The US Government Accountability Office (GAO) has been requested by Democratic lawmakers to prepare an investigation as to whether the Federal Reserve and other regulators are too soft on the banks they are meant to police, marking the latest sign of distrust between the central bank and Congress. In a letter sent Tuesday to Senate Banking Committee Chairman Tim Johnson, D-South Dakota, Sen. Elizabeth Warren, D- U.S. Reps. Maxine Waters and Al Green, ranking members of the House Financial Services Committee and the Subcommittee on Oversight and Investigations, respectively, asked the Government Accountability Office (GAO) Oct. 8 to launch a probe of “regulatory capture” and to focus on the Federal Reserve Bank of New York, according to a letter obtained by Reuters. It is unclear whether the majority Republicans on the House committee backed the request from the minority Democrats.
The US Government Accountability Office (GAO) has been requested by Democratic lawmakers to prepare an investigation as to whether the Federal Reserve and other regulators are too soft on the banks they are meant to police, marking the latest sign of distrust between the central bank and Congress. In a letter sent Tuesday to Senate Banking Committee Chairman Tim Johnson, D-South Dakota, Sen. Elizabeth Warren, D- It is unclear whether the majority Republicans on the House committee backed the request from the minority Democrats.