Fed Audit Bill: May Get Slightly Tougher on Fed Than Senate Version

The latest, from Reuters via MSNBC:

in a statement on Tuesday, House Democrats participating in negotiations over a final financial reform bill signaled a willingness to live with a narrower Senate audit provision that does not cover monetary policy….

The shift by House Democrats was not an unequivocal win for the Fed. Their counteroffer looks to broaden a proposal for a one-time Fed audit contained in the Senate bill that would focus narrowly on the Fed's emergency lending during the financial crisis.

House Democrats want to widen the audit to cover regular discount window lending and open market transactions, and require the Fed to publicly disclose details on these operations on an ongoing basis, albeit with a three-year lag.

Ron Paul's call to the House Conference Committee for reconciliation of the House and Senate bills to keep his strong version of the Fed audit proposal. My November 2009 Reason magazine feature on the anti-Fed movement that led to what small bits of Fed-hobbling may arise from the financial bill this year.