House panel votes to audit the Fed

WASHINGTON - Taking aim at Wall Street and the nation's central bank, a key House committee voted Thursday to require a sweeping congressional audit of the secretive Federal Reserve.

The votes were the final brush strokes to the House Financial Services Committee's response to last year's banking meltdown.

On auditing the Fed, the committee adopted a plan by Rep. Ron Paul, R-Texas, that had the support of a bipartisan roster of more than 300 members of Congress. It would give the Government Accountability Office the authority to audit the entirety of the Fed's balance sheet, credit facilities and all securities purchase programs. Critics, led by Frank and Rep. Melvin Watt, D-N.C., argued that Paul's proposal was too intrusive and could indirectly lead to higher interest rates. They proposed a more limited audit.

"If we open all of the discussions, the deliberations, the transactional gives and takes, what we will do is scare off capital because other governments will not deal with our Fed," Watt said.

Paul, who ran a long-shot campaign for president last year, argued Watt's more limited proposal would exclude much of the Fed's work from scrutiny.

"There is no reason in the world why this country and our people can't know eventually about what's going on in the Federal Reserve," Paul said.

Copyright MSNBC 2009

HR 1207 H.R. 1207 Fed Federal Reserve Tim Geightner timothy

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[Fike2308]

Asian news lady is kind of cute :)

Go Ron Paul Go !!!

[fal2grace]

@Fike2308 :) thanks for commenting

[capitalist4life]

It's amazing that anyone voted against it!

[fal2grace]

I know...

[GRIMTICK]

A major blow to its independance? It has none! The fed shouldnt even exist let alone as a forth branch of government. Someone please show me where the constitution gives authority to or even for a forth branch of government? If congress won't protect us from these traitors we the people need to use our RIGHT to overthrow this fake branch of government ourselves by any means. Then fire the congress too. This userpation must end NOW! WAKE UP PEOPLE WE NEED TO ACT LEST OUR CHILDREN BE SLAVES!

[david121090]

that chick is such a bitch, ron paul 2012, abolish the Fed

[aranax69]

Go Ron!!!

[tociph]

CNBC workers and the 100's of other news media outlets don't do their homework. I am willing to bet they haven't even read the HR 1207 which is just a page long. Lazy bunch of pricks.

[swu880]

@capitalist4life

Those who voted against the audit are essentially 'for the fed'

[joygarner]

NO body which controls our entire economy should be "independent" from the people. The proposition of this need to be independent is absurd.

[Illimitus]

The Fed shouldn't be independent of the people.

It should be subordinate.