Frank Wants Expanded Power For GAO To Investigate Fed

Congress is working with the Government Accountability Office to increase its power to investigate the action the Federal Reserve has taken in response to the financial crisis, Rep. Barney Frank (D-Mass.) said during an online chat Wednesday at the blog Crooksandliars.com.

Frank added that the Financial Services Committee, which he chairs, will hold a hearing to examine the recommendations of TARP watchdog Elizabeth Warren, whose oversight panel recently called for bank executives to be fired and insolvent banks liquidated amid a more aggressive approach to cleaning up the financial system.

"[W]e are working with the GAO to increase their legal right to inquire into the workings of the Federal Reserve where they are involved in the TARP program. In line with this we will be working to support the transparency and oversight recommendations of the oversight panel and that will include holding a hearing," offered Frank.

First, though, said Frank, his committee would take up legislation dealing with abusive credit card company practices and a bill to rein in subprime lending.

"We will be able to take up the oversight panel's recommendations sometime in the first part of May, once we have completed work in Committee on these two important bills," he wrote.