Monday, April 06, 2009

Senate Seeks Names of Finance Firms Receiving Fed Aid

Senate Seeks Names of Finance Firms Receiving Fed Aid; Wall Street Journal

In a warning shot at the Federal Reserve about its disclosure practices, the Senate on Thursday called on the central bank to reveal the names of institutions that receive its loans and what they're doing with the money.

The Senate resolution was a sign of mounting mistrust in Washington about the course of government rescue programs and the Fed's role in them.

Lawmakers are likely to keep pushing the central bank to disclose more about the firms receiving Fed aid as part of its vast financial rescue efforts. The resolution doesn't have the force of law, but could become attached to legislation at a later date.

"It is very hard for any public official to go home and explain that $2.2 trillion of your money was lent out and we don't know where it went," said Sen. Bernie Sanders (I., Vt.) sponsor of the resolution, in reference to the overall size of the Fed's asset holdings.

Comment: Maybe Sanders should simply ask Dodd. All Sanders would have to do is ask Dodd for a list of his political contributors, and bingo, you have the answer to question.

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