icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
7 Aug, 2009 08:02

Will the Federal Reserve spill the beans?

US Congress is trying to pass a bill that would demand an audit of the country’s central bank to reveal the mystery of how government cash is used.

The Federal Reserve Transparency Bill put forward by Congressman Ron Paul is gaining momentum on Capitol Hill.

Many Americans are demanding a sound monetary policy and the need for transparency in their banking system after the Obama administration started its bailouts.

Meanwhile, media companies are filing lawsuits under the Freedom of Information Act to find out what the banks are doing with their funds.

The first legal case of this kind has so far been rejected.

“What happened with these different media outlets is that they submitted requests to the Fed to get very specific information on the ways the money was lent out between 2007 and 2008,” explains legal analyst Nicole Kardell. “Those requests were denied by the Federal Reserve’s board. And they were arguing that that information was exempted. There are nine enumerated exemptions under the act where the government agency is not required to share information on.”