Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. 'Politicization' of the Fed (Dean Baker)There's an interesting article in today's New York Times about how Ben Bernanke has had to learn politicking, now that some in Congress are eager to provide more oversight of the Federal Reserve. The article discusses Ron Paul's bill that would allow the Government Accountability Office to audit the Fed:Mr. Paul's bill would require the Government Accountability Office, an arm of the Congress, to complete a wide-ranging assessment of the Fed's financial operations by the end of 2010. The audit would delve into bailouts of individual firms, short-term loans to banks, currency swaps with foreign central banks and the Fed's effort to prop up mortgage lending by purchasing $1.25 trillion in mortgage-related securities.Bernie Sanders is sponsoring the Senate version of Paul's bill. Meanwhile, a Washington Post editorial is claiming that Christopher Dodd's proposed banking regulation would "politicize" the Fed by impinging on its independence in setting monetary policy, to which Dean Baker, in his blog Beat the Press, had this amusing response: Washington Post: Taking Away the Banks' Control of the Fed is "Politicization"I'm sure those changes are all in the works (and some of them well underway), alas, but in case they aren't, we wish you wouldn't give them any ideas, Dean! Labels: banking regulation, Ben Bernanke, Bernie Sanders, Christopher Dodd, Dean Baker, Ron Paul |