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‘AUDIT THE FED’ BILL GATHERS STEAM
TWO MONTHS AFTER REP. RON PAUL (R-Texas) introduced the Federal Reserve Transparency Act of 2009 (H.R. 1207), the bill, which mandates an official audit of the privately owned and controlled Federal Reserve System has already garnered 112 cosponsors. It is currently making the rounds in the House Committee on Financial Services.
Advocates are optimistic that the landmark measure will see the light of day in this Congress and could even come to the floor for a House vote soon.
“This piece of legislation is perhaps the most important of my career,” said Paul upon introducing the measure. “Americans from all over the political spectrum are demanding an audit of the Federal Reserve. And with good reason.”
The extent of the bipartisan support for the measure has even surprised some of its most ardent supporters, who are finding more and more people receptive to calls for transparency and accountability of the Fed.
The bill requires a full audit of the board of governors of the Federal Reserve System and the Federal Reserve banks be completed before the end of 2010. Furthermore, a report on the audit results will have to be submitted by the head of the Government Accountability Office (GAO) to Congress within 90 days of finishing the investigation of the bank. It would then be made available to public.
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The GAO report would include a detailed description of the findings and conclusions with respect to the audit, along with recommendations for legislative or administrative action as the GAO may deem be appropriate.
The bill would also subject the Federal Reserve’s funding facilities, including the Primary Dealer Credit Facility, Term Securities Lending Facility, and Term Asset-Backed Securities Lending Facility to congressional oversight. These are relatively new bodies created by Fed officials, which have worked to keep banks around the United States from going insolvent as a result of the current economic crisis.
“Since its inception, the Federal Reserve has operated without sufficient transparency or accountability to the American people,” said Paul. “[C]urrent law specifically excludes the Fed from audit or real congressional
oversight.”
For more information on the Federal Reserve and the importance of auditing this private bank, order copies of AFP’s special report, titled Audit the Fed. (Call 1-888-699-NEWS to order).
(Issue # 20, May 18, 2009)
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