A federal appeals court declined to reconsider its March ruling that the Federal Reserve must disclose documents regarding borrowing from its discount window and other “last resort” lending programs.

Their next move could be appealing to the Supreme Court.  Stay tuned.

Senators demanded Tuesday to be let in on what they called the most secretive, powerful federal agency in existence, voting overwhelmingly to audit the loans and deals the Federal Reserve made over the past three years but stopping short of demanding a full review of the Fed’s future monetary policy.

What the Sanders amendment really called for was a mere one-time disclosure of some emergency lending powers used by the Federal Reserve during the most recent fiscal crisis, not an audit.

While this disclosure is small step in the right direction, it does not go far enough in ensuring a proper check on the use of power by the Federal Reserve.

The Audit the Fed coalition will continue to advance a thorough, genuine audit of the Federal Reserve.

What Sanders is now proposing is essentially the Watt amendment the Audit the Fed Coalition opposed last year in the House.

Talking Points Memo reports that, “In order to allay some of the White House’s and the Fed’s concerns, Sanders has agreed to limit the scope of what the Government Accountability Office would be allowed to audit–but his plan will still require thorough review of all the Fed’s emergency lending, beginning December 1, 2007.”

Call Senator Sanders’ office at (202) 224-5141 and tell him how you feel about this last-minute compromise.

Click here for contact information for your senators and urge them to oppose this compromise.   Tell them it’s time to support a standalone vote on S. 604, Audit the Fed.

A vote could come even late tonight or early tomorrow.  Let your senators know where you stand right away. 

The American people deserve a full, thorough audit.

A contentious effort to expand audits of the Federal Reserve that sailed through the House despite heavy criticism appears to be picking up steam as the Senate considers broad new financial regulations.

Sen. Bernard Sanders (I-Vt.) is pushing an amendment to the financial overhaul bill before the Senate that would broaden the Government Accountability Office’s power to audit the Fed and compel the central bank to disclose details about the firms that received emergency federal aid during the financial crisis.

Read the rest here.

Now is the best time to push for a full, complete audit of the Federal Reserve.  Contact your senators and urge them to support S 604.  When the vote comes up on Chris Dodd’s S. 3217, ask them to support the Audit amendment.

The Senate has been more hostile territory for the Fed audit provision. Banking Committee Chairman Chris Dodd (D-Conn.) opposes the Grayson-Paul version, but allowed a much more restrictive audit proposal from Sen. Jeff Merkley (D-Oregon) into his bill.

The Senate bill would allow an audit of the TALF program and slightly expands authority to audit emergency lending conducted under section 13(3) of the Federal Reserve Act, but restricts it to very specific purposes.

It would not allow the GAO to look into the Fed’s massive purchase of toxic assets, its hundreds of billions in foreign currency swaps with other central banks or its open market operations, among other restrictions.

This language isn’t unfamiliar.  Representative Mel Watt tried to introduce a similar “audit” provision to the House financial reform bill.  Thanks to your calls, emails, and faxes, the Paul-Grayson amendment was substituted for Watt’s before eventually passing the House.

Contact your Senators and demand that we must have complete transparency!  A standalone vote on S. 604 is long overdue in the Senate.  Let them know the American people will not stand for more secrecy when it comes to their money and this country’s financial institutions.

The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., joined the Fed in defense of a lawsuit brought by Bloomberg LP, the parent company of Bloomberg News, seeking release of records related to four Fed lending programs.

The U.S. Court of Appeals in Manhattan ruled March 19 that the central bank must release the documents. A three-judge panel of the appellate court rejected the Fed’s argument that disclosure would stigmatize borrowers and discourage banks from seeking emergency help.

Read the rest here.

Coalition members are still pressing for transparency.  Pressure is being applied to key Senators to pass S 604.  Take part in these efforts here.

WASHINGTON (MarketWatch) – The Federal Reserve will be required to identify the names of banks that could have collapsed if not for the central bank’s emergency lending, a federal appeals court said Friday. The U.S. Court of Appeals for the Second Circuit in New York ruled on Friday that the Fed needs to disclose documents in response to Freedom of Information Act requests by Bloomberg L.P. and other news organizations. “We are reviewing the decision and considering our options for reconsideration or appeal,” said Fed spokeswoman Barbara Hagenbaugh.

Asked whether he supports the House-passed measure to open the Fed to an audit, which was cosponsored by Reps. Alan Grayson (D-Fla.) and Ron Paul (R-Texas), a senior Treasury official said he is intensely opposed to it.

The official said the measure would undermine the independence of monetary policy and could restrict the ability of the Fed to act in times of crisis. He said that the GAO already has audit authority and that the chairman routinely testifies before Congress.

Congressman Alan Grayson, a cosponsor of HR 1207, responds to the criticism that a thorough audit would undermine the Federal Reserve’s independence:

The idea that the Fed’s mission would be undermined by an audit, said Grayson, “is a scarecrow erected by people who want to cover up the actions of the Fed for their own purposes, including those who actually have worked at part of the Fed, to prevent accountability at any cost.”

Read the rest here.

The Fed will support legislation to let government auditors probe six temporary programs created to combat the financial crisis such as the Primary Dealer Credit Facility, Bernanke said yesterday in House testimony. While he would support the delayed release of names of firms getting aid from those programs, he said banks borrowing through the longstanding discount window must be allowed to remain anonymous.

Bernanke’s move toward greater openness may not dissuade lawmakers who want the Fed to disclose more information about the Fed’s lending and policy decisions. Lawmakers are responding to public anger over the Fed’s role in the $182.3 billion bailout of American International Group Inc.

Read the rest here.

In a letter to Gene L. Dodaro, director of the Government Accountability Office and acting U.S. comptroller general, Bernanke said the Fed would make available “all records and personnel necessary” if the GAO undertook such a review. Bernanke noted that the Fed already had made “a large amount of information” about the AIG bailout public, including regular reports about outstanding loan balances, and that it had provided testimony and documents to members of Congress and other oversight bodies.

Read the rest here.  Of course, the request comes right before he’s scheduled to be confirmed by the Senate.   It should go without saying that the American people deserve to know more than just what information the Fed “provides” at their leisure.