Sen. Cornyn Calls On Federal Reserve To Make Public Key Information Surrounding Taxpayer-Funded Loans

Press Release

Cornyn: "There Cannot Be Accountability Without Transparency"

U.S. Sen. John Cornyn, R-Texas, made the following statement today regarding news reports that the Federal Reserve is refusing to make public critical information surrounding roughly $2 trillion in emergency loans from American taxpayers to troubled financial institutions.

"Over the past year, the Federal Reserve has taken unprecedented action in the marketplace by providing almost $2 trillion in taxpayer-funded loans to troubled financial institutions. This is in addition to the $700 billion approved by Congress to fund the Troubled Asset Relief Program (TARP). Unfortunately, the Federal Reserve has refused to submit to even the most modest level of transparency regarding its actions. This should trouble taxpayers and policymakers alike. It certainly troubles me.

"There cannot be accountability in government and in our financial institutions without transparency. Many of the financial problems we are facing today are the direct result of too much secrecy and too little accountability.

"During consideration of the economic rescue bill, I made clear that my support for this critical effort hinged on stronger management, oversight and transparency. At a time when American taxpayers are being asked to provide unprecedented loans to get our economy back on track, they deserve to know how and where their money is being used.

"The Federal Reserve needs to step back from its irresponsible position and comply with this Freedom of Information Act request. Transparency and accountability are needed now more than ever."

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