U.S. Senator David Vitter today congratulated the House of Representatives on the passage of Federal Reserve Transparency Act of 2011. The bill would conduct an audit of the Board of Governors of the Federal Reserve as well as the Federal Reserve banks.
"This legislation is a big step forward in bringing necessary accountability and transparency to the Federal Reserve," Vitter said. "In recent years, the Fed has doled out trillions of dollars to failing financial companies -- with little clear economic success to point to and imposing enormous costs to our financial system. In order for us to prevent future failures by the Fed, we must determine exactly how it operates and why it picks certain winner and loser companies to bail out. Now that the House has shown overwhelming support, it's time for the Senate to vote on this legislation and finally move toward serious reform."
Vitter is an original cosponsor of the Senate version of the Federal Reserve Transparency Act authored by Senator Rand Paul (R-Ky.). In the 111th Congress, Vitter worked with Sen. Bernie Sanders (I-Vt.) to secure a more targeted provision as an amendment to the legislation that ultimately became known as Dodd-Frank.
Additionally, Vitter blocked the initial nomination of Federal Reserve Chairman Ben Bernanke until the Senate debated and voted on the legislation to conduct an audit of the Federal Reserve as well as provided the Senate with documents regarding the Federal Reserve-led bailout of AIG.