The Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said.
The Obama administration proposed on June 17 a financial- regulatory overhaul including a “comprehensive review” of the Fed’s “ability to accomplish its existing and proposed functions” and the role of its regional banks. The Fed was to lead the study and enlist the Treasury and “a wide range of external experts.”
Some top central bank officials, after agreeing to the review, saw a potential threat to Fed independence after the Treasury released the proposal, two of the people said. The Obama plan said the Treasury would consider recommendations from the review and “propose any changes to the Fed’s governance and structure.”
WTF is this all about? I am no fan of the Fed, but the last thing you want is the executive branch gaining even more control of the Fed by implementing changes in the "Fed's governance and structure." This guy Obama is moving on an awful lot of fronts very quickly.
Bob,
ReplyDeleteMaybe he wants to protect his banking cronies even more? Maybe if the executive is more in control they can use 'war powers' to protect the Fed from Congress?
I don't know, but I did hear that Bair wants to take money-centers into receivership and Geithner isn't having any of it. Sounds like he's on the verge of another temper tantrum.
I still hold to the thesis that Summers will head the FED, not Yellen, and not Bernanke for much longer.
ReplyDeleteI posit that Obama is keeping Bernanke on so that Ben will be a scapegoat. This current movement looks like a flank maneuver correspondent to the realization that a frontal takeover is not currently feasible.
What intrigues me is that Geithner seems to be doing Obama's work by petitioning the FED. Who is Geithner playing for here? The obvious answer is himself, but with whose blessing?
He doesn't seem very comfortable with the role.
Is it a coincidence that Obama backed Bernanke about the time Barney Frank started assuring that the FED audit will pass?
One more thought- it is interesting to watch the trust and political bonds erode between everyone at the top. The people under them are probably more confused and the smart ones are heading for the exits. And taking notes for their expose book deals.
Remember when obama told the banks the only thing between them and pitchforks was him it is all about MARXIST control
ReplyDeleteGeithner vs. The "Fed"
ReplyDeleteLOL
Yeah, right.
This is classic good cop-bad cop.