After suffering more than a year of abuse over its role in the financial crisis, the U.S. Federal Reserve on Wednesday was poised to beat
back the most aggressive attempt to open its operations to congressional scrutiny.
Lawmakers finalizing a sweeping overhaul of financial regulations have indicated they may back away from a measure that would expose the U.S.
central bank's monetary policy to scrutiny, and they could also abandon a plan to make one of its top officials a political appointee.
Fed officials had opposed both measures as intrusions on the central bank's political independence -- something that has always been a hallmark of
the Fed's operations.
With congressional elections looming in November, Democrats in charge of negotiating a final Wall Street reform bill say there are relatively few
differences they need to resolve between the competing bills passed by the House of Representatives and the Senate. They aim to finish their work by
June 24 so President Barack Obama can sign a final package into law by early July.
As they began their second full day of work, negotiators considered measures that would strengthen the powers of the Securities and Exchange
Commission and raise the client-care standard for brokers who offer financial advice to the same level now applied to investment advisers.
House negotiators agreed to give shareholders the ability to sue banks and other third parties that are not directly involved in securities fraud
cases. The senators on the committee had yet to weigh in. [nWEN5974]
The panel was expected to address the Fed measures later in the afternoon.
The Fed has admitted it was too complacent about its oversight duties before the 2007-2009 financial crisis that prompted the worst recession in
While the Fed has endured tongue-lashings from lawmakers who say it is too close to the banks it regulates, much of that anger may have dissipated
since Fed Chairman Ben Bernanke sweated through a tense Senate confirmation vote in January.
FED HAS SOME VICTORIES
The Fed, on its backfoot early in the reform process, has already scored several victories in recent weeks as the reform effort headed into its final
The central bank fought off a Senate push last month that would have stripped it of its oversight of smaller banks and looks set to emerge as the most
powerful financial regulator when reforms are complete.
But the Fed is still likely to see its wings clipped.
While congressional investigators would not be able to probe monetary policy decision, lawmakers looked set to agree on a Senate proposal for a
one-time look at the Fed's emergency lending during the crisis.
House Democrats want to broaden that audit to cover regular discount window lending and open market transactions, and force the Fed to disclose
details on those programs on an ongoing basis, albeit with a three-year lag.Please visit the link provided for the complete story.
"If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and
the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their
fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson] signs this bill, the invisible government
of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."
Charles A. Lindbergh, Sr. , 1913
It looks like America's central banking system, the Federal Reserve, is escaping any kind of accountability... again. Our elected leaders like to
grand-stand in front of the American people and speak sternly to Bernanke but when it comes to any kind of action, they back away like scared puppies.
Sadly, even if we replace the Democrats with Republicans come November, we still find ourselves in the same spot, as both major parties are beholden
to the bank.
"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a
revolution before tomorrow morning."
-- Henry Ford
Like all other bills that are focused on "reform", this current financial reform bill will only serve to benefit those that have hurt us to begin
with. As long as the Federal Reserve has an unaccountable grip on our economy, it will dictate policy for the benefit of it's customers, at the
American people's expense.
"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy
that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it
Congress can pass all of the relatively cosmetic reforms that it wants but until we get a hold on the Federal Reserve, we are not going to make any
progress and reform will just be the same old meaningless buzz-word that it has been over the last decade or so. The "Bank" will continue to run us
into the ground and just before we collapse, they will escape with the loot. Why doesn't the American public realize what it going on? Is it that we
do see it, but we realize that there is nothing we can do about it? If this is the case, then we no longer even have the illusion of freedom.
"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no
opposition from that class."
-- Rothschild Brothers of London
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have
never been audited. It operates outside the control of Congress and manipulates the credit of the United States."
-- Sen. Barry Goldwater
America has become a nation of wage-slaves, paying interest on a debt based currency through our labor and gained wealth. This is meaningless as a
debt based currency only serves to benefit the bank, not the American people or even country as a whole. As long as the Federal Reserve has a strangle
hold on our economy, we are not free to pursue freedom, liberty and happiness. We will continue to slave on, just to keep our heads above water and to
keep the bankers in control.
"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice
who does not know that this nation is run by the International bankers."
-- Congressman Louis T. McFadden
"Give me control of a nation's money and I care not who makes it's laws."
-- Mayer Amschel Bauer Rothschild
[edit on 16-6-2010 by airspoon]