Senators Mark Pryor (D-AR) and Blanche Lincoln (D-AR) Give Responses about abolishing the Federal Reserve
by Mark Daniels
I recently contacted Senators Mark Pryor (D-AR) and Blanche Lincoln concerning the Federal Reserve's criminal activity. I was not surprised by the response I received from them.
They both began by providing general information about the Federal Reserve Act and the Federal Reserve system. Both Senators pointed our recent legislation enacted to Audit the Federal Reserve. Senator Lincoln gave credit to Congressman Ron Paul for introducing the original legislation in the House. Neither Senator indicated that the legislation was significantly weakened before final passage.
As an Arkansan, I am ashamed of our Senators because neither of them have demonstrated leadership by introducing any legislation that would limit the Federal Reserve's criminal activity. It was only after a long, arduous battle led by Ron Paul that the Audit the Fed legislation gained enough support for the Arkansas Senators to jump on board. They certainly don't mind congratulating themselves for someone else hard work.
I can give Senator Lincoln credit for her candor; she not only gave credit to Ron Paul, she also stated that she does NOT support any measures to abolish the Federal Reserve. Senator Pryor ignored Mr. Paul's hard work and failed to directly answer my question about abolishing the Federal Reserve.
They both act like we are idiots! I will never vote for another Republican or Democrat as long as the Federal Reserve is allowed to continue it's criminal activity.
I have included both Senators responses to my question concerning the abolishment of the Federal Reserve below.
Senator Mark Pryor's Response:
Thank you for contacting me regarding oversight of the Federal Reserve System (Fed). I appreciate hearing from you.
The U.S. central banking system was established in 1913 by the Federal Reserve Act (P.L. 63-43). The current structure of the Fed has three major components established by the original Act. First, a Board of Governors oversees the whole Federal Reserve and has responsibility for monetary policy. Second, there are 12 regional Federal Reserve Banks, which carry out supervision and examination of commercial banks that are Fed members. The member banks, all national banks and all state-chartered banks that choose to be members of the System, make up the third component.
I believe that Congress must achieve a balance between assuring independence for the Fed's operations and making the agency accountable for its actions. Congress exercises oversight on the Federal Reserve in a variety of ways. The Board of Governors of the Federal Reserve is required to send a Monetary Policy Report to the Congress twice a year outlining its monetary policy. Usually, the Chairman of the Fed testifies to Congress on this report. The Federal Banking Agency Audit Act (P.L. 95-320) was enacted in 1978 to enhance congressional oversight responsibilities. The law gives the Government Accountability Office (GAO) the authority to audit the Board of Governors, the Reserve Banks and branches. Such audits are limited, however, as GAO is prohibited from auditing monetary policy operations.
You may be interested to know that on May 11, the Senate voted 96-0 to require the GAO to conduct an audit of the Fed. I voted for this amendment that directs the GAO to include in its report details about emergency lending programs created by the Fed, the amount of financial assistance provided, and to whom this assistance was provided. The Fed will be required to publish this information on its website by December 1, 2010.
Although I am not a member of the Senate Banking Committee, I will be sure to keep your thoughts in mind regarding oversight and transparency at the Federal Reserve should any related legislation come before the full Senate.
Again, thank you for contacting me. I value your input. Please do not hesitate to contact me or my office regarding this or any other matter of concern to you.
Sincerely,
Mark Pryor
United States Senate
Senator Blanche Lincoln's Response:
Thank you for contacting me regarding abolishment of the Federal Reserve.
Congress created the Federal Reserve System and Board of Governors in 1913 as an independent agency to manage national monetary policy and provide oversight over some the country's national financial institutions. In the House of Representatives, Rep. Ron Paul of Texas has introduced legislation (HR 833) to abolish the Federal Reserve System. Similar legislation has not been introduced in the Senate.
I appreciate knowing your views regarding the Federal Reserve and our country's financial state. While I do not support abolition of the Federal Reserve, I do believe Congress should act to impose new transparency requirements on the Federal Reserve's portfolio and lending practices.
Over the past year, the Federal Reserve, in conjunction with the Federal Deposit Insurance Corporation (FDIC) and Department of Treasury, has taken unprecedented levels of action in an effort to stabilize America's financial institutions. However, these efforts have been marred by an unacceptable lack of transparency regarding these agencies' use of taxpayer funds. Transparency is critical to maintaining support for Treasury's efforts in the financial sector, as the American public must have confidence that their money is being used in an effective and responsible manner.
In the Senate, I have co-sponsored the Federal Reserve Sunshine Act (S. 604), which would expand oversight and require greater transparency at the Federal Reserve. Specifically, this legislation would require a complete audit of the Federal Reserve by the Comptroller General and would require additional information be published on the Federal Reserve web site. The information to be published would include the names of any individuals, businesses, governments or entity who has received financial assistance from the Federal Reserve, the terms and amount of the assistance received and the rationale for each transaction.
This legislation is currently awaiting consideration in the Senate Banking Committee. Rest assured, I will keep your thoughts in mind and will continue working to bring about greater transparency and accountability at the Federal Reserve.
Thank you again for contacting me. To learn more about my work in Congress, I encourage you to visit my online office and sign up for my e-newsletter at http://www.lincoln.senate.gov. I am proud to serve the citizens of Arkansas in the United States Senate and hope you will not hesitate to let me know whenever I may be of assistance to you.
Sincerely,
Blanche L. Lincoln
BLL:mc
