Release: Sanders Says Federal Reserve Still Keeps Too Much Secret

WASHINGTON, June 10 – Senator Bernie Sanders today called “completely insufficient” a new monthly report by the Federal Reserve on aid to banks, investment firms and other financial institutions.

“Today's report is completely insufficient.  It is time for the Fed to name names.  The American people have a right to know who received more than  $2 trillion in loans from the Fed, how much each one received, and what they are doing with this money.  This money does not belong to the Fed. It belongs to the American people,” Sanders said. 

The need for greater Fed transparency is even more important since the Obama administration, in a separate action yesterday, agreed to let 10 big banks repay federal bailouts they took to help them weather the recession.

“Getting this information is even more important now that 10 banks are starting to pay back their TARP funds,” Sanders said.  “Are these banks paying back TARP funds to the Treasury Department today, while receiving secret loans from the Fed tomorrow?  As long as the Fed keeps this information secret, we will never know.”

Sanders, at a Senate Budget Committee hearing on March 3, asked Fed Chairman Ben Bernanke to name the hundreds of banks that took money since the financial crisis began. Bernanke refused to name any of the financial institutions.  He would he say how much assistance was provided to each bank, nor detail what the banks are doing with the money.

The separate $700 billion financial rescue package that was signed into law last October requires the Treasury Department to identify recipients of bailout funds.  Unlike the bailout, which Sanders opposed, Congress did not vote to directly authorize the Fed to spend any of this money.