Community | March 17, 2010 | 11 comments

Fed Powers Under Review

source: http://apnews.myway.com/article/20100317/D9EG316O0.html

screw the Fed

WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke plans to wage a fresh battle against Senate efforts to scale back the Fed's role in supervising the nation's banks.

In testimony prepared for a House hearing on Wednesday obtained by The Associated Press, Bernanke argued that the Fed factors in information it gets from its role as a regulator into its decisions on interest rates. And, Bernanke said its banking duties give the Fed insights into the health of the entire banking system.

"The insights provided by our role in supervising a range of banks, including community banks, significantly increases our effectiveness in making monetary policy and fostering financial stability," Bernanke said in his prepared remarks to the House Financial Services Committee.

Bernanke's testimony comes as the Fed faces a significant shift in its supervisory duties.

In his effort to overhaul the nation's financial regulatory structure, Senate Banking Committee Chairman Christopher Dodd, D-Conn. has offered legislation that would strip the Fed of its power to supervise state-chartered banks and bank holding companies with assets of less than $50 billion.

That would leave the Fed with 35 of the biggest bank holding companies under its supervision. Dodd's bill, however, would also give the Fed new powers to oversee nonbank financial firms that are so large and interconnected that their failure could pose a risk to the economy.

Such firms could include insurance giant American International Group Inc., or General Electric Co.'s GE Capital.

But with its narrower authority, the Fed's system of 12 regional banks could face profound changes. The Kansas City Federal Reserve Bank and the St. Louis Federal Reserve Bank, for instance, would have no banks under their supervision.

The Obama administration has supported a broader supervisory role for the Fed.

Dodd's bill would also place an independent consumer watchdog inside the Fed. The Consumer Financial Protection Bureau, however, would have its own director appointed by the president and would not fall under the authority of Bernanke.

The administration has called for a freestanding consumer agency, an approach that would strip the Fed of its consumer-protection responsibilities. The House-passed version of a financial revamp hues to the administration's approach. Bernanke has argued that despite past weaknesses, the Fed should retain its consumer-protection duties. He didn't address the matter in his testimony prepared for Wednesday.
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11 comments // Fed Powers Under Review

  • rodstradamus
  • MoonLoon
    • 0
      MoonLoon  

    • I am struggling to understand, how criminals can be expected to control other criminals. It smells like Cosa Nostra, to me!

    • 1 year ago
  • bdub4u
    • +2
      bdub4u  

    • absolutely smoke and mirrors. The Fed controls this nation and soon the world. It was escape from corrupt, centralized banking that spurred the american revolution in the 1st place....shrug. The whole idea that the consumer watchdog agency would even be located in the fed building bothers me, much less the fact that there is a fed building in the first place. What a fraud our monetary system is. Is it all orchestrated? Or could this amount to elements within our government actually trying to take the power back?? I try not to give completely to conspiracy theory, but this banking shit just pushes me hard in that direction...

    • 1 year ago
  • CarolineS
  • irie_ojo
    • 0
      irie_ojo  

    • fuck the federal banking system... basically it breaks down to our fed income tax paying interest on every dollar in circulation.....

    • 1 year ago
  • artemis6
  • diode
  • PressCore
    • +1
      PressCore  
    • diode:

      Good one. How about the boner Rumsfield said when he announced
      during Dub'ya's Piracy R US regime that the Pentagon "misplaced",
      and presumably lost, $2.3 Trillion ? But then, what's a mere 2.3
      Million X Million dollars amongst thieves ? ( only more than the
      combined GDP of the USA for July and August, that's all. )
      The "Fed" is not only the Trojan Horse of the Rothchild et al
      banksters' syndicate. It is their carny. As P.T. Barnham once said:
      " Every minute there's a sucker born, and a carny and a shill to take
      their money" " So never give a sucker an even break " It might not
      exactly be popular to call 300 Million people suckers, but then all too
      many of them are sheeple. And sheeple are good for only one thing
      -being fleeced. Nearly all of us are marks to banksters' bought dogs
      like Bernanke. That s.o.b.has no more integrity or character than he
      has honesty.

    • 1 year ago
  • artemis6
  • ThoughtNu
    • 0
      ThoughtNu  

    • This appears to be nothing more than a gesture. The FED only gives up the 'small banks' and the CFPB has no real power in the FED by the way of binding decisions...Yet the FED gets 'new powers'?..hmn

      Is the 'smoke and mirror' game by the FED ,and Bernanke ; to 'act' as if the Government is gaining control of it's own monetary system?

    • 1 year ago
  • PressCore
    • +2
      PressCore  
    • ThoughtNu:

      Though being a Buddhist I do not advocate violence, and would not
      myself ever even think about committing violent crimes against persons
      or property...the fact remains the only way the U.S. Treasury is ever
      going to regain control of American money per se, and the money supply
      is to allow the "Fed" be be blown to smithereens,and the national debt
      to be printed on every roll of toilet paper sold in the USA. Ron Paul and
      his supporters in the House & Senate are the only public officials with
      the balls to do anything about that scheister Bernanke. That crooked
      louse was quoted as having told the real Government that Social Security
      is not a Statutory entitlement,but merely words on paper. Imho he NOT
      free speech. Even in the District of Columbia they still must have a Statute
      outlawing the unauthorized practice of law be persons without having first
      earned a Juris Doctor degree, and passing the Bar Association investigation
      into their personal history. Shades of the original Rothschild. ( Give me control
      over a nations's mioney supply, and I care not for any "laws" He's probably
      still counting his Gold coins in his gilded bird cage in Hell paying for eternity
      at his greedy madness at his obsession over his most deadly sin, and smiling
      at having overheard that beelzebub Bernanke uttered as his bought dog
      beyond the grave.Insofar as that maldito getting his fugly mug on the cover
      of Time magazine as "man of the year" (in my opinion wrong on both counts),
      don't forget that Aldolph Hitler did too once.As Mark Twain said: " The man who
      will not read good books has absolutely no advantage over the man who can
      not read good books. Because his thoughts, words,and deeds will still be as illerate, inconscionable and misguided "

    • 1 year ago
diode
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