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Federal Reserve to Investigate Itself
TND Guest Contributor: Paul-Martin Foss |
Following on the news of a Goldman Sachs banker being fired for gaining access to confidential New York Fed information, the Federal Reserve Board announced that two separate reviews were underway regarding its examinations of large banking organizations.
Although the request for review was submitted on Monday, it was only announced by the Federal Reserve Board on Thursday, coming conveniently after the news of the Goldman mini-scandal broke. Nothing in the press release announcing the reviews mentioned anything about the reviews looking into leaks or any other indicators of regulatory capture, although that will likely be a topic of questioning at Friday’s Senate Banking Committee hearing with New York Fed President Dudley.
I’m sure we can expect some very pointed questions directed at Mr. Dudley on Friday, similar to the hard-hitting questions that have always been posed toFederal Reserve Chairmen when they testify before Congress. And just like the Fed’s previous misdeeds have resulted in Congressional action to correct those abuses, I am certain that this latest scandal will result in Congress once againenacting strong measures to hold the Fed accountable for its actions.
Finally, I am confident that the Federal Reserve will take strong corrective to measures to police itself and ensure that such leaks do not occur again. Just like the police forces around the country who have successfully prosecuted their officers for shooting innocent people, throwing flash-bang grenades at babies, and forcing anal cavity searches on the citizenry, the Fed is committed to rooting out corruption and abuse. Just like every other organization that investigates itself after allegations of wrongdoing, we can expect the Fed’s review of itself to be thorough and complete, so that these types of scandals will never happen again. At least until the next scandal. And the one after that. And the one after that. And…
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About Paul-Martin Foss:
Paul-Martin Foss is the founder, President, and Executive Director of the Carl Menger Center for the Study of Money and Banking, an Arlington, VA-based think tank dedicated to educating the American people on the importance of sound money and sound banking.
Prior to founding the Menger Center, Mr. Foss worked in the U.S. House of Representatives for seven years, including six years as Congressman Ron Paul’s legislative assistant for monetary policy and financial services, and one year as Deputy Legislative Director for Congressman Thomas Massie.
As Congressman Paul’s legislative assistant, he assisted the Congressman in his duties as Chairman of the Subcommittee on Domestic Monetary Policy by helping to develop hearing topics, agendas, and briefing Congressmen and their staffs on monetary policy topics. Mr. Foss also was responsible for the management of Dr. Paul’s monetary policy and financial services legislation, including the “Audit the Fed” and “End the Fed” bills, and was co-editor of Ron Paul’s Monetary Policy Anthology, a multi-thousand page compilation of hearing transcripts, lecture transcripts, and other documents related to Dr. Paul’s chairmanship.
Mr. Foss received his Bachelor’s degree from The University of the South (Sewanee), and Master’s degrees from the London School of Economics and Georgetown University’s Edmund A. Walsh School of Foreign Service.
This article appeared on the Carl Menger Center for the Study of Money and Banking and is reprinted with permission, “Creative Commons 4.0.”
Source: http://thenewsdoctors.com/federal-reserve-to-investigate-itself/
