Ron Paul’s Bill To Audit The Federal Reserve Now Has 226 Co-Sponsors

Ron Paul’s bill to audit the Federal Reserve (HR 1207) now has 226 co-sponsors, and the numbers keep growing!

This is history in the making, and victory is within reach. Imagine what will happen if HR 1207, The Federal Reserve Transparency Act, comes up for vote in Congress!

With more than 50% of the House of Representatives already co-sponsoring this bill, it has real potential to pass — BUT only if we educate and rally the people to support it and get our Congresspeople to put it to vote and pass it.

Step 1: Your Representative

If your representative is not on the following list of HR 1207 co-sponsors, call their offices, write to them, email them, etc. Let them know they need to support HR 1207. If you live in their district, let them know. Go to their office.

Capitol Switchboard: (202) 224-3121

HR 1207 Co-Sponsors (as of 6/16/2009)

Rep Abercrombie, Neil [HI-1] – 2/26/2009
Rep Aderholt, Robert B. [AL-4] – 5/6/2009
Rep Adler, John H. [NJ-3] – 5/6/2009
Rep Akin, W. Todd [MO-2] – 3/19/2009
Rep Alexander, Rodney [LA-5] – 3/10/2009
Rep Altmire, Jason [PA-4] – 5/20/2009
Rep Austria, Steve [OH-7] – 5/6/2009
Rep Bachmann, Michele [MN-6] – 2/26/2009
Rep Bachus, Spencer [AL-6] – 4/29/2009
Rep Baldwin, Tammy [WI-2] – 4/21/2009
Rep Barrett, J. Gresham [SC-3] – 4/28/2009
Rep Barrow, John [GA-12] – 5/12/2009
Rep Bartlett, Roscoe G. [MD-6] – 2/26/2009
Rep Barton, Joe [TX-6] – 5/4/2009
Rep Berkley, Shelley [NV-1] – 5/21/2009
Rep Berry, Marion [AR-1] – 5/20/2009
Rep Biggert, Judy [IL-13] – 4/28/2009
Rep Bilbray, Brian P. [CA-50] – 4/21/2009
Rep Bilirakis, Gus M. [FL-9] – 5/4/2009
Rep Bishop, Rob [UT-1] – 4/21/2009
Rep Blackburn, Marsha [TN-7] – 3/16/2009
Rep Blunt, Roy [MO-7] – 3/24/2009
Rep Boehner, John A. [OH-8] – 6/10/2009
Rep Bonner, Jo [AL-1] – 6/9/2009
Rep Bono Mack, Mary [CA-45] – 4/29/2009
Rep Boozman, John [AR-3] – 5/7/2009
Rep Boswell, Leonard L. [IA-3] – 6/9/2009
Rep Boustany, Charles W., Jr. [LA-7] – 5/13/2009
Rep Brady, Kevin [TX-8] – 4/22/2009
Rep Braley, Bruce L. [IA-1] – 6/11/2009
Rep Bright, Bobby [AL-2] – 6/11/2009
Rep Broun, Paul C. [GA-10] – 2/26/2009
Rep Brown, Corrine [FL-3] – 6/11/2009
Rep Brown, Henry E., Jr. [SC-1] – 4/28/2009
Rep Brown-Waite, Ginny [FL-5] – 5/20/2009
Rep Buchanan, Vern [FL-13] – 3/17/2009
Rep Burgess, Michael C. [TX-26] – 3/19/2009
Rep Burton, Dan [IN-5] – 2/26/2009
Rep Buyer, Steve [IN-4] – 4/30/2009
Rep Calvert, Ken [CA-44] – 4/29/2009
Rep Campbell, John [CA-48] – 5/4/2009
Rep Cao, Anh “Joseph” [LA-2] – 6/11/2009
Rep Capito, Shelley Moore [WV-2] – 4/1/2009
Rep Carney, Christopher P. [PA-10] – 6/9/2009
Rep Carter, John R. [TX-31] – 3/31/2009
Rep Cassidy, Bill [LA-6] – 5/4/2009
Rep Castle, Michael N. [DE] – 3/17/2009
Rep Chaffetz, Jason [UT-3] – 3/6/2009
Rep Childers, Travis [MS-1] – 6/9/2009
Rep Coble, Howard [NC-6] – 6/11/2009
Rep Cole, Tom [OK-4] – 4/21/2009
Rep Conaway, K. Michael [TX-11] – 5/7/2009
Rep Crenshaw, Ander [FL-4] – 5/4/2009
Rep Culberson, John Abney [TX-7] – 3/26/2009
Rep Davis, Geoff [KY-4] – 5/6/2009
Rep Deal, Nathan [GA-9] – 3/23/2009
Rep DeFazio, Peter A. [OR-4] – 3/9/2009
Rep Dent, Charles W. [PA-15] – 5/6/2009
Rep Doggett, Lloyd [TX-25] – 4/21/2009
Rep Dreier, David [CA-26] – 6/10/2009
Rep Duncan, John J., Jr. [TN-2] – 3/6/2009
Rep Edwards, Donna F. [MD-4] – 6/11/2009
Rep Ehlers, Vernon J. [MI-3] – 4/21/2009
Rep Fallin, Mary [OK-5] – 4/2/2009
Rep Flake, Jeff [AZ-6] – 5/11/2009
Rep Fleming, John [LA-4] – 3/18/2009
Rep Forbes, J. Randy [VA-4] – 5/20/2009
Rep Fortenberry, Jeff [NE-1] – 5/12/2009
Rep Foxx, Virginia [NC-5] – 3/10/2009
Rep Franks, Trent [AZ-2] – 3/23/2009
Rep Frelinghuysen, Rodney P. [NJ-11] – 6/3/2009
Rep Garrett, Scott [NJ-5] – 3/5/2009
Rep Gerlach, Jim [PA-6] – 5/11/2009
Rep Gingrey, Phil [GA-11] – 3/30/2009
Rep Gohmert, Louie [TX-1] – 4/23/2009
Rep Goodlatte, Bob [VA-6] – 4/28/2009
Rep Granger, Kay [TX-12] – 4/28/2009
Rep Graves, Sam [MO-6] – 4/22/2009
Rep Grayson, Alan [FL-8] – 3/11/2009
Rep Grijalva, Raul M. [AZ-7] – 6/3/2009
Rep Guthrie, Brett [KY-2] – 5/7/2009
Rep Hall, Ralph M. [TX-4] – 4/29/2009
Rep Halvorson, Deborah L. [IL-11] – 6/3/2009
Rep Hare, Phil [IL-17] – 5/11/2009
Rep Harper, Gregg [MS-3] – 5/11/2009
Rep Hastings, Doc [WA-4] – 5/11/2009
Rep Heller, Dean [NV-2] – 3/6/2009
Rep Hensarling, Jeb [TX-5] – 5/4/2009
Rep Herger, Wally [CA-2] – 4/21/2009
Rep Herseth Sandlin, Stephanie [SD] – 5/6/2009
Rep Hinchey, Maurice D. [NY-22] – 6/2/2009
Rep Hoekstra, Peter [MI-2] – 4/28/2009
Rep Holden, Tim [PA-17] – 6/4/2009
Rep Hunter, Duncan D. [CA-52] – 5/13/2009
Rep Inglis, Bob [SC-4] – 4/23/2009
Rep Inslee, Jay [WA-1] – 5/12/2009
Rep Jenkins, Lynn [KS-2] – 4/23/2009
Rep Johnson, Henry C. “Hank,” Jr. [GA-4] – 6/9/2009
Rep Johnson, Sam [TX-3] – 4/22/2009
Rep Johnson, Timothy V. [IL-15] – 4/23/2009
Rep Jones, Walter B., Jr. [NC-3] – 2/26/2009
Rep Jordan, Jim [OH-4] – 6/2/2009
Rep Kagen, Steve [WI-8] – 2/26/2009
Rep Kaptur, Marcy [OH-9] – 4/23/2009
Rep King, Peter T. [NY-3] – 6/4/2009
Rep King, Steve [IA-5] – 6/11/2009
Rep Kingston, Jack [GA-1] – 3/6/2009
Rep Kline, John [MN-2] – 4/29/2009
Rep Kratovil, Frank, Jr. [MD-1] – 6/4/2009
Rep Kucinich, Dennis J. [OH-10] – 6/11/2009
Rep Lamborn, Doug [CO-5] – 4/21/2009
Rep Lance, Leonard [NJ-7] – 5/11/2009
Rep Latham, Tom [IA-4] – 4/21/2009
Rep LaTourette, Steven C. [OH-14] – 4/28/2009
Rep Latta, Robert E. [OH-5] – 5/20/2009
Rep Lee, Christopher J. [NY-26] – 6/10/2009
Rep Linder, John [GA-7] – 5/6/2009
Rep Lipinski, Daniel [IL-3] – 6/4/2009
Rep LoBiondo, Frank A. [NJ-2] – 5/4/2009
Rep Loebsack, David [IA-2] – 6/10/2009
Rep Lucas, Frank D. [OK-3] – 4/21/2009
Rep Luetkemeyer, Blaine [MO-9] – 4/21/2009
Rep Lummis, Cynthia M. [WY] – 3/19/2009
Rep Lungren, Daniel E. [CA-3] – 5/7/2009
Rep Mack, Connie [FL-14] – 5/12/2009
Rep Maffei, Daniel B. [NY-25] – 5/12/2009
Rep Manzullo, Donald A. [IL-16] – 4/21/2009
Rep Marchant, Kenny [TX-24] – 3/11/2009
Rep Massa, Eric J. J. [NY-29] – 4/22/2009
Rep McCarthy, Kevin [CA-22] – 5/4/2009
Rep McCaul, Michael T. [TX-10] – 4/21/2009
Rep McClintock, Tom [CA-4] – 3/6/2009
Rep McCotter, Thaddeus G. [MI-11] – 3/19/2009
Rep McDermott, Jim [WA-7] – 4/29/2009
Rep McGovern, James P. [MA-3] – 6/10/2009
Rep McHenry, Patrick T. [NC-10] – 4/30/2009
Rep McHugh, John M. [NY-23] – 5/4/2009
Rep McIntyre, Mike [NC-7] – 6/10/2009
Rep McKeon, Howard P. “Buck” [CA-25] – 6/11/2009
Rep McMorris Rodgers, Cathy [WA-5] – 5/4/2009
Rep Mica, John L. [FL-7] – 5/12/2009
Rep Michaud, Michael H. [ME-2] – 5/7/2009
Rep Miller, Candice S. [MI-10] – 4/28/2009
Rep Miller, Gary G. [CA-42] – 6/10/2009
Rep Miller, Jeff [FL-1] – 3/24/2009
Rep Minnick, Walter [ID-1] – 5/13/2009
Rep Mitchell, Harry E. [AZ-5] – 6/9/2009
Rep Moran, Jerry [KS-1] – 5/4/2009
Rep Murphy, Patrick J. [PA-8] – 6/9/2009
Rep Murphy, Tim [PA-18] – 4/29/2009
Rep Myrick, Sue Wilkins [NC-9] – 4/28/2009
Rep Neugebauer, Randy [TX-19] – 4/30/2009
Rep Nunes, Devin [CA-21] – 6/12/2009
Rep Olson, Pete [TX-22] – 4/21/2009
Rep Ortiz, Solomon P. [TX-27] – 5/14/2009
Rep Pascrell, Bill, Jr. [NJ-8] – 6/9/2009
Rep Pastor, Ed [AZ-4] – 5/20/2009
Rep Paulsen, Erik [MN-3] – 3/30/2009
Rep Pence, Mike [IN-6] – 4/21/2009
Rep Perlmutter, Ed [CO-7] – 6/10/2009
Rep Perriello, Thomas S.P. [VA-5] – 5/13/2009
Rep Peterson, Collin C. [MN-7] – 3/19/2009
Rep Petri, Thomas E. [WI-6] – 3/10/2009
Rep Pitts, Joseph R. [PA-16] – 4/28/2009
Rep Platts, Todd Russell [PA-19] – 3/19/2009
Rep Poe, Ted [TX-2] – 2/26/2009
Rep Polis, Jared [CO-2] – 6/11/2009
Rep Posey, Bill [FL-15] – 2/26/2009
Rep Price, Tom [GA-6] – 3/10/2009
Rep Putnam, Adam H. [FL-12] – 4/28/2009
Rep Radanovich, George [CA-19] – 5/6/2009
Rep Rehberg, Denny [MT] – 2/26/2009
Rep Reichert, David G. [WA-8] – 5/20/2009
Rep Roe, David P. [TN-1] – 4/21/2009
Rep Rogers, Mike D. [AL-3] – 5/13/2009
Rep Rogers, Mike J. [MI-8] – 5/20/2009
Rep Rohrabacher, Dana [CA-46] – 3/6/2009
Rep Rooney, Thomas J. [FL-16] – 4/22/2009
Rep Ros-Lehtinen, Ileana [FL-18] – 4/28/2009
Rep Roskam, Peter J. [IL-6] – 6/2/2009
Rep Ross, Mike [AR-4] – 5/21/2009
Rep Royce, Edward R. [CA-40] – 5/12/2009
Rep Ryan, Paul [WI-1] – 5/14/2009
Rep Sarbanes, John P. [MD-3] – 6/15/2009
Rep Scalise, Steve [LA-1] – 5/20/2009
Rep Schakowsky, Janice D. [IL-9] – 5/6/2009
Rep Schauer, Mark H. [MI-7] – 5/20/2009
Rep Schmidt, Jean [OH-2] – 6/11/2009
Rep Schock, Aaron [IL-18] – 5/6/2009
Rep Sensenbrenner, F. James, Jr. [WI-5] – 5/7/2009
Rep Sessions, Pete [TX-32] – 3/23/2009
Rep Shadegg, John B. [AZ-3] – 5/7/2009
Rep Shea-Porter, Carol [NH-1] – 6/9/2009
Rep Shimkus, John [IL-19] – 4/22/2009
Rep Shuler, Heath [NC-11] – 6/12/2009
Rep Shuster, Bill [PA-9] – 5/7/2009
Rep Simpson, Michael K. [ID-2] – 4/28/2009
Rep Smith, Adam [WA-9] – 4/22/2009
Rep Smith, Adrian [NE-3] – 4/28/2009
Rep Smith, Christopher H. [NJ-4] – 6/15/2009
Rep Smith, Lamar [TX-21] – 4/2/2009
Rep Speier, Jackie [CA-12] – 6/11/2009
Rep Stark, Fortney Pete [CA-13] – 3/26/2009
Rep Stearns, Cliff [FL-6] – 3/6/2009
Rep Taylor, Gene [MS-4] – 3/6/2009
Rep Teague, Harry [NM-2] – 6/12/2009
Rep Terry, Lee [NE-2] – 3/30/2009
Rep Thompson, Glenn [PA-5] – 4/22/2009
Rep Thornberry, Mac [TX-13] – 5/21/2009
Rep Tiahrt, Todd [KS-4] – 4/28/2009
Rep Tiberi, Patrick J. [OH-12] – 4/28/2009
Rep Tonko, Paul D. [NY-21] – 6/9/2009
Rep Turner, Michael R. [OH-3] – 5/13/2009
Rep Upton, Fred [MI-6] – 4/29/2009
Rep Walden, Greg [OR-2] – 5/4/2009
Rep Walz, Timothy J. [MN-1] – 5/7/2009
Rep Wamp, Zach [TN-3] – 3/16/2009
Rep Welch, Peter [VT] – 5/21/2009
Rep Westmoreland, Lynn A. [GA-3] – 4/2/2009
Rep Whitfield, Ed [KY-1] – 5/14/2009
Rep Wilson, Joe [SC-2] – 4/29/2009
Rep Wittman, Robert J. [VA-1] – 4/1/2009
Rep Wolf, Frank R. [VA-10] – 6/11/2009
Rep Woolsey, Lynn C. [CA-6] – 2/26/2009
Rep Young, C.W. Bill [FL-10] – 6/3/2009
Rep Young, Don [AK] – 3/6/2009

Step 2: Financial Services Committee

HR 1207 is now in the House Committee on Financial Services. This is THE MOST IMPORTANT STEP in this legislation! If it doesn’t get out of committee it will not come to a vote! There are 71 members on this committee and they are all listed below.

We need to let all members of the House Committee on Financial Services know that we want them to allow full House consideration of HR 1207 so it can move forward; we need them to support this. Now is the time.

Call their offices, write to them, email them, etc. Let them know they need to support HR 1207. If you live in their district, let them know. Go to their office.

House Committee on Financial Services

Chairman Barney Frank, MA

Republican Members

Rep. Michele Bachmann, MN [co-sponsor] Rep. Spencer Bachus, AL [co-sponsor] Rep. J. Gresham Barrett, SC [co-sponsor] Rep. Judy Biggert, IL [co-sponsor] Rep. John Campbell, CA [co-sponsor] Rep. Michael N. Castle, DE [co-sponsor] Rep. Scott Garrett, NJ [co-sponsor] Rep. Jim Gerlach, PA [co-sponsor] Rep. Jeb Hensarling, TX [co-sponsor] Rep. Lynn Jenkins, KS [co-sponsor] Rep. Walter B. Jones , NC [co-sponsor] Rep. Peter King, NY [co-sponsor] Rep. Leonard Lance, NJ [co-sponsor] Rep. Christopher Lee, NY [co-sponsor] Rep. Frank D. Lucas, OK [co-sponsor] Rep. Donald A. Manzullo, IL [co-sponsor] Rep. Kenny Marchant, TX [co-sponsor] Rep. Thaddeus McCotter, MI [co-sponsor] Rep. Kevin McCarthy, CA [co-sponsor] Rep. Patrick T. McHenry, NC [co-sponsor] Rep. Gary G. Miller, CA [co-sponsor] Rep. Randy Neugebauer, TX [co-sponsor] Rep. Shelley Moore Capito, WV [co-sponsor] Rep. Ron Paul, TX [sponsor] Rep. Erik Paulsen, MN [co-sponsor] Rep. Bill Posey, FL [co-sponsor] Rep. Tom Price, GA [co-sponsor] Rep. Adam Putnam, FL [co-sponsor] Rep. Edward R. Royce, CA [co-sponsor]

Democratic Members

Rep. Gary L. Ackerman, NY
Rep. John Adler, NJ [co-sponsor] Rep. Joe Baca, CA
Rep. Melissa L. Bean, IL
Rep. Michael E. Capuano, MA
Rep. Andre Carson, IN
Rep. Travis Childers, MS [co-sponsor] Rep. William Lacy Clay, MO
Rep. Emanuel Cleaver, MO
Rep. Joe Donnelly, IN
Rep. Steve Driehaus, OH
Rep. Keith Ellison, MN
Rep. Bill Foster, IL
Rep. Alan Grayson, FL [co-sponsor] Rep. Al Green, TX
Rep. Luis V. Gutierrez, IL
Rep. Rubén Hinojosa, TX
Rep. Jim Himes, CT
Rep. Paul W. Hodes, NH
Rep. Paul E. Kanjorski, PA
Rep. Mary Jo Kilroy, OH
Rep. Ron Klein, FL
Rep. Suzanne Kosmas, FL
Rep. Stephen F. Lynch, MA
Rep. Dan Maffei, NY [co-sponsor] Rep. Carolyn B. Maloney, NY
Rep. Carolyn McCarthy, NY
Rep. Gregory W. Meeks, NY
Rep. Brad Miller, NC
Rep. Walt Minnick, ID [co-sponsor] Rep. Dennis Moore, KS
Rep. Gwen Moore, WI
Rep. Ed Perlmutter, CO [co-sponsor] Rep. Gary Peters, MI
Rep. David Scott, GA
Rep. Brad Sherman, CA
Rep. Jackie Speier, CA [co-sponsor] Rep. Nydia M. Velázquez, NY
Rep. Maxine Waters, CA
Rep. Melvin L. Watt, NC
Rep. Charles Wilson, OH

Help with this all important public outreach. NOW REALLY IS THE TIME!

Here’s a sample letter you can use:

Dear Representative,

Please co-sponsor and/or support H.R.1207, an effort to audit the Federal Reserve.

Recently, it has come to light that there is little to no accountability to the people on the part of the Federal Reserve. While the citizens of this country are required by law to give an accounting of every penny they come in contact with, the Federal Reserve has never been held to the same standard. During this time of extreme economic crisis, the people deserve an accounting of where our money is going.

Currently there are 226 co-sponsors for this legislation, and it is enjoying bi-partisan support. Your efforts in supporting this important legislation would go a long way in proving to your constituents that you not only hold the Federal Reserve to the same standard as you do your constituents, but it would also show that you believe in transparency. Anything less than support for this resolution suggests that you are in favor of secrecy and a lack of accountability to the people who pay the bills. We pay the tab; we have a right to know where our money is going.

Unlike recent bills that you voted in favor of that had hundreds of pages and just a few hours to read, this bill can be read in under 5 minutes. I encourage you to take the time to read it, and then move to support it.

Thank you in advance for your attention on this important legislation. I have every expectation that you will do right by your constituents and support this measure.


Step 3: The People

Tell everyone you know about HR 1207 and ask them to support it and to contact their representative as well. Link to this page and to

This initiative is crucial and we need to redouble our efforts to get HR 1207 passed.

  • Pingback: Inspired By Nature()

  • Pingback: Cartoon: You’re Going to Audit OUR Bank? | Austrian Economics Blog()

  • Todd

    I want to thank everyone here for partnering together with those present leaders who are working in the same spirit as those who hammered out one of the greatest documents in the history of the world. (The United States Constitution). And fighting against its domestic enemy’s

    Long live the Republic

  • Joan Halgren

    Wow, longshotlouie, giving the Federal Reserve increased powers to guard against the types of risks that could bring down the entire system is really more scary than our present reality! Thanks for the tip regarding Shelby, my note has been sent to him! Onward we go in this fight for economic justice.


  • longshotlouie

    HR 1207’s Senate version, S. 896, has been severely watered down, according to Iowa Senator Chuck Grassley. Grassley named the top Republican on the Banking Committee, Richard Shelby, Sen. from Alabama, as the man pouring the water.

    Let’s let Mr. Shelby know what we think.

  • longshotlouie

    The Other Foot

    The Obama administration says it is committed to overhauling the country’s financial rule book by giving the Federal Reserve increased powers to guard against the types of risks that could bring down the entire system.

    All large institutions whose failure could threaten the stability of the financial system will be subjected to regulation by the Fed, administration officials said.


  • Joan Halgren

    Kevin’s news is so sad–to think we are so scared, secretive in our country and apparently cannot conduct business in an honest fashion. Indeed, transparency is needed! Although hundreds of international banks are members of the Federal Reserve albeit I don’t see how this equates to a national security problem! Kevin, I suggest that you ask Hinojosa for a clarification and share it with us! Thanks!

  • Kevin

    I wrote my congressman Ruben Hinojosa and he wrote me back. The letter he sent me was very strange, citing National Security as his reason for not co-sponsering the bill. This is his letter back to me with his explanation.

    Dear Kevin:

    I appreciate receiving your comments regarding H.R. 1207, The Federal Reserve Transparency Act of
    2009 introduced by Rep. Ron Paul. I am always eager to hear from my constituents because it allows me
    to better represent your views.

    H.R. 1207 repeals the authority of the Comptroller General to carry out onsite examinations of open
    insured banks or bank holding companies when the federal regulatory agency has consented in writing.
    The bill mandates that before the end of 2010 the Comptroller General must complete an audit of the
    Board of Governors of the Federal Reserve Sytem and the federal reserve banks. I would like to assure
    you that I am closely monitoring this bill’s progress. There are still many questions to be answered
    Committee on Financial Services of which I am a member. I will keep your thoughts in mind as this bill
    advances through the legislative process.

    Thank you for contacting me and I hope to hear from you again. Please, continue to have an active
    interest in your government.

    Ruben Hinojosa

  • Pingback: Ron Paul’s Bill To Audit The Federal Reserve Now Has 224 Co-Sponsors and Growing! | Romanian National Vanguard News Agency()

  • Tim

    Who has audited the Fed? Perhaps, you can tell me where I can get a copy of the Fed’s Annual Financial Report, 10k and 10Q like every other private corporation is required to complete and file? Perhaps, you can explain to me why M3 (The Money Supply) is longer reported to Congress?

    • Joan Halgren

      So what’s missing from this information that is not satisfactory from an accounting perspective? Then, I’ll take it from here: (directly from Fed’s Web site):

      Federal Reserve System financial statements
      The Board of Governors and the Federal Reserve Banks annually prepare financial statements reflecting balances (as of December 31) and income and expenses for the year then ended. The Federal Reserve Bank financial statements also include the accounts and results of operations of several limited liability companies (LLCs) that have been consolidated with the Federal Reserve Bank of New York (the “consolidated LLCs”).

      The Board of Governors, the Federal Reserve Banks, and the consolidated LLCs are all subject to several levels of audit and review. The Reserve Banks’ financial statements and those of the consolidated LLC entities are audited annually by an independent audit firm retained by the Board of Governors. To ensure auditor independence, the Board requires that the external auditor be independent in all matters relating to the audit. Specifically, the external auditor may not perform services for the Reserve Banks or others that would place it in a position of auditing its own work, making management decisions on behalf of the Reserve Banks, or in any other way impairing its audit independence. In addition, the Reserve Banks, including the consolidated LLCs, are subject to oversight by the Board.

      The Board of Governors’ financial statements are audited annually by an independent audit firm retained by the Board’s Office of Inspector General. The audit firm also provides a report on compliance and on internal control over financial reporting in accordance with government auditing standards. The Office of Inspector General also conducts audits, reviews, and investigations relating to the Board’s programs and operations as well as of Board functions delegated to the Reserve Banks.

      Financial statements of the Federal Reserve System
      (as of and for the years ended December 31, 2008, and 2007)
      Combined Federal Reserve Banks (3.3 MB PDF)
      Federal Reserve Bank of Atlanta (2.0 MB PDF)
      Federal Reserve Bank of Boston (663 KB PDF)
      Federal Reserve Bank of Chicago (2.0 MB PDF)
      Federal Reserve Bank of Cleveland (856 KB PDF)
      Federal Reserve Bank of Dallas (667 KB PDF)
      Federal Reserve Bank of Kansas City (711 KB PDF)
      Federal Reserve Bank of Minneapolis (734 KB PDF)
      Federal Reserve Bank of New York (1.0 MB PDF)
      LLCs Consolidated by the Federal Reserve Bank of New York
      Commercial Paper Funding Facility LLC (325 KB PDF)
      Maiden Lane LLC (432 KB PDF)
      Maiden Lane II LLC (348 KB PDF)
      Maiden Lane III LLC (364 KB PDF)
      Federal Reserve Bank of Philadelphia (645 KB PDF)
      Federal Reserve Bank of Richmond (687 KB PDF)
      Federal Reserve Bank of San Francisco (834 KB PDF)
      Federal Reserve Bank of St. Louis (686 KB PDF)
      Board of Governors (612 KB PDF)
      The financial statements of the Board of Governors and the consolidated LLC entities are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”); those of the Federal Reserve Banks are prepared in accordance with the Financial Accounting Manual for Federal Reserve Banks (“Financial Accounting Manual”). Accounting principles for entities with the unique powers and responsibilities of the nation’s central bank have not been formulated by accounting standard-setting bodies. The Board of Governors has developed specialized accounting principles and practices that it considers to be appropriate for the nature and function of a central bank, which differ from those of the private sector. These accounting principles and practices are documented in the Financial Accounting Manual, which is issued by the Board of Governors. The primary difference between the accounting principles and practices in the Financial Accounting Manual and GAAP is the presentation of all System Open Market Account (SOMA) securities holdings at amortized cost, rather than using the fair value presentation required by GAAP. U.S. government securities and investments denominated in foreign currencies comprising the System Open Market Account are recorded at cost, on a settlement-date basis, and adjusted for amortization of premiums or accretion of discounts on a straight-line basis. Amortized cost more appropriately reflects the Reserve Banks’ securities holdings given the System’s unique responsibility to conduct monetary policy. In addition, the Reserve Banks have elected not to present a Statement of Cash Flows because the liquidity and cash positions of the Reserve Banks are not a primary concern given their unique powers and responsibilities. Other information regarding the Reserve Banks’ activities is provided in, or may be derived from, the Combined Statements of Condition, Income and Comprehensive Income, and Changes in Capital.
      Financial Accounting Manual for Federal Reserve Banks (3.1 MB PDF)

      • Tim

        Thank you for your information. Now do you see anything wrong with publically auditing their books?

        For example, how much has M3 increased relative to GDP and therefore, to what extent will inflation reduce the purchasing power of my IRA savings?

        • Sean

          The M3 is like 14 trillion i think.. The point is, when the public doesn’t borrow money the money supply contracts so the federal reserve and government has to step in and borrow money. It doesn’t matter if the federal reserve borrowed 3 trillion dollars because the money supply probably contracted 3 trillion dollars during the past two years and next year combined with the lack of public borrowers.

          Money contraction = Deflation
          Money contraction = job loss

          As you can see, the money borrowed from the government and federal reserve will replace the amount of money created by the public during this recession. There will be no out of ordinary money expansion in our country.

          • Sean

            the public borrows around 1.8 trillion dollars a year. When public borrowing stops which it has, the money supply contracts causing a recession. Jobs become lost and the government must step in and inflate the dollar or job creation wont take place. Inflating the dollar creates jobs. Vice versa, deflating the dollar decreases jobs.

          • Nate Y

            Well then I guess you’ll be buying government bonds and holding onto all your dollars.

            The artificial boom is the problem. The inevitable bust (recession) is the solution.

            Destroying the purchasing power of the dollar (inflating the dollar) does not create jobs in any meaningful sense. It only transfers wealth from one sector of the economy (destroying jobs there) to some new government favored sector (creating jobs there). Being government sponsored/regulated, these new jobs/industries are less efficient than those that would have emerged via the free market. Hence, we get a less productive economy.

            Full employment is not the goal of economies.
            Full/efficient production is the goal.

            You still gotta read Economics in One Lesson dude. You constantly fall victim to all the common fallacies.

          • Sean

            My grandfather taught insurance and made policies for 40 years. He has always had his money invested into bonds. The wealthiest men alive have all their money invested into bonds. Warren Buffet has 100% of his money invested in securities.. It’s not a bad idea, they do profit. They even have inflation bonds you can invest in. Check out that website ^

            your correct that booms cause busts and money contractions do cause unemployment to rise but inflating the dollar in general does create jobs in a macrolevl sense. More money = more spending = more jobs= inflation. too much money chasing too few of goods.. Deflation is the opposite. Less money = less spending = less jobs = deflation. Not enough money chasing too many goods. That’s what we’ve been experiencing, deflation. That’s why we needed a stimulus. Our money supply depends on us to borrow money because all of our money is created thru debt from loans. When people stop borrowing and as loans become paid back, the money supply shrinks and causes deflation, or lost jobs.

          • Sean

            full employment is not the goal of the economy because it causes too much inflation. That’s why monetarist manipulate interest rates to keep unemployment around 3%.

            Production is the goal, but that has to do with trade policy, not monetary.

          • Nate Y

            If they stay have all their money tied up in treasuries and dollars, they’ll eventually be much much poorer.

            Your definitions of inflation and deflation are still incorrect. Fix them asap.

            Printing money will never solve the problems. It can only delay and magnify them.

          • Sean

            no, because they make money off of them. Thats what our tax dollars go towards.

            here. this will explain it better.

          • Nate Y

            Meh we’ll see. Give it some time. US dollars and US bonds will be worth much less in 10 years time if the government does what it intends to do.

            If our tax dollars go to those who invest in government bonds, how can you not see how blatantly corrupt and inefficeint that is?

          • Sean

            Our government is 11 trillion dollars in debt. 7 trillion dollars of that money is owned by the public, by people like my grandfather.. Most of our spending comes from our own savings.

            The government isn’t planning massive inflation. That link up there shows you that government borrowing replaced consumer borrowing so there won’t be any drastic inflation.

          • Nate Y

            We’ll see…let’s see if we don’t see the consequences of all this inflation a few years down the road.

      • Alan Avery

        Mr. Hedge Unleashed

        Market-stabilizing regulations, which protected companies’ stock from an inevitable international “leveraged” feeding frenzy were jettisoned. A hedge fund can now buy unlimited “insurance” on shares of any stock (for pennies on the dollar) and control its price through the buying and selling of the insurance (derivative put options) without ever investing in the company.

        Buying covered “put” stock options is like paying an insurance premium to cover an unexpected decline in ones stock’s price and is a conservative and healthy risk management practice when effectively regulated.

        If Mr. Hedge owned 1 million shares of XX stock @ an average of $40.00 a share (forty million dollars), he could “hedge” his bets under the former regulations by paying a “put-premium” for a kind of insurance protecting him against a decline in the price of XX. A large holding company such as AIG or Bear Sterns would sell the stock insurance coverage and collect the premium from Mr. Hedge.

        This is called “writing” a put option for those buying them. They collect premiums for a “derivative” income stream. (Derived from premium income.)
        Like other insurance products, the shorter the period for which Mr. Hedge buys the “insurance” (along with the low statistical probability of extreme loss occurring) the cheaper the insurance premium will be.

        A purchase of this insurance on speculation that a quality company like XX falls in price from $40.00 to $20.00 in only 90 days given no other rogue factors would be historically, highly improbable. (in a sane trading environment) Thusly, the “premium” would be dirt-cheap.
        Coverage against such a rapid decline in XX price might cost as little as $2.00 per contract (protecting 100 shares). A purchase of 10 thousand contracts would help to insure 1 million shares or, 40 million dollars on XX for a premium of $20,000.00. If there is no decline within 90 days, the insurance contracts expire.

        This is known as hedging, a facet of “risk management” and is normally a principal conservation practice, used by all financial institutions.
        Now, let us de-regulate this otherwise conservative practice so that anything goes.

        With essentially no regulation or oversight, Mr. Hedge now sets out on a creative financial journey. He buys 1 million more 90 day put contracts at $2.00. without buying any more XX stock. Total premium outlay: 2 million dollars.

        These are called “naked or Bear put options because Mr. Hedge has not “covered” his insurance purchase with an actual purchase of the equivalent amount of xx stock. Why?

        If the price of XX falls to around $20.00 in the next 30-90 days, he can exercise his 10 thousand contracts of insurance on his XX holdings effectively offsetting his loss. It is absurdly unlikely that natural market forces will so quickly drive XX’s price down to the levels projected. However, he owns so many shares of XX that he may be able to help things along.
        “Why would Mr. Hedge want to drive down the price of his own shares?”

        The REAL Agenda:
        Unregulated and insured to the hilt, Mr. Hedge begins short selling XX (another way of betting against the stock) – while selling off /dumping large amounts his actual XX stock holdings, causing market panic selling-momentum. Amazingly, there are no regulations to stop him. As expected, XX begins falling.

        Next, Mr. Hedge begins collecting on his some of his put insurance contracts for his stock losses. He continues unloading shares at a terrific rate. The markets notice his purchase of 1 million naked put contracts and it spreads like wildfire. The price decline continues while other traders, panicking, pile in and sell their shares, buying puts, just like Mr. Hedge.

        News and speculation enter the mix. No one knows why prices were falling, not even the bewildered, under-suspect executives at XX.

        Investors flock to insurers, buying up put options on XX to insure against further losses. Supply and demand cause the premium price on XX put options to skyrocket, and Mr. Hedge just so happens to own…1 million contracts.

        Here’s Where The Money Is Made Hand Over Fist!
        Now, Mr. Hedge begins “re-selling” on the open market the excessive 1 million put contracts he purchased at $0.02 per share/$2.00 per 100 share contract. They now sell for $4.00 or 400 DOLLARS PER CONTRACT.
        Over the next 40-60 days, as XX crashes, Mr. Hedge unloads 1,000,000 XX put contracts in worldwide markets at an average of $400.00 per contract.

        His profit: 400 MILLION. He is now in A FAR MORE PROFITABLE unregulated insurance-reseller business, and could care less about investing in actual stocks.

        Mr. Hedges of Wall Street are now buying and selling the World’s Economy, freely, through the unrestricted leveraging of insurance contracts.
        XX Corp was not an ailing company. Finding an ailing company to abuse using such unmitigated tactics is no longer necessary. Any good company will do.

        No Questions Asked.
        After the collapse, from writing too much of the put insurance, our government now helps Mr. Hedge collect insurance benefits owed him from defunct companies, buy using our tax dollars. We are throwing billions through the doors of giant insuring companies and all those institutions who suddenly thought it wise to start selling unlimited insurance coverage to Wall Street hedge fund companies.

        It was and is -going straight out their back door, to pay Mr. Hedge his profits. They continue, even today, to operate unregulated.

        For the Mr. Hedges to have had their way with America completely, the Uptick rule and Margin Limits and Oversight all had to go. Curiously and quietly, they did….as the markets went into the inevitable tailspin.

        The task it seems is conveying the immense destructive power that unlimited naked put option trading (leveraging through insurance) can wield when focused on any one public company. Especially when equity sell offs are executed by several corrupt fund managers in concert. In our current regulatory environment, they can literally gang up and program the demise of a company like writing a musical score.

        For those who think there are sufficient regulations in place, only needing enforcement, please consider the fact that part of the rules that were jettisoned, were the ones that allow any right to investigation or oversight at all.

        Consider this: All of a sudden in the morning paper, you see life insurance regulations dropped in favor of freeing up markets.

        The next day your cousin calls you and schedules a physical exam which by law you now must comply with. At the exam, he buys a million dollars of life insurance on your life with money he borrowed on his home, and he is the beneficiary. The underwriting rules governing whether or not he has any legitimate insurable interest on your life are no longer on the books.

        He now owns a million on your life. At first, he is willing for you to live out your years, but as time goes on, the possibility of a million in cash in his hands changes the way he thinks and the power of that much money literally propels him to think of ways to shorten the waiting period.

        It is insidious at first, which helps buy time for his moral senses to slowly become enveloped in a shell of denial regarding the new twists in his consciousness. Publicized

        Three months later, you are being followed and people are in your yard late at night and your food tastes funny. Now here is the real clincher. You call the authorities and the phone has been disconnected. There is no longer a department to investigate activity, which might lead to your life being shortened.

        With insurance, (which is the ultimate leverage) when someone can buy coverage on you or your company and in unlimited amounts, without your permission, the potential for corruption and greed increases in direct proportion the amount the beneficiary stands to gain.

        Furthermore, If the beneficiary cannot afford to carry out the necessary detrimental acts to facilitate the collection of insurance benefits, he can use the insurance he has purchased as collateral. This amounts to compounded leveraging.

        But wait! There’s more!
        After cousin collects on your life, he will have enough cash to buy one hundred more million dollar policies on one hundred more people.
        The inevitable: The world’s largest insurance company and a slew of holding companies go broke from unregulated insurance underwriting and everybody is left holding a bag of rocks.

  • Tim

    Forget political parties. Any member of Congress that does not support auditing the Fed (i.e. telling the people where their money is going) should be thrown out of office.

    • Joan Halgren

      Okay, but the Federal Reserve is audited. So what are you saying? I need clarification. Want the facts.

      • Nate Y.

        Have you read HR1207? It clearly explains what it would change about the audit. Give it a read.

  • Joan Halgren

    Okay, now I’m confused about this legislation. According to the Federal Reserve System’s Web site, “The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review.” And done by an outside auditor. Are you saying it should be done by someone within the ‘actual’ government and what makes you think this will be more truthful than an outside auditor?

    And how will this legislation change anything? Please clarify. (I’ve asked the Fed to direct me to a copy of their annual report, a listing of their quasi-governmental agency stockholders, and it will be interesting how they answer these requests.) Meanwhile, however, what good is HR 2012 even if passed when so much manipulation is going on?

    • Nate Y

      Have you read HR1207? It clearly explains what it would change about the audit. Give it a read.

  • Pingback: Bunnysbuzz()

  • I am a retired disabled Vietnam veteran that has more time than money and I have strong feeligns about standing up for principles!!I have sent 6 different faxes to all members of the Finance Committee and will do another shortly. I have also sent a round of faxes to all members of congress that are not listed as co-sponsors on this website. I will send another fax in a day or two. I am learning that if we put enough heat on our elected public tyrants, they will eventually wake up and do what is right!! I encourage everyone to turn up the heat. Make some calls, send some emails or faxes!!

  • john

    John E. Rachal- Its called “Controlled Opposition”.

    Imagine if aliens landed on earth and the government had to cover it up. People heard about it and were wondering the truth about extra-terrestrials.

    The way the government would cover it up, would be to deny it and to hire people to create fake crop circles and get caught doing it so that people would think their all fake.

    You can basically guess that anyone who gets a high paying salary and lots of air time is just controlled opposition, meaning they are VERY LIMITED in the things they can “report”.

    I mean, Look at what these guys do. Rush Limbaugh and Glenn Beck basically talk about “some” of the problems all day long, but they NEVER SUGGEST SOLUTIONS (like Ron Paul being president).

    Our media is a joke and will probably soon become like the system in “V for Vendetta”.

    • John

      Very well put! By the way, I saw “V for Vendetta”. I
      would highly recommend this movie to everyone! The
      part in the movie that says “Go out and tell the people
      how much they need us (the powers that be)”, is most
      chilling to say the least.

  • Has anyone noticed that HR 1207 is never mentioned on TV? I know
    that the 3 main stations (CBS, NBC and ABC) have been on the take
    for over 40 years now, but I have not heard about it on Glenn Beck
    or anywhere else. WHAT GIVES HERE?

  • Kurt

    I am still pushing Delahunt [MA-10]. I have e-mailed and called his office many times over the past month and have not heard one thing from him. It is most disappointing but I will keep trying.