A bipartisan bill aims to create an independent inspector general to oversee the Federal Reserve.
Introduced Wednesday (March 22) by Sens. Rick Scott and Elizabeth Warren, the bill would require an inspector general appointed by the president and confirmed by the Senate, according to a Wednesday press release.
“After the Federal Reserve’s failure to properly identify and prevent the shocking failures of Silicon Valley Bank and Signature Bank, it’s clear we can’t wait any longer for big change at the Fed,” Scott said in the release. “It’s outrageous that the Federal Reserve, the world’s largest and most powerful central bank, does not have a truly independent inspector general to investigate it — an independent authority to fight for the transparency and accountability our citizens need.”
Scott added in the release that more than 30 federal agencies have such an inspector general.
Reached by PYMNTS, a spokesperson for the Federal Reserve said the agency had no comment on the proposed bill.
Read more: FTC Urges Federal Reserve Board To Require Debit Card Gatekeepers To Compete
Bloomberg reported Wednesday that the Fed has an inspector general appointed by the chair of the Board of Governors and that a spokesperson for the inspector general’s office said that role provides robust oversight.
Warren said in the release: “The recent bank collapses and regulatory failures by the Fed have underscored the urgent need for a truly independent inspector general to hold Fed officials accountable for any lapses or wrongdoing. Last year, during the largest ethics scandal in the history of the Federal Reserve system, I led a bipartisan bill to bolster accountability at the Fed, and I appreciate Senator Scott’s work to advance this effort.”
After the recent collapse of two banks and one self-liquidation, calls are growing both for a tightening of bank regulations, and investigations into executives at the helm of the failed institutions: Silicon Valley Bank and Signature Bank.
In the House of Representatives, a bipartisan hearing on the failures of the banks is on the calendar.
Rep. Patrick McHenry, who chairs the House Financial Services Committee, and Rep. Maxine Waters, the committee’s ranking Democrat, said in a Friday (March 17) press release: “This hearing will allow us to begin to understand why and how these banks failed.”
Featured News
EU Extends Support for Farms and Fisheries Amid Market Disruptions
May 5, 2024 by
CPI
Sony and Apollo Bid $26 Billion for Paramount Acquisition
May 5, 2024 by
CPI
Goldman Sachs Resolves Decade-Old Metal-Rigging Class Action Lawsuit
May 5, 2024 by
CPI
Italian Antitrust Ruling Puts Halt on Intesa Sanpaolo’s Fintech Ambitions
May 5, 2024 by
CPI
Google Antitrust Case: Closing Arguments Conclude
May 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI