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Federal Reserve to Hire Ex-Enron Lobbyist in PR Move to Counter Doubts about Fed's Growing Power Over U.S. Financial System

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June 05, 2009 – Comments (0)

George Washington blog spot has the story:

How is the Fed responding to:

(1) a bill in Congress with 190 co-sponsors to audit the Fed


(2) a new law giving the GAO some power to examine the Fed's actions and


(3) calls by many to abolish the Fed altogether?


A promise of 100% openness and full disclosure to Congress and the American people?

An end to behind-the-scenes shenanigans?

An end to the whole scam of private bankers "creating" credit and bilking the taxpayers out of trillions in interest scam?

Of course not!

Instead, the Fed is . . .launching a new p.r. campaign to show everyone how wonderful Ben and the boys really are.

As Bloomberg notes:

The Federal Reserve intends to hire a veteran lobbyist as it seeks to counter skepticism in Congress about the central bank’s growing power over the U.S. financial system, people familiar with the matter said.

Linda Robertson ... headed the Washington lobbying office of Enron Corp... Robertson [also] served under Treasury Secretaries Lawrence Summers, Robert Rubin and Lloyd Bentsen...

“People have been asking whether the Fed is capable of getting its job done right,” said Lynn Turner, a former chief accountant at the Securities and Exchange Commission. “Hiring a former lobbyist from Enron will surely make one wonder.”

BONUS

Cost of Fed Expansion of Balance Sheet Is $30K Per American, Congressman Grayson Says

Those were just some of the harsh words Congressman Alan Grayson of Florida had this morning regarding Washington's handling of the financial crisis so far. His remarks were part of The Big Picture Conference--Capitalism After Crisis & Recession at the New York Athletic Club today.

To be sure,  while there's a huge risk in the government borrowing $10 trillion, the alternative was Great Depression 2, the congressman said.

Grayson also noted:
Sloppy thinking is leading policy decisions at the moment.
We can't manage systemic risk if we can't ID which parties are "too big to fail".
Why are we bailing out AIG if Goldman "first domino" said risk wasn't material.

Actions are needed to ensure culprits are held accountable.

Great video here of an interview with Congressman Grayson here:

http://finance.yahoo.com/tech-ticker/article/yftt_258173/Cost-of-Fed-Expansion-of-Balance-Sheet-Is-$30K-Per-American,-Congressman-Grayson-Says?tickers=^gspc,^dji,xlf,bac,c,gs,aig

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