That's apparently what quite a few news outlets are saying if Senator Sanders' amendment, which would audit the Fed, makes its way into the legislation.
Introduced and championed by Sen. Bernie Sanders (I-VT), the "audit the Fed" measure has supporters on both sides of the aisle. However, the White House, the Fed and the financial industry staunchly oppose the measure. Sanders is trying to round up the 60 votes it need to overcome a likely filibuster. President Obama will likely be under intense pressure to veto the entire financial reform bill if "audit the fed" survives.
I just don't get it. Why would the White House oppose financial transparency? We don't know how the Federal Reserve handles our money, and as taxpayers, we have a right to know where that money goes, how it's handled, and it's why I support Bernie Sanders and Alan Grayson on this important provision.
Here's how Senator Sanders' amendment would work according to the Wall Street Journal:
"The American people overwhelmingly believe there should be transparency at the Fed," said Mr. Sanders Thursday. "The idea that trillions of dollars of their money was lent out and we don't know who received that money-nobody that I know of thinks that that makes any sense at all." The provision requires 60 votes, which Mr. Sanders called a "pretty high hurdle. But we hope to do it."
He also picked up both Alaskan senators as co-sponsors Wednesday, bringing the total to 22.
The amendment is one of the more controversial being considered, and enjoys backing from both sides of the aisle. Skepticism of the central bank has risen because of its central role in the major policy decisions made during the financial crisis.
At its heart, the Sanders provision would remove restrictions on Congress's ability to audit the central bank. Congress currently cannot review the Fed's monetary-policy decisions, direct loans to commercial banks or transactions involving foreign central banks or governments. The provision would also require the central bank to disclose the low-interest loans and other financial assistance it gave financial companies during the recession.
This is an amendment that has bipartisan support on both sides of the aisle. It's a good provision which is also supported by a majority of the American public. We deserve to know where our money are going, and how it was handled during the bailout.
The White House shouldn't be opposing this amendment, but instead, shoudl welcome this amendment as a part of their financial transparency platform. It is rather puzzling that Geithner and Rahm Emanuel have been working the phones to oppose this commonsense amendment. For another possible reason as to why the Federal Reserve is opposing this amendment, please see Iberian's comment in the thread below.
PLEASE CALL THE SENATE TODAY AT (202) 224-3121 TO SUPPORT BERNIE SANDERS' AUDIT THE FED AMENDMENT!
The amendment's slated for a vote today, so please call in support of this amendment.
We all deserve a stake in financial transparency where the Federal Reserve is concerned. If this provision does make its way into the bill, the White House should NOT be thinking about vetoing the bill. That sends a very bad message to all of us.
UPDATE: Here's a bit of breaking news from TPMDC--the WH is cobbling together a separate proposal designed to give cover for Senators in killing Bernie Sander's amendment:
The White House is hoping to cobble together a separate proposal, to be offered as an alternative to Sanders' backers. The so called "side-by-side" would give them cover to vote down the Fed audit amendment, by offering them them a weaker plan to support.
But Sanders had to read about this plan in the newspaper.
"I read it in the New York Times," Sanders said this morning, after a floor vote on a separate amendment.