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Guitarzan
11-18-2009, 10:40 AM
Huffpo running story...including Watts' letter to members of the Financial Svcs Comm...

http://www.huffingtonpost.com/2009/11/17/audit-the-fed-effort-unde_n_361389.html

robertwerden
11-18-2009, 11:10 AM
Ron can bring this to the floor in its original form and it will pass, why is he even fucking around with Watt?

Guitarzan
11-18-2009, 11:17 AM
My understanding is that Watts is the Chairman of the Subcommittee, and the Chairman has first crack at any bill during markup. Watts' position allows him to change the bill to his, and his owners, desires...which he did.

Now, Paul and Grayson have created an amendment that would restore the original language in the bill.

I believe that it's going to come down to a vote in Committee: Watts' amendment vs the Paul/Grayson amendment.

AJ Antimony
11-18-2009, 11:32 AM
"also, please ignore the fact that Bank of America HQ resides in my district."

TCE
11-18-2009, 11:36 AM
"also, please ignore the fact that Bank of America HQ resides in my district."

Conspiracy!!! :eek:

What Guit posted is correct. Watt will introduce his amendment and the Paul/Grayson amendment will attempt to override it. It is likely that one will pass and the other will not. this should be interesting.

HOLLYWOOD
11-18-2009, 11:42 AM
Just for those that want to read Congressman Mel Watt's BS: http://big.assets.huffingtonpost.com/WATT.pdf

Dear Financial Services Committee Colleague:

This week during the Financial Services Committee markup of the Financial Stability Improvement Act of 2009, I plan to introduce an amendment to provide historic transparency to the operations of the Federal Reserve. While my amendment will certainly fall short of demands by those intent on destroying the independence (if not the existence) of the Fed, the critics of my amendment will have to concede

(1) that I have worked diligently with them to find all possible common ground and

(2) that my amendment will provide transparency of the Fed's financial operations that will be completely unprecedented.

My amendment acknowledges that taxpayers have a right to know how their money is being spent. To that end, my amendment will expand the audit powers of the Government Accountability Office ("GAO") over the Federal Reserve to all financial activities of the Fed.

I. Complete GAO Audit Authority of the Numbers.
Under my amendment, the GAO will have complete authority to review and audit, including by onsite examination:

(1) Federal Reserve programs, activities and operations: A full audit of the functions, programs, activities and operations of the Federal Reserve Board and Federal reserve banks relating to prudential supervision, provision of currency, check clearing and collection services, payment systems operations and provision of wire transfer services;
(2) Federal Reserve financial statements: A full audit, of the kind performed by outside auditors, of the Federal Reserve's financial statements, including all the Fed's assets and liabilities no matter how they are acquired or incurred; and
(3) "Emergency" 13(3) lending facilities: An audit of the emergency actions taken by the Fed under Section 13(3) of the Federal Reserve Act ("13(3) powers") to extend credit to a single partnership or corporation, or broad liquidity facilities for distressed markets, including:
* The effectiveness of the Fed's internal control structure to ensure limited risk exposure to the Fed with respect to each liquidity facility and the prevention of waste, fraud and abuse in the use of that facility;


* Whether the collateral policies and procedures appropriately address risk to the Fed;
* Whether credit extended and fees charged by the Fed are collected in accordance with the terms and conditions established by the Fed;
* The manner in which the Federal Reserve system accounts for the facility on its balance sheet and the adequacy of the procedures for financial reporting.

For example, my amendment would allow the GAO to audit the financial aspects of multi-billion dollar credit facilities extended to Bear Stearns and AIG during last year's financial crisis, as well as the broader market credit facilities such as the Term Asset-backed Loan Facility (TALF). In addition, the specific names of borrowers of 13(3) credit facilities would be disclosed after 1 year.

In sum, the GAO will have new powers under my amendment to audit every aspect of the Fed's nearly $2 trillion balance sheet, providing unprecedented transparency to the American people.


II. No Interference with Monetary Policy.
The critics of my amendment will say that it does not allow the GAO to audit or second guess Fed monetary policy decisions. They are correct. My amendment strikes a sensible balance between providing increased transparency to the public, while preserving the long-standing independence of the Federal Reserve regarding the making of monetary policy. Every industrialized nation observes strict independence of their central banks to set monetary policy and shields them from undue political interference. Such independence from political interference is important for several reasons:

* An independent central bank can limit inflation and promote economic growth. If there is even the perception that politics is interfering with monetary policy decisions, fears of inflation could rise and erode market confidence in the ability of the central bank to make sound economic decisions, which could cause higher prices and increased job losses;
* Bond rating agencies view the independence of central banks as an important factor in determining sovereign credit ratings. An erosion of Federal Reserve independence could harm the credit rating of Treasury bills, increasing our cost of borrowing and hurting the economy in the form of higher prices to all American consumers;
* Foreign central banks would fear engaging in transactions with a politically compromised Federal Reserve, which could destabilize the U.S. and international economies.
Recently, over 400 economists, academics and former government officials signed the attached petition supporting the independence of the Federal Reserve regarding monetary policy. The petition included three winners of the Nobel Prize in economics and five former presidents of the American Economics Association. The notion that we should allow the GAO or any other government agency to audit or second guess Fed monetary policy is nonsensical and would be terrible public policy.

Conclusion
My amendment strikes the appropriate balance of increasing Federal Reserve transparency while preventing political interference with monetary policy. Only a transparent central bank, free from political interference, can effectively carry out its congressionally-required dual mandate of stable prices and fostering job growth. I hope you will support the amendment to provide an historic advance of transparency at the Federal Reserve while preserving its independence to be able to fulfill the dual missions for which it was formed.

/S/

TCE
11-18-2009, 11:47 AM
I could type a two page response that completely owns that, but why waste my time when everyone knows Watt's amendment is complete bs anyway?

This is the simple response, provided paraphrased from Dr. Paul:

The Fed is responsible for three things: limiting inflation, full employment, and steady interest rates. Since 1970:

* Interest rates have been at 22% and 0%. FAIL.
* Unemployment has been at 3% and over 10%, full employment has never been reached. FAIL.
* The dollar is worth around $0.04 of what it was worth in 1913. FAIL.

HOLLYWOOD
11-18-2009, 11:52 AM
Here's the Financial Services Committee Clowns/Members that are Co-Sponsoring Mel Watt's amendment: Federal Reserve Opaqueness

PENDING Confirmation of the 7 Congress members that are co-sponsoring Mell Watt's amendment. If you have them, please POST THEM

specsaregood
11-18-2009, 11:55 AM
Here's the Financial Services Committee Clowns/Members that are Co-Sponsoring Mel Watt's amendment: Federal Reserve Opaqueness


Where did you get that list? My Rep is on there and last I heard he was not sponsoring it, that lying douche.

Guitarzan
11-18-2009, 11:57 AM
That list is incorrect HW.

Grayson's not sponsoring Watts' amendment...he's sponsoring Paul's.

specsaregood
11-18-2009, 12:05 PM
That list is incorrect HW.

Grayson's not sponsoring Watts' amendment...he's sponsoring Paul's.

Yeah that list seems to include all the democrats on the committee, I can't find any solid reference to who is supporting the actual amendment.

amy31416
11-18-2009, 12:07 PM
Here's the Financial Services Committee Clowns/Members that are Co-Sponsoring Mel Watt's amendment: Federal Reserve Opaqueness

waiting for data...


Grayson is sponsoring Watt's amendment? That does not compute...

LibertyEagle
11-18-2009, 12:09 PM
Here's the Financial Services Committee Clowns/Members that are Co-Sponsoring Mel Watt's amendment: Federal Reserve Opaqueness

waiting for data...


Hollywood, are you sure? I just called Grayson's office and they were adamant that he was not co-sponsoring Watts' amendment.

Guitarzan
11-18-2009, 12:12 PM
He's NOT.

He teamed up with Paul for the amendment to restore the bill to the original language.

Hence, teh Paul/Grayson amendment :cool:

HOLLYWOOD
11-18-2009, 12:32 PM
Hollywood, are you sure? I just called Grayson's office and they were adamant that he was not co-sponsoring Watts' amendment.


I posted the wrong list of Financial Committee Members... yes, those are the members who signed on to support H.R.1207.

Before I post the House names... I'm waiting the latest confirmation of the 7 Congress members that are supporting Mel Watt's amendment.

HOLLYWOOD
11-18-2009, 06:44 PM
I'm still waiting on verified names

The latest: http://www.opencongress.org/articles/view/1363--Audit-the-Fed-Undermined-by-Dem-Congressman (http://www.opencongress.org/articles/view/1363--Audit-the-Fed-Undermined-by-Dem-Congressman)

Furthermore, Watt’s amendment would add new restrictions to which Fed activities could be audited. The amendment specifically exempts the Fed’s loan and liquidity arrangements, and how they effect the Fed’s balance sheet, from audits.
The amendment could be voted on this week.

Paul has said that he will continue to seek a vote on his version of Fed transparency legislation.

Watt’s district includes the headquarters for Bank of America, one of the biggest beneficiaries of the Fed’s secretive lending and loan guarantees during the financial crisis. According to data (http://www.opensecrets.org/politicians/summary.php?cycle=2008&type=I&cid=N00002328&newMem=N) from the Center for Responsive Politics, Watt’s top for donors for his 2008 re-election campaign were Bank of America, Wachovia, American Express and the American Bankers Association. Watt’s current leading campaign financer (http://www.opensecrets.org/politicians/summary.php?cycle=2010&type=I&cid=N00002328&newMem=N) is Citigroup.

Little Sis (http://blog.littlesis.org/2009/11/17/rep-challenging-fed-close-ties-to-aba/) adds that Watt’s former chief of staff for 12 years, Joyce Brayboy (http://littlesis.org/person/18679/Joyce_Brayboy), has been a lobbyist for the American Bankers Association ever since leaving Congress. Brayboy is also a DNC superdelegate - NC that voted for Barack Obama.
Mel Watt's former staff chief Joyce Brayboy is also:


President
House Chiefs of Staff Association
President
Council of African American Chiefs of Staff

http://i533.photobucket.com/albums/ee332/McLieberman/HR1207_Opencongress.jpg