[StBernard] Questioning Federal Reserve Chairman Bernanke About Audits of the Federal Reserve

[Westley Annis]

Dear  Friend,


	

Recently, as a member of the Senate Committee on  Banking, Housing and Urban
Affairs, I questioned the Chairman of the Federal  Reserve Board, Ben
Bernanke, about the need for fuller, regular audits of all  activities of
the Federal Reserve.

	

These audits would provide much needed transparency to  the actions of the
Federal Reserve, given the key role it played in the bailouts  of the past
year.  From Bear Stearns, to AIG, to the countless "lending  facilities"
that it created out of thin air to prop up failing companies, the  Federal
Reserve's balance sheet rose back above $2 trillion.

	

As a co-author of S. 604, the Federal Reserve Sunshine  Act, I support full
audits of the Federal Reserve. The bill would reform the  Federal Reserve
System by requiring the Government Accountability Office (GAO) to audit the
Fed, removing statutory  obstacles that currently exist to understanding the
extent of taxpayer's  liability created by the Federal Reserve.

	

I am a strong supporter of  the independence of the Federal Reserve.
However, I believe that Chairman  Bernanke's testimony that a GAO audit
would result in members of Congress  initiating reports in an attempt to
influence monetary policy is exaggerated, and that concern could be solved
by requiring the audits to occur regularly  every two years.

	

Assuring proper and appropriate oversight of the  Federal Reserve and its
treatment of taxpayer dollars will continue to be a  priority for me as
legislation to reform the regulatory structure of the  financial industry is
considered by the Senate.


Sincerely,
David Vitter
U.S.  Senator