Skip to comments.House pushes for sweeping audit of the Fed
Posted on 09/25/2009 10:45:34 AM PDT by Palin Republic
House lawmakers want to pry open the books of the famously secretive Federal Reserve with legislation that would subject the central bank to a sweeping congressional audit.
The effort is overwhelmingly bipartisan. Hardline conservatives and liberal Democrats have banded together in their criticism of the Fed as a major power broker in the financial system that doesn't answer to Congress.
Friday's debate comes as lawmakers consider a proposal by President Barack Obama that would give the Fed new powers to prevent another economic crisis.
"Nobody in my district thinks that the Fed has done such a wonderful job of running the economy that we should continue to cloak them with secrecy for the purpose of protecting them from second-guessing criticism," said Rep. Brad Sherman, a California Democrat.
The Fed is pushing back, warning that its ability to stabilize prices and monitor interest rates would be compromised if it knew politicians were looking over its shoulder.
The House proposal would "cause the markets and the to public to lose confidence in the independence and the judgments of the Federal Reserve," Scott Alvarez, the board's top lawyer, told the House Financial Services Committee in testimony.
The legislation is championed by Rep. Ron Paul, a Texas Republican whose extreme libertarian bent usually doesn't generate consensus in Congress. But as of Friday, Paul's legislation had attracted 295 co-sponsors with a range of political philosophies, including Hawaii liberal Rep. Neil Abercrombie and Rep. Jeb Hensarling, an outspoken conservative from Texas.
(Excerpt) Read more at google.com ...
AuditTheFed.com has all the details.
Dont hold your breath, they will probably hire the “tax experts” from ACORN to do it!
Political theater, folks. Nothing more.
Do we really want this?
I mean, come on... our economy is already teetering.
It’s Jackson vs. Biddle once again!
With bi-partisan support, this is probably by design.
Investigate Dodd and Frank first
The House proposal would “cause the markets and the to public to lose confidence in the independence and the judgments of the Federal Reserve,” Scott Alvarez, the board’s top lawyer, told the House Financial Services Committee in testimony.
We don’t have confidence, anyway; now move over PENCIL PUSHER!
Contact your Senator and encourage them to support S.604: the Federal Reserve Sunshine Act of 2009.
AuditTheFed.com has all the details.
Dear Heavenly Father,
We come before You asking that You stop these people whose intend is on harming our country. They have already taken You out of the schools and allowed evil to come in. They think You don’t see, as they kill innocent babies. They call evil good and good evil. They acquit the guilty and condemn the innocent. They demand that we approve of their gay lifestyles and are forcing our children to be taught that its normal in some schools. They have put us into so much debt, that it will take Your mercy to keep us from financial ruin. They steal from the taxpayer and give it to evil organizations. The thing they want the most is power and control over us. They act as if they are kings and queens and not civil servants. They are taking away our freedoms and trashing our constitution.
They have no fear of You, and we know that the beginning of wisdom is fear of the Lord. Please, open the eyes of every American to see that this is not a political game anymore, but rather it’s a life changer. Give people the wisdom and understanding to see they will regret the changes obama is trying to make. Please, let those who have been silent speak out and stand up.
Father, I also ask that if obama and/or anyone is doing something illegal, immoral or doing something that will harm this nation, let him/they be impeached. Give us concrete evidence that cannot be disputed.
Be with Your children during this difficult time. I pray that all people begin to call out to you, asking that obama and the liberals be stopped.
In Your Sons Name I pray.
Wait until the threats start....
An audit will not cause impact on the economy. It will reveal however, some practices perhaps less than savory.
And the big fish may get caught. That means Goldman Sachs.
Federal Reserve is rotten to the core. They are so corrupt, no way are they going to open up their books.
For the first time ever, I feel confident in a sweeping incumbant-removal this coming election.
Want to see the definition of un-frigging- believable? Bernanke and a half trillion dollars:
parsy, who curled up in a fetal position when he first saw this
Grayson is a national treasure. Here the latest from this morning:
Alan Grayson HR1207 hearing “Has the Federal Reserve Ever Tried to Manipulate the Stock Market “
“For the first time ever, I feel confident in a sweeping incumbant-removal this coming election.”
I pray that you’re right. But the Real Terror, is What will we get in the Current Crop’s stead, as Both party machines scrounge up their Howdy Doodies to Maintain, or even Worsen, the Status Quo?
I don’t think anyone wants to look under the covers.
This is MY Fed. I built it and I’m not sharing it with ANYBODY! /s
Wish I did.
Calamity upon calamity will prevent that, imho.
... the Fed as a major power broker in the financial system that doesn't answer to Congress.
The verb should be "refuses to answer" rather "doesn't answer." The Federal Reserve is charged in the Federal Reserve Act with reporting to the Congress, and they have willfully refused to do so.
While an audit is certainly a good idea, it might well be better to simply give the Fed the Jacksonian treatment.
On the other hand, the calamities will likely remove the evil critters anyway.
Anarchy is likely.
. . . at some point, particularly the middle of the country and in some of the war zones . . . virtually total anarchy will reign.
The Fed is powerful, quietly powerful. They will fight this tooth and nail and it will take years.
Let’s throw some subsidized shrimp on the grill and celebrate this with a cold one!
Comgress is upset because the Federal Reserve spent the money that they wanted to spend.
The legislation is championed by Rep. Ron Paul, a Texas Republican whose extreme libertarian bent usually doesn’t extend to shrimp subsidies.
you may be right. Are we,is the economy,ready for this information?
Great video. What I think is wonderful is how liberals and conservatives are coming together on this issue. The Fed and Wall Street need to be cleaned up, and Wall Street emasculated, IMHO.
parsy, who hopes
About time, I’ve wondered why they were allowed to go unchecked since the late 90’s.
Exactly. Remember VOLKER and his single handed manipulation of the economy. AND guess who he has slithered out from under the rock with...OBAMA.
Can you point out anything the federal government has ever been involved with that turned out better afterward?
Whatever Wall Street's sins may be, increased government interference can only make it worse.
When Republicans and Democrats all get behind an issue, it usually means you're about to get screwed.
At least they can distract attention from themselves. I wonder why they would do that? And why conservatives (not you) would fall for it?
OMG! Noob shows his true colors. LOL!
I don’t view all liberals as people out to destroy America. I see most of them as simply misguided. For example, wanting to help poor people by giving them money with little or no strings attached is stupid, and will have bad results, but I do not think it is any more an intentional assault on America, than the typical conservative who simplistically thinks the way to handle massive medical malpractice is to reduce the ability of the dead, sick, and injured to sue.
So, if both are finally on to Wall Street’s b*llsh*t, that is a good thing. Both of them got on the deregulation bandwagon, and now maybe they can fix their mistakes.
parsy, who hopes people have finally had enough of Wall Street
Close. The illusion of our economy is teetering, though they're desperately trying to maintain the con.
The actual economy is toast...fantasy...a popcorn fart in the wind. Nothing can change that now.
And I thought this thread was about the House trying to blame the Fed, not Wall Street?
Yes indeed. Let’s keep letting Wall Street run unfettered. It’s working so well.
Sarbanes Oxley did a bunch of good. For lawyers.
They are trying to fix(or blame) the fed in these particular hearings, but they are also trying to fix Wall Street. I think the two go hand in hand what with the personnel swaps.
I also kinda think we are closing the barn door after the horse got out, but since there will be more horses int he future, the barn still needs to be secured.
I also have this sinking little feeling, that if Wall Street gets some hobbles put on it, and derivatives forced onto exchanges with std’ized paper, and rampant speculation slowed down some, there is going to be some places in the world that don’t sign on. The gov’t will probably not follow thru, and there will be another big blow up, assuming the collapse of civilization as we know it doesn’t happen first.
parsy, the pessimistic optimist
>Wait until the threats start....
Feds Alvarez Says Audits Could Lead to Higher Rates (Update1)
That didn’t take long!
Oh wait, can't do that, they are part of the criminal enterprise.
Are you going to talk specifics here, or just throw out drive-by sneers?
If Barney Frank and Dodd get power over monetary policy, I think rates could soar.
Do you disagree?
Exactly! And didn't fix the underlying problem, fraud, which was already illegal before Enron.
Whatever Fed problem you think this audit will fix will instead only benefit the real trouble makers, Congress.
Rates have been artificially held down by manipulation for decades.
That’s one of the biggest reasons we’re in this mess.
Let the market set the rates.
Capitalism requires creative destruction to burn off the deadwood. Otherwise the entire forest dies of suffocation.
That's pretty much the attitude.
And "the Federal Reserve's independence" is supposed to matter more to us than our own independence -- yeah right.
I emailed my Senators Feinstein and Boxer about this bill. Boxer never answered me (she never does). Feinstein, however, sent this below (at least she's polite):
Thank you for contacting me to express support for legislation to increase transparency at the Federal Reserve. I appreciate your interest in monetary policy and welcome the opportunity to respond.
The Federal Reserve was originally established in response to the country's need for a sound and independent central bank to manage decisions relating to U.S. monetary policy. I understand your concern with some of the unprecedented steps that the Federal Reserve has taken recently to ease the flow of credit and stabilize financial markets.
On March 16, 2009, Senator Bernard Sanders (I-VT) introduced the "Federal Reserve Sunshine Act of 2009" (S. 604), which would require the U.S. Comptroller General to audit the Federal Reserve System before the end of 2010. This bill has been referred to the Senate Banking, Housing, and Urban Affairs Committee. Representative Ron Paul (R-TX) has introduced a similar bill (H.R. 1207) in the House of Representatives. Please know that I will keep your support for this legislation in mind should it come before the full Senate.
While I recognize the importance of accountability in the operations of the Federal Reserve, I strongly believe that monetary decisions should be made independent of political influence or motives. You may be interested to learn that I supported an amendment to the Congressional Budget Resolution (S. Con. Res. 13) offered by Senator Sanders requiring the Federal Reserve to disclose how it has disbursed emergency economic assistance to financial institutions during this severe economic crisis. Be assured that I am carefully monitoring the actions taken by the Federal Reserve to help stimulate our economy and unfreeze credit for businesses and homeowners.
Once again, thank you for writing. I hope that you will continue to share your views with me. If I can be of any further assistance, please contact my Washington, D.C. office at (202) 224-3841. Best regards.
United States Senator
Capitalism requires creative destruction to burn off the deadwood.
Bear Stearns, Lehman, Merrill, Countrywide, Wamu, IndyMac.....I could go on and on.