FOX Business Network’s Charlie Gasparino is reporting that Congressional Republicans are now ramping up their criticism of the secrecy surrounding another government agency, the Federal Reserve, which under the new financial regulatory overhaul gains vast new powers to regulate Wall Street firms and banks, yet receives minimal oversight.
Congressional Republicans are lashing out, saying greater oversight is needed, and pointing a finger at House Banking Committee chairman Barney Frank for allegedly watering down a proposal from Republic congressman Ron Paul to audit the agency.
FBN: “There are real-world consequences of the culture of secrecy at the Federal Reserve,” Congressman Spencer Bachus said in statement to FOX Business. “A prime example is the AIG (AIG) mess in which the Federal Reserve paid a handful of mega banks and foreign counter parties one hundred cents on the dollar, more than $12 billion, while offering small and regional banks thirty percent of what they were owed.
“This demonstrated to many of us in Congress that the Federal Reserve was in need of transparency and accountability. Repeated letters and questions in Committee proceedings still have not received answers to some of the most basic questions regarding this disparity in treatment… Allowing the Federal Reserve to continue to operate in secrecy, and with the expanded powers handed to them by the Democrats, fails to protect the interest of taxpayers..”