Federal_Reserve_Transparency_Act_of_2009

From Wikipedia, the free encyclopedia Federal Reserve Transparency Act Federal Reserve Transparency Act operations, and its agreements with foreign bankers.[3] Proponents state that the Fed has never been audited by Congress since the Fed’s creation in 1913.[4][5] Until 2009, the idea of auditing the Fed was considered a low-minority political position, supported by groups like the John Birch Society.[6] The Federal Reserve states that "the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor."[7] Paul says that the present audit process exempts the Fed’s "most crucial activities".[8] The 2009 Tea Party protests widely featured H.R. 1207 advocacy signs, using slogans such as "’Fed’ Up" and "Taxed Enough Already". The Federal Reserve Transparency Act of 2009 (H.R. 1207) is a bill introduced in the U.S. House of Representatives of the 111th Congress by Congressman Ron Paul (TX-14). The bill proposes a reformed audit of the Federal Reserve System (the "Fed") before the end of 2010; it has 179 cosponsors, and has been referred to the Committee on Financial Services. Its Senate version is called the Federal Reserve Sunshine Act of 2009. A related bill uses the same two names in reverse order. Bill progress House Representative Ron Paul introduced the bill to the U.S. House of Representatives of the 111th Congress on February 26, 2009, at which point it was referred to the Committee on Financial Services.[9] Its 11 original cosponsors were Neil Abercrombie (D-HI), Michele Bachmann (R-MN), Roscoe Bartlett (R-MD), Paul Broun (R-GA), Dan Burton (R-IN), Walter Jones (R-NC), Steve Kagen (D-WI), Ted Poe (R-TX), Bill Posey (R-FL), Dennis Rehberg (R-MT), and Lynn Woolsey (D-CA).[1] Paul stated to the Congress, "The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government-established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight?"[10] He immediately promoted the bill at the annual Conservative Political Action Conference (CPAC) on February 27.[11] Paul charges the Federal Open Market Committee with being "less than transparent" with its secret meetings.[12] In an April 2009 editorial, Paul thanked the Fed for its responsive attempt to enhance transparency and accountability, but Purpose According to its short title, the Federal Reserve Transparency Act of 2009 (H.R. 1207) amends Title 31 of the 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". It strikes exceptions to the audit protocol in 31 U.S.C. § 714 for the Federal Reserve System, the central bank of the United States, and replaces an indefinite deadline with a deadline of December 2010.[1] It also ensures the audit results are available to Congress.[2] The audit would include the Fed’s "discount window", its funding facilities, its open market 1 From Wikipedia, the free encyclopedia called it "window dressing at best, and it’s utterly useless at worst".[8] An additional 17 representatives signed on to the Transparency Act during the first 18 days,[13] and more continued to do so; after Paul stated several more representatives were pending during Congressional spring break,[8] 16 more representatives cosponsored the bill on April 21, the first day after break. When Campaign for Liberty spokesman Matt Hawes predicted the sponsorship total would reach 92 after the following weekend,[14] the total actually reached 100, with 16 more cosponsors on April 28. H.R. 1207 now has 179 cosponsors,[9] including at least 31 Democrats,[6] suggesting broad bipartisan support.[15][16] The total of 179 sponsors is 82% of 218 representatives; 218 votes are needed to pass any bill in the House.[17] • Rodney Alexander (R-LA) was thanked in the Monroe News Star for sponsoring the bill, due to the likelihood of opening to scrutiny the Fed’s relationships to foreign central banks and governments.[18] • Michele Bachmann (R-MN) has been an outspoken original sponsor, repeatedly asking Treasury secretary Tim Geithner what Constitutional provision authorized 2008 Bailout activity in March 2009, inspired by Thomas Woods’s anti-Fed book Meltdown.[6] • Tammy Baldwin (D-WI) sponsored the bill on April 21; a letter requesting her to do so had appeared in the Baraboo News Republic.[4] • Roy Blunt (R-MO), former Acting Majority Leader, sponsored the bill, saying "the Fed is currently taking extreme measures in dealing with our economy and financial markets. It’s important they explain their actions to American taxpayers.”[19] • Shelley Moore Capito (R-WV) became the 51st cosponsor on April 1.[16] • Alan Grayson (D-FL) cosponsored with the statement, "The Federal Reserve should have come clean with the American people a long time ago."[6] • Wally Herger (R-CA) sponsored the bill on April 21; a letter requesting him to do so had appeared in the Appeal-Democrat.[20] • Donald Manzullo (R-IL) sponsored the bill on April 21, and John Shimkus (R-IL), Timothy V. Johnson (R-IL), Judy Biggert (R-IL), Jan Schakowsky (D-IL), and Aaron Schock (R-IL) shortly afterward; a letter Federal Reserve Transparency Act requesting them to do so had appeared in the Arlington Heights Daily Herald.[21] • Tom McClintock (R-CA) was praised in the Auburn Journal for his early sponsorship.[22] • Patrick McHenry (R-NC) announced his cosponsorship in the Lincoln Tribune, supplementing a reputation as a proponent of transparency on behalf of investors and taxpayers.[15] • Pete Stark (D-CA) sponsored the bill after being requested by the Alameda County Republican Party, telling local papers it constituted a display of bipartisanship.[23] • Zach Wamp (R-TN) states that his support of H.R. 1207 gets him some of the loudest, most positive reactions during his campaign for governor of Tennessee.[6] • Don Young (R-AK) was thanked for cosponsorship in the Fairbanks Daily News-Miner.[24] Calls for other members of Congress to cosponsor the bill have also been published in local papers and promoted at rallies, such as for: • John Barrow (D-GA), in the Augusta Chronicle (as six other Georgia representatives had done, prior to the request);[25] • Bobby Bright (D-AL), in the Dothan Eagle;[26] • Baron Hill (D-IN), at a rally in Bloomington, Indiana, outside Hill’s office (a Young Americans for Liberty petition encouraging Hill to vote in favor of the bill circulated among a crowd of 200, but Hill did not comment to YAL, according to member Meredith Milton);[27] • Lynn Jenkins (R-KS), in the Topeka Capital-Journal, who was praised for her attendance at the "tea party" protests;[28] • Patrick J. Kennedy (D-RI), in The Anchor;[29] • Mary Landrieu (D-LA), in the Monroe News Star;[18] • James Langevin (D-RI), in The Anchor;[29] • Alan Mollohan (D-WV), in the Huntington News;[16] • Nick Rahall (D-WV), in the Huntington News;[16] • Tony Strickland (R-CA), in the Santa Ynez Valley Journal;[30] • David Vitter (R-LA), in the Monroe News Star;[18] • Peter Welch (D-VT), in the Times Argus;[31] 2 From Wikipedia, the free encyclopedia • All Illinois representatives, in the Arlington Heights Daily Herald.[21] Federal Reserve Transparency Act GoldSeek author Jake Towne believes that Fed transparency in relation to credit derivatives will probably happen naturally, citing the Transparency Act cosponsorship of 58 legislators and the Fed’s urging major members and funds to list their derivatives on a New York City exchange.[36] Senate On March 16, 2009, U.S. Senator Bernie Sanders (I-VT) introduced the Senate companion version, S. 604, the Federal Reserve Sunshine Act of 2009, with the same provisions; this version was then referred to the Committee on Banking, Housing, and Urban Affairs.[32] Advocacy Support for the Federal Reserve Transparency Act of 2009 was one of the issues raised as part of the nationwide 2009 Tea Party protests. During Glenn Beck’s April 15 show from his rally at the Alamo in San Antonio, Pat Gray interviewed a local supporter of the Transparency Act, drawing cheers from the crowd.[37] The advocacy group Campaign for Liberty (CFL) encourages members to petition representatives to cosponsor the Transparency Act.[38] College Republicans at Appalachian State University, led by journalism major and CFL member Tim B. Reaves, staged a Boston Tea Party themed assembly for tax day 2009, to raise awareness for the Transparency Act; the event included wearing white wristbands to symbolize slavery and mailing tea bags to state representatives.[39] CFL president John Tate promotes the bill in conjunction with dealing with "the silent, destructive tax of monetary inflation",[40] stating that public outrage over bonuses paid to employees of AIG, Fannie Mae, and Freddie Mac has driven the Congressional support;[12] this thought was echoed in the Kansas City Star.[41] At a rally in Peoria, Illinois, with over 500 people, Justin Abatie, Tazewell County CFL coordinator, urged support for the bill, leading the crowd with a blowhorn.[42] Ed Hipps, the CFL Philadelphia regional coordinator, also advocated for the bill at a local tax-day rally.[43] Ron Paul, Andrew Napolitano, and state representative Jim Guest promoted the bill "at length" at the crowded first CFL regional conference in St. Louis, Missouri, affirming Americans’ "right to know where their tax dollars are going, especially those going to companies from the stimulus package".[44] Pro-gambling group Gambling911.com is also interested in the Transparency Act, as an opportunity to audit the Federal Reserve, and also promoted the CFL "Freedom Celebration" regional conference.[45] Related legislation The two titles for these two versions of the bill are not to be confused with the same two titles (used in reverse) for the two versions of a related bill. The House "Federal Reserve Sunshine Act of 2009" by Paul (H.R. 1348), and the Senate "Federal Reserve Transparency Act of 2009" by Sanders (S. 513), require the Federal Reserve to publish information on financial assistance provided to various entities during the 2008 Bailout. This bill creates a website listing all banks that have borrowed from the Fed since March 24, 2008, and the amount, terms, and "specific rationale" of the loans. Sanders commented, "I have a hard time understanding how you have put $2.2 trillion at risk without making those names available." Fed chair Ben Bernanke had told Sanders that publishing the names would make the banks feel stigmatized and potentially reluctant to borrow further.[2] Reception Glenn Beck of Fox News mentioned the Transparency Act while discussing ways for the average person to remind Congress, "Hey, you work for me".[33] The Motley Fool group economics blog called the bill "the first attempt at a true audit of the Federal Reserve since its inception in 1913" and affirmed Paul’s Congressionally published column describing his legislation.[11][34] Comparison to Paul’s proposed Federal Reserve Board Abolition Act of 2007, which did not attract any sponsorship, along with other evidence, suggested that more Republicans are listening to Paul in 2009.[6] The Centro Studi Monetari says a similar audit law is desired in Italy to publish the budgets of banks like Bankitalia.[35] 3 From Wikipedia, the free encyclopedia Among a rally of 90 citizens at the Hays County Courthouse, many protestor signs called for passage of the Transparency Act, a message resonating with Texas locals.[46] Pro-bill flyers, with the word "audit" drawn over Ben Bernanke’s picture, were distributed at tea party rallies such as at the University of Southern Indiana.[47] Ben Roper’s pro-bill sign in Wilkes-Barre said simply "Audit the Fed Reserve".[48] Thirteen-yearold Devon Minnema held a one-man tax-day protest in Dixon, California, waving signs and calling for support of the Transparency Act as well.[49] Federal Reserve Transparency Act References [1] ^ 111th Congress (2009) (2009-02-26). "Text of H.R. 1207: Federal Reserve Transparency Act of 2009". Legislation. GovTrack.us. http://www.govtrack.us/ congress/billtext.xpd?bill=h111-1207. Retrieved on 2009-04-14. [2] ^ Kraft, Stephanie (2009-03-26). "Imperium Watch: Banks, Soundproof No More: U.S. Sen. Bernie Sanders of Vermont calls out the Federal Reserve for coddling the country’s biggest lenders". Valley Advocate. http://www.valleyadvocate.com/ article.cfm?aid=9411. Retrieved on 2009-04-14. [3] Chapman, Bob (2009-04-18). "Gold, Silver, Economy & More". International Forecaster (GoldSeek). http://news.goldseek.com/ InternationalForecaster/ 1240189200.php. Retrieved on 2009-04-19. [4] ^ Kolar, Peter (2009-03-24). "Time to check Federal Reserve". Baraboo News Republic. http://www.wiscnews.com/bnr/ opinion/444211. Retrieved on 2009-04-14. [5] Chaney, Paul (2009-03-21). "Wrong agenda". Los Angeles Daily News. http://www.dailynews.com/search/ ci_11967831?IADID=Searchwww.dailynews.comwww.dailynews.com. Retrieved on 2009-04-14. Also in the Inland Valley Daily Bulletin, the San Bernardino County Sun, and the San Gabriel Valley Tribune. [6] ^ Weigel, David (2009-05-05). "Ron Paul’s economic theories winning GOP converts — including Michele Bachmann". Minnesota Independent. http://minnesotaindependent.com/34032/ ron-paul-michele-bachmann. Retrieved on 2009-05-07. [7] "Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?". Federal Reserve Board. 2007-03-07. http://www.federalreserve.gov/ generalinfo/faq/faqfrs.htm#9. Retrieved on 2009-04-14. [8] ^ Paul, Ron (2009-04-20). "Audit the Federal Reserve for answers". Politico.com. http://www.politico.com/ news/stories/0409/21427.html. Retrieved on 2009-04-20. [9] ^ 111th Congress (2009) (2009-02-26). "H.R. 1207: Federal Reserve Transparency Act of 2009". Legislation. GovTrack.us. http://www.govtrack.us/ congress/bill.xpd?bill=h111-1207. Retrieved on 2009-04-14. [10] Unruh, Bob (2009-03-03). "Congressman: Audit the Fed’s books: Plan calls for complete review of private money policy bosses". MoneyNetDaily (WorldNetDaily). http://www.wnd.com/ index.php?fa=PAGE.view&pageId=90608. Retrieved on 2009-04-14. [11] ^ "Support H.R. 1207 to Audit the Federal Reserve". Motley Fool. 2009-03-10. http://caps.fool.com/blogs/ viewpost.aspx?bpid=159824&t=0100499485840352 Retrieved on 2009-04-14. [12] ^ Wilson, Dan (2009-04-03). "Ron Paul Audit the Fed Gains Momentum – Federal Reserve History Of Booms And Busts – Gold Silver and Oil Prices". Best Syndication News. http://www.bestsyndication.com/ ?q=20090403_ron_paul_audit_the_fed_gold_silver_ke Retrieved on 2009-04-14. [13] Zahn, Drew (2009-03-16). "Push to audit Federal Reserve gains steam: Lawmakers join call to examine nation’s money controllers". MoneyNetDaily (WorldNetDaily). http://wnd.com/ index.php?fa=PAGE.view&pageId=91999. Retrieved on 2009-04-14. [14] Hawes, Matt (2009-04-27). "Take Action this Tuesday to Audit the Fed". Campaign for Liberty. http://www.campaignforliberty.com/ 4 From Wikipedia, the free encyclopedia blog.php?view=16769. Retrieved on 2009-04-29. [15] ^ "McHenry Backs Federal Reserve Transparency Act". Lincoln Tribune. 2009-05-05. http://www.lincolntribune.com/modules/ news/article.php?storyid=12043. Retrieved on 2009-05-07. [16] ^ Rutherford, Tony (2009-04-30). "91 CoSponsors Ask for Federal Reserve Transparency". Huntington News Network. http://www.huntingtonnews.net/political/ 090430-rutherfordpoliticalfederalreserve.html. Retrieved on 2009-05-07. [17] Cushman, Charles Bancroft (2006). An Introduction to the U.S. Congress. M.E. Sharpe. p. 61. ISBN 9780765615060. http://books.google.com/ books?id=vyl_t1a8UfIC&pg=PA61. [18] ^ Seney, Caleb (2009-04-04). "Press Congress to be accountable". Monroe News Star. http://www.thenewsstar.com/ article/20090404/OPINION03/ 904040321. Retrieved on 2009-04-14. [19] "Blunt Cosponsors Legislation Promoting Federal Reserve Transparency". Community Free Press. 2009-03-27. http://www.cfpmidweek.com/press/ mo.htm. Retrieved on 2009-04-16. [20] Charles, Lisa (2009-04-11). "Herger on Federal Reserve audit?". AppealDemocrat. http://www.appealdemocrat.com/articles/ audit_76348___article.html/ reserve_federal.html. Retrieved on 2009-04-14. [21] ^ Janetka, Gregory T. (2009-04-18). "Fed most in need of transparency". Arlington Heights Daily Herald. http://www.dailyherald.com/story/ ?id=287328&src=. Retrieved on 2009-04-19. [22] "Support HR 1207!". Auburn Journal. 2009-03-11. http://my.auburnjournal.com/detail/ 108327.html. Retrieved on 2009-04-14. [23] Richman, Josh (2009-04-12). "Barbara Boxer is a grandma, again". Oakland Tribune. http://www.insidebayarea.com/ oaklandtribune/localnews/ci_12128546. Retrieved on 2009-04-14. Also in the Alameda Times-Star, the Fremont Argus, the Contra Costa Times, the Daily Federal Reserve Transparency Act Review, the San Mateo County Times, and the Tri-Valley Herald. [24] Thompson, Stuart (2009-04-17). "Financial realities". Fairbanks Daily News-Miner. http://newsminer.com/ news/2009/apr/21/financial-realities/ ?opinion. Retrieved on 2009-05-07. [25] Special (2009-04-12). "Rants and Raves". Augusta Chronicle. http://chronicle.augusta.com/stories/ 2009/04/12/met_520065.shtml. Retrieved on 2009-04-14. [26] Jones, Daniel W. (2009-03-25). "Audit the Fed". Dothan Eagle. http://www.dothaneagle.com/dea/news/ opinion/letters_to_the_editor/article/ audit_the_fed/65033/. Retrieved on 2009-04-14. [27] Ayari, Mehdi (2009-04-16). "More than 200 march on Tax Day". Indiana Daily Student (Indiana University). http://www.idsnews.com/news/ story.aspx?id=67685. Retrieved on 2009-04-16. [28] Feeney, Tyler J. (2009-04-25). "Support FRTA". Topeka Capital-Journal. http://www.cjonline.com/opinion/ 2009-04-26/letter_support_frta. Retrieved on 2009-05-07. [29] ^ Anatone, Richard (2009-04-14). "Audit the Federal Reserve". The Anchor (Rhode Island College). http://www.anchorweb.org/opinions/ audit-the-federal-reserve-1.1714117. Retrieved on 2009-04-16. [30] Crecelius, Lauren (2009-04-22). "Tea Party Brings Out Activists". Santa Ynez Valley Journal. http://www.santaynezvalleyjournal.com/ archive/7/17/4283/. Retrieved on 2009-05-07. [31] Bernier, Jessica (2009-05-02). "Transparency is required". Times Argus. http://www.timesargus.com/article/ 20090502/OPINION02/905020302. Retrieved on 2009-05-07. [32] 111th Congress (2009) (2009-03-16). "S. 604: Federal Reserve Transparency Act of 2009". Legislation. GovTrack.us. http://www.govtrack.us/congress/ bill.xpd?bill=s111-604. Retrieved on 2009-04-14. [33] Beck, Glenn (2009-03-23). "Are You Profiled as a Militia Member?". Glenn Beck (Fox News). http://www.foxnews.com/story/ 5 From Wikipedia, the free encyclopedia Federal Reserve Transparency Act 0,2933,510325,00.html. Retrieved on [43] Wagh, Manasee (2009-04-19). "A 2009-04-14. timeless protest of government". [34] Paul, Ron (2009-02-23). "On Doylestown Intelligencer. Transparency of the Fed". Texas Straight http://www.phillyburbs.com/news/ Talk (111th Congress (2009)). news_details/article/16/2009/april/19/ahttp://www.house.gov/htbin/ timeless-protest-of-government.html. blog_inc?BLOG,tx14_paul,blog,999,All,Item%20not%20found,ID=090223_2687,TEMPLATE=postingd Retrieved on 2009-04-19. Retrieved on 2009-04-14. [44] Messenger, David (2009-03-30). "Ron [35] Martin, T. (2009-04-01). "Ron Paul’s Bill Paul draws students to Liberty Campaign To Audit The Federal Reserve Now Has event". Student Life (Washington 55 Co-Sponsors!". Centro Studi University). http://www.studlife.com/ Monetari. http://studimonetari.org/ news/ron-paul-draws-students-to-libertynews.htm. Retrieved on 2009-04-16. campaign-event-1.1634009. Retrieved on [36] Towne, Jake (2009-04-09). "Money 2009-04-14. Matrix, Part 11: Bring Light to Dark [45] Woo, Jenny (2009-03-23). "Ron Paul on Derivatives!". GoldSeek. The Economy: Most People Recognize http://news.goldseek.com/GoldSeek/ This As A Depression". 1239208001.php. Retrieved on Gambling911.com. 2009-04-14. http://www.gambling911.com/business/ [37] "Glenn Beck". Glenn Beck (Fox News). financial/ron-paul-economy-most-people2009-04-15. http://libertymaven.com/ recognize-depression-032009.html. 2009/04/16/tea-parties-ron-paulRetrieved on 2009-04-14. hr1207-and-penn-jillette-oh-my/5353/. [46] Wardwell, Sean (2009-04-15). "Tea party Retrieved on 2009-04-16. comes to courthouse square". [38] "’Audit the Fed’ petition to Congress". Newstreamz San Marcos. Campaign for Liberty. http://www.newstreamz.com/2009/04/15/ http://www.campaignforliberty.com/ tea-party-comes-to-courthouse-square/. campaigns/auditthefed.php?projid=25. Retrieved on 2009-04-16. Retrieved on 2009-04-14. [47] Webb, Jon (2009-04-15). "College [39] Sztukowski, Edward (2009-04-07). Republicans have ’TEA party’: Protest "Students throw modern day tea party on part of nationwide demonstrations Tax Day". The Appalachian (Appalachian against federal spending". The Shield State University). (University of Southern Indiana). http://theapp.appstate.edu/content/view/ http://www.usishield.com/college5064/43/. Retrieved on 2009-04-14. republicans-have-tea-party-1.1716191. [40] Staff (2009-04-15). "Taxes, Tea Parties, Retrieved on 2009-04-16. and the Federal Reserve - Ron Paul’s [48] Marckini, Jen (2009-04-16). "WilkesPosition". Best Syndication. Barre joins the ‘parties’: As many as 400 http://www.bestsyndication.com/ people, many with signs, gather at ?q=node/27785. Retrieved on Square to protest federal spending". 2009-04-16. Times Leader. [41] Baber, C.K. (2009-03-30). "AIG bonus http://www.timesleader.com/news/ onus". Kansas City Star. Wilkeshttp://blogs.kansascity.com/ Barre_joins_the__lsquo_parties_rsquo__04-16-2009.ht unfettered_letters/2009/03/aig-bonusRetrieved on 2009-04-16. onus.html. Retrieved on 2009-04-14. [49] Minnema-Dingman, Debra (2009-04-19). [42] McDonald, Karen (2009-04-15). "More "Dixon boy stages his own anti-tax than 500 protest during tax day ’tea protest". Sacramento Bee. party’". Peoria Journal Star. http://www.sacbee.com/opinion/story/ http://www.pjstar.com/news/ 1789426.html. Retrieved on 2009-04-19. x1824565035/More-than-500-protestduring-tax-day-tea-party. Retrieved on 2009-04-16. Retrieved from "http://en.wikipedia.org/wiki/Federal_Reserve_Transparency_Act" 6 From Wikipedia, the free encyclopedia Federal Reserve Transparency Act Categories: Federal Reserve, 111th United States Congress, Ron Paul, 2009 in law, 2009 in the United States, United States proposed federal legislation This page was last modified on 22 May 2009, at 15:53 (UTC). All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.) Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a U.S. registered 501(c)(3) taxdeductible nonprofit charity. Privacy policy About Wikipedia Disclaimers 7