Posted tagged ‘Barney Frank’
This is the most excellent news 13 o’clock has heard in a very long time. Congressman Frank, we’re going to hold you to your word on this. Do not disappoint us.
Transcript from The Washington Times:
“I have been pushing for more openness from the Fed. I want to restrict the powers of the Federal Reserve. First of all, the Fed will be the major losers of power if we are successful, as I believe we will be, setting up a financial product protection commission. The Federal Reserve is now charged with protecting consumers. They were supposed to do subprime mortgage restrictions.
Congress in 1994 gave the Fed powers to ban subprime mortgages. Alan Greenspan refused to do it. They had the power to ban credit card abuses. Under Greenspan they did nothing. Under Bernanke they started but only after Congress acted.That’s one of the reasons why in the new consumer protection agency, we will take away from the Federal reserve the power to go consumer protection.
Secondly, they have has since 1932 a right under Herbert Hoover to intervene in the economy whenever they could. Last September, the Federal Reserve they were going to advance $82 billion to AIG. I was kind of surprised and said, ‘Mr Bernanke do you have $82 billion?’ Mr. Bernanke replied, ‘I have $800 billion and under section 13.3 of the Federal Reserve Act they can lend anything they want.’
We are going to curtail that lending power. We are going to put some restrictions on it.
Finally we will subject them to a complete audit. I have been working with Ron Paul, who is the main sponsor of that bill. He agrees that we don’t want to have the audit appear as if influences monetary policy as that would be inflationary.
One of the things the audit will show you is what the Federal Reserve buys itself. And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. This will probably pass in October.”
Washington Post Staff Writers
Monday, January 26, 2009; Page A01
Congress is moving to create strong new oversight of the financial sector that would likely give the Federal Reserve authority to examine the workings of a wide range of companies in an attempt to address one of the key failures that led to the financial crisis.
But the initiative, which could be finalized in the House by spring, is raising concerns about whether it would muddy the Fed’s traditional mission and concentrate too much power in a single federal body.
The legislation envisioned by House Financial Services Committee Chairman Barney Frank (D-Mass.) would put the Fed, or less likely another government agency, in charge of protecting the stability of the entire system, Frank and other congressional sources said.
Here’s the problem with the bold text – the Federal Reserve is not a government agency. The Federal Reserve is no more “federal” than Federal Express.
The Federal Reserve is a private banking cartel run by unelected, private individuals who do their business in secret, which leads to the problem with the whole idea of giving the Fed more power. Who’s interests do you think the Fed really serves? Hmmm?