Saturday, July 25, 2009

Geithner defends financial oversight reform

WASHINGTON – Treasury Secretary Timothy Geithner said Friday that a new agency focused on protecting consumers is needed because the mission currently is too scattered among various regulators.

This results in "finger-pointing in place of action," he told the House Financial Services Committee

The administration's plan to create a Consumer Financial Protection Agency has bumped up against opposition from Republicans, industry and federal regulators.

Federal Reserve Chairman Ben Bernanke has argued that the Fed is best suited for the role.
Read on.

Check out this information:

In this video, Congressman Alan Grayson questioned Bernanke on $550B of loans to foreigners (or 'central liquidity swaps' in Federal Reserve-ese'). Which financial institutions received this money? Bernanke's answer: I don't know.

As the Fed was lending this money, the dollar increased by 30% in value. Grayson asks, was this a coincidence? Bernanke's answer: yes.

Hmmm, let me get this straight. 1/2 a trillion dollars were loaned out to foreigners and the FED chief has no clue on who is receiving this money? Sounds much of the lack of accountability in the TARP funds where we still don't know how the banks who received the TARP money did with the money which is taxpayer money. My advice for Bernanke and Congress is to brush up on reading the Federal Reserve Act of 1913 which was enacted December 23, 1913. The Federal Reserve Act of 1913 is the act of Congress that created the Federal Reserve System which was signed into law by President Woodrow Wilson. And notice it says "the act of Congress." Hat tip to Congressman Grayson!

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