"Rep. Barney Frank, the chairman of the U.S. House of Representatives Financial Services Committee, said he plans legislation to restrict the Federal Reserve’s emergency lending powers and subject the central bank to a “complete audit.”
At a recent town hall meeting, Frank said the House would pass a bill to use an audit to crack open the central bank’s books more widely, but in a way that will not encroach on the central bank’s monetary policy independence.
In addition, he said the House would move to rein in the authority that allows the Fed to lend to a wide range of non-bank firms in “unusual and exigent circumstances.”….
Frank said the audit and emergency lending provisions would be incorporated in broader legislation to revamp U.S. financial regulation that would likely pass the House in October. By seeking a compromise with [Ron] Paul, Frank could strengthen the broader legislation’s chance at passage…
Frank said the House legislation would pave the way for an audit to look into what the central bank “buys and sells,” but he said the data would be released after a period of several months to avoid impacting financial markets." Barney Frank Calls for Audit of Fed, Limits on Powers
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