Dear #RonPaul fan regarding #AudittheFedbill

July 24, 2012 Dear Concerned Citizen: Thank you for writing me in support of H.R. 459, the Federal Reserve Transparency Act, which would give the Government Accountability Office the authority to audit the Federal Reserve and its member components and report to Congress on the results. I strongly agree that such independent audit authority is essential. You will be happy to know that I am a cosponsor of H.R. 459 and voted to pass it on July 25, 2012. The bill passed the House by a vote of 327-98 and I am hopeful the Senate will move to vote on the bill as soon as possible. The Federal Reserve System operates as the central bank for the United States, managing the economy's money supply and overseeing the banking system. Historically, the Fed has not picked winners and losers when distributing money, nor has it brought significant credit risk onto its balance sheet. It has slowed or stimulated the economy by raising or lowering interest rates. Starting in March 2008, however, the Fed used its emergency powers to take massive credit risk onto its books. We now know that as of September 2009, the Fed's balance sheet had expanded from around $800 billion to over $2 trillion, not including off-balance sheet liabilities it guaranteed for Citigroup, AIG, and Bank of America, among others. Recent press reports suggest the Fed did significantly more to bolster the finances of the major financial institutions-- to the tune of up to $7.7 trillion in short term borrowing to shore up their balance sheets—financing that was kept secret and had no strings attached. An audit is the first step in bringing greater accountability to this system. It is essential that we bring more transparency to the Federal Reserve and ensure that the American public and Congress have a clear understanding of the actions the Fed has taken in order to determine the appropriate measures that need to be put in place to avoid another financial crisis in the future. Thank you again for writing me about this issue. I value the messages I receive from my constituents and use them to better inform my decision making process. I hope that you will continue to call or write me in the future on matters important to you. All the best, Jackie Speier Member of Congress