Senate votes 96-0 to audit Fed

http://www.mcclatchydc.com/2010/05/11/93918/96-0-vote-congress-opens-federal.html

Oh not a complete audit lol, that might actually show you why this calamity started in the first place.
The FED only wants to show you what they did to fix it because there is a built in excuse, that they had to do everything and anything to keep floating this dead fish of a financial system.
No crime here, WE just didn't know.......right lol

The Senate voted 96 to 0 Tuesday to open the secretive Federal Reserve Board's emergency lending practices to a congressional audit, as well as require a detailed disclosure of who's getting the funds.

"We are on the verge of lifting the veil of secrecy on perhaps the most important government agency in the United States of America,” said amendment sponsor Sen. Bernard Sanders, Ind.-Vt., "an agency which has control and spends trillions of dollars. They do it behind closed doors."

Under the plan, Congress' Government Accountability Office would conduct "a top to bottom audit of all the Federal Reserve's emergency activities" since the economic crisis began in December, 2007. In addition, the Fed would have to put on its web site all recipients of money from than $2 trillion in emergency aid that the Fed has dispersed since then.

The audit is the Senate's latest change to legislation that would overhaul the nation's financial regulatory system, making it easier for the government to break up ailing banks and provide a strong, independent consumer agency to help people with credit questions and problems.



Read more: http://www.mcclatchydc.com/2010/05/11/93918/96-0-vote-congress-opens-federal.html#ixzz0ndxumYSM

Barack Obama loses first vote on bank bill

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7637600/Barack-Obama-loses-first-vote-on-bank-bill.html

Does anyone remember that the FED window used to be a borrowing mean of last resort?
And if you had to use it your business was scrutinized intensely for having to do so.

It seems now to be just another perk that the "big boys" have access to so that the game can never be called because of rain..

Wall Street banks were given a temporary stay of execution last night after the US Senate voted down the reading of Senator Christopher Dodd's financial reform bill which will force them to hive off swaps and derivatives desks.



Senators voted 57-41 in favour of a procedural measure designed to allow the bill to be debated on the Senate floor, just three votes shy of the 60-vote majority needed.

But the delay is expected to be short-lived, with negotiations already under way in the hope of creating some form of cross-party support for the Democrat-drafted legislation.


The bill that was voted down includes Senator Blanche Lincoln's proposals aimed at shedding light on the murky $450 trillion (£291 trillion) derivatives market.

Clauses invoked include one which would force major banks to sell off derivatives operations if they want to continue to access the Federal Reserve's discount window.

The window played a key part in combating the liquidity crisis, with US banks borrowing as much as $110.7bn at the height of the crisis in October 2008, compared with $200m previously. It is used by banks as a vital liquidity tool, and not being able to access it could cause short-term funding problems