Jump to content
Posted 01 July 2012 - 07:58 PM
Posted 01 July 2012 - 10:50 PM
Posted 01 July 2012 - 11:37 PM
Yes, ther have been audits of SOME aspects of the Federal Reserve system, but not all. There are still areas where the GAO is not allowed access, and this bill would remove such restrictions, and require full disclosure of all monetary operations and policies.
Although the Fed is currently audited by outside agencies, these audits are not thorough and do not include monetary policy decisions or agreements with foreign central banks and governments.
The crucial issue of Federal Reserve transparency requires an analysis of 31 USC 714, the section of US Code which establishes that the Federal Reserve may be audited by the Government Accountability Office (GAO) but which simultaneously severely restricts what the GAO may in fact audit. Essentially, the GAO is only allowed to audit check-processing, currency storage and shipments, credit facilities (limited) and some regulatory and bank examination functions, etc. The most important matters, which directly affect the strength of the dollar and the health of the financial system, are immune from oversight.
Currently, the GAO is prohibited from auditing:
1. transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
2. deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations
3. transactions made under the direction of the Federal Open Market Committee; or
4. a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection of US Code.
The GAO is also prevented from conducting on-site examinations of banks or bank holding companies without the written consent of the appropriate regulatory agency.
HR 459 and S 202, The Federal Reserve Transparency Act, would eliminate these restrictions and mandate a thorough GAO audit of the Fed, finally delivering answers to the American people about how our money is being spent.
Edited by thegente, 01 July 2012 - 11:37 PM.
Posted 01 July 2012 - 11:47 PM
Posted 02 July 2012 - 12:10 AM
Posted 02 July 2012 - 12:16 AM
The pdf you linked says
The act does not require us to perform any particular type of
audit. This means, as is true with most of our work, that our
audits are determined largely by specific congressional requests,
or by our discretion under our basic legislative authority. As
appropriate, we coordinate our activities with the Federal Reserve's
Office of Inspector General.
I claim the congress has always been able to get what they want from the audits.
Posted 02 July 2012 - 09:31 AM
Audits of the Federal Reserve Board and Federal reserve banks may not include - (1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization; (2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations; (3) transactions made under the direction of the Federal Open Market Committee; or (4) a part of a discussion or communication among or between members of the Board of Governors and officers and employees of the Federal Reserve System related to clauses (1)-(3) of this subsection. ©(1) Except as provided in this subsection, an officer or employee of the General Accounting Office may not disclose information identifying an open bank, an open bank holding company, or a customer of an open or closed bank or bank holding company.
Text from bill HR 459 stating they are "striking" or "removing" the request to have the restrictions lifted:
© Repeal of Certain Limitations- Subsection ( of section 714 of title 31, United States Code, is amended by striking all after `in writing.'.
Posted 02 July 2012 - 12:28 PM
The deceived that don't want to look at the facts shall stay deceived.
The bill adds no transparency for the public and congress has always known about the Books of The Federal Reserve the new bill doesn't make any difference at all.
To require a full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the Comptroller General of the United States before the end of 2012, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Federal Reserve Transparency Act of 2011'.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Notwithstanding section 714 of title 31, United States Code, or any other provision of law, an audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection ( of such section 714 shall be completed before the end of 2012.
(1) IN GENERAL- A report on the audit required under subsection (a) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.
(2) CONTENTS- The report under paragraph (1) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.
© Repeal of Certain Limitations- Subsection ( of section 714 of title 31, United States Code, is amended by striking all after `in writing.'.(d) Technical and Conforming Amendment- Section 714 of title 31, United States Code, is amended by striking subsection (f).
Posted 02 July 2012 - 12:44 PM
Posted 02 July 2012 - 05:29 PM
Posted 02 July 2012 - 05:36 PM
Posted 04 July 2012 - 08:15 AM
I agree, I read over it again today and do see it removes the restrictions and will allow the audits to be through. My apology for the misunderstanding.
0 members, 0 guests, 0 anonymous users