congressional auditors.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 and a one-time review of Fed governance. A formal vote was pushed back until next week.

Thursday's Senate showdown came after senators on the left and right joined forces to support Mr. Sanders' provision.

Read more: http://online.wsj.com/article/SB10001424052748704370704575228164133105390.html?mod=WSJ_business_EconomyNewsBucket

[EXneoCON]

1. I've tried hard...

...not to buy into the argument that Obama is in the back pocket of Big Business.


I really have....

[Lorien]

14. I gave up on that dream after the health care debacle

He won't get my vote-or volunteer hours and money- again. He's working for the oligarchy, not us.

[No Elephants]

21. We've been beyond oligarchy. We've been a plutonomy for a while now.

Citigroup coined the term in 2006 and was right on the money, so to speak. Citigroup wrote a memo about it that is on the Internet in both html and pdf.

A socio/political/economic system (entire society) run by the wealthy that is designed to make the wealthy much wealthier, and everyone else much poorer.

Corporations say the very best return on a dollar they get is from campaign donations. (Not said--and other perks, like vacays, jobs for family members, etc.)

How much do you think Poppy Bush, Dummya, Cheney, et al are worth today? We know Bill Clinton is worth substantially over 100 million. How much do you think Obama will be worth, once he leaves office? And that's not counting the hundreds of millions raised for all the Presidential libraries.

No longer, "It's the economy, stupid," but "It's the plutonomy, stupid." And this time, "stupid" does not refer to Poppy Bush, but to each taxpayer/consumer/voter.

[Iowa]

26. I agree. He has earned our complete contempt.

[ixion]

2. The only thing that 'changes' is the window dressing

behind the scenes, the game remains the same.

[change_notfinetuning]

3. A nail in the coffin of real transparency. If there were change, I might

believe in it. This is Screw You Business as Usual.

[Jefferson23]

4. Pressure from the Obama administration.

"Thursday's Senate showdown came after senators on the LEFT AND RIGHT JOINED FORCES TO SUPPORT MR. SANDERS PROVISION."


Just so there is NO misunderstandings going forward folks.

I have this bookmarked for posterity.

[rudy23]

10. Everyone should bookmark this for every time he and Rahm want to use "bipartisanship" as an excuse

They are sell-outs, pure and simple. If Bush had done this, we'd be howling.

[Jefferson23]

12. Nothing makes me more sad and angry at the same time.

If we don't fight for public funded elections, I honestly don't know how anything will change enough to do long term good.

[ArcticFox]

5. I've said it before

And I'll say it again:

Obama sold out. He doesn't care about you or me.

[atreides1]

7. It's beginning to look that way

Yes, I know that he's got a whole list of things that he's accomplished. But his call for "transparency" seems to have been nothing more then a campaign talking point.

[Jefferson23]

6. kick n/t

[rudy23]

8. I would actually like an Obama supporter to explain to me how this is a good thing.

I'm really tired of having my cynicism proven correct.

[SpartanDem]

15. The headline is misleading

there is going to be an audit of the fed. The only reason that it didn't get a vote yesterday is that Bobb Bennett is Utah and wanted to vote on it and that will probably happen on Tuessat

Could Sen. Bernie Sanders (I-VT) shake off powerful opponents of his proposal to audit the Federal Reserve? It looks like he's about to do just that. By making a few changes to his financial reform amendment, Sanders has won support from Senate Banking Committee Chairman Chris Dodd, and Majority Leader Harry Reid, and seems more poised than ever to prevail. The Senate should vote on his amendment later today.

In order to allay some of the White House's and the Fed's concerns, Sanders has agreed to limit the scope of what the Government Accountability Office would be allowed to audit--but his plan will still require thorough review of all the Fed's emergency lending, beginning December 1, 2007.

"The way you would do it is to make sure that the audit is not looking at the open market policy, where you're not looking at how interest rates are set," Sen. Bob Corker (R-TN) said in response to a question from TPMDC, after a floor vote on a different amendment. "What you're doing is looking at the actual financial transactions that the Fed is involved in."

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x289204



A last minute snag tonight temporarily delayed a vote on Bernie Sanders' amendment--still expected to pass overwhelmingly--to force an audit of the Federal Reserve.

Republican Sen. Bob Bennett is in his home state of Utah today, in the last days of a tough primary campaign. Because the race is so close, he doesn't want to be held accountable for missing a vote on an important amendment, popular on the grassroots right, so Republicans sought a delay. To move things along, Democrats acceded, but will instead hold votes on several other amendments tonight

http://tpmdc.talkingpointsmemo.com/2010/05/vote-on-sanders-delayed-to-accommodate-bennett.php?ref=fpblg

[Jefferson23]

19. But that is the point, "to allay the WH's and Fed's concerns" ...

Obama should be championing this WITH Bernie, not limiting the scope.

[rudy23]

9. How would we tolerate this if Bush had done it. We'd be outraged!

Why do I keep expecting things to be different?

[Lorien]

17. Apparently, according to those in GD :P , if someone on our "team" doe it it's GREAT

and we should support them 100%. If someone on the other team does it it's EVIL, and we should oppose it 100%. Iraq war under repug= EVIL, Iraq war under Dems= GREAT. It's so simple, isn't it?

[high density]

11. What a horrific joke our Senate is.

Everything about financial reform is being destroyed.

First the liquidation fund was changed so the government can only collect money after (i.e. during) the crisis. Completely insane logic there. How we can only have a one-time review of the Fed? This isn't going to instill confidence in anything.

[rudy23]

13. Senates are susceptible to pressure from the White House. They do control their funding. nt

[Lorien]

16. That fish rots from the head down. nt

[Ter]

25. Perhaps the 17th Amendment was a mistake

:(

[HCE SuiGeneris]

18. Does the Senate represent BIg Business, or does it represent the people?

Never mind. Stupid question.

[No Elephants]

22. Please see Reply 21.

[fascisthunter]

20. you will regret this dems.... stupid move

but greed makes people stupid.

[No Elephants]

23. Change you can bereave in.

Gotta hand it to the Repukes for strategy. They called the bluff, they gained points with the Teabaggers, they cost the Democrats points with both the left and the right, yet, they did not lose the banksters because nothing got enacted. Pretty good power play for a minority Party.

[The Northerner]

24. How saddening. K&R