In an unlikely partnership, Senators Rick Scott (R-FL) and Elizabeth Warren (D-MA) have come together to put forth legislation to “require a presidentially-appointed and Senate-confirmed inspector general to the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.”
This move comes in response to the recent collapses of Silicon Valley Bank and Signature Bank. According to the Scott press release, the Federal Reserve showed “gross mismanagement and lack of oversight” to prevent the failures; their legislation looks to put a stop to these miscalculations from happening and protect American families, workers, and their wallets.
“After the Federal Reserve’s failure to properly identify and prevent the shocking failures of Silicon Valley Bank and Signature Bank, it’s clear we can’t wait any longer for big change at the Fed. It’s outrageous that the Federal Reserve, the world’s largest and most powerful central bank, does not have a truly independent inspector general to investigate it – an independent authority to fight for the transparency and accountability our citizens need,” stated Sen. Scott.
He would go on to mention that the American people should not have to deal with the repercussions of government regulators which are supposed to look out for them.
“Consumers and American families must not bear the brunt of the failures of gross mismanagement and greed at their banks or the incompetence and misdeeds of the government regulators who are there to protect them. I want to thank Senator Warren for joining me on this good bill. This is commonsense and should have the bipartisan support of our colleagues so that it can quickly pass and become law.”
Sen. Warren would also mention that the Fed and its officials should be “held accountable” for any “lapses or wrongdoing.”
“The recent bank collapses and regulatory failures by the Fed have underscored the urgent need for a truly independent Inspector General to hold Fed officials accountable for any lapses or wrongdoing. Last year, during the largest ethics scandal in the history of the Federal Reserve System, I led a bipartisan bill to bolster accountability at the Fed and I appreciate Senator Scott's work to advance this effort,” stated Sen. Warren.
The bipartisan bill will look to make its way to the President’s desk.