View Full Version : Hagan (D - NC) opposes S.604/HR.1207

10-19-2009, 07:35 PM
"Dear Friend,

Thank you for your message expressing support for the Federal Reserve Sunshine Act. I appreciate hearing your thoughts on this important issue. I apologize for my delayed response.

The Federal Reserve Sunshine Act (S. 604 / H.R. 1207) was introduced in the Senate on March 16, 2009, and in the House of Representatives on February 26, 2009. The Senate bill was referred to the Committee on Banking, Housing, and Urban Affairs and the House bill was referred to the Committee on Financial Services. Both bills reform the manner in which the Board of Governors of the Federal Reserve System is audited by the General Accountability Office (GAO) and the manner in which such audits are reported.

Under the Federal Banking Agency Audit Act (PL 95-320), the GAO has the authority to conduct financial and performance audits of the Board of Governors, and the Federal Reserve banks and branches. However, such audits are limited, as the law stipulates that monetary policy operations, foreign transactions, and the Federal Open Market Committee operations are excluded from the scope of the GAO audits. The Federal Reserve Sunshine Act seeks to expand the GAO's authority by removing these limitations.

As the Federal Reserve Sunshine Act is currently written, I am opposed to the legislation. Under common usage of the term audit -- an examination of accounts and records -- there is already a 100 percent audit of the Federal Reserve. Furthermore, Congress already reviews semi-annual reports on monetary policy submitted by the Board of Governors as required under the Full Employment and Balanced Growth Act (PL 95-523).

When Congress passed the Federal Banking Agency Audit Act in 1978, the legislation attempted to balance the need for public accountability of the Federal Reserve with the need to insulate the Reserve's monetary policy function from political pressures. I believe this balance must be maintained going forward.

The formulation of monetary policy is a decision-making process that involves information gathering from a host of foreign governments and central banks. The information provided from those exchanges is critical and extremely sensitive. The immediate and broad disclosure that S. 604 would require could disrupt the financial markets, and jeopardize our country's international finance relationships. Ultimately, it would be taxpayers who would bear the brunt of any losses resulting from policies caused by untimely disclosure of sensitive information. Because of this, I do not believe the benefits of legislation like the Federal Reserve Sunshine Act outweigh the costs."

10-19-2009, 07:41 PM
there is a 100% audit of the Federal Reserve after you remove the 90% of the categories that are exempt from being audited.

Hagan also contradicts herself by saying there is already a 100% audit of the federal reserve, then says auditing them would disrupt the financial markets (irony aside that they were already disrupted prior to any auditing).

Chester Copperpot
10-19-2009, 07:43 PM
Hagan needs to go.. Making Bacon with Hagan

10-19-2009, 07:43 PM
I would email her back with Bruno's comments, along with some more detail. One such RPFer did that until his Rep finally sponsored the bill, can't remember who, unfortunately.

10-19-2009, 08:05 PM
Kay Hagan is the worst.

She has also pledged to vote YES on the Cap and Trade bill, even though one of her aids admitted that she hasn't read it.