We finally got a response from Dennis Moore regarding HR 1207 today. As we expected, he has not yet been convinced to cosponsor. Lets work together to change his mind!
Dear Amanda:
Thank you for sharing your support for H.R. 1207, the Federal Reserve Transparency Act of 2009. I always appreciate hearing from citizens of the Third District of Kansas.
Introduced by Representative Ron Paul (R-TX) on February 26, 2009, H.R. 1207 would amend Title 31 of the United States Code to expand the portion of the Federal Reserve's balance sheet open to audits by the Government Accountability Office (GAO). Specifically, the GAO would be able to audit "deliberations, decisions, or actions on monetary policy" and "transactions made under the direction of the Federal Open Market Committee." The bill calls for the Comptroller General, the director of the GAO, to carry out at least one audit of the Federal Reserve by the end of 2010. On the day of its introduction, H.R. 1207 was referred to the House Financial Services Committee, where it awaits consideration.
Congress created the Federal Reserve System (or "Fed") in 1913 to serve as the central bank for the United States. The Fed formulates the nation's monetary policy, supervises and regulates banks, and provides a variety of financial services to depository financial institutions and the federal government. It comprises three major components: the Board of Governors currently led by Chairman Ben Bernanke, a network of twelve Federal Reserve Banks, and member banks. One of the Federal Reserve Banks, led by Thomas Hoenig, is located in Kansas City. I often consult with Mr. Hoenig and I value his thoughts on the recent financial crisis. You can read his speeches and testimony before Congress at the Federal Reserve Bank of Kansas City's website: http://www.kc.frb.org.
The Fed is an independent agency, rather than a department of the executive branch whose head can be removed at will by the President. As a result, the Fed is largely insulated from political and private pressures. Congress felt that the Fed's decisions, which can have enormous short- and long-term consequences for America's employment, inflation, and economic growth, would be better left to monetary experts than partisan appointees.
At the same time, by law and practice, the Federal Reserve is accountable to Congress. The seven members of the Board are appointed by the President with the advice and consent of the Senate and Congress routinely monitors the Federal Reserve System through formal and informal oversight activities. The Chairman of the Federal Reserve is required to testify biannually before the Senate Banking Committee and the House Financial Services Committee. These reports can be found on the Federal Reserve's website: http://www.federalreserve.gov/monetarypolicy/mpr_default.htm. In addition, I encourage you to view the Federal Reserve 101: Credit and Liquidity Programs and the Balance Sheet, which can be found here: http://www.federalreserve.gov/monetarypolicy/bst.htm as well as the Federal Reserve's Monthly Report on Balance Sheet and Emergency Programs, which can be found here: http://www.federalreserve.gov/newsevents/press/monetary/20090610a.htm
.
In fact, as the Chairman of the Financial Services Oversight and Investigations Subcommittee, I recently called the Inspector General of the Federal Reserve Board to testify about the Fed's ongoing efforts to expose and eliminate waste, fraud, and abuse. The hearing, which took place on May 5, 2009, was called "The Role of Inspectors General: Minimizing and Mitigating Waste, Fraud and Abuse." You can read a transcript of the Federal Reserve Inspector General's testimony and view a webcast of the full hearing at:
http://www.house.gov/apps/list/hearing/financialsvcs_dem/oihr042909.shtml
Congress must ensure tough oversight of the extraordinary actions the federal government has taken to stabilize the financial sector. We heard from the Inspectors General of the Treasury and the FDIC as well. The House Financial Services Committee plans on holding additional hearings in the 111th Congress on monetary policy the role and actions of the Federal Reserve.
There is no denying that the political independence of the Federal Reserve creates risks as well as advantages. In order to minimize these risks through expanded oversight, I supported the intent of Senator Chuck Grassley's (R-IA) amendments to S. 896, the Helping Families Save Their Homes Act. The amendments, S.Amdt. 1020 and S.Amdt. 1021, were adopted by the Senate on May 4, 2009, and the bill as a whole passed the House by a vote of 367 to 54, with my support, before being signed into law by President Obama on May 20, 2009.
S. Amdt. 1020 expanded GAO's authority to oversee the TARP, including the joint Federal Reserve-Treasury Term Asset-Backed Securities Loan Facility (TALF). S. Amdt. 1021 will subject the Fed's recent emergency actions in response to the financial crisis to close Congressional scrutiny. At the same time, it will protect the Fed's independence from political manipulation in its core monetary mission. Specifically, the amendment gives the GAO authority to audit emergency actions taken by the Fed to aid various private firms, such as its actions to assist J.P. Morgan Chase's purchase of Bear Stearns, to provide financing for Bank of America and Citibank, and to stabilize American International Group (AIG).
With the Grassley amendment now enacted into law, the Fed will be subject to unprecedented scrutiny at the hands of Congress. This scrutiny is appropriate, as the Fed has taken unprecedented steps in its response to the ongoing financial crisis.
As part of my effort to keep Congress vigilant in its scrutiny of government funds used in response to the current financial crisis, I was also a leading cosponsor of H.R. 1748, the Fight Fraud Act of 2009, which protects taxpayer money by making it a federal crime for contractors to defraud the government of funds under the Troubled Asset Relief Program (TARP) and the economic stimulus package. On May 6, 2009, with my support, H.R. 1748 passed the House by a vote of 367 to 59. After being reconciled with S. 386, the Fraud Enforcement and Recovery Act (FERA), President Obama signed the legislation into law on May 20, 2009.
I share your concern for fiscal transparency and accountability, and I will do everything within my power as Chairman of the Financial Services Oversight and Investigations Subcommittee to ensure that American taxpayer dollars do not fall victim to waste, fraud, or abuse. Please be assured that as further measures to strengthen oversight of the Fed's activities come before Congress, I will keep your views in mind.
Thank you again for contacting me. I hope you will continue to keep in touch and please feel free to let me know whenever I may be of assistance.
Tags:
Showing comments 1—5 of 5
Posted 06/24/09
freetobe79
Lenexa, KS | despite his claim to do everything in his power to hold the fed reserve accountable, he STILL has not co-sponsored HR 1207. What is he waiting for?!!! |
Posted 06/24/09
fadestyle
Walnut Bottom, PA | what a wanker. he needs more phone calls. if not maybe a visit? |
Posted 06/24/09
vcoletti
Overland Park, KS | Some of us have already been to his office, phoned him, sent letters and emails. He is not going to be easy to turn. We are collecting petitions/signatures to turn in to his office in July. |
Posted 06/24/09
knowbody
Overland Park, KS | I'm just now looking into the senate amendments Moore mentions in his letter. I see he conveniently forgot that besides Chuck Grassley, Chris Dodd lead the way as a sponsor. Clearly, Moore doesn't want his name associated with Dodd and is attempting to manipulate our perception.
That said, we need to have a clear understanding of how 1207 is superior to legislation supported by Moore. Does anyone have talking points on this yet? |
Posted 07/20/09
linda415
Leawood, KS | It seems ridiculous that Moore as our representative is not responsive to his own community. This is our fault because obviously not enough people are contacting Moore directly.
Every individual, every person that signs a petition to Moore should have the ability to instantly FAX his office...FAX it daily, or FAX it every week until he notices and takes action. Someone needs to set this up online so it's easy to FAX directly...that's the only way it will get done. I belong to NumbersUSA and we have been incredibly successful regarding illegal immigration legislation....ONLY BECAUSE WE CAN INSTANTLY FAX ALL OUR CONGRESSMEN FROM ONLINE...AND IT'S FREE. |
You must be logged in to post comments. [Become a member]
|
Interim State Coordinator
RSS feed
