An organizational loophole used by the Federal Reserve’s 12 regional banks to avoid complying with transparency requests is under fire from two U.S. senators seeking to toughen congressional oversight.
Massachusetts Democrat Elizabeth Warren and Pennsylvania Republican Patrick Toomey plan on Friday to propose legislation to subject the regional branches to congressional information requests under the Freedom of Information Act.
“During the largest ethics scandal in the history of the Federal Reserve system, Fed officials have stonewalled the American people and slow-walked their representatives in Congress,” Warren said in a statement. ”This bipartisan bill is a necessary response to ensure that no financial regulators can ignore congressional oversight into ethics failures, and finally deliver more transparency and accountability for any wrongdoing.”
