Bailout Barney Gets Frank About The Fed: "The House Will Pass HR 1207 In October"

It's been a bittersweet week for Uncle Ben.  First he's egregiously re-appointed to a new term by President Bush Obama.  Then Judge Loretta Preska hits him with a Mike Tyson overhand right, and while still concussed and shaky, Bailout Barney brings out the 2 x 4.

At long last we have public comments from Congressman Frank on Ron Paul's bill to audit the Federal Reserve. And somewhat shockingly, at least based on his response in this town hall clip, Frank heartily supports HR 1207 and is working with Congressman Paul to steer its passage.

As we have surmised and have written several times, the component of the bill giving Congress power to oversee monetary policy (Fed interest rates), is being scaled back or perhaps tossed from the language of the bill entirely (it's not clear from his response). It appears that it was a mere device of negotiation, and has functioned as intended.

This is huge news and a big win for truth, justice and taxpayer sanity.

Transcript and video are inside.  Halle-freaking-lujah.

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• "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 audit.  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 as 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.  The House will pass [HR 1207] in October."

More transcription courtesy of The Washington Times:

• "I have been pushing for more openness from the Fed. I want to restrict the powers of the Federal Reserve. First of all, the Fed will be the major losers of power if we are successful, as I believe we will be, setting up a financial product protection commission. The Federal Reserve is now charged with protecting consumers. They were supposed to do subprime mortgage restrictions.

• Congress in 1994 gave the Fed powers to ban subprime mortgages. Alan Greenspan refused to do it. They had the power to ban credit card abuses. Under Greenspan they did nothing. Under Bernanke they started but only after Congress acted.That's one of the reasons why in the new consumer protection agency, we will take away from the Federal reserve the power to go consumer protection.

• Secondly, they have has since 1932 a right under Herbert Hoover to intervene in the economy whenever they could. Last September, the Federal Reserve they were going to advance $82 billion to AIG. I was kind of surprised and said, 'Mr Bernanke do you have $82 billion?' Mr. Bernanke replied, 'I have $800 billion and under section 13.3 of the Federal Reserve Act they can lend anything they want.'

• We are going to curtail that lending power. We are going to put some restrictions on it.

• Finally we will subject them to a complete audit. I have been working with Ron Paul, who is the main sponsor of that bill. He agrees that we don't want to have the audit appear as if influences monetary policy as that would be inflationary.

• One of the things the audit will show you is what the Federal Reserve buys itself. And that will be made public, but not instantly because if it was made instantly people would be trading off it, so the data would be released after a time period of several months, enough time so it will not be market sensitive. This will probably pass in October."

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[DailyBail]

HR 1207 archive

http://dailybail.com/display/Search?searchQuery=hr+1207&moduleId=4521698

[DailyBail]

Bernanke Responds To Calls For An Audit Of The Federal Reserve (PBS Jim Lehrer Clip)

http://dailybail.com/home/bernanke-responds-to-calls-for-an-audit-of-the-federal-reser.html

[DailyBail]

Ron Paul: "Mr. Speaker, The Big Guns Have Lined Up Against HR 1207; What Are They So Afraid Of?" (House Floor Clip)

http://dailybail.com/home/ron-paul-mr-speaker-the-big-guns-have-lined-up-against-hr-12.html

[DailyBail]

Judge rules against Fed in bailout secrecy case

http://www.bloomberg.com/apps/news?pid=20601087&sid=a7CC61ZsieV4

[Something Polish]

http://www.eschatonblog.com/2009/08/wheeeeeeeeeeeeee.html

"There's no chance of this ending badly (eye roll):


"Aug. 28 (Bloomberg) -- Banks are increasing lending to buyers of high-yield company loans and mortgage bonds at what may be the fastest pace since the credit-market debacle began in 2007.

Credit Suisse Group AG and Scotia Capital, a unit of Canada’s third-largest bank, said they’re offering credit to investors who want to purchase loans. SunTrust Banks Inc., which left the business last year, is “reaching out to clients” to provide financing, said Michael McCoy, a spokesman for the Atlanta-based bank. JPMorgan Chase & Co. and Citigroup Inc. are doing the same for loans and mortgage-backed securities, said people familiar with the situation. " "

[mark mchugh]

DB,

First of all, give yourself a pat on the back for raising awareness to HR1207.

I've got a question about the notion that people will trade the transparency. Would it be such a horrific thing to tax trades directly? It seems to me it would be an effective barrier to manipulation, High-Frequency Trading and a whole lot of the other activities that have turned our capital markets into a goddamn casino. Sure volume would drop-off, but so what?

It seems to me that we are spending money like crazy at a time when the revenue going into the government is contracting sharply. We've got people trading bazillions of shares a day, looking to make profits on infinitesimally small changes in price. Is it fair to call that investing? or is it just gaming the system? If there was a 1% tax on trading, people would think a lot more about what they were doing. And besides, we've got sales tax on just about everything else in this country, why should stocks be exempt?

[Oscar DeGrouch]

I'll believe Barney when I see him as a co-sponsor.

[Oscar DeGrouch]

...and I hate it when I'm right... misinformation alert...

http://www.ronpaul.com/2009-08-28/barney-frank-didnt-say-that-hr-1207-will-pass-in-october/

[DailyBail]

Oscar.

Great find....it's funny I watched the clip 3 times before posting and I noticed that line was missing from teh transcript but I didn't think twice....

I was skeptical of it from the beginning as you can tell by my language in the story...

However, the idea that Frank was playing fast and loose with language is only the supposition of the author of that story...we do NOT know at this point if he is correct...

It's extremely difficult to tell from Frank's language...

I think this one is still undecided...

But thanks for posting it...I hadn't seen it yet...another data point to consider...

[Oscar DeGrouch]

I think the thing to do is to flood BF's inbox with requests to CO-SPONSOR HR 1207 as the best course of legislation for auditing the Fed, not some add-on provision in his own bill.

In the true spirit of bi-partisanship, Chairman Frank should put his money where his mouth is. He's got no reason not to support this bill based on what he says, other than making himself out to be a hero.

I hope Dr. Paul remains steadfast in getting his bill through without amendment or change.

[Sonic Ninja Kitty]

At least Frank was open to discussing it, which is a big step for him. He's the kind of person who will jump on the winner's bandwagon then proclaim he was driving it all along. ("I have been working with Ron Paul..." yeah, maybe you are now, after you were first ignoring, then fighting him!) It seems he senses power in this movement to audit the Fed. It's good.

[James H]

Spot on, SNK. If BF wants to be our useful idiot and think he's a hero, let's help him become that idiot.

[Lori]

Misinformation Alert: Barney Frank Never Said That HR 1207 Will Pass In October
By tmartin • August 28, 2009
Missing Sentence in Transcript Causes Premature HR 1207 Victory Celebration

Several blogs and forums reported during the past 24 hours that Chairman of the House Financial Services Committee, Barney Frank, said that Ron Paul’s bill to audit the Federal Reserve, HR 1207, will pass in October.

Incorrect Reports about Barney Frank’s Statement on HR 1207


Washington Times: Barney Frank says Ron Paul bill will pass
Politico: Barney: Fed audit bill will pass in October
Business Insider: Barney Frank: Yes, We Will Pass Ron Paul’s “Audit The Fed” Bill
United Liberty: Frank: Vote on HR 1207 in October
Daily Paul: Video: Barney Frank Says House Will Pass HR1207 in October
ZeroHedge: Barney Frank Says The House Will Pass HR 1207 In October
Mish: Barney Frank Says Ron Paul’s Audit The Fed Bill Will Pass In October
Washington Independent: Ron Paul’s ‘Audit the Fed’ Bill to Get October Vote?
The source of the rumor seems to be the following video.







http://www.ronpaul.com/2009-08-28/barney-frank-didnt-say-that-hr-1207-will-pass-in-october/

[Sagebrush]

Barney Frank never said he will pass HR-1207. Wait and see, 1207 as it is now written will be kept in comittee and never voted on. As usual Barney and friends will come up with some watered down do nothing version of HR-1207 or an equally useless new bill and push it through the House. He will tell one and all that he has done what the Amercan Voters wanted. When in reality he is actually doing everything he can not to do what we want. The old Washington two step in all it's raging glory. We need to vote every one of these career politicians out and try to vote people into the Government who will represent the will of the American majority. Right now they represent the special intrests, the American Majority counts little against the bankers, Wall street, and all those who shovel money at the two stepping politicos. Harry Reid is doing the same thing with S-604.

[James H]

If any of you are interested, there's a really good debate about the necessity of the bailouts going on at The Austrian Economists blog and at Tyler Cowen's Marginal Revolution. You also might have seen Peter Boettke's post referenced on Clusterstock yesterday. Good stuff. The professional economists are obviously smarter than most of us, but it's clear they don't always know the gritty, disgusting details like we do. Don't hesitate to let them know if they're missing something important, especially if they're arguing that the Fed and Treasury acted with the taxpayer's best interests in mind.

http://austrianeconomists.typepad.com/weblog/2009/08/can-i-bring-myself-to-utter-those-words.html
http://austrianeconomists.typepad.com/weblog/2009/08/scale-scope-and-what-to-do-with-failing-banks-or-has-cowen-forgotten-his-higgs.html
http://www.marginalrevolution.com/marginalrevolution/2009/08/were-the-bailouts-a-good-idea.html
http://www.marginalrevolution.com/marginalrevolution/2009/08/a-secondbest-theory-of-libertarian-bailouts.html
http://www.businessinsider.com/peter-boetke-the-bailout-didnt-work-2009-8

[James H]

There's a great Bill Fleckenstein interview from yesterday posted on Financial Sense. For the good stuff, skip to about the 13-minute mark. Fleckenstein and Jim Puplava start talking about how they worry for their children and grandchildren and how angry they are at the incompetency and idiocy of Alan Greenspan, the SEC and all the other "regulators."

http://www.financialsense.com/fsn/main.html

[allie]

Btw, Ron Paul's new book is out! :)

http://www.amazon.com/End-Fed-Ron-Paul/dp/0446549193

[Gobias Bluth]

Bawny Fwank is not going to help. He is a socialist and likes the way thinks are going.

FWee Speech, FWee Gobias!

[James H]

Pure bullshit. 100% predictable.

"A U.S. district judge in New York City granted a stay that allows the Federal Reserve to delay the release to Bloomberg LP of information about loans it made to banks in the wake of last year's financial meltdown."

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200908281941dowjonesdjonline000585&title=2nd-update-judge-grants-stay-delaying-release-of-fed-info-to-bloomberg

[James H]

Earlier in the week, the Fed argued that it couldn't find any documents related to the FOIA request (that's because they pretended that records at the FRBNY weren't relevant and didn't look there). What transparent non-sense -- We have no such records, but if we had to release them, the financial system might collapse. The American people may be a bunch of idiots, but we're not stupid!

http://www.courthousenews.com/2009/08/25/Bloomberg_Wins_Access_to_Fed_Reserve_Loan_Records.htm
http://www.zerohedge.com/article/federal-reserve-finds-no-documents-frbny-responsive-bloomberg-foia-request-court-grants-emer

[Jay Randall]

Here's my tribute to "Helicopter" Ben:

http://www.econocataclysm.com/obama-to-re-appoint-helicopter-ben-bernanke-and-were-all-doomed-video/

[Ken]

http://pushhamburger.com/

I beg , working class must revolt and stop paying any mortagge or credit cards..............now

non violent protest and teach washington criminals a lesson, vote all of them out, encourage working class to contest elections enxt

DEMON-RATS=DEMOCRATS
REPO-CONS =REPUBLICANS

MUST BE VOTED OUT

TREASON: ALL GUILTY OF THE CRIME

If you accept the premise that they are all intent on creating world government then you can understand why they all are preparing us for controlled collapse. These planners expected problems, but they were not prepared for the potential of major social unrest displayed at Town Hall meetings nationwide. There is finally growing social unrest and rightly so. All that was initiated by bailing out the rich financial sector to the tune of $23.7 trillion, and then the lying about where funds were going and how they were being used, then more lies, and then the bonuses at AIG and Goldman Sachs and at other Illuminist companies. The public has begun to listen to our story and the elitists cannot let the truth see the light of day. The system is rigged toward the rich insiders and now the public isn’t even getting crumbs and everything is being taken away from them. Those insiders who are dismissive of population and the fairness of the system should check with the ancestors of the 300,000 who lost their heads in France during the revolution.

Government no longer serves the people or the general good and the healthcare and cap & trade are typical issues. It is not what Americans want, but what corporate America and politicians want. All the rewards to the crooks on Wall Street and in banking that have destroyed our financial system. We have just been on the receiving end of dreadful government for 8 years and Americans feel helpless after electing a new president. The result thus far has been disastrous. Still few of their elected representatives listen to anything they have to say and it is no wonder we saw the outpouring of unhappiness displayed at Town Hall meetings. This in part is why people are walking away from debt and not paying their taxes. They believe they have an illegitimate government, which refuses to serve and listen to them. They now only represent corporate America.

Historically about 1/3rd of Americans do not file income tax and only 15% of illegal aliens file. That has cost government about $500 billion a year. Americans are fed up and more are becoming non-filers and more are underestimating or hiding income. It is essentially a tax revolt. Why do you think federal revenues fell so precipitously? People are sick and tired of taxation without representation. They are also outraged at the bailout of banks, Wall Street and insurance companies and a few crumbs for the average American.

They also realize that America’s debt will never be repaid, that they will have hyperinflation and that the dollar is collapsing versus other currencies. In time the public will discover gold, but that will happen as the depression goes further forward.

[Ken]

Depressed America No Longer The Safe Harbor It Was For Investment
Depressed America No Longer The Safe Harbor It Was For Investment
http://www.theinternationalforecaster.com/International_Forecaster_Weekly/Depressed_America_No_Longer_The_Safe_Harbor_It_Was_For_Investment
excuses from Wall Street and Washington DC, we have not hit the bottom with job losses, Currency crisis coming in the fall, IMF a creditors cartel, we find ourselves faced with major growing unemployment, falling wages and via inflation and ever lower purchasing power, Most major banks and brokerage houses are insolvent, Finances at the state and local levels are a mess.

[Ken]

You folks think Barney crook will fulfill you wishes?lol

this is what Rothchild and Barney think about we the working class Americans

AMERICANS SUCK
A bunch of pitiful cowards who WILLINGLY allow THEIR government and WHORE ST to rape their families at will. You all really make me sick. Ill be glad when the next shoe drops and you all start crying about the lack of food and the mobs in the street. I will sit back and laugh while you losers cry about how you were done wrong by da gubermint. Please let the culling begin soon, I cant wait to see the idiots get what they deserve for their apathy and cowardice. Dont even try aspousing your vitriolic proud american diatribe you bunch of lazy cowards. You have proven many times you will let anyone rape you and your families and steal everything you have. Proud to be an american. HA!HA!

Bamboozled generation?

Why no revolt yet?

[Ken]

Obama Roll'd

http://www.youtube.com/watch?v=iatK1R7JvK8
Enjoy your elected Chicago Mob Shill


Debt slaves.
Obama Roll'd

http://www.youtube.com/watch?v=iatK1R7JvK8
Enjoy your elected Chicago Mob Shill

[Ken]

http://www.youtube.com/watch?v=I9q1oeMcoL0
Debt Slave

[DailyBail]

Great links from everyone...

Ken. I agree completely with this part of what you wrote:

This in part is why people are walking away from debt and not paying their taxes. They believe they have an illegitimate government, which refuses to serve and listen to them. They now only represent corporate America.

Historically about 1/3rd of Americans do not file income tax and only 15% of illegal aliens file. That has cost government about $500 billion a year. Americans are fed up and more are becoming non-filers and more are underestimating or hiding income. It is essentially a tax revolt. Why do you think federal revenues fell so precipitously? People are sick and tired of taxation without representation. They are also outraged at the bailout of banks, Wall Street and insurance companies and a few crumbs for the average American.

@James.

Thanks for the Fleckenstein find...

There's a great Bill Fleckenstein interview from yesterday posted on Financial Sense. For the good stuff, skip to about the 13-minute mark. Fleckenstein and Jim Puplava start talking about how they worry for their children and grandchildren and how angry they are at the incompetency and idiocy of Alan Greenspan, the SEC and all the other "regulators."

http://www.financialsense.com/fsn/main.html

[DailyBail]

BIG NEWS

Rep. Ron Paul said he has a commitment from the chairman of the House Financial Services Committee, Barney Frank, to advance the Texas Republican's legislation opening the Federal Reserve to broader federal audits.

http://online.wsj.com/article/SB125167261849670795.html

[Ken]

BARNEY CRIMINAL CROOK AND OBAMA SHILL will do this with help of Nancy & Reid criminals

BREAKING NEWS ABOUT NATIONAL HEALTH PLAN

Democrats, realizing the success of the President's "Cash For Clunkers" rebate program, have revamped a major portion of their National Health Care Plan.

President Obama, Speaker Pelosi, and Sen. Reid are expected to make this major announcement at a joint news conference later this week. I have obtained an advanced copy of the proposal which is named.

"CASH FOR CODGERS" and it works like this. Couples wishing to access health care funds in order to pay for the delivery of a child will be required to turn in one old person. The amount the government grants them will be fixed according to a sliding scale. Older and more prescription dependent codgers will garner the highest amounts.

Special "Bonuses" will be paid for those submitting codgers in targeted groups, such as smokers, alcohol drinkers, persons 10 pounds over their government prescribed weight, and any member of the Republican Party.

Smaller bonuses will be given for codgers who consume beef, soda, fried foods, potato chips, lattes, whole milk, dairy products, bacon, brussel sprouts, or Girl Scout Cookies.

All codgers will be rendered totally useless via toxic injection. This will insure that they are not secretly resold or their body parts harvested to keep other codgers in repair.