Barney Frank on HR 1207, Ron Paul’s Bill to Audit the Federal Reserve

Earlier this week, Congressman Barney Frank, the Chairman of the House Banking Committee, sent the following email to a Ron Paul supporter:

Dear Ms. _______,

Thank you for expressing your support for H.R. 1207. I have told Ron Paul, with whom I have worked closely on a number of issues, that I agree with the general thrust of his bill and I am planning to see that we take action on this subject in the committee which I chair. There have already been some moves forward in increasing the transparency of the Federal Reserve, and I agree that there are further steps we can take. I cannot at this point tell you exactly how I think we should proceed, but I will be in the next few weeks meeting with the chairs of the subcommittees who have jurisdiction over this matter, as well as with Representative Paul, to plan a course of action that will result in much more openness with regard to the activities of the Federal Reserve. I also intend when this current crisis is over to seek an amendment to the law which was passed in 1932 and signed by Herbert Hoover, which gives the Federal Reserve vast powers to lend money to any entity in America which it deems sufficiently collateralized whenever the Federal Reserve thinks there are exigent circumstances. I do believe that the Federal Reserve is exercising that power with some good effects recently, but it is not a power that should exist in a democratic society in the hands of an entirely unelected entity and I will be working next year to put some restraints on this power as well.



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  • Concerned as hell

    F-U Frank! You lying snake! LET THE BILL GO THROUGH!!!

  • longshotlouie

    President Obama’s plan to give the privately-owned and unaccountable Federal Reserve complete regulatory oversight across the entire U.S. economy, which is likely to be enacted before the end of the year, will officially herald the beginning of a new form of government in the United States – an ultra-powerful banking dictatorship controlled by a small gaggle of shadowy and corrupt elitists.

    The new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets.

    This goes a step further than the centrally planned economies of the Soviet Union or Communist China, in that the Federal Reserve is not even accountable to the U.S. government, it is a private entity that according to former Fed chairman Alan Greenspan, is accountable to nobody but the banking families that own it.

  • longshotlouie

    The amount of US taxpayer money committed to bailouts over the last 12 months by far exceeds the combined cost of major historical events dating back over 200 years.

    The combined amount spent, lent, consumed, borrowed, printed, guaranteed, assumed or otherwise committed to bailouts by the government from March 2008 to March 2009 amounts to some $15 TRILLION.

    What does just one trillion look like?

  • Jim Stewart

    I do not understand Barney Frank’s concern at the Federal Reserve’s vast powers to lend money to any entity in America which it deems sufficiently collateralized. Anyone is free to lend money to anyone or any entity.

    Deeming such loans sufficiently collateralized does not reduce risks of defaults and losses due to insufficient collateral. That’s what has been happening on a grand scale since 2007.

    Barney Frank and generations of taxpayers should be concerned that the law passed in 1932 and signed by Herbert Hoover was and is interpreted as authorising government bailouts of bankrupt banks!

    From my research there is no valid authority for government bailouts of bankrupt banks. Can Ron Paul clarify?

  • Mark

    We all need to start taking more action!! I have emailed both my senators about S. 604 and plan to call both!! We need to also start documenting and making public their responses!! Here is the response I got from my Congressman, Senator Bob Corker of TN:

    Dear Mr. ________,
    Thank you for contacting my office regarding S. 604, the Federal Reserve Sunshine Act. Your input is important to me, and I appreciate the time you took to share your thoughts.

    Like you, I understand the importance of having strong federal monetary policy with appropriate oversight measures, particularly during these difficult economic times. S. 604 would require the Comptroller General of the Government Accounting Office (GAO) to audit portions of the Federal Reserve that are currently exempt from audit. Due to the Federal Reserve’s active role in trying to diffuse systemic economic risks, I believe access to certain Federal Reserve records is important to ensure appropriate oversight. As a member of the Senate Banking, Housing, and Urban Affairs Committee, I look forward to working with my colleagues to provide better transparency of federal expenditures.

    Thank you again for your letter. I hope you will continue to share your thoughts with me as I serve you in the United States Senate.


    Bob Corker
    United States Senator

    No real commitment to co-sponsor a bill that is a no-brainer, just tried to pacify me… that’s worse that giving me his legit apposing view… THAT I could respect! I will be watching his actions on this!