Grayson Announces A Hearing On Bill To Audit The Market Maker Formerly Known As The Federal Reserve

Tyler Durden's picture

Rep. Alan Grayson announces there will be a hearing in late September on the bill to audit the Federal Reserve.



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Sancho Ponzi's picture

OT from Bloomberg:

'The government’s new National Asset Management Agency, or NAMA, proposes to pay a 30 percent discount on the 77 billion- euro book value of the loans, Finance Minister Brian Lenihan said in a speech in parliament in Dublin today. The current market value of the debt is about 47 billion euros, he said.'

The Irish are either a hell of a lot smarter than we are, or less corrupt. I favor the latter.

Yossarian's picture

This is not different to what The Fed is doing, only they're doing it out int he open.  If things are so good, credit crunch is over, and real estate is rebounding then why does the ECB need to print Euro and give them to Ireland (NAMA) to buy loans.  If Ireland is buying loans at a 30% discount to face value why wouldn't a private buyer if that were the market price?  Probably because they are overpaying using printed Euro from the ECB- another form of moentization.  But who cares, Euro is not $ so keep buying it- it's rock-solid!

ratava's picture

Totally, look at them loser countries like Germany, Sweden or Denmark. They aint got nothing on fine states like California or Michigan. I really hate to start the whole EU vs US thing but Americans should clean their own back yard first.

Anonymous's picture

Sure, I won't point at the poop in the Euro diaper, Baltic states, Iceland, UK, Spain, Greece, definitely Italy, Hungary, ok, let's just say everyting except Germany, as long as you don't point at the turds in the US diaper.


Anonymous's picture

Greetings form the poop Baltic states to you sir! Namely from Estonia.

PS: Zerohedge rocks.

Yossarian's picture

Denmark and Sweden are not in Euro Monetary Union.  

digalert's picture

In the words of Oblame-all, "games are over". Uncle Ben wants to pull some crap about national security, well how about civil unrest if bailout Ben and the FED don't tell us where our money is going.

JohnKing's picture

Where did Grayson get that suit, it looks like it came from the costume dept of The Godfather.

Chippewa Partners's picture

Grayson, gits-er-dun.....good work.  Pass the popcorn, this oughtta get real good before it gets over. 

Anonymous's picture

Thank you for noticing!!

RatherBFlying's picture

I don't trust any of them except Ron Paul. I think Grayson is after this because he wants a piece of the action. It's just a feeling and I do hope I am wrong.

DiverCity's picture

I'm with you for the most part, but in this case perhaps the enemy of my enemy is my friend.  A Congressionally mandated audit is one of our last hopes for a reckoning -- in the accounting sense -- before that other kind of reckoning.  You know, the kind the Outlaw Josey Wales talked about.

Anonymous's picture

Oh, I don't know, are you sure you want to open Pandora's box and stare down into the abyss of the Vampire Squids hope chest?

Might be a little like that scene in Raiders of the Lost Ark when the Ark was opened and everyone melted.

Best to keep you're eyes closed tight!

Cursive's picture

Correct.  This is usually how you get change:  Entrechened Power vs. Aspiring Power.  Does anyone think Andrew Cuomo is clean?  Was Spitzer clean?  The archetypical prosecuting DA from literature is rarily, if ever, Atticus Finch (To Kill a Mockingbird).  Not saying such persons cannot or do not exist, but more generally you get someone much more human and power hungry.  So, ride the wave of their power grab, then jump off.

I am a Man I am Forty's picture

Don't let the bad suit fool you.  He's one of the few good guys.

Careless Whisper's picture

Bad suit? Oh, I love that suit. The shirt is rather smart. He even has an elegant tie with a matching and nicely folded dresss handkerchief. I didn't see the cuff links but this man knows how to accessorize.

All those other guys are wearing grey suits, white shirts, blue ties. ...eewwww boring

Props for the fashion statement.

Gordon_Gekko's picture

Whatever, you know. I'll support anybody who makes life HELL for the Fed. An enemy of an enemy is a friend - that's all I'm sayin.

DEATH to the Federal Reserve.

waterdog's picture

And we are off, during the same period the Federal and state courts are in a hanging mood.

Bernake will not survive an audit. He does not have it in him. This is what happens to a person who spends his 30's and 40's discussing grades on the floor of his office.

He has been conned by the best. Now he is in deep. "I am not telling you",and, "I do not remember", were the wrong answers to those questions.

Gordon_Gekko's picture

Reading your comment gave me some strange sadistic pleasure.

Anonymous's picture

Let's DO THIS....

10% Consumption Tax Per State....
Directed by State Mandate....

5% Consumption Tax Per Fed....
Collected by the State....
Fed budget controlled by State mandates....


All tax expense categories....
Vote per internet local....state mandate....


Chips fall where they may....


The US Economy will take off like a rocket....

The tax take will be larger than ever

No IRS....

No Individual or Corp taxes....

No more lobbyists....

Everyone buys their own health care
because the economy will rocket....


Both the Fed and the State have to live on
not greater than the 15% Consumption tax....

All other taxes outlawed....


Otherwise the US dies by ECONOMIC CANCER....

Mr. Anonymous's picture

LOL.  You must have meant to click on Grover Norquist's site.

Anonymous's picture

you got my vote

straightershooter's picture

!0% consumption tax, you mean sales tax?

No, it is not going to work. Take a look at the state of Washington. I believe the sales tax is almost 10% (9.8% or 9.9%) already there, not counting property tax (huge one circa 1.4% of the value of inflated house). Yet, the state of Washington is still in deep red. I don't know how much 5% Fed will get. It could be a misery 700 billion a year, assuming 14 trillion GDP. Well, that means that we must eliminate the whole defense budget, then eliminate at least 60% of all other programs, laying off millions of federal employees etc, etc. No, it aint going to happen unless somehow someway the R&R (Riot & Revolution) get rid of the current system, which I don't think will happen.

Yet you can still dream on until someday the system collapsed and you might get what you wish.

TumblingDice's picture

I wonder what part of America they compromised to the bankers with Barney Frog's help in order to make this happen.

djchill2's picture

Please help me understand why having a hearing to "discuss" HR 1207 would be relevant?  Will this pave the way for HR 1207 to make some headwinds in Congress, or is this just another way to keep the bill alive for the time being?  What will a hearing accomplish?

D.O.D.'s picture

I can't say for sure, but it would seem the biggest question that needs to be answered is; is an audit of the Fed, by congress, legal by current law?



novanglus's picture

In the words of Bill Cosby, "My father established our relationship when I was seven years old. He looked at me and said, "You know, I brought you in this world, and I can take you out. And it don't make no difference to me, I'll make another one look just like you." (Congress == father, you == Fed)

ToNYC's picture

Who's your Daddy? If an audit of the FED is not legal when the US Constitution gives Congress the sole authority to regulate money, then we have no Constitution and you, not me, deserve what you get.

lookma's picture

The House Financial Services Committee is moving forward with financial reform.  HR 1207 is a part. 

Hearings are scheduled to be held on what reforms should happen (including HR 1207), and then the bills will be marked up and a final bill will be submitted to the House as a financial reform bill.

Here is the HFSC schedule for hearings:

TumblingDice's picture

A bill must go through committee, where it is marked up and then put before a vote to either table (ignore) or put it to cosideration of the floor of the Congress.

Cursive's picture

Is this a serious question?  Yes, more airtime, more attention.  Do you think people would buy less Nike if they stopped all advertising?  Hell, yeah.  A hearing keeps politicos talking about it.  Have you ever heard of a "show trial" or a "dog and pony show?"  Rep. Grayson is setting the agenda here.  And he's doing it wearing a bad ass pimping suit, so he's the mack daddy.

Grifter's picture

I read somewhere (looking for it) that HR 1207 is at 289 cosponsors, 1 more and it be veto proof.

JohnKing's picture

Sure, overwhelming bi-partisan support and Barney Frank is talking about a COMPROMISE bill.


Tar and Feathers

Mediocritas's picture

If Barney Frank isn't a Central Bank stooge/plant then I'm the king of england.

TumblingDice's picture

Sadly, knowing that he's from Newton, Mass...he may just be an old fashioned idiot.

Anonymous's picture

Why do you think Obama's Wall St speech included a collegial reference to "Barney" writing the reforms. It was like a masonic handshake, or the opposite of scratching his nose with his middle finger.

Anonymous's picture

not gonna happen, do not fool yourself

Ruth's picture

(writing in the invisible box/comment sect) I'm glad one person agrees and claps, what, the polisheeple don't like to stand for something meaningful?  I think it's time to audit anyone and everyone who has been employed by the govt and banks in the last 7 yrs.   Is all the inside traders selling to govt officials in the know?

Gabriel Gray's picture

Time for some type of event to make this all go away. A coincident that the voice of Osama happened to pop up just this week.

These people will go to any extent to stop this audit from happening, keep this in mind as events unfold over the next few weeks.

Apparently a 50% stock market rally and all these green shoots hasn't done anything to quiet the dissent. Time to turn it up a notch. Stay tuned.

Anonymous's picture

Boy the economy is turning around. Don Quijote Inc.(NYSE: GE) is flying high today.

alexander-delarge's picture

I hope this hearing happens before the debt-ceiling gets jacked in late Sept. "The House passed a debt-limit increase to $13.029 trillion earlier this year, but the measure has languished in the Senate. Senate Democrats say they haven't put together a strategy for passing the increase. It could be added to other must-pass legislation, such as a short-term spending measure to keep the government running when the fiscal year ends Sept. 30. The Senate could also take up the issue on its own." (9.12.09 WSJ)

Careless Whisper's picture

1. Will Barnanke testify at the hearing?

2. Can he plead da fif?

one, two, three, four, fif !!! go ahead ask me a question - fif !!!


D.O.D.'s picture

I wouldn't be surprised at this point if Bernanke claimed Executive Privilege on this one, more or less trying to blame it on Bush...

Anonymous's picture

Hope he doesn't try and say he did it at the advice of counsel... probably won't go over too well.

novanglus's picture

Not a chance, the Fed is a private entity - he has no claim to the Executive Branch.

In fact, iirc the Fed was created by Congressional Legislation, so ultimately he HAS to answer to Congress.  

Careless Whisper's picture

Oh, he has had plenty of answers for Congress. July 16, 2008: Fannie Mae, Freddie Mac and Bernie Mac, "no danger of failing".



D.O.D.'s picture

"so ultimately he HAS to answer to Congress."

Wow... have you even been paying attention for the last 15 years or did you just wake up?

As for whether or not he can claim executive privilege, it would be entirely up to his council on to what grounds, I myself can think of three.

Anonymous's picture

I have written my CongressCritters requesting that they defer any vote on incerasing the debt ceiling until an audit of the FED is complete.

They steal from us everyday's picture

Hey I like this Grayson fellow, even with the (D) next to his name.