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Thread: Rand Paul Supports an Audit of the Federal Reserve

  1. #1



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  3. #2

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    I was just going to talk about this.

    I have a question. What, exactly, will we learn from the currently proposed audit bill that we don't already know. Critics say "well the Fed already is audited." What is currently audited and what has yet to be audited?

    Also, I know one thing the audit bill calls for is an audit of the Fed's deliberations. But why do we care about deliberations? It seems to be the one point that critics all point to in their criticisms of the bill. An audit of deliberations will simply limit Fed officials' willingness to speak freely. It won't change anything. So why have that in the bill? Back to my first question, isn't there anything else this bill seeks to audit?

  4. #3

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    Es
    Quote Originally Posted by amartin315 View Post
    I was just going to talk about this.

    I have a question. What, exactly, will we learn from the currently proposed audit bill that we don't already know. Critics say "well the Fed already is audited." What is currently audited and what has yet to be audited?

    Also, I know one thing the audit bill calls for is an audit of the Fed's deliberations. But why do we care about deliberations? It seems to be the one point that critics all point to in their criticisms of the bill. An audit of deliberations will simply limit Fed officials' willingness to speak freely. It won't change anything. So why have that in the bill? Back to my first question, isn't there anything else this bill seeks to audit?
    I believe he's trying to bring attention to this evil and immoral institution.

    Most Americans never even ponder the impact tha the FRB has on their life or the amount of suffering that has been inflicted on mankind by this parasite.

    Foot in the door type situation is Rands game I believe. His father was more direct.

  5. #4

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    Quote Originally Posted by The Northbreather View Post
    Es

    I believe he's trying to bring attention to this evil and immoral institution.

    Most Americans never even ponder the impact tha the FRB has on their life or the amount of suffering that has been inflicted on mankind by this parasite.

    Foot in the door type situation is Rands game I believe. His father was more direct.
    I'm not talking about Rand's position. I'm talking about his actual bill that will probably die in the senate. The same bill that Ron tried to get passed. What's in it that's so important besides audits of deliberations?

  6. #5

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    If I remember correctly, the bill changes so very specific language in the current Fed Law. I will look it up in a minute, but basically that language as it stands gives the FedRes the ability to withhold certain pieces of information from an audit.

    Let me grab the bill and the legislation and I will go into more details.

  7. #6

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    Ok here is a link to the current US Code along with the text. Next post will be the audit the fed link and text, and then I will discuss.

    http://uscode.house.gov/view.xhtml?r...dition:prelim)

    §714. Audit of Financial Institutions Examination Council, Federal Reserve Board, Federal reserve banks, Federal Deposit Insurance Corporation, and Office of Comptroller of the Currency

    (a) In this section, "agency" means the Financial Institutions Examination Council, the Board of Governors of the Federal Reserve System (in this section referred to as the "Board"), Federal reserve banks, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
    (b) Under regulations of the Comptroller General, the Comptroller General shall audit an agency, but may carry out an onsite examination of an open insured bank or bank holding company only if the appropriate agency has consented in writing. Audits of the Board and Federal reserve banks may not include-
    (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
    (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
    (3) transactions made under the direction of the Federal Open Market Committee; or
    (4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.

    (c)(1) Except as provided in this subsection, an officer or employee of the Government Accountability Office may not disclose information identifying an open bank, an open bank holding company, or a customer of an open or closed bank or bank holding company. The Comptroller General may disclose information related to the affairs of a closed bank or closed bank holding company identifying a customer of the closed bank or closed bank holding company only if the Comptroller General believes the customer had a controlling influence in the management of the closed bank or closed bank holding company or was related to or affiliated with a person or group having a controlling influence.
    (2) An officer or employee of the Office may discuss a customer, bank, or bank holding company with an official of an agency and may report an apparent criminal violation to an appropriate law enforcement authority of the United States Government or a State.
    (3) Except as provided under paragraph (4), an officer or employee of the Government Accountability Office may not disclose to any person outside the Government Accountability Office information obtained in audits or examinations conducted under subsection (e) and maintained as confidential by the Board or the Federal reserve banks.
    (4) This subsection shall not-
    (A) authorize an officer or employee of an agency to withhold information from any committee or subcommittee of jurisdiction of Congress, or any member of such committee or subcommittee; or
    (B) limit any disclosure by the Government Accountability Office to any committee or subcommittee of jurisdiction of Congress, or any member of such committee or subcommittee.

    (d)(1) To carry out this section, all records and property of or used by an agency, including samples of reports of examinations of a bank or bank holding company the Comptroller General considers statistically meaningful and workpapers and correspondence related to the reports shall be made available to the Comptroller General. The Comptroller General shall have access to the officers, employees, contractors, and other agents and representatives of an agency and any entity established by an agency at any reasonable time as the Comptroller General may request. The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General determines appropriate. The Comptroller General shall give an agency a current list of officers and employees to whom, with proper identification, records and property may be made available, and who may make notes or copies necessary to carry out an audit.
    (2) The Comptroller General shall prevent unauthorized access to records, copies of any record, or property of or used by an agency or any person or entity described in paragraph (3)(A) that the Comptroller General obtains during an audit.
    (3)(A) For purposes of conducting audits and examinations under subsection (e) or (f), the Comptroller General shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other papers, things or property belonging to or in use by-
    (i) any entity established by any action taken by the Board or the Federal Reserve banks described under subsection (e) or (f);
    (ii) any entity participating in or receiving assistance from any action taken by the Board or the Federal Reserve banks described under subsection (e) or (f), to the extent that the access and request relates to that assistance; and
    (iii) the officers, directors, employees, independent public accountants, financial advisors and any and all representatives of any entity described under clause (i) or (ii); to the extent that the access and request relates to that assistance;

    (B) The Comptroller General shall have access as provided under subparagraph (A) at such time as the Comptroller General may request. The Comptroller General may make and retain copies of books, accounts, and other records provided under subparagraph (A) as the Comptroller General deems appropriate. The Comptroller General shall provide to any person or entity described in subparagraph (A) a current list of officers and employees to whom, with proper identification, records and property may be made available, and who may make notes or copies necessary to carry out a 1 audit or examination under this subsection.
    (C) Each contract, term sheet, or other agreement between the Board or any Federal reserve bank (or any entity established by the Board or any Federal reserve bank) and an entity receiving assistance from any action taken by the Board described under subsection (e) or (f) shall provide for access by the Comptroller General in accordance with this paragraph.
    (e) Notwithstanding subsection (b), the Comptroller General may conduct audits, including onsite examinations when the Comptroller General determines such audits and examinations are appropriate, of any action taken by the Board under the third undesignated paragraph of section 13 2 of the Federal Reserve Act (12 U.S.C. 343); with respect to a single and specific partnership or corporation.
    (f) Audits of Credit Facilities of the Federal Reserve System.-
    (1) Definitions.-In this subsection, the following definitions shall apply:
    (A) Credit facility.-The term "credit facility" means a program or facility, including any special purpose vehicle or other entity established by or on behalf of the Board of Governors of the Federal Reserve System or a Federal reserve bank, authorized by the Board of Governors under section 13(3) of the Federal Reserve Act (12 U.S.C. 343), that is not subject to audit under subsection (e).
    (B) Covered transaction.-The term "covered transaction" means any open market transaction or discount window advance that meets the definition of "covered transaction" in section 11(s) of the Federal Reserve Act.

    (2) Authority for audits and examinations.-Subject to paragraph (3), and notwithstanding any limitation in subsection (b) on the auditing and oversight of certain functions of the Board of Governors of the Federal Reserve System or any Federal reserve bank, the Comptroller General of the United States may conduct audits, including onsite examinations, of the Board of Governors, a Federal reserve bank, or a credit facility, if the Comptroller General determines that such audits are appropriate, solely for the purposes of assessing, with respect to a credit facility or a covered transaction-
    (A) the operational integrity, accounting, financial reporting, and internal controls governing the credit facility or covered transaction;
    (B) the effectiveness of the security and collateral policies established for the facility or covered transaction in mitigating risk to the relevant Federal reserve bank and taxpayers;
    (C) whether the credit facility or the conduct of a covered transaction inappropriately favors one or more specific participants over other institutions eligible to utilize the facility; and
    (D) the policies governing the use, selection, or payment of third-party contractors by or for any credit facility or to conduct any covered transaction.

    (3) Reports and delayed disclosure.-
    (A) Reports required.-A report on each audit conducted under paragraph (2) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed.
    (B) Contents.-The report under subparagraph (A) shall include a detailed description of the findings and conclusions of the Comptroller General with respect to the matters described in paragraph (2) that were audited and are the subject of the report, together with such recommendations for legislative or administrative action relating to such matters as the Comptroller General may determine to be appropriate.
    (C) Delayed release of certain information.-
    (i) In general.-The Comptroller General shall not disclose to any person or entity, including to Congress, the names or identifying details of specific participants in any credit facility or covered transaction, the amounts borrowed by or transferred by or to specific participants in any credit facility or covered transaction, or identifying details regarding assets or collateral held or transferred by, under, or in connection with any credit facility or covered transaction, and any report provided under subparagraph (A) shall be redacted to ensure that such names and details are not disclosed.
    (ii) Delayed release.-The nondisclosure obligation under clause (i) shall expire with respect to any participant on the date on which the Board of Governors, directly or through a Federal reserve bank, publicly discloses the identity of the subject participant or the identifying details of the subject assets, collateral, or transaction.
    (iii) General release.-The Comptroller General shall release a nonredacted version of any report on a credit facility 1 year after the effective date of the termination by the Board of Governors of the authorization for the credit facility. For purposes of this clause, a credit facility shall be deemed to have terminated 24 months after the date on which the credit facility ceases to make extensions of credit and loans, unless the credit facility is otherwise terminated by the Board of Governors.
    (iv) Exceptions.-The nondisclosure obligation under clause (i) shall not apply to the credit facilities Maiden Lane, Maiden Lane II, and Maiden Lane III.
    (v) Release of covered transaction information.-The Comptroller General shall release a nonredacted version of any report regarding covered transactions upon the release of the information regarding such covered transactions by the Board of Governors of the Federal Reserve System, as provided in section 11(s) of the Federal Reserve Act.



  8. #7

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    Here is on iteration of the audit the fed bill. I am not sure if its the most update version, it is the senate version introduced by Rand Paul. The gist of this bill and the one that passed the house is pretty much the same. It changes the auditing limitations.

    https://www.congress.gov/bill/113th-...-bill/209/text

    113th CONGRESS
    1st Session
    S. 209

    To require a full audit of the Board of Governors of the Federal
    Reserve System and the Federal reserve banks by the Comptroller General
    of the United States, and for other purposes.


    __________________________________________________ _____________________


    IN THE SENATE OF THE UNITED STATES

    February 4, 2013

    Mr. Paul (for himself, Mr. Vitter, Mr. Cruz, Ms. Ayotte, Mr. Barrasso,
    Mr. Begich, Mr. Boozman, Mr. Burr, Mr. Chambliss, Mr. Coburn, Mr. Enzi,
    Mr. Grassley, Mr. Heller, Mr. Lee, Mr. Risch, Mr. Roberts, Mr. Rubio,
    Mr. Cornyn, Mr. Toomey, Mr. Hatch, Mr. McConnell, and Mr. Thune)
    introduced the following bill; which was read the first time

    February 7, 2013

    Read the second time and placed on the calendar

    __________________________________________________ _____________________

    A BILL



    To require a full audit of the Board of Governors of the Federal
    Reserve System and the Federal reserve banks by the Comptroller General
    of the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled,

    SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Transparency Act of
    2013''.

    SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE
    FEDERAL RESERVE SYSTEM.

    (a) In General.--Notwithstanding section 714 of title 31, United
    States Code, or any other provision of law, an audit of the Board of
    Governors of the Federal Reserve System and the Federal reserve banks
    under subsection (b) of such section 714 shall be completed within 12
    months of the date of enactment of this Act.
    (b) Report.--
    (1) In general.--A report on the audit required under
    subsection (a) shall be submitted by the Comptroller General to
    the Congress before the end of the 90-day period beginning on
    the date on which such audit is completed and made available to
    the Speaker of the House, the majority and minority leaders of
    the House of Representatives, the majority and minority leaders
    of the Senate, the Chairman and Ranking Member of the committee
    and each subcommittee of jurisdiction in the House of
    Representatives and the Senate, and any other Member of
    Congress who requests it.
    (2) Contents.--The report under paragraph (1) shall include
    a detailed description of the findings and conclusion of the
    Comptroller General with respect to the audit that is the
    subject of the report, together with such recommendations for
    legislative or administrative action as the Comptroller General
    may determine to be appropriate.
    (c) Repeal of Certain Limitations.--Subsection (b) of section 714
    of title 31, United States Code, is amended by striking all after ``in
    writing.''.
    (d) Technical and Conforming Amendment.--Section 714 of title 31,
    United States Code, is amended by striking subsection (f).

    SEC. 3. AUDIT OF LOAN FILE REVIEWS REQUIRED BY ENFORCEMENT ACTIONS.

    (a) In General.--The Comptroller General of the United States shall
    conduct an audit of the review of loan files of homeowners in
    foreclosure in 2009 or 2010, required as part of the enforcement
    actions taken by the Board of Governors of the Federal Reserve System
    against supervised financial institutions.
    (b) Content of Audit.--The audit carried out pursuant to subsection
    (a) shall consider, at a minimum--
    (1) the guidance given by the Board of Governors of the
    Federal Reserve System to independent consultants retained by
    the supervised financial institutions regarding the procedures
    to be followed in conducting the file reviews;
    (2) the factors considered by independent consultants when
    evaluating loan files;
    (3) the results obtained by the independent consultants
    pursuant to those reviews;
    (4) the determinations made by the independent consultants
    regarding the nature and extent of financial injury sustained
    by each homeowner as well as the level and type of remediation
    offered to each homeowner; and
    (5) the specific measures taken by the independent
    consultants to verify, confirm, or rebut the assertions and
    representations made by supervised financial institutions
    regarding the contents of loan files and the extent of
    financial injury to homeowners.
    (c) Report.--Not later than the end of the 6-month period beginning
    on the date of the enactment of this Act, the Comptroller General shall
    issue a report to the Congress containing all findings and
    determinations made in carrying out the audit required under subsection
    (a).
    Calendar No. 12

    113th CONGRESS

    1st Session

    S. 209

    __________________________________________________ _____________________

    A BILL

    To require a full audit of the Board of Governors of the Federal
    Reserve System and the Federal reserve banks by the Comptroller General
    of the United States, and for other purposes.

    __________________________________________________ _____________________

    February 7, 2013

    Read the second time and placed on the calendar

  9. #8

    Default

    Ok, now to discuss this. This part of the audit the fed bill is the part that the establishment is fighting against. Pay special attention to "Repeal of Certain Limitations". The second part "Technical and Conforming Amendment" is there because if the Repeal happens the other section of the current law doesn't make sense.

    (c) Repeal of Certain Limitations.--Subsection (b) of section 714
    of title 31, United States Code, is amended by striking all after ``in
    writing.''.

    (d) Technical and Conforming Amendment.--Section 714 of title 31,
    United States Code, is amended by striking subsection (f)

    So, lets look at USC 31.714.b, shall we?

    (b) Under regulations of the Comptroller General, the Comptroller General shall audit an agency, but may carry out an onsite examination of an open insured bank or bank holding company only if the appropriate agency has consented in writing. Audits of the Board and Federal reserve banks may not include-
    (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
    (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
    (3) transactions made under the direction of the Federal Open Market Committee; or
    (4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.


    First things first. Imagine an IRS audit on you. If this law governed IRS audits on YOU, it basically says all you have to do to avoid and IRS audit is NOT consent in writing.

    Well, WTF kind of audit is that? Of course then this section goes on to give specific things that the audit may NOT include. And that would be the answer to you question of, what will this bill do that current audits do not already do.


    Rand Paul's bill gets rid of everything after "shall audit an agency".

    edit- well actually it looks like it gets rid of everything after "in writing". I know the previous versions of the bill got rid of everything after "shall audit", so this looks like a political compromise. Regardless, its the other pieces that follow that matter most. Cause you know if the fedres banks refuse and audit, it raise a flag anyways.

    So that means #1 the auditor does not need permission "in writing" from the Federal Reserve. (DUH!)

    and probably the biggest revelations, under this bill we'd see

    transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
    and of course the rest

    (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;(3) transactions made under the direction of the Federal Open Market Committee;
    or(4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.


    THUS the bill that Rand is introducing and has already been passed by the House two times I think now, will give us and actual

    COMPLETE audit.

    Hope that helps some understand why people like me are so adamant about getting this stuff passed. We need transparency, and this bill which is fairly straight forward and simple, will change the law that specifically says, NO transparency.



    Last edited by newbitech; 04-12-2015 at 09:58 AM.

  10. #9

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    Thanks. I already knew a little bit from an interview Rand gave earlier in the year. But I needed proof, not just a video of him saying that, in order to convince another person that there really was a need for an audit.

    One more thing. Rand said that this bill would show who is on the other side of open market operation transactions and how much we paid for their assets. Do you think that's objectively true?

  11. #10

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    Quote Originally Posted by amartin315 View Post
    Thanks. I already knew a little bit from an interview Rand gave earlier in the year. But I needed proof, not just a video of him saying that, in order to convince another person that there really was a need for an audit.

    One more thing. Rand said that this bill would show who is on the other side of open market operation transactions and how much we paid for their assets. Do you think that's objectively true?
    I can't honestly say. It should be true.






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