White House opposes Fed audit, hasn't decided on veto

A veto threat is premature on the financial regulatory reform bill if it includes provisions calling for an audit of the Federal Reserve and a Senate Republican consumer protection agency proposal, White House officials said today. 

Deputy Treasury Secretary Neal Wolin said a veto threat isn't yet on the table if an amendment by Sen. Bernie Sanders (I-Vt.), makes it into the bill. Sanders proposal, which has garnered bipartisan support, calls for the General Accounting Office to perform an independent audit of more than $2 trillion in mortgage-backed assets acquired by the Fed in the past 18 months. 

Wolin also wouldn't commit to a veto threat if an amendment authored by leading Republican Sens. Mitch McConnell (R-Ky.) and Richard Shelby (R-Ala.) to create a consumer protection agency within the Federal Deposit Insurance Corporation is approved by the Senate. 

The White House is saying that the GOP amendment was written by Wall Street because it reflects the work of lobbyists who are against the measure. 

The Shelby-McConnnell amendment is under consideration today by the Senate but there is broad disagreement between Democrats and Republicans on the best way to provide greater consumer financial protections.

On other amendments, Wolin says he doesn't think the size of banks is the most important issue in regards to a Democratic amendment that would limit their size. 

The White House also has yet to take a "precise" position on a proposal by Sen. Blanche Lincoln (D-Ark.) that would force banks to spin off derivatives trading, another major sticking point on the legislation.