October 15, 2008

Statement of Chairman Dodd on Reports from Federal Reserve

WASHINGTON, DC - As part of the recently-enacted Emergency Economic Stabilization Act, Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, successfully worked to require the Federal Reserve to report to the Congress when it undertakes loans made under unusual and exigent circumstances. Dodd released the following statement after receiving the first two reports from the Federal Reserve:
“I appreciate that the Federal Reserve has submitted the initial reports on their new Commercial Paper Facility and the second loan that they made to AIG.  These reports make the Fed's actions more transparent, which protects American taxpayers and allows the public and the market to be better informed during these difficult times.
“I am disappointed that the Federal Reserve decided to require that their report on their second loan to AIG be kept confidential and not be made available to the public. One of the best advances in monetary policy over the past decade has been increased transparency in the Fed's actions. It is my hope that the Federal Reserve will become more transparent as they submit these reports so that we can continue to protect American taxpayers and restore confidence in our economy.”
The report on the Commercial Paper Facility is attached.