WASHINGTON – Congressman Patrick McHenry (NC-10) announced today that he is co-sponsoring H.R.1207, the Federal Reserve Transparency Act of 2009.

“The role of the Federal Reserve has grown significantly as it is now the agency most responsible for addressing turmoil in financial markets. However, the Fed is only required to disclose a small amount of information about its activities. Given the significant consequences of its ongoing actions, greater transparency at the Federal Reserve is imperative,” stated Congressman McHenry.

The legislation eliminates restrictions on audits of the Federal Reserve by the Government Accountability Office and subjects the Fed’s operations to greater scrutiny. The Comptroller General would be directed to complete, before the end of 2010, an audit of the Federal Reserve System and report its finding to the Congress.

Congressman Ron Paul (TX-14) is the original sponsor of HR.1207, which has broad bipartisan support including 112 co-sponsors.

Congressman McHenry has been a leading proponent of transparency and disclosure on behalf of investors and taxpayers alike. He introduced the Credit Rating Agency Transparency and Disclosure Act and drafted a budget amendment that would have created a website detailing federal spending. Most recently, the Congressman’s guidelines for disclosures in monthly statements for mortgage loans was included in mortgage reform legislation.