As a pertinent follow-up to our series of articles exposing the Great American Mortgage Scam, the head of the US central bank said Saturday he was "concerned" by some congressional proposals aimed at regulating the US financial system that infringe upon the powers of the Federal Reserve. SURPRISE! SURPRISE!
"I am concerned, however, that a number of the legislative proposals being circulated would significantly reduce the capacity of the Federal Reserve to perform its core functions," Federal Reserve Chairman Ben Bernanke wrote in an op-ed piece in The Washington Post.
He said some proposals considered by the US Senate as part of attempts to strengthen US government regulation of the financial sector would strip the Fed of all its bank regulatory powers.
He also noted that a House committee had recently voted to repeal a 1978 provision that was intended to protect monetary policy from short-term political influence.
Congressman Ron Paul (R-TX), who has sought to audit the nation's largest bank for nearly 27 years, does not believe Bernanke's fears are substantiated.
"There is no reason why the world can't know, eventually, what the Fed is doing," he said recently.
His legislation, House Resolution 1207, cleared a key congressional panel on Nov. 19 by a vote of 43 to 26.
"[It] would require the Government Accountability Office to audit the central bank's interest rate policy, agreements with foreign governments, foreign central banks and the International Monetary Fund," according to MarketWatch. "It also would permit audits of a roughly $800 billion Fed mortgage-backed securities purchase program, which could grow to $1.25 trillion, Paul said."
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