Video: Sen. James Demint (R-SC) torches Bernanke and the failed Federal Reserve -- Senate Confirmation Hearings -- December 3, 2009
There are now 4 Senators who have announced they will place 'holds' of various types on Bernanke's confirmation vote on the Senate floor. Dodd mentioned to reporters Friday, that the vote may now be pushed into 2010. Demint and Vitter have made their confirmation roadblocks contingent upon a Senate vote on S 604 to audit the Federal Reserve.
Outside of Bunning's show-stopper against Bernanke and the Fed, Demint's 10 minutes with the Chairman were the best these hearings had to offer. Do not miss.
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From Sun News
- "I think a lot of us have to admit that thefederal government - the Federal Reserve - let down the American people," DeMint told Bernanke. "And a lot of people have been hurt."
- "We did not certainly [do] a perfect job by any means, but I don't think we stand out as having done a worse job than other regulators," Bernanke said. "And again, many of the critical firms and markets that were the worst problems were outside of our purview."
DeMint also charged Bernanke and other top finance officials under Bush and President Barack Obama of persuading Congress to pass a $700 billion bailout for banks without fulfilling its central goal of taking toxic assets off their ledgers.
- "The folks in the administration and Federal Reserve have claimed credit for saving the system, while blaming capitalism and unrestrained free markets for our problems," DeMint said.
- "I think you've been a big part of orchestrating that and shifting the blame onto the private sector," DeMint said.
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From Greenspan's Mess
DeMint: I'd like to ask a few questions Mr. Chairman, and I'd appreciate short answers because I want to cover some territory today but we don't know a lot about the operation of the Federal Reserve and for that reason I think the best way to judge performance is to look at outcomes, particularly outcomes based on the goals that you set for yourself.
In your confirmation hearing in 2005, you specifically listed four duties of the Federal Reserve and I'd just like to mention those and just ask you how you think we've done. One of them was fostering the stability of the financial system and containing systemic risk that may arise in the financial markets. Has the Federal Reserve under your l eadership accomplished that goal?
Bernanke: Um. No, but we also had lots of co-conspirators in that problem.
DeMint: Another duty you listed was supervising and regulating the banking system to promote the safety and soundness of the nation's banking system and financial system. Has the Federal Reserve under your leadership accomplished that goal?
Bernanke: We found some mistakes and we've tried to improve them.
DeMint: I appreciate your short answers. Another duty you listed was conducting the nation's monetary policy in pursuit of the statutory objective of maximum employment. Do you feel the Federal Reserve under your leadership has accomplished that goal?
Bernanke: We've moved monetary policy as much as possible to try to support employment growth, but, obviously a 10 percent unemployment rate is not very satisfactory.
DeMint: Again I appreciate your answers.
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Official Statement from Senator James Demint
DeMint Says He Will Oppose Bernanke Nomination
Senator pledges to hold nomination until the Senate votes on the Fed Audit
December 3, 2009 - WASHINGTON, D.C. - Today, U.S. Senator Jim DeMint (R-South Carolina), chairman of the Senate Steering Committee, announced this morning that he will oppose the nomination of Ben Bernanke to serve a second term as the chairman of the Federal Reserve Board. Senator DeMint made the announcement after Bernanke's confirmation hearing before the Senate Banking Committee, and pledged to object to floor consideration of the nomination until the Senate votes on S. 604, the Federal Reserve Sunshine Act of 2009.
"Ben Bernanke is an intelligent and well-intended public servant, but the fact is the Fed has failed the American people during his tenure as chairman of the Federal Reserve Board and I cannot support his nomination for a second term,” said Senator DeMint. “Americans want a new Fed chairman who is willing to provide transparency into the Fed's actions, who is willing to accept responsibility for the Fed's mistakes, and who is willing to support true monetary reform that guarantees the soundness of our money.
"Mr. Bernanke has been one of the chief proponents of the Fed's easy money policy that created the current financial crisis. He ignored asset bubbles, dismissed concerns about the weakness of the dollar, and helped encourage the credit mania that led to the financial panic. Even worse, Mr. Bernanke has refused to accept any responsibility for his role in these actions prior to financial crisis.
On July 6, 2009, Senator DeMint attempted to get a vote on S. 604, which would remove restrictions on auditing the Fed’s discount window operations, funding facilities, open market operations and agreements with foreign central banks and governments. The vote was blocked but Senator pledged to keep fighting to force the Senate to vote on the measure.
"I will also object to floor consideration of Mr. Bernanke’s nomination until the Senate votes up-or-down on the Federal Reserve Sunshine Act. This bipartisan legislation, sponsored by Senator Bernie Sanders of Vermont, has over thirty cosponsors and would allow the Government Accountability Office to conduct a full audit of the Federal Reserve. Americans deserve to know how their money is being managed so these mistakes never happen again.
"Under Mr. Bernanke's leadership, the Fed has lent several trillion dollars to failing financial institutions that should have been held accountable by market forces. The total amount of these bailouts exceeds the entire annual budget of the United States. Yet the public has not been given adequate information about these bailouts. In fact, Mr. Bernanke has the led the fight against bipartisan legislation in the House and the Senate to require a full audit of the Fed so Americans know what has taken place and what mistakes have been made.
"Mr. Bernanke's failures extend beyond what critics like me of an overly powerful Fed have cited. He's even failed his own standards. During his first confirmation hearing before the Senate in 2005, Mr. Bernanke outlined what he believed were the responsibilities of the Fed. On virtually every one, whether is was containing systemic risk, promoting the soundness of our banking system, or conducting monetary policy in a way that maximized employment, Mr. Bernanke has failed. We've seen systemic risk in our financial system like never before, the soundness of our banking system has been shaken to its core, and unemployment is now over ten percent," said Senator DeMint.
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