Audit the Fed Amendment

[xaeniac]

Audit the Fed Amendment Passed 43-26. Discuss.

http://online.wsj.com/article/SB125866015562556197.html

 

[IronWing]

Sounds okay. I don't expect to see much in the way of results though as I suspect most info on the operations of the Fed will be protected as proprietary business info of the member banks.

 

[PokerGuy]

Is this with or without the changes that were introduced by some idiot to gut this bill? There was some discussion a couple of weeks ago about some idiot getting paid by the banks and various lobbyists to introduce changes to essentially gut the legislation.

 

[ayabe]

Grayson and Paul stripped that amendment out, this is the real deal - at least it has a chance of passing now.

Fuck Barney Frank, what a whore.

 

[surfsatwerk]

This is a stupid bill that will only create more bank failures because people will see their bank taking loans from the fed and freak out creating a run on the bank.

 

[ayabe]

I'm a rebellious slave, so I want to know. Trillions of dollars are being pushed around either directly or by way of guarantees.

 

[MotF Bane]

Grayson and Paul stripped that amendment out, this is the real deal - at least it has a chance of passing now.

Fuck Barney Frank, what a whore.

What does Barney Frank have to do with this? It was Mel Watt who wrecked it a few weeks ago.

 

[Red Dawn]

What does Barney Frank have to do with this? It was Mel Watt who wrecked it a few weeks ago.

Maybe he has the hots for old Barney

 

[Darwin333]

This is a stupid bill that will only create more bank failures because people will see their bank taking loans from the fed and freak out creating a run on the bank.

OH THE NOES!!! The public will actually know who we where forced to lend money to.

And come on, a run on the bank?? At least the other guy arguing against it had what sounded like a decent argument.

 

[ayabe]

What does Barney Frank have to do with this? It was Mel Watt who wrecked it a few weeks ago.

"In an unprecedented defeat for the Federal Reserve, an amendment to audit the multi-trillion dollar institution was approved by the House Finance Committee with an overwhelming and bipartisan 43-26 vote on Thursday afternoon despite harried last-minute lobbying from top Fed officials and the surprise opposition of Chairman Barney Frank (D-Mass.), who had previously been a supporter."

****
"[Frank] urged a no vote, yet 15 Democrats bucked him, voting with Paul. Key to winning Democratic support was a letter posted early Thursday from labor leaders and progressive economists. The letter, organized by the liberal blog FireDogLake.com, called for a rejection of the Watt substitute and support for Paul."

So I reiterate, Fuck Frank, he's a whore.

 

[bamacre]

What does Barney Frank have to do with this? It was Mel Watt who wrecked it a few weeks ago.

Frank did a surprise u-turn and supported the Watt Amendment, which removed everything the Paul/Grayson amendment had, and added yet even more barriers to Fed audits.

http://www.huffingtonpost.com/2009/11/19/fed-beaten-bill-to-audit_n_364546.html

 

[bamacre]

This is a stupid bill that will only create more bank failures because people will see their bank taking loans from the fed and freak out creating a run on the bank.

 

[IceBergSLiM]

Frank did a surprise u-turn and supported the Watt Amendment, which removed everything the Paul/Grayson amendment had, and added yet even more barriers to Fed audits.

http://www.huffingtonpost.com/2009/11/19/fed-beaten-bill-to-audit_n_364546.html

I wonder how much he pocketed for doing that.

 

[surfsatwerk]

So you're saying we don't live with a sensationalist media that loves to create fear in the public by cultivating a false sense of emergency when anything goes wrong. During these tough economic times creating more financial instability seems like a poor choice to me.

 

[bamacre]

So you're saying we don't live with a sensationalist media that loves to create fear in the public by cultivating a false sense of emergency when anything goes wrong. During these tough economic times creating more financial instability seems like a poor choice to me.

Ever heard of FDIC?

 

[Brainonska511]

Audit the Fed Amendment Passed 43-26. Discuss.

http://online.wsj.com/article/SB125866015562556197.html

You have your own comments?

 

[ayabe]

So you're saying we don't live with a sensationalist media that loves to create fear in the public by cultivating a false sense of emergency when anything goes wrong. During these tough economic times creating more financial instability seems like a poor choice to me.

Actually, if more transparency were present, I think people would actually feel better about things. Lack of confidence across the entire economy is a huge part of the problem right now.

Things are not going to get markedly better until normal consumers start spending again.

As evidenced by the disconnect between the DOW and the rest of the economy people are wondering why Wall Street is almost doing better than ever, yet everyone else is struggling. If this brings more ire onto Geithner, the big banks, and the Fed well so be it.

Time to clean house.

 

[surfsatwerk]

Ever heard of FDIC?

FDIC is already borrowing from the fed to cover the cost of banks going under. We should not be encouraging an environment where more banks go under needlessly.

 

[IceBergSLiM]

FDIC is already borrowing from the fed to cover the cost of banks going under. We should not be encouraging an environment where more banks go under needlessly.

Did businesses crumble when sarbanes oxley was implemented? no. Why would you expect banks to crumble because of an audit requirement. If they are that insolvent then we need to know it anyways in order to fix the problem.

 

[bamacre]

Excellent Greenwald commentary...
http://www.salon.com/news/opinion/glenn_greenwald/2009/11/20/transparency/index.html

 

[surfsatwerk]

Did businesses crumble when sarbanes oxley was implemented? no. Why would you expect banks to crumble because of an audit requirement. If they are that insolvent then we need to know it anyways in order to fix the problem.

We don't fix the problem though, all the public can do is make it worse by instigating a run on a bank which otherwise may have pulled through given time and aid by the fed.

 

[ayabe]

Bank runs as you describe them cannot happen anymore, get over it.

 

[IceBergSLiM]

We don't fix the problem though, all the public can do is make it worse by instigating a run on a bank which otherwise may have pulled through given time and aid by the fed.

Audits are after the fact anyways they are not in real time. point is moot not even considering the other checks and balances in place like FDIC.

 

[surfsatwerk]

Bank runs as you describe them cannot happen anymore, get over it.

That sounds a lot like "This company is too big to fail."

 

[zephyrprime]

Audits are after the fact anyways they are not in real time. point is moot not even considering the other checks and balances in place like FDIC.

The FDIC only regulates non-federal reserve member banks (i.e. small banks).