The bill would eliminate certain restrictions that now exist on any audits done on the Federal Reserve from 31 U.S.C. 714, such as:
Audits of the Board and Federal reserve banks may not include—
(1) transactions for or with a foreign central bank, government of a foreign country, or nonprivate international financing organization;
(2) deliberations, decisions, or actions on monetary policy matters, including discount window operations, reserves of member banks, securities credit, interest on deposits, and open market operations;
(3) transactions made under the direction of the Federal Open Market Committee; or
(4) a part of a discussion or communication among or between members of the Board and officers and employees of the Federal Reserve System related to clauses (1)–(3) of this subsection.
Again, the above are the existing restrictions that H.R. 459, if it eventually passes the full House and then becomes law in unaltered or unamended form, will eliminate from Fed audits
Read article here: http://reason.com/blog/2012/06/27/ron-pauls-latest-audit-the-fed-bill-pass
The Hill explains what happened today:
The bill, sponsored by Rep. Ron Paul (R-Texas), was advanced by the committee on a bipartisan voice vote with no vocal opposition.
The measure, which has garnered 257 co-sponsors from both parties, would require the Government Accountability Office (GAO) to conduct a full audit of the Fed’s operations, including its monetary policy deliberations.
House GOP leaders have previously signaled that Paul’s bill would garner floor attention sometime in July. A similar measure pushed by the End the Fed author was part of the Dodd-Frank financial reform law when it was passed by the House, but was later trimmed to require a GAO study of just the Fed’s emergency lending operations during the financial crisis, and the potential for conflicts of interest on the boards of the regional Fed banks.
Before the bill was cleared by the committee, however, ranking member Elijah Cummings (D-Md.) attempted to introduce an amendment that would prevent the GAO from auditing the Fed’s deliberations on monetary policy. Cummings withdrew the amendment after Chairman Darrell Issa (R-Calif.) voiced opposition, saying it “essentially guts this bill.”
For more on the bill’s purpose, see this from the dedicated “Audit the Fed” web site.
Click here to let your reps know you support auditing the Fed: http://thestoryoflibertyblog.com/2012/05/27/federal-reserve-transparency-act/
Quotation: “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
- “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”
- “I believe that banking institutions are more dangerous to our liberties than standing armies…”
- “The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Sources consulted: Searching on the phrase “private banks”
- Papers of Thomas Jefferson Digital Edition
- Thomas Jefferson Retirement Papers
- Quotable Jefferson (searching in the index under “banks”)
- Thomas Jefferson Papers collection in Hathi Trust Digital Library