House panel votes to audit the Fed

Tags: Fed Federal Reserve audit Ron Paul HR H.R. 1207 amendment
WASHINGTON - Taking aim at Wall Street and the nation's central bank, a key House committee voted Thursday to require a sweeping congressional audit of the secretive Federal Reserve.

The votes were the final brush strokes to the House Financial Services Committee's response to last year's banking meltdown.

On auditing the Fed, the committee adopted a plan by Rep. Ron Paul, R-Texas, that had the support of a bipartisan roster of more than 300 members of Congress. It would give the Government Accountability Office the authority to audit the entirety of the Fed's balance sheet, credit facilities and all securities purchase programs. Critics, led by Frank and Rep. Melvin Watt, D-N.C., argued that Paul's proposal was too intrusive and could indirectly lead to higher interest rates. They proposed a more limited audit.
Source MSNBC