Obama administration now supports Fed audit

I'll believe it when I see it.
If the truth were revealed there would have to be action taken,
so it will be interesting to see how the spin turns the Fed into a group of heroes.

Following last-minute adjustments, a proposal to audit the Federal Reserve that the Obama administration once opposed was on the verge of passing the Senate as it attracted broad support from conservatives and liberals alike.

The administration withdrew its objections to the proposal Thursday, saying it was satisfied that the audit would not interfere with the Fed's authority to set monetary policy.

The one-time audit would focus on the Fed's emergency lending to financial institutions in the months leading up to and after the 2008 financial crisis. At its peak, at the end of 2008, the Fed's lending totaled $1.16 trillion.

The Fed has become one of the targets of public anger in the aftermath of the financial crisis, blamed for not seeing the meltdown coming and for having what some perceive as too cozy a relationship with the nation's largest institutions. The audit measure, proposed by Vermont independent Bernie Sanders, has populist support from across the political spectrum, from tea party activists to liberals and labor organizations.

The building momentum for the audit measure came after the Senate, prodded by President Barack Obama, rejected a Republican consumer protection plan that would have diluted a central element of the administration's financial regulation package.

www.msnbc.msn.com...

That little heart attack the market had yesterday, (thursday) was nothing more than a shot across the bow, a little warning and reminder of who is actually in control.
We "may" get a dog and pony show audit, but in the end who do you think will be held up as heroes?
I'll be looking for a new generated crisis and headline to take the public eye, once again, off the ball.

We need a real audit not some 2 month mini audit crappola. Yea of course their not opposing a audit of just a specific event. Only a true audit divulging all aspects of the feds dealings could really help. Well see how it goes its a chance for Obama to take back some good faith.

It should be possible to get the terms of reference of the Audit. It should alsolook at the risk management and the notion of going concern i.e. the likelhood of the business or entity continuing for the foreseable future.

It should be interesting reading but then Enron had incidence of pure incompetence, cover up and whitewash until it was too late.

[edit on 7-5-2010 by Tiger5]

This is a bunch of bunk!!!

This is the feel-good people pill to counteract the affects from not doing anything about "Too Big To Fail".

Nothing more, nothing less.

What Obama gives with one hand, he takes back two-fold with the other....

They only support it now because it has been gutted. Sanders sold out.