Senate Backs One-Time Audit of Fed's Bailout Role

The Senate voted unanimously Tuesday to authorize an examination of the Federal Reserve's closely guarded emergency lending to financial institutions in the months surrounding the 2008 financial crisis.

The measure passed 96-0 as an amendment to a comprehensive financial regulation bill before the Senate. The vote came as the Fed ramped up its emergency program to keep a European debt crisis from spreading further.

The Senate proposal would require a one-time audit by Congress' investigative arm, the Government Accountability Office, and cover a period beginning in December 2007. The GAO was specifically directed to examine potential conflicts of interest between the Fed and the banks receiving assistance. (more)