Mansfield News-Mirror - Cornyn Calls on Feds to Make Public Information

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Mansfield News-Mirror - Cornyn Calls on Feds to Make Public Information

U.S. Sen. John Cornyn, R-Texas, made the following statement 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."

Bloomberg News reported this week that the Federal Reserve is refusing to identify the recipients of these taxpayer-funded loans, which is in addition to the $700 billion in loans that are being made through the Troubled Asset Relief Program (TARP). Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.

As a member of the Senate Budget and Judiciary Committees, Cornyn has been a leader in open government efforts. He joined with Sen. Patrick Leahy in leading the successful passage of the OPEN Government Act of 2007, making the most significant reforms to the Freedom of Information Act in more than a decade. He has also joined with Leahy in introducing the OPEN FOIA Act, which would require Congress to explicitly and clearly state its intention to provide for statutory exemptions to FOIA in new legislative proposals.

Cornyn serves on the Armed Services, Judiciary and Budget Committees. In addition, he is vice chairman of the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee's Immigration, Border Security and Refugees subcommittee and the Armed Services Committee's Airland subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.

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