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Barney Frank Says The House Will Pass HR 1207 In October

Tyler Durden's picture


"Under Section 13 (3) the Federal Reserve Act, [the Fed] can lend money to anybody they want. We are going to curtail that lending power. We are going to put some restraints on it. Finally we will subject [the Fed] to a complete order. I have been working with Ron Paul, the main sponsor of that bill. He agrees that we don't want to have the audit appear as if it is influencing monetary policy cause that would be inflationary and Ron and I agree on that. One of the things the audit will show is what the Federal Reserve buys and sells and that will be made public but not instantly, because if that was made instantly you would have a lot of people trading off of that, and you would have too much impact on the market. Again Ron agrees with that, so we will probably have that data released after a time period of several months, enough time so it wouldn't be market sensitive. That will be part of the overall Fed regulation that we are inducting... The House will pass [HR 1207] in October."  - Barney Frank



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Thu, 08/27/2009 - 21:42 | 51154 tjtakes
tjtakes's picture

Not sure what this will matter in how the manipulation occurs anyway

Fri, 08/28/2009 - 12:43 | 51825 VegasBD
VegasBD's picture

Does anyone know where this took place? I reposted this video and now the washington times is asking me...

Thu, 08/27/2009 - 21:46 | 51158 Gilgamesh
Gilgamesh's picture

All I hear out of his mouth is lies/revisionist history.  I'll believe this when I see it (an actual real audit, not just the passage of the bill).

Thu, 08/27/2009 - 22:20 | 51209 MountainHawk
MountainHawk's picture

Exactly, I'll belive it when I see it..

Thu, 08/27/2009 - 23:25 | 51279 dnarby
dnarby's picture


He actually realizes how bad he screwed up defending Fannie and Freddie, and now he's trying to save his job.

Sat, 08/29/2009 - 14:28 | 52884 percolator
percolator's picture

I agree.  BF is playing fast and loose with the truth:

Thu, 08/27/2009 - 21:47 | 51166 Anonymous
Anonymous's picture

I wonder if Barney Frank will help or hurt Timmy's efforts to get a stay on the FOIA lawsuit. Once we see how he stands on the lawsuit then maybe we can read further into the possibility of the house actually passing HR 1207

Fri, 08/28/2009 - 11:47 | 51767 Anonymous
Anonymous's picture

I think it has become pretty obvious who Barney Frank works for (hint: not the American people), and we can take for granted that any bill he supports will be consistent with the interests of his employer. What I'll be interested to see is whether Ron Paul capitulates to the watering down of his bill into nothingness.

Thu, 08/27/2009 - 21:48 | 51169 Anonymous
Anonymous's picture

Wow, I hope Congressman Frank is true to the plain meaning of his words.

Surprising development from Mr. Frank, but I'll take it.

Fri, 08/28/2009 - 02:20 | 51424 Assetman
Assetman's picture

Good luck with that, buddy.

By the time Barney Frank gets done carving HR 1207, the bill will be so watered down, even Ron Paul won't recognize it.

Even what he says is true, delaying an audit trail by "several months" is ludicrous.

Thu, 08/27/2009 - 21:48 | 51170 crzyhun
crzyhun's picture

This is a crackpot calling the kettle black.


Still we need a hardheaded 'audit' of this baby.

Thu, 08/27/2009 - 21:52 | 51177 Anonymous
Anonymous's picture

I can't understand a word he said, and I speak "drunk street bum" perfectly.

Thu, 08/27/2009 - 22:55 | 51237 Lets_Eat_Amen
Lets_Eat_Amen's picture

funniest thing i've heard all day.

Fri, 08/28/2009 - 13:56 | 51636 iphone (not verified)
iphone's picture

i concur..he's a blathering retard

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Fri, 08/28/2009 - 16:07 | 52154 snorkeler
snorkeler's picture

Understood. You need to learn to speak and understand "drunk club snob" which is a slightly different dialect.

Thu, 08/27/2009 - 22:06 | 51185 MinnesotaNice
MinnesotaNice's picture

That is hysterical... "One of the things the audit will show is what the Federal Reserve buys and sells and that will be made public but not instantly, because if that was made instantly you would have a lot of people trading off of that"... like we don't have a multitide of other of financial information that is being traded off of in an inequitable, illegal, and inappropriate way.   

I feel like I am in a crazy cartoon... or watching a SNL skit... you can't write funnier stuff that this. 

Thu, 08/27/2009 - 23:01 | 51246 Anonymous
Anonymous's picture

crazy cartoon. exactly. these guys are freak scum.

Thu, 08/27/2009 - 21:58 | 51186 Zro
Zro's picture

A single conversation please! just what's with all the background noise. Anyways, something is better than nothing on this one. I'll take it

Thu, 08/27/2009 - 22:00 | 51188 Crook County
Crook County's picture

THANK YOU Tyler and all Zero Hedge readers for your continued support for this bill.

visit to sign the petition and get invovled.

September will be Mass Action month for HR 1207 and S. 604.  More information will be posted on the ZH forums as it becomes available.



Thu, 08/27/2009 - 22:01 | 51189 glenlloyd
glenlloyd's picture

Depends a lot on how it's implemented but I hope it will have some teeth...and hopefully consequences too, not just wrist-slapping.

I keep thinking it's Friday and there should be some failed banks....d'oh, it's only Thursday so that won't happen till tomorrow after the market closes.

Thu, 08/27/2009 - 22:03 | 51191 andrew123
andrew123's picture

So Bernancke will say we can't disclose what we have bought over the last three months becasuae we are still in the process of buying the same stuff now.  Check back in another 6 months and maybe we think it will be appropriate.

Thu, 08/27/2009 - 22:04 | 51192 Cursive
Cursive's picture

Nice. This dumbass of a congressman is talking nonchalantly about why it is important to keep the activities of an arm of the government secret because, if made public, it would be gamed. Nevermind that a government-sanctioned organization is knee deep in securities (and, yes, that includes equities) markets. Too many good men and women have paid their blood for us to let this cancer grow amongst us.

Thu, 08/27/2009 - 22:05 | 51194 Gordon_Gekko
Gordon_Gekko's picture

Hell yeah b**ches!!! OK, OK...I know it's not like we are abolishing the Fed here, but still it's a start, you know - something's better than nothing. Kudos to ZH and the entire online community for fighting the good fight.

Thu, 08/27/2009 - 23:25 | 51280 Anonymous
Anonymous's picture

Nah, anything this guy (or Ron Paul for that matter) does is suspect. The only way to abolish the Fed is for the army to step in and take the socialists and Communists out of power.

Thu, 08/27/2009 - 22:05 | 51195 percolator
percolator's picture

I don't believe the pickle licker. I'll bet if it does come to a vote it will be so watered down it'll be meaningless.

Thu, 08/27/2009 - 22:09 | 51198 Cursive
Cursive's picture

With the passing of Senator Chappaquiddick, are we now entertaining the prospect of having Steve Gobie's Sugar Daddy as the junior senator from MA?

Fri, 08/28/2009 - 08:35 | 51523 Marshal Ney
Marshal Ney's picture

Senator Kennedy was flawed, like everyone, but he spent most of his life trying to make life better for average people. He could have lived the life of idle rich, but he worked very hard at public service. I respect him for that. I have zero respect for a little twirp making Chappaquiddick jokes.

Fri, 08/28/2009 - 09:56 | 51586 Anonymous
Anonymous's picture

Whether he made life better for average people is questionable.
What does hard work in the Senate look like? It looks like the life of the idle rich, not public service.

Fri, 08/28/2009 - 10:00 | 51590 Anonymous
Anonymous's picture

Whether he made life better for average people is questionable.
What does the life of the idle rich look like? 47 years in the Senate reducing liberty for all and calling it public service.

Fri, 08/28/2009 - 10:16 | 51616 They steal from...
They steal from us everyday's picture

Fuck kennedy the drunk liberal and all the gangster liberals.

Fri, 08/28/2009 - 16:10 | 52156 snorkeler
snorkeler's picture

Ah yes!  A political discussion on an internet blog. Newsvine is fun but be careful. Some of those people try to find out where you live if you get them too pissed.

Sat, 08/29/2009 - 00:05 | 52670 Cursive
Cursive's picture

I have zero respect for those who provide cover for murderers.  Kennedy was a playboy (no shock there) and, in one of his frequent trists with another women, he was responsible for her death.  Perhaps you'd like to also defend drunk driving?  You cheapened the words "work" and "public service" when you used them in connection with Teddy.

Thu, 08/27/2009 - 22:14 | 51202 VegasBD
VegasBD's picture

lets see what they been up to. then end the fed.

Thu, 08/27/2009 - 22:17 | 51204 AN0NYM0US
AN0NYM0US's picture

If BF is saying that, he is playing to his constituents knowing full well that it will get nuked in the Senate - smart politics on his part - sort of like Sarkozy and his hollow promise to crack down on the banksters -

Thu, 08/27/2009 - 22:21 | 51211 Rex Havoc
Rex Havoc's picture

"I have been worked with Ron Paul, the main sponsor of that bill. He agrees that we don't want to have the audit appear as if it is influencing monetary policy cause that would be inflationary and Ron and I agree on that."

Hmmm sounds to me like Mr. Frank patted Mr. Paul on the head and said, "there there Ron, don't you worry I promise we'll take a look at your little bill"

Thu, 08/27/2009 - 22:26 | 51214 Edward King
Edward King's picture

Barney's concern in bringing the results of the audit of the Federal Reserve System to the people is that it will result in excessive trading. Jamie Dimon is the Chairman of the Board of the New York Fed and JPMorgan and the other member banks of the Federal Reserve System (the owners of the Federal Reserve System) account for most domestic trading. Presumably the traders already know any information that would be revealed. Why the need to trickle out the results of the audit? Am I missing something?

Thu, 08/27/2009 - 22:27 | 51216 Cursive
Cursive's picture

"I have been worked with Ron Paul...."  Is this a fruedian slip?

Thu, 08/27/2009 - 22:30 | 51219 deadhead
deadhead's picture

Looks like the Fed will have to unload all those SPYs pretty soon......

Thu, 08/27/2009 - 22:44 | 51228 Anonymous
Anonymous's picture

If you think this is "a good start"...This is exactly what they want you to think! There will be no audit, which shows ANYTHING!

This POS MF'r is lying to you!!!

If you think he is working in you best interest at all...You are a fool!!!!!!!!!

Sat, 08/29/2009 - 14:33 | 52885 percolator
percolator's picture

You're right.  This is what BF is really up to:

Thu, 08/27/2009 - 22:47 | 51232 Anonymous
Anonymous's picture

"have that data released after a time period of several months, enough time so it wouldn't be market sensitive."

And to give enough time for insiders to trade off of it.

Thu, 08/27/2009 - 22:47 | 51234 Anonymous
Anonymous's picture

Not only will they have to unload all the SPY'S, but i strongly believe that the findings will throw the world into dire straits, possibly a LOT MORE money printed than we are aware of and trace of GOLD in FT. Knox

Fri, 08/28/2009 - 14:06 | 51963 ZerOhead
ZerOhead's picture

My thoughts exactly...

Remember that USGS survey indicating that a cumulative total of around 5,000 tonnes of Gold Products where exported to France and England during 2006 and 2007 I believe... with a total reserve of supposedly 8,000 tonnes... well you do the math.

Gold products category does not include bullion however... but would include the 90% gold coins that the Fed expropriated from citizens when gold standard was imposed...

Updates anyone?

Fri, 08/28/2009 - 14:09 | 51973 ZerOhead
ZerOhead's picture

Sorry... I was wrong again.

It was 2007 and 2008. Looks like they are stealing the silverware on the way out...

Thu, 08/27/2009 - 22:56 | 51238 Joe Sixpack
Joe Sixpack's picture
Proclamation on the Federal Reserve System of the United States of America March 2008

WHEREAS, Article I, Section 8 of the Constitution of the United States of America authorizes Congress "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures";

WHEREAS, on December 13th, 1913 the US Congress enacted the Federal Reserve System;

WHEREAS, the Federal Reserve System is considered an independent agency within the federal government, with oversight of Congress and containing appointed public officials on its board of directors;

WHEREAS, the Federal Reserve System Controls the Federal Reserve Note, the official currency of the great nation of the United States of America;

WHEREAS, there may be controversies regarding the legality and constitutionality of the Federal Reserve System, it is recognized that the said system has operated continuously as the central banking system of the United States since the inception of the Federal Reserve Act of 1913;

WHEREAS, the Constitution of the United States of America granted Congress the authority to create the current Federal Reserve System, it also does grant Congress the authority to modify or revoke the Federal Reserve System;

WHEREAS, the actions of the Fedreral Reserve System represent the credit and currency of the United Stated of America to the citizens of this great nation and to the world;

WHEREAS, the Federal Reserve System, acting independently within the federal government allowed, supported, and even promoted parasitical and non-productive uses of the money and credit of the United States of America;

WHEREAS, the United States and likely the entire world's financial system is undergoing massive de-leveraging of the said parasitical and non-productive uses of the credit and money of the United States of America (as well as other nations' currencies);

WHEREAS, the US dollar, the "Federal Reserve Note" is declining in value due to these parasitical activites, as well as potentially other causes;

WHEREAS, it is recognized that the citizens of the United States and other nations did willingly participate at some level in the creation and propogation of said parasitical activities;

WHEREAS, it is also recognized that the United States of America, a sovereign nation, has the legal, moral, and God given authority to take actions to benefit its citizens and to protect its good name, credit and money in times of difficulty;

WHEREAS, it is recognized that the current time is such a time of great difficulty;

WHEREAS, it is recognized the parasitical financial institutions and their activities are at odds with citizens of the United States of America and the good credit and money thereof;

WHEREAS, the current indications are that the Federal Reserve System is acting to preserve the financial system currently flooded with the parasitical activities;

WHEREAS, the current indications are that the neither the Federal Reserve System, nor the Congress of the United States, nor the people of the United States have access to the books of the institutions being preserved by the Federal Reserve, and therefor the degree of inter-connectivity and risk associated with the institutions and other entities cannot be determined;

WHEREAS, the Federal Reserve System is accepting non-performing assets as collateral for credit with ultimate taxpayer responibility to entities not under its legislative mandate;

IT MUST BE CONCLUDED, that the Federal Reserve System is not acting to the benefit of the people of the United States of America, its credit, money, and good name;

WHEREAS, it is recognized that the political will and capability of the government of the United States of America may not be up to the task of prosecuting this proclamation ; It is also recognized that this may be the only hope for the continued survival of the United States of America as the great nation as it has historically existed.

NOW THEREFORE, it is PROCLAIMED by those supporting this Proclamation that the Congress of the United States of America FULLY NATIONALIZE the Federal Reserve System, and take full control of the credit and money of our great nation; The Congress must take whatever action necessary to seperate out, sequester, disown, or otherwise neutralize the effect of the parasitical financial activities which led to the current crisis; The Congress of the United States of America must reorganize, replace, or terminate the Federal Reserve System as appropriate; or otherwise devise a system for creation of the national currency.

IT IS FURTHER PROCLAIMED, that the Congress of the United States of America in cooperation with the Executive of the United States of America contact allied nations and any other nation willing to participate in the overhaul of the failing and parastical financial sytem currently in operation and create new treaties and alliances as necessary to create a sane and productive system of finance with the express goal of supporting a productive national, and by extension and through voluntary cooperation, world economy;

FURTHERMORE, it is PROCLAIMED that it should be the goal of such an international effort to maintain fair international trading practices allowing for protection in national interest of labor, resources, and productive capabilities;

WHEREAS, it is recognized that such a move on the part of the United States of America may result in the necessity of an isolationist policy IF the other developed nations do not follow our lead; If such occurs, so be it.


Thu, 08/27/2009 - 22:57 | 51239 taraxias
taraxias's picture

Nonsense, move along folks, nothing here to see.

He's already telling you whatever is released WILL NOT BE MARKET SENSITIVE.

It's a delay tactic, nothing more.


Thu, 08/27/2009 - 22:58 | 51243 primus
primus's picture

I don't trust one single word that drops from the mouth of babbling, blubbering, blustering Barney Frank. This is the same clown that was the main driver behind Fannie and Freddie to making loans to anyone that could fog a mirror. We all saw how that turned out. My hunch is that in true Orwillian fashion, any 'audit the Fed' legislation is going to do anything but audit the Fed.

Thu, 08/27/2009 - 23:02 | 51247 Anonymous
Anonymous's picture

When they reveal the Fed is THE counter-party for the entire banking system and the big adjustment in prices that needs to occur, occurs, ZH gets a pulitzer. Watch.

Thu, 08/27/2009 - 23:03 | 51248 Anonymous
Anonymous's picture

Not only will they have to unload all the SPY'S, but i strongly believe that the findings will throw the world into dire straits, possibly a LOT MORE money printed than we are aware of and trace of GOLD in FT. Knox

Thu, 08/27/2009 - 23:28 | 51285 Anonymous
Anonymous's picture

The S&P 500 futures are most likely held in off balance sheet vehicles, think Maiden Lane I and II, or possibly offshore accounts in the Caymans.

Thu, 08/27/2009 - 23:03 | 51249 Fish Gone Bad
Fish Gone Bad's picture

I had figured Barney Frank to be as spineless a leader as Obama apparently is.  Perhaps I am wrong about ol' Barney Frank.  Hopefully our representatives see that there is a huge political nuke about to go off, and they will pick their sides early and vociferously.  There is a lot to be gained by outing Bernanke as the crook that he is and getting rid of a Bush legacy.


Thu, 08/27/2009 - 23:04 | 51251 Anonymous
Anonymous's picture

"Junior senator from Massachusetts." "'I have been worked with Ron Paul....' Is this a [F]r[eu]dian slip?" Try the type of mistake the typical person makes while speaking or typing in blog entries. More Americans talking politics which is the common man's military intelligence.

Frank speaks more honestly than most of the representatives (he's a representative from the next district where I live). When he gets his pants caught around his ankles he admits it, he doesn't pretend he was praying to Jesus or being a fiscal conservative when caught in the act or is a proud gun nut.

I am proud Frank is up there voicing his opinion. If we had a healthy democratic system, whatever extreme Cuban influences he is expressing would be worked out. Unfortunately we don't so we have a lot of grown adults getting the vapors. I hope you all have a full collection of throw pillows on your work desk to cushion the fall when you pass out.

As to St Ron Paul, is he still a bigot?

Thu, 08/27/2009 - 23:07 | 51254 Anonymous
Anonymous's picture

i don't trust Barney. he's never been ideologically situated to support a bill like this or anything Ron Paul thinks is sound. he or someone else will either slip in some bullshit pork for his constituents and/or conveniently remove the most important parts of the legislation. these guys in DC are in the pockets of the bankers. i'll only believe it if i see it.

Thu, 08/27/2009 - 23:07 | 51255 Cheeky Bastard
Cheeky Bastard's picture

we will see military on the streets and urban destruction before we will see HR 1207 enacted just like it was written. If he said October; shit will REALLY hit the fan in the next 2-4 weeks. And WHEN it does; don't complain about how no one said it to you.

Thu, 08/27/2009 - 23:31 | 51290 dnarby
dnarby's picture

Hey, you might very well get both..!  Wait and see.

Fri, 08/28/2009 - 07:00 | 51484 Thoreau
Thoreau's picture

my first thought as well; maybe barney knows that by the end of oct., "the people" will be occupied with far more pressing issues. i don't trust this mf at all.

Thu, 08/27/2009 - 23:07 | 51256 Anonymous
Anonymous's picture

Primus, no, Fannie and Freddie weren't making the dumb-ass loans. They are dumb-ass co's that should have been delisted when they couldn't present timely financial statements.

The dumb-ass lenders where the banks making the loans, WaMu, DoA, C, and writing the overly complicated, ivy league grads, CDS.

Thu, 08/27/2009 - 23:12 | 51262 Anonymous
Anonymous's picture

These are not the black swans you're looking for.

Thu, 08/27/2009 - 23:16 | 51267 Anonymous
Anonymous's picture

Tough crowd. This is a huge development. Take your wins where you can get them.

Thu, 08/27/2009 - 23:33 | 51294 Anonymous
Anonymous's picture

This is not a huge development. This is more lies!!! This MF'r is one of the big reason where we are now! Come on don't be such fools!!!!!!!!!!!

Fri, 08/28/2009 - 13:56 | 51642 iphone (not verified)
Thu, 08/27/2009 - 23:42 | 51307 Anonymous
Anonymous's picture

i wouldn't want you as a general of my troops...

it's a feint...nothing more....

until harry reid announces passage it's a sucker

when 6 months pass into 6 years it's tko.....

Fri, 08/28/2009 - 10:03 | 51595 Anonymous
Anonymous's picture

Those of us who are happy about the news understand that the Senate is still a big obstacle. But IMO this is still good news because now we can focus all our efforts on the Senate. To only have to fight in one chamber is good news to me.

Sat, 08/29/2009 - 14:19 | 52878 percolator
percolator's picture

Its not a win, its more BS from the pickle licker.  He never said HR 1207 will pass. What BF said is a watered down and meaningless audit of the Fed will be part of an overall financial reform bill that is to be voted on this Fall:

Thu, 08/27/2009 - 23:18 | 51269 Anonymous
Anonymous's picture

this was just a cue to the enron lobbyist ben hired to focus on the senate and stop wasting time on the house....this too shall pass....

it would be nice if barney revealed what he knew about craig spence's "suicide"

Thu, 08/27/2009 - 23:26 | 51284 Cheeky Bastard
Cheeky Bastard's picture

JUDGE; JUDGE where are you 

Thu, 08/27/2009 - 23:31 | 51291 Anonymous
Anonymous's picture

Judge essentially blew it by revealing that the Fed had asked him for some of his "research." We can expect a new, more intelligent troll to arrive any day now... one who won't ruin his cover like that.

Thu, 08/27/2009 - 23:51 | 51321 MinnesotaNice
MinnesotaNice's picture

I think he might have high-tailed it out of here after the Racketeering 101 post...

Fri, 08/28/2009 - 02:26 | 51426 ghostfaceinvestah
ghostfaceinvestah's picture

Funny, I was wondering the same thing, but then I realized it was past work hours on the Beltway.  She will be back at it tomorrow, no doubt.

Fri, 08/28/2009 - 08:01 | 51501 Cheeky Bastard
Cheeky Bastard's picture

Judge is  a she ?

Thu, 08/27/2009 - 23:35 | 51296 Anonymous
Anonymous's picture

House imposed margin call from fed to banks.

Fri, 08/28/2009 - 08:03 | 51502 Rollerball
Rollerball's picture


On the other side of that vault door, your step-daddy ("ladder daddy", for you suits) is "raping" your sister(s).  

Do you hear:  "No (mas)... please don't ..."?  Man-up and get your SWAT on!

Or, do you hear:  "Oh (yes) ... more, more ... give it to me ..."?  Then it's this:

This is a recording ... this is a recording ... this is a recording ...


Thu, 08/27/2009 - 23:38 | 51300 wolphkaat
wolphkaat's picture

tough crowd is right. something tells me if some of the commentators got everything they ever wanted they would still be a miserable lot. But I'm sure JPMorganChase et al appreciate your self defeatist attitudes as it makes their job that much easier.

Fri, 08/28/2009 - 02:33 | 51428 ghostfaceinvestah
ghostfaceinvestah's picture

I'm with you there, as skeptical as I am about politicians, any move is a good move.  Not that it will make a difference, but it will draw attention to the Fed.

The only thing that will make a true difference now is if the public realizes how the Fed has been  responsible for the booms and busts in our economy, how they have enabled the gutting of our manufacturing base by making it unprofitable for anything to be made here.

Once people realize the threat the Fed poses to our country, they will take matters into their own hands, and rip their deposits from the Fed's owners.

I am as critical as anyone of the intelligence of the American public, but they are smart enough to realize the need to defend the country, and banking with a local bank or credit union hardly requires any extra effort than banking with one of the TARP 19.

Fri, 08/28/2009 - 08:28 | 51519 Anonymous
Anonymous's picture

"how they have enabled the gutting of our manufacturing base by making it unprofitable for anything to be made here."

Can you expound on this idea? Isn't printing money to debase the currency what merchantilist countries do to promote their domestic industries' international pricing advantage?

Thu, 08/27/2009 - 23:47 | 51314 Anonymous
Anonymous's picture

Great news! Frank and Pelosi have signed off on a bill to audit the Fed. If they're on board, in at least some form, we've made significant progress. Now we can focus our efforts on the Senate. We need to pressure them.

Fri, 08/28/2009 - 02:40 | 51431 Seth Davis
Seth Davis's picture

Do you have a link to the article or are you just joking around?


Fri, 08/28/2009 - 09:47 | 51580 Anonymous
Anonymous's picture

The above. If Frank says it will pass the House, it must mean that Pelosi has given it her ok. Otherwise, she'd have his head if he went public like that.

Fri, 08/28/2009 - 00:37 | 51361 Anonymous
Anonymous's picture

I'd hazard this is "secret squirrel" for "start cooking the books."

comments 2x post??

Fri, 08/28/2009 - 02:25 | 51373 agrotera
agrotera's picture

Ok all of you, i wish you would be a little more gentile with your language about Mr. Franks publicized sexual preference!  That has nothing to do with his deeds as an elected official.


I think he may be the fastest acting policy switcher so far--he knows that yes, the times are a changin, as Dylan said, and he wants to keep his job. (...good luck with that!)


It is my understanding that all elected officials know how corrupt the Fed is but because they are afraid and genuinely bought by this machine, nothing has changed.  But with the STRONG understanding that the public is starting to know the truth, they may all jump ship in favor of taking down the FED....  Unfortunately that will be their selling point when they ask for votes to keep their jobs. 

I think an equivalent issue of importance is the maintenance of our republic instead of the massive power grap that is happening to increase the size and power of the government--we need a smaller federal government...thank you, amen.

Fri, 08/28/2009 - 00:50 | 51380 Anonymous
Anonymous's picture

it ain't change anything. FDIC is insolvent and there are 400+ banks on THEIR OWN 'bank problem list'. and the list keeps growing.

go get your money while you can, don't try to be a "genius" thinking that when the shit hits the fan you'll get out BEFORE everyone else.

Fri, 08/28/2009 - 00:54 | 51381 Fritz
Fritz's picture

Yes - They definitely need to delay the release of the information. That way, Goldman Sachs will have more time to profit from it before it becomes widely disseminated.

Fri, 08/28/2009 - 01:22 | 51398 Anonymous
Anonymous's picture

and to oil and run the shredder....

Fri, 08/28/2009 - 01:40 | 51403 agrotera
agrotera's picture

Yes, and if there will always be a lag in the information flow, GS and the other primary crooks dealers getting orders have plenty of time to prepare two sets of books... 

Fri, 08/28/2009 - 00:57 | 51383 Anonymous
Anonymous's picture

This is amazing news. This is what we need we can finally start to rebuild from the mess. Maybe this will be the end of the FED. The thing to do now is make sure they stay tru to their word.

Fri, 08/28/2009 - 00:58 | 51384 Anonymous
Anonymous's picture

Frank is just looking to shake down the big banks. He'll make sure the bill gets totally watered down in committee before Obama signs it in exchange for, well, money. Ron Paul should know better than to trust that guy.

Fri, 08/28/2009 - 13:57 | 51638 iphone (not verified)
iphone's picture

I don't know a single person that likes or trusts him

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Fri, 08/28/2009 - 01:34 | 51400 Anonymous
Anonymous's picture

is barney upset about Uncle Ben's reappointment? Looks like he is not out to screw him. This might be the crack in the relations that we may have been waiting for

TD ...pls lets all push the wedge deeper...

Fri, 08/28/2009 - 02:28 | 51425 Pizza Delivery Man
Pizza Delivery Man's picture

Hosuing queen.



Fri, 08/28/2009 - 02:29 | 51427 Anonymous
Anonymous's picture

Tyler, You put quotes around this??: "...The House will pass [HR 1207] in October."

C'mon Tyler, you should know better than to omit important words when quoting someone - especially a proven serial liar and Fed shill.

He said: "The House will pass it [HR 1207] PROBABLY in October."

Fri, 08/28/2009 - 11:19 | 51736 Anonymous
Anonymous's picture

Actually the quote was "Da Houths wilpa sitpollotober."

but I'm just splitting hairs.

Fri, 08/28/2009 - 02:38 | 51429 Seth Davis
Seth Davis's picture

If I may ask did Goldman sachs convert to a bank holding corp. in order to receive T.A.R.P funds or am I mistakend? If not, I wouldnt be  surprised that they[The Fed/Capital Hill] are giving these large institutions time, 7 months I believe he said, to clean up those dirty books they have.

P.S. I wonder which "Financial Blogs" the gentlemen speaking was referring to,[ZH].

Fri, 08/28/2009 - 05:19 | 51452 Bushwick Bill
Bushwick Bill's picture

HR 1207 will never make it through the Senate. Barney knows that.

Fri, 08/28/2009 - 05:36 | 51457 jm
jm's picture

Any audit will be propaganda, just like the stress tests.  Just like CPI.  Just like these fine Treasury auctions.  On and on.

Sadly, Mr. Bernanke has already assured the destruction of the financial system, and there is nothing that can be done about it, crashing dollar or no.  It is not about liquidity or solvency or inflation or deflation.  This stuff can be fixed.  I'm not sure you can fix the moral hazard.

Ultimately there is a limit on how many mortgages you can write.  If you can't generate income off those mortgages, the Ponzi game falls apart.  After seeing $150 billion (?) cycled through AIG straight to banks, even people with their head in the sand know the system is designed to screw them.  And so they have no qualms about walking away from a mortgage or a c-note.  And this squatter/walker army is just going to get bigger.  Ultimately it will reach the point that it will make no sense for anyone to pay a mortgage no matter who you are.  Until there is a debtor's prison in the United States of America.  Land of the free.        

Thanks, Ben.  You think people are just one of the aggregated subscripts in a utility function. As standards of living continue trending down, they'll laugh as the country's number one assholes go up in flames even if it burns them too.

Fri, 08/28/2009 - 06:17 | 51463 Anonymous
Anonymous's picture

on can only hope Mr Fwank is sewious but i doubt it

pass the bill fucker!!! exactly as Dr Paul has it written. then i will believe

Fri, 08/28/2009 - 06:36 | 51474 Zippyin Annapolis
Zippyin Annapolis's picture

Barney Frank will pass this (maybe Not in October)and the rest of the "reg reform" package and the Fed will cut a deal on this Fed language knowing that this "reg reform" package is going nowhere in the Senate.


The far more interesting and telling fight is over OTC derivatives regulation peice including "naked" CDS (a truly Stupid meaningless term) .


High drama and a front row seat, watching "How Our Laws Are Made".

Hint: the politicos, Ds and Rs Are Not there to implement "Change" or rock the boat or "do the right thing".

They are there to---well take in a lot of cash contributions so they can be reelected.

Chuckle when I read that Schumer and Kaufman are "on to something" for the good of the equity market. Puleeeze! Reelection cold and simple and a former lobbyist staffer going after their next job.

Fri, 08/28/2009 - 06:48 | 51478 Anonymous
Anonymous's picture

Whether or not 1207 passes is not that important.

I think it is more important to educate as many people as possible as to what the Fed is up to.

Think about it if the Fed tries to block 1207 they will motivate people to audit the Fed.

If they try to cook the books that will make people demand transparency.

If they allow an honest audit then people will see what the Fed has really been up to and probably want to get rid of it.

Either way we win.

Fri, 08/28/2009 - 06:50 | 51480 Ned Zeppelin
Ned Zeppelin's picture

"Boys, this Audit the Fed business is starting to get traction. Some of the House members are telling us they are hearing it from enough of their constituents that they think we'd better do something.  You guys know the drill - once ignoring something as the province of the tin hat and nutjob crowd stops working, you've got to manage the problem - it's not like we haven't done it countless times before.  And no, you can forget the "big diversion" strategy - it's not time yet, according to our Leader. Get that idiot Frank out there to mumble something about doing something - you can count on him to make it perfectly muddy that something will get done. Then, start the process we use to confuse the public so badly they just drop the subject.  It works every time. It will work again.  You know, do something that amounts to nothing -like appointing a Barofsky to be a "tough watchdog" watch the TALP stuff - what a fucking joke that is, eh? -  and our opponents lose as much leverage as they will ever have with the American public. Get writing some watered down bill that essentially restates the status guo in new terms - call it some fucking phony title - get that guy who thought up the title for the Patriot Act, that was fucking great -  And get that goddam new season of American Idol on this fall minus Abdul so we don't have to put up with this crap. Now, get off your ass and get it done. "

Fri, 08/28/2009 - 06:58 | 51483 Anonymous
Anonymous's picture

We should celebrate the public audit of the Fed with the public execution of Barney.

Fri, 08/28/2009 - 07:26 | 51490 Terminal Frost
Terminal Frost's picture

Bawney Fwank is a daft fundraiser.  I just heard the Clearinghouse checkbooks open.

Fri, 08/28/2009 - 07:57 | 51497 AnonymousMonetarist
AnonymousMonetarist's picture

So the Fed stress test gets leaked beforehand, adding to sell-off's momentum in Sept., and when the actual legislation hits around mid-October all the folks that brayed disaster will then bid up the market in a huge rally.

That sounds familiar.


Fri, 08/28/2009 - 08:05 | 51504 Anonymous
Anonymous's picture

"October" means "Let's see if we make it through September"

Fri, 08/28/2009 - 10:27 | 51640 iphone (not verified)
iphone's picture

lets not get hopefull

Fri, 08/28/2009 - 10:46 | 51677 Anonymous
Anonymous's picture

Good one-

Fri, 08/28/2009 - 10:48 | 51683 Anonymous
Anonymous's picture

good one

Fri, 08/28/2009 - 08:38 | 51530 Anonymous
Anonymous's picture

Howdy. Drudge has a headline this morning about 1000 banks.

Fri, 08/28/2009 - 10:14 | 51611 Anonymous
Anonymous's picture

Listen to the entire clip.....Barney never states that HR1207 will pass.

He states that he will spearhead an effort to limit the power to the FED - AND transfer that power to Congress (read, himself). A watered down audit will get tacked on to a bill that Barney spearheads.

He is using Ron Paul's bill as a crutch for a "Look what I did" statement to be used in the future.

Nothing to see here - Just a simple power grab where he can take credit for kicking the FED in the nuts. Think like a politician and it all makes sense - no move is performed without the question of "How does this help me get votes" being asked first.

Sat, 08/29/2009 - 14:25 | 52882 percolator
Fri, 08/28/2009 - 10:15 | 51613 Ruth
Ruth's picture

how about moving that deadline up a year too, we are on a need to KNOW NOW!

Fri, 08/28/2009 - 10:19 | 51620 Anonymous
Anonymous's picture

yes by that time In Goldman We trust would have made a bundle anyways..

Fri, 08/28/2009 - 10:51 | 51687 digalert
digalert's picture

The bezzle will never stop, with or without hr1207. With Oblame-all as god and uncle Ben as heysoos those in charge will merely laugh it off. "So you got a stack of papers there, that don't mean nothin". The masses will still believe that we've been saved from the "brink" of collapse. The informed, in disgust, will be reminded of the jury in the infamous OJ trial, "dat don't mean nuthin, everybody got's DNA".

Fri, 08/28/2009 - 11:17 | 51733 knobcreek
knobcreek's picture

The Fed will be audited..suure.  Let me guess, by the newly appointed, ex-GS partner, Fed Audit Czar.

Fri, 08/28/2009 - 15:26 | 52085 gridlocked
gridlocked's picture

Ron Paul certainly won't dummy up if the bill is watered down. 


There isn't comparable support for this in the Senate so it may not make it to Obama's desk.  If it does make it to his desk there is no guarantee he'll sign it. He seems thick as thieves with Bernanke and his gang.

Thu, 03/03/2011 - 00:37 | 1014058 george22
george22's picture

I think it has become pretty obvious who Barney Frank works for (hint: not the American people), and we can take for granted that any bill he supports will be consistent with the interests of his employer. What I'll be interested to see is whether Ron Paul capitulates to the watering down of his bill into nothingness.

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