The clerk has begun to call the roll on Bernie Sanders’ amendment calling for a one-time audit of the Federal Reserve’s emergency lending activities during the recent financial crisis. Given the trans-ideological group of Senators who expressed support during today’s debate – including not only the expected trans-partisan alliance of Sanders and DeMint and Vitter but also Senate Banking Committee Chair Chris Dodd, ranking member Richard Shelby and noted critic of “populism” Judd Gregg, I would expect 85-plus votes for this measure. Given how long it’s taken to get even this level of transparency from the Fed, that’s a pretty shocking turn of events.
After the Sanders vote, the Vitter amendment, which restores the Grayson-Paul audit the Fed structure, imposing a probe of a broader scope of the Fed’s activities and a recurring audit, will get a vote.
…I have the transcript now of what Chris Dodd said on the Senate floor about continuing disclosure of the Fed’s recent activities with European central banks (excuse the all caps):
I WANT TO TELL MY COLLEAGUE FROM VERMONT, NOT ONLY ARE WE GOING TO ACHIEVE WHAT HE WANTS HERE WITH THIS AMENDMENT, BUT WE HAD A MEETING WITH THE CHAIRMAN OF THE FEDERAL RESERVE TO BRIEF US ON THE EVENTS IN EUROPE OVER THE WEEKEND AND THE CHAIRMAN OF THE FEDERAL RESERVE IS GOING TO PUT UP ON ITS WEB SITE AS SOON AS POSSIBLE THE CONTRACTS BETWEEN THE FED AND ANY OTHER CENTRAL BANKS THAT OCCURRED OVER THE PAST WEEKEND. HE’S ALSO COMMITTED THAT THE FED WOULD REPORT WEEKLY ON THE ACTIVITY ON EACH OF THE SWAP ACCOUNTS BY THE FEDERAL BANK, NOT SIMPLY THE AGGREGATE. THE LEGISLATION IS GOING TO DO A LOT, BUT YOU ALREADY HAVE AN INFLUENCE ON THE CONDUCT OF THE FED IN TERMS OF THE TRANSPARENCY ISSUES. SO I APPRECIATE VERY MUCH THE EFFORTS OF SENATOR SANDERS.
Obviously you don’t want to make this voluntary forever, but it’s encouraging that the Fed is this wary of secrecy at the moment.
…McConnell, Schumer, and Alexander all voted for the amendment, nobody has voted no thus far. This could actually get a 100-0 vote.
…Tim Johnson and Mark Warner, who are practically bankers themselves, just voted Aye on this amendment. Nobody’s going to dare vote against it.
…The amendment passes 96-0. Having that many Senate votes for this level of transparency from the Fed will be a powerful symbol that something’s rotten at the central bank and that even their defenders have no choice but to hold them minimally accountable. This sets up an interesting vote on the Vitter amendment, but I would expect the center to hold on that vote. Though with this display of anger at the Fed, I suppose anything’s possible.
…The Vitter amendment, which would have used the Grayson-Paul language to audit the Fed, failed by a count of 37-62. A roll call will be up later, but it generally broke down along party lines. I caught that Dorgan, Feingold, Sanders, Webb and Lincoln (boy is she scared) voted in favor for the Democrats, and McConnell, Alexander, Gregg and Scott Brown voted against for the Republicans. There may be more on both sides of that ledger.
UPDATE: Here’s the roll call on the Vitter amendment. You actually had seven Democrats supporting the final product – the above mentioned, plus Cantwell and Wyden. 11 Republicans opposed.



30 Comments


Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
Wow, Gregg just voiced support of Sanders. This thing might pass.
Audit, baby, audit.
We’re rooting to see both this and Vitter’s revival of the original amendment pass? So weird, to be cheering on Diaper Dave.
I never thought I’d be hoping that a Vitter amendment would pass but this is the time.
100-0 would be great but 85 would be a pretty serious win.
96-0 -who are the 4 not voting ?
bingo
To think the Fed has gone so long with no audits. Took a catastrophe to open that door. Let’s hope they take it further
One can only hope that past transgressions will be brought to light and the buggers that brought us this mess handed their heads.
The Fed is a conservative bugaboo, that seems to be why this passed. Let’s see them vote to audit Goldman-Sachs, now!
With Kagan appearing on Goldman’s books, that wouldnt be too far-fatched in the near future.
Looks like Diaper Dave’s amendment isn’t going to make it…
HOLD ON: The Sanders bill might have been modified again so that the audit would cover September 2008 and beyond. It was originally supposed to cover January 2008 and forward. So the Bear Stearns Maiden Lane transactions MIGHT have just escaped scrutiny. That would not be a positive development.
—
David…see if you can determine whether it was modified to begin in September of 2008 instead of January…
I wrote about it here…
WATCH LIVE: Senate Votes On ‘Audit The Fed’ — Sanders & Vitter Amendments @ 11:45 AM
It wasn’t supposed to. The bill that was negotiated in secret with the WH is the one that is supposed to pass.
Another day, same ol’ routine.
By definition, if it passes, the fix is in.
The Sanders amendment passed precisely because it wasn’t a real audit. The Vitter amendment will die precisely because it is. As usual, this is all kabuki.
fyi – one of fdl’s fabulous resident wonks has been parsing language of original and so called modified amendment here:
http://seminal.firedoglake.com/diary/46069
thanks cbl…but i saw nothing there…this is brand new…
it could have been a mis-print on the c-span screen…but during the entire Sanders vote, it said on the screen…audit covering september 2008 and beyond…the first compromise (the only compromise i was aware of) said the audit would cover january 2008 and beyond…
still wondering if we were further bamboozled…
I don’t know where you’re getting this from and you don’t have any links or corroborating information.
Would the plutocrats want to bamboozle the serfs? People have a choice: they can continue to delude themselves into believing that a corrupt and ossified system can actually be reeeformed or they can decide the system has to be radically transformed with the fat cats and “aristocrats” finally being held accountable and suffering the consequences of their crimes against the people.
David…sorry I wasn’t more clear…the photo (screenshot is in my story)…
look at it yourself…it very clearly says ‘since September 2008′
http://dailybail.com/home/watch-live-senate-votes-on-audit-the-fed-sanders-vitter-amen.html
The screenshot is at the top of the link…
The text cited in the link cbl2 gives at #15 says December 1, 2007. As I have noted before this is nearly 4 months after the housing bubble burst in August and fails to capture events in say 2004 onward that led to the ballooning of that bubble.
To further explain…the modified Sanders bill was supposed to cover from Dec. 1 2007 until the present…
On the screen during the entire vote on Sanders’ bill, it said the audit would cover the period from September 2008 forward…and the screenshot showing this is in the link I’ve given…
Something happened this morning BEFORE it was brought to a vote…the Fed must want to protect the JPMorgan Bear Stearns original Maiden Lane transaction very badly…it occurred in March of 2008…
edited…
I’m somewhat more inclined to seeing them on pikes at the entrance to the NYSE.
Here is the link again…the screenshot CLEARLY shows September 2008 as the start date NOT December 1, 2007 (I was incorrect above when I said January 2008…)
http://dailybail.com/home/watch-live-senate-votes-on-audit-the-fed-sanders-vitter-amen.html
David…I assume you are making some phone calls to check this out…I’m doing the same…I’m going with the story that the audit ‘start date’ was changed to September 2008, thus excusing Bear Stearns from scrutiny…writing the story now…
we’re talking about emergency lending, specifically the $2T dumped into Maiden Lanes, commercial paper, etc., all of which occurred well after Dec ’07.
David..do you have any confirmation on the audit ‘start date’ yet?
I have emailed Craig Torres at Bloomberg…he wrote the Sander’s story a few minutes ago…he responded that he is unsure but checking into it…they just assumed the start date hadn’t changed..he had not seen the c-span video until my email…
I will let you know when I get final word…but for now I’ve published it…
Was The Fed Audit ‘Start Date’ Changed To September 2008? (Excusing The Bear Stearns-JPMorgan Deal From Scrutiny)
So why would you need to go back to Dec. 2007? As DailyBail notes, Bear Stearns didn’t happen until March 2008. This seems to be a way to avoid the housing bubble entirely yet focus on only some aspects of the meltdown.
In reference to this very issue/question, Bernie’s office emails me that the audit as enacted covers a period beginning Dec. 1, 2007 up to the “date of enactment,” the date when the bill is signed into law.
So what! How about breaking up big banks. The Senators voted that down. Now, they want us to believe they are tough because they voted to audit the federal reserve. You spineless cowards, you have done nothing to stop Wall Street and the banks from pissing on us. Hey, it isn’t raining.