Local Bankers emerge as Fed ally in fight Against Audit Bill

[NACBA]

COLUMBUS, Ohio (Reuters) - Local bankers are joining the fight against a congressional proposal to audit the U.S. Federal Reserve's policy decisions, with more expected to lobby against the bill if it gains traction in Washington.

The audit of the Fed bill, championed by Rand Paul of Kentucky, a Republican Senator and likely presidential candidate, would encourage interference from lawmakers into the central bank’s monetary policy discussions. A similar Fed audit bill passed the House of Representatives late last year and a hearing on Fed transparency is expected to be formally called by the Senate banking committee, according to people familiar with the matter.

https://news.yahoo.com/exclusive-local-bankers-emerge-fed-ally-fight-against-061242748--business.html

[Tod]

Do you suppose they fear a banking panic, with a possible run on banks, and their smaller banks would not be in line for a bailout?

[AuH20]

Do you suppose they fear a banking panic, with a possible run on banks, and their smaller banks would not be in line for a bailout?

It's more of a competition issue. These smaller banks cannot operate in this current environment and absorb the same staggering amount of risk that the larger banks have been accustomed to.