Posted by Gary Howard on 11/05/09 12:45 PM [Newer: Press Release: Operation Health Freedom Website Launched] [Older: John Tate, Campaign for Liberty Sign on to Guantanamo Declaration]

Update on Audit the Fed - Legislation Stripped of Substance

Washington D.C. November 4, 2009 - Late last week, it was learned that H.R. 1207, the Federal Reserve Transparency Act, a bill intended to bring greater transparency to the Federal Reserve, has been stripped of many of its most substantial reforms by House Financial Services Monetary Policy Subcommittee Chairman Congressman Mel Watt of North Carolina.  

"This move by Watt is just part of the usual strategy used by politicians to stop people from affecting change," said John Tate, President of Campaign for Liberty.   "We're not giving up on this; we are still calling for a standalone vote on the bill as it was originally introduced."

Congressman Ron Paul, who has championed the bill on Capitol Hill, has pledged to introduce an amendment in the full Committee to restore the bill's thorough audit provisions.  Many are questioning the move by Watt to remove the critical language from a measure that has garnered overwhelming support in Congress and from the American people. To date, the bill has 306 cosponsors in the House, and 30 in the Senate, with a poll boasting 75% of Americans in favor of a Federal Reserve audit.

There has been speculation that Watt, who serves a district in North Carolina that happens to include the headquarters of Bank of America, is being influenced by the powerful banking lobby. The final legislation could be included in a larger financial regulation package to be offered by House Democrats later in the session. 

Posted 11/05/09 12:58 PM DA521 Fair Lawn, NJ

Stop with the conspiracy “bankster” nonsense. I’ve already stopped my contributions because of this. "Powerful banking lobby" is a consequence of a powerful government. NO different then all other lobby groups. The government itself would have to literally declare bankruptcy without the Fed and central banking system. The Welfare and Warfare State are the chief lobbyists for this. They are powerless without a central banking system.

Posted 11/05/09 1:06 PM redshirt Philadelphia, PA

Agreed, but you are contradicting yourself. The bank lobby is a part of the welfare state.

Posted 11/05/09 3:21 PM mikefrench Granite Falls, NC

We are in this financial mess because of the government ignoring the constitution and creating the Fed and Central Banking system. All lobbies exists because of a corrupt government that allows itself to be bought off in exchange for legislation that favors these lobbies. If the politicians told the lobbyist to take a hike and refused to take their money the lobbies would have no power what so ever.

Posted 11/05/09 5:07 PM redshirt Philadelphia, PA

Agreed mikefrench .... with a bit of a modification ... C4L is a lobby, right? Not to be contradictory again, but corruption and government may go hand-in-hand, but not all lobbies are corrupt and not all government is corrupted. Legislation that favors our lobby favors most people, except those specifically on the dole from the government for big handouts. I'm guessing a government that exists in isolation from lobbying forces would run even more like the FED itself, with no oversight and answering only to a few.

Posted 11/05/09 5:14 PM justinb Oklahoma City, OK

If only we had money backed by real commodities of sorts. Then the Fed couldn't print an infinite amount of money, and the lobbyists wouldn't have any desire to lobby for handouts because the government would no longer be able to just dole out printed dollars. I hope Mel Watts gets blasted with this news in the papers in his home district, along with the following tidbits below. Watt’s largest contributors included American Express (NYSE: AXP), Wachovia, Bank of America and the American Bankers Association. Altogether the financial industry donated over $217,109 to Watt, which was over 35 percent of the overall contributions he received. (source: http://www.americanbankingnews.com/2009/11/01/ron-paul-bank-connected-democrat-m el-watt-strips-h-r-1207-of-almost-everything/)

Posted 11/05/09 5:16 PM tronstevens Yonkers, NY

Does anyone know where we can read the changes in HR 1207 made by the charlatan Mel Watts?

Posted 11/05/09 6:10 PM redshirt Philadelphia, PA

justinb ... good to know

Posted 11/05/09 6:36 PM redshirt Philadelphia, PA

tron... http://www.americanbankingnews.com/2009/11/01/ron-paul-bank-connected -democrat-mel-watt-strips-h-r-1207-of-almost-everything/ Also... http://se ekingalpha.com/instablog/239719-james-quinn/34393-audit-the-fed-bill-gutted-by-c orrupt-congressman-mel-watt "You may be aware that Rep. Mel Watt’s subcommittee on monetary policy introduced changes to the Federal Reserve Transparency Act (HR 1207) that restrict inquiry around transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks, and staff."

Posted 11/05/09 6:37 PM redshirt Philadelphia, PA

Be wary of spaces in the links... sometimes you have to copy and paste, then remove spaces.

Posted 11/05/09 9:22 PM XulChris Incline Village, NV

I am in the process of closing out my checking account with Bank of America. I suggest any BofA customers likewise close their accounts.

Posted 11/06/09 03:03 AM C00kieM0nster Oxnard, CA

"speculation that Watt...is being influenced by the powerful banking lobby." Bwahahaha. You are far too kind. A quick search on opensecrets.org for Mel Watt will eliminate any such "speculative" notions. I understand that decorum requirments in official political capacities. I however am no politician. If it looks, walks, smells, and quacks like a duck...shoot it and eat it. Cookies for dessert.

Posted 11/06/09 03:07 AM C00kieM0nster Oxnard, CA

Just to add, I have a CC issued by FIA Card Services, which is a BofA subsidiary. Both parties (Mel, and BofA) will be hearing from me about closing my account specifically because of Mr. Watt.

Posted 11/06/09 10:37 AM AKJones Camp Hill, PA

The overt corruption is frightening.

Posted 11/06/09 2:26 PM Pumeleon Auburn, IN

89% of Watt's funds came from PACs, during the '09-'10 cycle. Of those PACs that funded him, 45.5% of it was from the banking and finance sector. In total, the PAC contribution from the banking and finance sector was roughly 36.2% of his total raised. That's more than a third. The banking and finance sector PACs gave him $31,000. He raised a total of $83,582. I'd say the numbers highlight this man's puppet strings. http://www.opensecrets.org/politicians/summary.php?cycle=2010&ci d=N00002328&type=I

Posted 11/06/09 2:31 PM Pumeleon Auburn, IN

careful of that space in the url. Delete the space, if you want to see the data.