Open Illinois.org

During the past year, the Federal Reserve “created $2 trillion of assets and debts to rescue the nation’s financial institutions.”

Taxpayers have no idea how this money is being spent, but they have every right to know who received what loans, how much, why, and for what collateral, as Matthew Winkler notes in today’s Wall Street Journal.

Apparently, the Fed doesn’t think taxpayers have any business asking for this information, and “went to court to resist giving an accounting of its actions under the Freedom of Information Act. The request was filed by Bloomberg News through its parent, Bloomberg LP.”

According to Winkler, “The issue at stake here is understanding the financial crisis and its aftermath. The information Bloomberg is seeking is vital to that, and it belongs to all Americans. Bloomberg isn’t alone in saying so. Dow Jones, the New York Times, the Associated Press, Gannett Newspapers, Hearst, Advance Publications, and the Reporters Committee for Freedom of the Press have all expressed support for Bloomberg’s efforts and may join a friend-of-the-court brief if the decision is appealed.”

Transparency provides the tool to measure the effectiveness of money, and right now, taxpayers have absolutely transparency from the Fed. The Fed has failed to explain where all the taxpayers’ money has gone or provide any metrics to help determine whether the bailouts have worked well, poorly, or not at all. Without transparency, there’s no accountability.

Winkler suggests this is a prime occasion for Obama to keep his word on transparency — because “So far, there has been far too little accountability at the Fed for how it used taxpayer money to save banks that failed their shareholders and creditors by making bets that didn’t pay off.”

Fiscal irresponsibility got us into the financial downturn. It’s past time for creating a system to measure government spending and its results, and instill some accountability in those spending taxpayers’ hard earned money.