House committee adopts Paul amendment strengthening Fed audit bill

Submitted by cpowell on Fri, 2009-11-20 14:10. Section: Daily Dispatches

WASHINGTON -- The Federal Reserve's shield from congressional audits of interest-rate decisions took a blow from lawmakers who want to open the central bank's books to greater congressional scrutiny.

Lawmakers say the Fed hasn't adequately accounted for putting taxpayer funds at risk, including aid to companies such as Citigroup Inc. and American International Group Inc. Fed Chairman Ben S. Bernanke has opposed the Paul legislation, saying it may open the door to interference in monetary policy. FULL STORY

Fed Audit Shield Takes Blow After Ron Paul Proposal Advances
By Scott Lanman
Bloomberg News
Friday, November 20, 2009

Nov. 20 (Bloomberg) -- The Federal Reserve’s shield from congressional audits of interest-rate decisions took a blow from lawmakers who want to open the central bank’s books to greater congressional scrutiny.

The House Financial Services Committee yesterday advanced a proposal to remove a three-decade ban on audits of monetary policy and carry out an examination of the central bank. The plan was offered by Representative Ron Paul, a Republican from Texas who has called for the abolition of the Fed, and based on a bill with more than 300 co-sponsors. FULL STORY