Today, a key House committee voted to assess upfront fees on big financial firms to pay for the failure of their peers and to require a congressional audit of the Federal Reserve.
The final step in the House Financial Services Committee’s response to last year’s banking crisis, the vote seeks to have firms with assets of more than $50 billion pay upfront fees for dismantling failing non-bank financial institutions through a $150 billion “dissolution fund”. In addition, the Federal Deposit Insurance Corp. would use the fund to unravel and break up collapsing nonblank financial firms and have the ability to borrow an extra $50 billion.
Regarding the Fed, the committee adopted a plan by Rep. Ron Paul (R-TX) that gives the Government Accountability Office the authority to audit the entirety of the Fed’s balance sheet, credit facilities and all securities purchase programs.
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