Skip to main content

I just returned from a book signing event for "Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank" and had the opportunity to hear the author, Robert D. Auerbach, speak about the ridiculous lack of oversight at the Federal Reserve.  He spoke about the efforts of the late, great Henry B. Gonzalez, then Chairman of the House Banking Committee, to bring the activities of the Fed into greater transparency and accountability.  The event was sponsored by the Henry B. Gonzalez Foundation and was attended by Henry B. Gonzalez's son, Charlie Gonzalez, who is currently US Congressman from TX-20.
More...

I had a chance to hear the author, Robert Auerbach, recently on NPR's "Texas Matters" program.  He detailed the fact that the investigators charged with the oversight of the banks would routinely carry their resumes with them to the very banks they were supposed to be overseeing.  He also talked about how Congressman Gonzalez pressed Chairman Greenspan for transcripts of the Fed's meetings.  Greenspan falsely claimed that there were no minutes being kept from the meetings.  Auerbach also described the private fleet of planes used by the Fed to transport paper checks (which ceased after 9-11) and how the banks were profiting from check floating using this fleet.

Auerbach's talk had so many lessons that are relevant to our current economic situation with the Housing/Lending crisis.  His message that lack of oversight inevitably leads to conflicts of interest and corruption is timeless, but the story of Henry B. Gonzalez's role in challenging the Fed has been largely overlooked.  Thankfully Robert Auerbach was there and lives on to tell the story in his book.  Please check it out if you get a chance.

Originally posted to Texican on Sun Jun 08, 2008 at 05:04 PM PDT.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site