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Audit the Federal Reserve

The Dodd bill (Senate bill 3271) grants enormous new powers to the Federal Reserve.

Senator Bernie Sanders of Vermont is filing an amendment (S. 3738) to “audit the Fed” which currently has fifteen cosponsors.

America needs ponder if a private, independent institution should control such a substantial part of financial system without complete and thorough oversight.

Under the Dodd bill the Fed will be responsible for:

1. Monetary policy
2. Controlling inflation
3. Full employment
4. Supervising the largest financial firms (banks)
5. Supervising other “systemically important” firms that the risk council designates (hedge funds, insurance firms, Citadel, Pimco, Blackrock etc…)
6. Overseeing payment and settlement systems
7. Interfacing with foreign central banks and global authorities

Because of the breadth of these responsibilities the Fed will handle trillions of dollars on a regular basis. As we saw with Bear, Lehman and AIG the potential for favoritism and forbearance is enormous for the Fed.

The Fed must be audited on a regular and independent basis by the Government Accounting Office.

Cosponsors of the “Audit the Fed” amendment S.3738 (as of 4/30)

Sen Feingold, Russell D. [WI] – 4/29/2010
Sen DeMint, Jim [SC] – 4/29/2010
Sen Leahy, Patrick J. [VT] – 4/29/2010
Sen McCain, John [AZ] – 4/29/2010
Sen Wyden, Ron [OR] – 4/29/2010
Sen Grassley, Chuck [IA] – 4/29/2010
Sen Dorgan, Byron L. [ND] – 4/29/2010
Sen Vitter, David [LA] – 4/29/2010
Sen Boxer, Barbara [CA] – 4/29/2010
Sen Brownback, Sam [KS] – 4/29/2010
Sen Risch, James E. [ID] – 4/29/2010
Sen Wicker, Roger F. [MS] – 4/29/2010
Sen Graham, Lindsey [SC] – 4/29/2010
Sen Hatch, Orrin G. [UT] – 4/29/2010
Sen Crapo, Mike [ID] – 4/29/2010

The people must have confidence in a sound central bank and currency.

This confidence comes from sunlight and honesty.

Audit the Fed.

More at Riski on reform of the Federal Reserve.

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