Sen. Sanders Tells BuzzFlash the Federal Reserve Bank Needs Reform and Transparency

A BUZZFLASH NEWS ALERT
by Meg White

Sen. Bernie Sanders is no stranger to outrage. That may be why we like him so much. Yesterday, the independent senator from Vermont tore into Federal Reserve Chair Ben Bernanke, who was testifying before the Senate Budget Committee, for not revealing the names of banks who took out loans backed by taxpayers (watch an excerpt of the exchange here).

Bernanke told Sanders that telling taxpayers which banks received money from the more than $2.2 trillion provided since March 24, 2008 would be "counterproductive," and might cause some to withdraw investment in those institutions. Bernanke said the terms of the loans and other information would continue to be available at the Fed's Web site, but that the institutions' names would not be released to the public.

Sanders wasn't satisfied by those answers, and subsequently submitted legislation that would require the Fed to publish the identities of those who took out the loans. The bill has been referred to the Senate Committee on Banking, Housing and Urban Affairs.

Sanders told BuzzFlash he doesn't know if or when Committee Chair Chris Dodd (D-CT) will call the bill up for a hearing, but said it is "hard to defend" $2.2 trillion in taxpayer money being spent "without any transparency."

"I won't hold my breath and tell you this bill will pass tomorrow," he said. "But this is just one small part of what needs to be done... to begin the discussion in 2009."

The discussion appears to be gaining some traction. Sanders said he was "surprised at the kind of response" the proposal got, and with his office getting calls from all over the country, he said he can feel a grassroots support for the legislation growing.

Whether there is action on this particular bill or not, Sanders appears to have additional plans for the Fed.

"There's a lot more to be done in terms of the Fed," he said. Sanders declined to name specific legislation geared toward reforming the massive, "extremely secretive" institution.

Sanders contrasted the "hours" of debate over spending in Congress with the relative silence over the Federal Bank's books.

"Do you know how much time was spent debating this? Not a minute. Not a second," Sanders said.

He also questioned the morality of the more than $2.2 trillion in loans, saying that although some of the banks may have engaged in illegal activity, they are still allowed access to taxpayer funds.

"Meanwhile, you have honest businesspeople" who can't get loans, Sanders said. "Do you need some money? Why don't you call up Ben and tell him?"

A BUZZFLASH NEWS ALERT

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