WASHINGTON — In a rare moment of bipartisanship, the House overwhelmingly passed a bill by Rep. Ron Paul (R-Texas) to audit the Federal Reserve.
The bill, which has 270 co-sponsors, passed 327 to 98. All but one Republican voted for it, along with 89 Democrats.
Paul teamed up with former Rep. Alan Grayson (D-Fla.) in 2010 to pass similar legislation that became part of the final Wall Street reform bill. But Paul has said new audit legislation is needed because the 2010 bill didn’t go far enough. Specifically, he states on his website that the audit called for in the 2010 bill only focused on emergency credit programs and procedural issues, rather than on the substantive details of the lending transactions. The 2012 bill doesn’t limit the focus of the audit.
Fed Chairman Ben Bernanke recently told the House Financial Services Committee that he agrees with the “basic premise” that the Fed should be transparent, but raised concerns that Paul’s bill doesn’t exempt monetary policy and deliberations from its reach.
But Rep. Dennis Kucinich (D-Ohio) pointed out that the House vote on the bill comes on the same day that the Washington Post reported that the New York Fed “did not communicate in key meetings with top regulators that British bank Barclays had admitted to Fed staffers that it was rigging LIBOR,” the index which sets interest rates worldwide.
“The Fed creates trillions of dollars out of nothing and gives it to banks. Congress is in the dark. The Fed sets the stage for the subprime meltdown. Congress is in the dark. The Fed takes a dive on LIBOR. Congress is in the dark. The Fed doesn’t tell regulators what is going on. Congress is in the dark,” Kucinich shouted on the House floor, just before the vote.
“It is time for us to bring the Fed into the sunshine of accountability,” he said.
Despite the broad support in the House, a senior Senate Democratic aide signaled the bill isn’t likely to go anywhere in that chamber in the near future.
“Not this work period,” the aide said about the Senate acting on the bill ahead of the month-long August recess. “Don’t know about September, but I doubt it.”
It’s time NOW – TODAY to contact your U.S. Senators and tell the to AUDIT THE FED! Ben Bernanke thinks the Federal Reserve is already transparent and accountable – but we all know that is a subjective statement given the amount of money the Fed gave the banks to use without disclosure to the public.
Things haven’t much changed since DeadlyClear deemed Ben Bernanke “Idiot of the Week” a year ago on July 11, 2011. Mr. Bernanke has a much different view of accountability when the public has been asked to absorb a minimum known of $16 TRILLION dollars! Taxpayer dollars with a capital “T”! See Hats Off to Bernie and the Gang: First Federal Reserve Audit Reveals Trillions in Secret Bailouts.
This was nearly a year ago – does Ben actually think we are that forgetful?
he first-ever audit of the US Federal Reserve has revealed $16 trillion dollars in secret bank bailouts and has raised more questions about the quasi-private agency’s opaque operations. ”This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else,” US Senator Bernie Sanders, an Independent from Vermont, said in a statement.
“From late 2007 through mid-2010, Reserve Banks provided more than a trillion dollars … in emergency loans to the financial sector to address strains in credit markets and to avert failures of individual institutions believed to be a threat to the stability of the financial system,” the audit report states.
“The scale and nature of this assistance amounted to an unprecedented expansion of the Federal Reserve System’s traditional role as lender-of-last-resort to depository institutions,” according to the report.
“No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the President,” Sanders wrote. [CONTINUE READING on RSN]
This deserves re-posting just as calling and emailing your U.S. Senators so that they support AUDIT THE FED… and request a hearing BEFORE the November election!