Posted by Karl Denninger
Bernanke has apparently changed his tune on AIG and The Fed:
Jan. 19 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said the central bank would welcome a “full review” of its aid to American International Group Inc. by congressional auditors and make all necessary records and personnel available to them.
“To afford the public the most complete possible understanding of our decisions and actions in this matter, and to provide a comprehensive response to questions that have been raised by members of Congress, the Federal Reserve would welcome a full review by GAO of all aspects of our involvement in the extension of credit to AIG,” Bernanke said today in a letter to Gene Dodaro, acting head of the Government Accountability Office. The Fed released the letter.
So what’s the difference between this and a full audit of The Fed?
Nothing, right? After all, to afford the public the most complete possible understanding of our decisions and actions in this matter Bernanke now asserts that it is “ok” for the GAO to audit The Fed.
Oh wait – isn’t that what Ron Paul’s bill has been seeking since this entire thing began and in fact prior to that time?
Better go talk to Lacker about this – remember, he’s been issuing threats…
Lacker criticized legislation before Congress that would rescind an exemption on government audits of monetary policy and give politicians a greater say over the appointment of Fed bank directors and presidents.
“Such moves would present very serious risks to the effectiveness of monetary policy and ultimately to economic growth and stability,” Lacker said in a speech today to the Risk Management Association in Richmond, Virginia.
So let’s see, we can’t have the public find out what sort of mistakes we made, but it’s ok if the GAO performs an audit after, and only after, Congress issues SUBPOENAS for all of the information anyway.
What a load of crap.
IF Bernanke truly had no problem with Congress (and the people) knowing what they had done when AIG was rescued they would not have waited until there were SUBPOENAS already on their desk that COMPEL them to release the information!
This sort of two-faced forked-tongue BS is outrageous.
Instead of saying “oh ok” the proper response is for Congress to turn around and issue a subpoena for ALL DOCUMENTS in any form whatsoever related to any and all bailout, handout, and policy decisions from 2000 onward when this mess began so that, as Bernanke has now said, WE THE PEOPLE can have the most complete possible understanding of The Fed’s decisions.
After all, Bernanke now says that we the people have the right to know.