Revealed: Last-minute provision sets up mysterious $450 billion coronavirus bailout fund — with almost no oversight

Revealed: Last-minute provision sets up mysterious $450 billion coronavirus bailout fund — with almost no oversight
Governor Jerome H. Powell testifies before a joint hearing of the Senate Banking Subcommittee on Securities, Insurance, and Investments and the Subcommittee on Economic Policy in Washington, D.C., on April 14, 2016.

A last-minute provision tucked into the coronavirus recovery bill allows the Federal Reserve to set up a $450 billion bailout plan with almost no oversight.


The previously unreported provision — which makes the bailout funds exempt from the federal open meetings law — was inserted into the 880-page bill during the rush to get it passed, Politico revealed.

The central bank won’t be required to announce its meetings or keep most records about discussions about which firms might benefit from the bailout, although the board would have to record its votes — which could remain out of public view until after the crisis is over.

“We may never know what terms are being given to banks, what collateral is being offered, what repayment methods and duties banks and other financial institutions may have, and those are important questions,” said Charles Glasser, a media attorney who sued the Federal Reserve over public records related to the 2008 financial crisis. “This is written too broadly and allows the Federal Reserve to avoid its responsibilities of public disclosure as the courts have described them.”

#story_page_post_article

Understand the importance of honest news ?

So do we.

The past year has been the most arduous of our lives. The Covid-19 pandemic continues to be catastrophic not only to our health - mental and physical - but also to the stability of millions of people. For all of us independent news organizations, it’s no exception.

We’ve covered everything thrown at us this past year and will continue to do so with your support. We’ve always understood the importance of calling out corruption, regardless of political affiliation.

We need your support in this difficult time. Every reader contribution, no matter the amount, makes a difference in allowing our newsroom to bring you the stories that matter, at a time when being informed is more important than ever. Invest with us.

Make a one-time contribution to Alternet All Access, or click here to become a subscriber. Thank you.

Click to donate by check.

DonateDonate by credit card
Donate by Paypal
{{ post.roar_specific_data.api_data.analytics }}

Don't Sit on the Sidelines of History. Join Alternet All Access and Go Ad-Free. Support Honest Journalism.