Florida Democratic Congressman, Alan Grayson is on a roll. He has teamed up with Congressman Ron Paul and they have written to Chairman Christopher Dodd and other members of the Banking Committee, asking that the confirmation of Federal Reserve Chairman, Ben Bernanke be postponed.
Grayson and Paul would like the public and the Senate to have a “full understanding of the commitment that the Federal Reserve has made” on behalf of the American people. They state in their letter to Dodd, that without such as understanding it is not possible to determine whether Chairman Bernanke is fit to serve another term.
Now, recall that the Federal Reserve since 2007 has expanded its balance sheet by $1.2 trillion and taken on substantial credit, interest rate and foreign exchange risk. Moreover, it is the Federal Reserve that has lent vast sums to a few banks against overvalue collateral, while not lending to others. And, says the letter the Federal Reserve has “set up holding companies using no-bid contracts, and guaranteed substantial liability of Citigroup, all the while keeping information about its actions secret from the public and Congress”.
The Federal Reserve has bailed out big banks, as Americans see their pay cut and more than that, lose jobs.
See Alan Grayson and Ron Paul’s letter to Christopher Dodd Here
And the Federal Reserve has refused to disclose the details of its commitments to banks, who almost destroyed the U.S. economy. American people surely have a right to know which banking institutions received the $1.2 trillion and what was promised in return.
Remember that President Obama indicated in August that he planned to re-appoint Bernanke as Federal Reserve Chairman.
However, Grayson and Paul would like specific information disclosed by the Federal Reserve before Bernanke’s confirmation takes place. They are not so sure that he is fit to run the Fed.
Will Senator Dodd and the rest of the Banking Committee pay any attention to Grayson and Paul?
