Misinformation Alert: Barney Frank Never Said That HR 1207 Will Pass In October

Missing Sentence in Transcript Causes Premature HR 1207 Victory Celebration

Several blogs and forums reported during the past 24 hours that Chairman of the House Financial Services Committee, Barney Frank, said that Ron Paul’s bill to audit the Federal Reserve, HR 1207, will pass in October.

Incorrect Reports about Barney Frank’s Statement on HR 1207

  • Washington Times: Barney Frank says Ron Paul bill will pass
  • Politico: Barney: Fed audit bill will pass in October
  • Business Insider: Barney Frank: Yes, We Will Pass Ron Paul’s “Audit The Fed” Bill
  • United Liberty: Frank: Vote on HR 1207 in October
  • Daily Paul: Video: Barney Frank Says House Will Pass HR1207 in October
  • ZeroHedge: Barney Frank Says The House Will Pass HR 1207 In October
  • Mish: Barney Frank Says Ron Paul’s Audit The Fed Bill Will Pass In October – (Update posted)
  • Washington Independent: Ron Paul’s ‘Audit the Fed’ Bill to Get October Vote?
  • The source of the rumor seems to be the following video.

    A sloppy and incomplete transcript, which appears to have originated at the Washington Times which was originally prepared by Mish and then copied by the Washington Times, is making the rounds. The transcript is missing an essential sentence, which is marked in bold:

    Barney Frank: “I have been pushing for more openness from the Fed. I want to restrict the powers of the Federal Reserve. First of all, the Fed will be the major losers of power if we are successful, as I believe we will be, setting up a financial product protection commission. The Federal Reserve is now charged with protecting consumers. They were supposed to do subprime mortgage restrictions.

    Congress in 1994 gave the Fed powers to ban subprime mortgages. Alan Greenspan refused to do it. They had the power to ban credit card abuses. Under Greenspan they did nothing. Under Bernanke they started but only after Congress acted.That’s one of the reasons why in the new consumer protection agency, we will take away from the Federal reserve the power to go consumer protection.

    Secondly, they have has since 1932 a right under Herbert Hoover to intervene in the economy whenever they could. Last September, the Federal Reserve they were going to advance $82 billion to AIG. I was kind of surprised and said, ‘Mr Bernanke do you have $82 billion?’ Mr. Bernanke replied, ‘I have $800 billion and under section 13.3 of the Federal Reserve Act they can lend anything they want.’

    We are going to curtail that lending power. We are going to put some restrictions on it.

    Finally we will subject them to a complete audit. I have been working with Ron Paul, who is the main sponsor of that bill. He agrees that we don’t want to have the audit appear as if it influences monetary policy as that would be inflationary.

    One of the things the audit will show you is what the Federal Reserve buys itself. And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. That will be part of the overall federal regulation that we are redacting. This will probably pass in October.”

    (Accurate transcript here.)

    With “This will probably pass in October”, Frank is referring not to HR 1207, but to his own financial regulation bill, which might or might not include some aspects of Ron Paul’s HR 1207. The preceding sentence, “That will be part of the overall federal regulation that we are redacting,” is for some reason missing from the widely distributed transcript, and has therefore been completely ignored by bloggers and commentators.

    In recent weeks Ron Paul repeatedly warned against just this sort of thing happening: that HR 1207 might become part of a more comprehensive financial regulation bill and be watered down so that it appeases the angry masses without instituting any real changes. It would be an irony of history if that happened — if HR 1207 were watered down and integrated into an unconstitutional bill that Ron Paul would have to vote against.

    What did Ron Paul really say?

    It has become fashionable for the political elite to try to distort Ron Paul’s statements for political gain or even put entirely new words into his mouth. Just the other day, Treasury Secretary Tim Geithner said, “Even [Ron Paul] recognizes how important it is to us to have the Fed independent of politics.”

    Now Barney Frank claims that “[Ron Paul] agrees that we don’t want to have the audit appear as if it influences monetary policy as that would be inflationary.”

    Ron Paul never said that an audit of the Federal Reserve would be inflationary. In fact, he has credibly demonstrated the exact opposite: that the secretive Federal Reserve itself is responsible for inflation, with the dollar having lost 96% of its value since the Fed’s creation in 1913.

    Here is what Ron Paul actually said about HR 1207, the bill to audit the Federal Reserve, and why only a real audit will protect the public’s interest.

    Ron Paul: “Mr. Speaker, the big guns have lined up against HR 1207, the bill to audit the Federal Reserve. What is it that they are so concerned about? What information are they hiding from the American people? The screed is: transparency is okay except for those things they don’t want to be transparent.

    Federal Reserve Chairman Ben Bernanke, argues that HR 1207, the legislation to audit the Federal Reserve, would politicize monetary policy. He claims that monetary policy must remain independent, that is; secret. He ignores history because chairmen of the Federal Reserve in the past, especially when up for reappointment, do their best to accommodate the president with politically driven low interest rates and a bubble economy.

    Former Federal Reserve Board Chairman Arthur Burns, when asked about all the inflation he brought about in 1971 before Nixon’s reelection, said that the Fed has to do what the president wants it to do, or it would lose its independence. That about tells you everything.

    Not by accident Chairman Burns strongly supported Nixon’s program of wage and price controls the same year, but I guess that’s not political. Is not making secret deals with the likes of Goldman Sachs, international financial institutions, foreign governments and foreign central banks politicizing monetary policy?

    Bernanke argues that the knowledge that their discussions and decisions will one day be scrutinized will compromise the freedom of the Open Market Committee to pursue sound policy. If it is sound and honest and serves no special interest, what’s the problem?

    He claims that HR 1207 would give power to Congress to affect monetary policy. He dreamt this up to instill fear, an old statist trick to justify government power. HR 1207 does nothing of the sort. He suggested that the day after an FOMC meeting, Congress could send in the GAO to demand an audit of everything said and done. This is hardly the case. The FOMC function under HR 1207 would not change.

    The detailed transcripts of the FOMC meetings are released every 5 years, so why would this be so different and what is it that they don’t want the American people to know? Is there something about the transcripts that need to be kept secret, or are the transcripts actually not verbatim?

    Fed sycophants argue that an audit would destroy the financial markets’ faith in the Fed. They say this in the midst of the greatest financial crisis in history brought on by none other than the Federal Reserve. In fact, Chairman Bernanke stated on November 14th 2007, “A considerable amount of evidence indicates that Central Bank transparency increases the effectiveness of monetary policy and enhances economic and financial performance”.

    They also argue that an audit would hurt the value of the U.S. dollar. In fact, the Fed, in less than a 100 years of its existence, has reduced the value of the 1914 dollar by 96%.

    They claim HR 1207 would raise interest rates. How could it? The Fed sets interest rates and the bill doesn’t interfere with monetary policy. Congress would have no say in the matter and besides, Congress likes low interest rates.

    It is argued that the Fed wouldn’t be free to raise interest rates if they thought it necessary. But Bernanke has already assured the Congress that rates are going to stay low for the foreseeable future. And again, this bill does nothing to allow Congress to interfere with interest rate setting.

    Fed supporters claim that they want to protect the public’s interest with their secrecy. But the banks and Wall Streets are the opponents of HR 1207, and the people are for it. Just who best represents the public’s interest?

    The real question is: why are Wall Street and the Fed so hysterically opposed to HR 1207? Just what information are they so anxious to keep secret? Only an audit of the Federal Reserve will answer these questions.”

    75% Want A Real Audit

    We need to keep up the pressure to make sure that HR 1207 itself is put up for vote. 75% of the American people want a real audit of the Federal Reserve, not a pretend investigation that goes to great pains not to ruffle any feathers, claiming that too close a look at what the Wizard is doing behind the curtain would be “inflationary” (Frank) and “problematic for the country” (Geithner).

  • john

    And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. **That will be part of the overall federal regulation that we are ~~redacting~~.**

    Our congressmen and president are gangsters, nothing more and nothing less.

    They treat us like a ghetto drug dealer treats his junkies, they take our money and live off us and would… without hesitation, kill half of us to keep doing what they’re doing (most likely what the FEMA camps/vaccinations are for).

    Liberty doesnt die each day by guns killing people seeking freedom anymore… It dies with a thunderous applause after electing more special interest whores who screw over the very people putting them into power.

    It is pretty safe to say the only chance we have is if someone nukes washington D.C and we get to start from scratch. anyway i hope this bill passes!

  • Mark Ferguson

    Barney definitely is saying “adopting”, not “redacting”. The 2nd to the last syllable is an “opt” sound, not an “act” sound. And the last sentence is, “The House will pass it, probably in October”, not “This will probably pass in October.”

    But let’s not make mountains out of molehills here. We all know we have to keep alert on HR 1207 to the very end. I’m glad to see that someone, at least, put the question to Barney. We need to keep bringing it up at these townhall meetings, etc.

    And let’s ask C4L to keep us in the loop on this. I have called Ron Paul’s office to get updates on this and never get my calls or emails returned. I can understand that they’re probably very busy, but someone, like C4L must be able to get the daily or weekly download on this and let the rest of us know what’s going on or what to do so we can help. Should we be calling Barney Frank, Nancy Pelosi, what???

    I’d like to hear from someone in Dr. Paul’s office who actually knows what is going on with the Bill. And I hope there is someone there who is competent enough to know what’s going on and what the next step should be.


  • Coacha Q.

    Maybe they want to time the ‘audit’ around the same time they will be forcefully vaccinating everyone with sickness. When people are falling ill/dropping off like dead flies, who will be paying attention? I say no to the vaccine!


  • Lancelot

    OMG !!!!!! is it true ? is the one sensible bill being proposed in this chaotic country not going to pass in October. Im completely shocked that Washington is still for the same bull shit they have been pulling for decades, now what a big frigging surprise that is. I lost my faith for this nation when i couldn’t change the channel with out learning about a child molesting massive drug abusing maniacs death. Of course during that media blitz, Washington passed as many bills as possible and America didn’t even notice. Im going to die a free man but this country is going to live on, as nothing more than a slave to the government and our obsession with self indulgence. May god send us one more man who will rally the millions against the onslaught of those who would have us all in chains.

  • longshotlouie
  • Revolution

    The Federal Reserve banking cartel will have us fighting in World War 3 and kill us all before they let their biggest Ponzi scheme in America be destroyed.

    We must demand our military special forces arrest these criminals before its to late.


  • Ross

    Everyone must keep applying pressure on Congress.For some reason the numbers have suddenly stalled at 282.We are dealing with one of the most powerful institutions on the planet but they do not hold that position because of any prductive capacity.They are there purely by virtue of a self ordained right to create credit.

    The Audit must proceed,otherwise the US people will be debt slaves for decades to come.

  • This is bull. I listened to Alan Grayson on the radio state clearly that Barney Frank will release HR1207 from committee and bring it to the floor for a vote.

    Download the interview HERE: http://www.4shared.com/file/128201552/d2926ca5/TGR_082709.html

    • Dolores Y

      Oh yes…Barney Franks is a man of his word! C’mmon folks, we all know that, right?


  • Coacha Q.

    The only solution is an overthrow of the government with the support of people in government against the corrupt government. The same goes for the military, the police, et cetera. It all boils down to who you serve- God or Satan. I read a story recently about cows that jumped off a cliff in Sweden. Animals don’t generally commit suicide. Kind of like the exorcism in the Bible where Jesus banishes the evil spirits into a herd of swine who then drown themselves. The Anti-Christ must be here. They’re timing the forced vaccinations around the same time the Fed will supposedly be ‘audited’. Everyone needs to say no to the vaccines. Revolt, if necessary. Go with God.

  • Dolores Y

    Posted: August 29, 2009
    12:25 am Eastern

    By Drew Zahn
    © 2009 WorldNetDaily

    Federal Reserve

    The Federal Reserve Board, despite being ordered to disclose to whom it awarded roughly $2 trillion in discount “stimulus” loans, is fighting to keep the information under wraps as a protected “trade secret.”

    Earlier this week, a U.S. district court judge rejected the Fed’s argument that the names of borrowers are exempt from disclosure under the Freedom of Information Act and ordered the board to release the information by Monday, Aug. 31.

    The Fed’s board of governors, however, has now filed a motion asking the judge to delay enforcement of the order, seeking time to appeal and arguing that disclosing which banks borrowed the funds could lead to a backlash from the banks’ customers and stockholders.

    Demand the money managers come clean by signing the petition in support of an audit of the Federal Reserve now!

    “The immediate release of these documents will destroy the board’s claims of exemption and right of appellate review,” the motion said. “The institutions whose names and information would be disclosed will also suffer irreparable harm.”

    Bloomberg LP, which sued the Fed on behalf of its Bloomberg News unit for not complying with a FOIA request last year, disagrees.

    “Our argument is that the public interest in disclosure outweighs the banks’ interest in secrecy,” said Thomas Golden, a lawyer who represents Bloomberg.

    “What has the Fed got to hide?” said Vermont’s Sen. Bernie Sanders in an email reported by Bloomberg. “The time has come for the Fed to stop stonewalling and hand this information over to the public.”

    for more go here:


  • Jonny Q

    WATCH THE VIDEO! Barney franking said “That will be part of the overall federal regulation that we are ADOPTING.”

    • chris

      wrong context. the reason for Barney’s bill is to mirror ron pauls, so why would he point out just one thing he’s ‘adopting’? and your the only one so far i’ve heard of who thinks he’s not saying redacting.

  • dizzie56

    maybe its a mixed blessing. even tho barney was talking about his bill, it makes the public more aware of the bill itself with all the miss reporting. they are all saying that Ron Paul’s bill will get voted on or passed in october and in doing so maybe it will garner more support for the cause by making more people aware, especially the people who walk around like they are asleep. who knows, it may work out for the best if more people know about it and suddenly become as pissed as we are about not being able to know what the Fed is doing behind the scenes and that we are not even allowed to ask.

  • mike

    It has become fashionable for the political elite to try to distort Ron Paul’s statements!


    I think the information most people are interested in at this point is Goldman Sachs relationship with the federal reserve and any conflict of interests

  • Jim Linn

    The big question is “what is the FED hiding, and why is it being protected by “Patriots” in Congress?” Could it be that the FED is financing our enemies? This would surely come out in an honest, detailed audit.

    • Dolores Y


  • Mark

    The transcript/bolded sentence is NOT correct (watch the video!) Barney stated “It will probably pass in October” NOT “This will probably pass in October” This was also in response to a person in the audience asking “by the end of the year?” (which also doesn’t appear in the transcript) after Barney stated “That will be part of the overall federal regulation that we are redacting (sounded like “adopting” not “redacting” so the bit about October is referring to the follow-up question, not Barney’s previous statement.

    Bottom line: forget the transcript and just watch the video! He was clearly asked when we could expect the bill to be voted on and he said it will probably pass in October. But don’t believe me (or the transcript) watch the end of the vid and see for yourself!

    The media is right and we *should* be celebrating!

    • chris

      With “This will probably pass in October”, Frank is referring not to HR 1207, but to his own financial regulation bill, which might or might not include some aspects of Ron Paul’s HR 1207. The preceding sentence, “That will be part of the overall federal regulation that we are redacting,”

      all i did was quote the rest of the article, you are misunderstanding or havn’t read the whole thing. you should NOT be celebrating yet

      • chris

        And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. **That will be part of the overall federal regulation that we are ~~redacting~~.**

        redacting is a fancy way of saying he’s ‘changing’ it, as to say changing that aspect of ron pauls bill in his own bill

        he’s making a liberal version of ron pauls bill.

  • David Weirich

    This is the primary clause in HR 1207:

    (A) REQUIRED- A report on the audit referred to in paragraph (1) 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.

    That’s about it. Despite his opposition to the Fed, Congressman Paul is being very generous in HR 1207, requiring disclosure of the audit findings to only a few select members of Congress, NOT the entire US population. Mr. Bernanke, how the hell would that threaten monetary policy?

  • Coacha Q.

    Why are they even still supporting the existence of the Fed? They should really just end it and the U.S. should issue its own, interest-free fiat money. Don’t the same people own most of the gold? A gold-backed currency may not be the solution.



    • VR
      • Michael Wagner

        The “gold standard” is not the answer. A “gold standard” could still be a fractional standard with only enough gold to cover banking reserves. This is not acceptable and will not get us anywhere.
        What we need is the repeal of all legal tender laws. We will then be able to chose for ourselves what money we will use. (History shows that given the choice, people chose gold or silver coin.)
        A truly sound money will not be “dollars” but rather specific weights of whatever commodity is chosen. Prices will be expressed as grams, ounces, pounds, etc. of the metal. It won’t matter whose picture is on the coin, only that it contains the stated amount of metal. There are simple tests that can prove the weight and purity of the coin, making counterfeiting impossible.

  • David Weirich

    Ben Bernanke is lying when he says HR 1207 will threaten monetary policy. Currently, the Fed has control over monetary policy through the Fed Open Market Committee, which was established by an act of Congress in the Federal Reserve Act. HR 1207 will do NOTHING to restrain the FOMC, but will audit the rest of the Fed’s actions. The FOMC already has to publish it’s target interest rates and it’s operations, so how will HR 1207 change any of this? It is because HR 1207 would disclose Fed activities IN ADDITION to its monetary control policies, and this is why Bernanke is concerned.

  • Dolores Y

    They don’t want an audit because it will show who’s sleeping with who.

    They don’t have a problem being “transparent” with going after the cia or anyone else who steps on their toes.

    But God forbid they confess their sins and admit their hands are filthy with blood.

    They don’t care what we want. We are all peasants and paupers.

    Can you imagine the implications to both parties if we found out what they were really doing with our money?

    Ron Paul has my support!

  • mike