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I don't think this is a partisan issue, it needs to be done and I'm glad so many in Congress agree. About time.
Yeah, 15 Dems is a good number, but of course the delta between parties is suspicious. I'm sure some don't want to tee off "esteemed" TurboTax Tim or Helicopter Ben.
Yeah, 15 Dems is a good number, but of course the delta between parties is suspicious. I'm sure some don't want to tee off "esteemed" TurboTax Tim or Helicopter Ben.
When I first got notification of this from the Campaign for Liberty emailer, I wrote my local Congressman about it. Well this and the 2009 food safety act, and was a little dismayed at the response. Normally my Congressman who is a fairly conservative Democrat is pretty responsive, but seemed indifferent to this. So, I sent out a few emails to others in my district and hopefully he will get on board with this.
This is probably the least transparent area where government has any form of oversight. It is long over due and one would think it shouldn't take legislation to merely do an audit.
H.R. 1207:
111th Congress Federal Reserve Transparency Act of 2009
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Summary:
2/26/2009--Introduced.
Federal Reserve Transparency Act of 2009 - Repeals the authority of the Comptroller General to carry out an onsite examination of an open insured bank or bank holding company only if the appropriate federal regulatory agency has consented in writing. (Retains the authority of the Comptroller General to audit a federal agency.)
Directs the Comptroller General to complete, before the end of 2010, an audit of the Board of Governors of the Federal Reserve System and of the federal reserve banks, followed by a detailed report to Congress.
[quote=TnHilltopper;8585119]When I first got notification of this from the Campaign for Liberty emailer, I wrote my local Congressman about it. Well this and the 2009 food safety act, and was a little dismayed at the response. Normally my Congressman who is a fairly conservative Democrat is pretty responsive, but seemed indifferent to this. So, I sent out a few emails to others in my district and hopefully he will get on board with this.
This is probably the least transparent area where government has any form of oversight. It is long over due and one would think it shouldn't take legislation to merely do an audit.[/QUOTE]
What current audit authority shortfall over the Federal Reserve do you believe this would patch?:
The Federal Reserve's ultimate accountability is to Congress, which at any time can amend the Federal Reserve Act. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.
To ensure financial accountability, the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor. In addition, the Government Accountability Office, as well as the Board's Office of Inspector General, can audit Federal Reserve activities.
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. Under the Federal Banking Agency Audit Act (enacted in 1978 as Public Law 95-320), which authorizes the Comptroller General of the United States to audit the Federal Reserve System, the Government Accountability Office (GAO) has conducted numerous reviews of Federal Reserve activities. In addition, the Board's Office of Inspector General (OIG) audits and investigates Board programs and operations as well as those Board functions delegated to the Reserve Banks. Completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board’s Annual Report (before 2002, the reviews were listed in the Board's Annual Report: Budget Review).
The Board's financial statements, and its compliance with laws and regulations affecting those statements, are audited annually by an outside auditor retained by the OIG. The financial statements of the Reserve Banks are also audited annually by an independent outside auditor. In addition, the Reserve Banks are subject to annual examination by the Board. The Board's financial statements and the combined financial statements for the Reserve Banks are published in the Board's Annual Report.
FRB: FAQs: Federal Reserve System (http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#9 - broken link)
This Act may be cited as the ‘Federal Reserve Transparency Act of 2009’.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after ‘shall audit an agency’ and inserting a period.
(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:
‘(e) Audit and Report of the Federal Reserve System-
‘(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.
‘(2) REPORT-
‘(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.
‘(B) CONTENTS- The report under subparagraph (A) 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.’.
So what is adding a period and striking all out after consist of? Lets look at what is being altered in this subsection in question.
Quote:
§ 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 Federal Reserve Board, Federal reserve banks, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.
(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 Federal Reserve 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 of Governors and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.
That seems like a pretty substantial amount of information in subsection 714 that wasn't privy to being audited. What is the problem with doing a full and complete audit?
H.R. 1207:
111th Congress Federal Reserve Transparency Act of 2009
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Summary:
2/26/2009--Introduced. Federal Reserve Transparency Act of 2009 - Repeals the authority of the Comptroller General to carry out an onsite examination of an open insured bank or bank holding company only if the appropriate federal regulatory agency has consented in writing. (Retains the authority of the Comptroller General to audit a federal agency.) Directs the Comptroller General to complete, before the end of 2010, an audit of the Board of Governors of the Federal Reserve System and of the federal reserve banks, followed by a detailed report to Congress.
What's the point of this bill? To audit the Fed? What is the need here? Do we want to report exactly who has been borrowing from the Fed, etc.? That would be terrible for the economy.
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