nbruno322
06-27-2012, 10:40 AM
The House Oversight Committee easily cleared legislation Wednesday that would require a top-to-bottom audit of the Federal Reserve.
After passing committee, Paul’s legislation needs approval from both chambers of Congress and the president before becoming law.
The bill, sponsored by Rep. Ron Paul (R-Texas), was advanced by the committee on a bipartisan voice vote with no vocal opposition.
The measure, which has garnered 257 co-sponsors from both parties, would require the Government Accountability Office (GAO) to conduct a full audit of the Fed's operations, including its monetary policy deliberations.
House GOP leaders have previously signaled that Paul's bill would garner floor attention sometime in July. A similar measure pushed by the End the Fed author was part of the Dodd-Frank financial reform law when it was passed by the House, but was later trimmed to require a GAO study of just the Fed's emergency lending operations during the financial crisis, and the potential for conflicts of interest on the boards of the regional Fed banks.
Before the bill was cleared by the committee, however, ranking member Elijah Cummings (D-Md.) attempted to introduce an amendment that would prevent the GAO from auditing the Fed's deliberations on monetary policy. Cummings withdrew the amendment after Chairman Darrell Issa (R-Calif.) voiced opposition, saying it "essentially guts this bill."
Issa maintained it was ironic that Congress took an intense interest in the $2 billion and counting in losses suffered recently by JPMorgan Chase when it "pales in comparison" to the Fed's multi-trillion dollar portfolio.
"It is long past time for a real audit," he said.
Fed Chairman Ben Bernanke has previously opposed congressional attempts to audit the Fed's monetary policy deliberations, saying they expose the politically independent institution to lawmaker pressure.
Republicans have become increasingly critical of the Fed's expansionary policies following the economic downturn, warning that its massive expansion of its balance sheet poses serious inflation risks. Liberal Democrats have also ramped up criticism of the central bank, taking it on for bailing out huge financial institutions during the financial crisis. Most recently, Sen. Bernie Sanders (I-Vt.) launched a campaign to remove banking officials from the boards of the regional Fed banks, saying it presents a conflict of interest.
http://thehill.com/blogs/on-the-money/economy/235055-house-panel-clears-fed-audit-bill
It passed by voice vote, signaling the growing sense among lawmakers that the time has come for a full review.
Federal law right now specifically prohibits such a broad audit, and opponents fear undermining the independence of the Fed.
The bill would direct the Government Accountability Office to complete a broad audit that presumably would include a peek at the Fed’s decision-making and many of its lending policies.
The committee defeated an amendment sponsored by Rep. Elijah E. Cummings, Maryland Democrat, that would have prevented auditors from getting a look at the minutes of internal board discussions.
“The Federal Reserve is an independent central bank and that independence is critical to its ability to conduct monetary policy,” said Representative Elijah Cummings of Maryland, the senior Democrat on the committee. Passage of the audit legislation would mean “members of Congress could seek to influence the Federal Reserve’s deliberations.”
“This whole idea about ‘Well, we can’t touch the Fed‘ is baloney,” said Rep. Dennis J. Kucinich, Ohio Democrat. “We have to be able to have control over the Fed because it’s controlling every aspect of our economy.”
http://www.washingtontimes.com/news/2012/jun/27/audit-fed-bill-advances-house/
After passing committee, Paul’s legislation needs approval from both chambers of Congress and the president before becoming law.
The bill, sponsored by Rep. Ron Paul (R-Texas), was advanced by the committee on a bipartisan voice vote with no vocal opposition.
The measure, which has garnered 257 co-sponsors from both parties, would require the Government Accountability Office (GAO) to conduct a full audit of the Fed's operations, including its monetary policy deliberations.
House GOP leaders have previously signaled that Paul's bill would garner floor attention sometime in July. A similar measure pushed by the End the Fed author was part of the Dodd-Frank financial reform law when it was passed by the House, but was later trimmed to require a GAO study of just the Fed's emergency lending operations during the financial crisis, and the potential for conflicts of interest on the boards of the regional Fed banks.
Before the bill was cleared by the committee, however, ranking member Elijah Cummings (D-Md.) attempted to introduce an amendment that would prevent the GAO from auditing the Fed's deliberations on monetary policy. Cummings withdrew the amendment after Chairman Darrell Issa (R-Calif.) voiced opposition, saying it "essentially guts this bill."
Issa maintained it was ironic that Congress took an intense interest in the $2 billion and counting in losses suffered recently by JPMorgan Chase when it "pales in comparison" to the Fed's multi-trillion dollar portfolio.
"It is long past time for a real audit," he said.
Fed Chairman Ben Bernanke has previously opposed congressional attempts to audit the Fed's monetary policy deliberations, saying they expose the politically independent institution to lawmaker pressure.
Republicans have become increasingly critical of the Fed's expansionary policies following the economic downturn, warning that its massive expansion of its balance sheet poses serious inflation risks. Liberal Democrats have also ramped up criticism of the central bank, taking it on for bailing out huge financial institutions during the financial crisis. Most recently, Sen. Bernie Sanders (I-Vt.) launched a campaign to remove banking officials from the boards of the regional Fed banks, saying it presents a conflict of interest.
http://thehill.com/blogs/on-the-money/economy/235055-house-panel-clears-fed-audit-bill
It passed by voice vote, signaling the growing sense among lawmakers that the time has come for a full review.
Federal law right now specifically prohibits such a broad audit, and opponents fear undermining the independence of the Fed.
The bill would direct the Government Accountability Office to complete a broad audit that presumably would include a peek at the Fed’s decision-making and many of its lending policies.
The committee defeated an amendment sponsored by Rep. Elijah E. Cummings, Maryland Democrat, that would have prevented auditors from getting a look at the minutes of internal board discussions.
“The Federal Reserve is an independent central bank and that independence is critical to its ability to conduct monetary policy,” said Representative Elijah Cummings of Maryland, the senior Democrat on the committee. Passage of the audit legislation would mean “members of Congress could seek to influence the Federal Reserve’s deliberations.”
“This whole idea about ‘Well, we can’t touch the Fed‘ is baloney,” said Rep. Dennis J. Kucinich, Ohio Democrat. “We have to be able to have control over the Fed because it’s controlling every aspect of our economy.”
http://www.washingtontimes.com/news/2012/jun/27/audit-fed-bill-advances-house/