Signed. And thanks, Jane. You make us proud.

If I were offered the bet, I’d bet the table limit the big banks will win.

Of course the Fed should be audited.

The reason it hasn’t is that it controls — it is — the government: secretive, undemocratic, all-powerful.

Shame JFK didn’t have his way with the Fed’s private printing presses.

Thanks for the post, Michael.

Trumpka and Stern may not agree on much but both care deeply about the wellbeing of their members, I believe

“massive secret bailouts and cronyism” and this is a surprise, why?

this is fabulous. Seeing these two power houses together. I know there were some problems between the SEIU and the AFL-CIO a while back.

This is tremendous

I don’t know why they disagree but right now it is much more important to get things done for their people. That’s the problem, I think – labor has not banded together and fought the establishment. They need to remember that saying – the enemy of my enemy is my friend.

if you’re not yet reading Tyler Durden’s zerohedge, consider it your daily bread.

I hear that things are starting to turn in the committee — Watt’s “compromise” is starting to be viewed as a “trojan horse.”

Thanks to everyone who signed this for their help in putting it together so quickly. It was widely circulated and very influential in changing the debate.

Signed it, thanks.

Here’s another letter that was sent by several congressmen to the committee heads.

http://www.washingtonsblog.com/2009/11/6-members-of-congress-cals-for-complete.html

Barney Frank
Chairman, House Financial Services Committee
2129 Rayburn House Office Building
Washington, DC 20515

The Honorable Christopher Dodd
Chairman, Senate Committee on Banking, Housing, & Urban Affairs
534 Dirksen Senate Office Building
Washington, DC 20510

Dear Chairman Frank and Chairman Dodd:

In light of Tuesday’s report released by the Special Inspector General for the Troubled Assets Relief Program, Neil Barofsky – Factors Affecting Efforts to Limit Payments to AIG Counterparties – we write to request your assistance in addressing major issues displayed prominently in the report.

On March 25, 2009, I requested, joined by 26 fellow members of Congress, that Mr. Barofsky investigate the events surrounding AIG’s payments to Goldman Sachs, Merrill Lynch, Societe Generale and other firms to settle certain open derivative transactions.

As a result of the findings in the report, there should be a comprehensive Congressional review of the Federal Reserve System and an exploration of possible changes in its governance model. More immediately, a complete and public audit of the system should be made part of the regulatory reform bills currently moving through your committees.

The following issues illustrate a set of circumstances that grant tremendous power to a body that is subject to minimal accountability, thus giving rise to my request.

First, Mr. Barofsky cites the unwillingness on the part of officials at the Federal Reserve Bank of New York (FRBNY) to negotiate “haircuts” with AIG counterparties. FRBNY has argued that it was acting as an AIG creditor, not as a regulator. I believe it is intellectually disingenuous to separate these roles in this case, [1] and frankly, how effective a regulator can the Federal Reserve be if it is unwilling to strive for good public policy through its regulatory powers?

Second, there is an inherent conflict in the manner in which regional reserve branch presidents are selected – in that representatives of the member banks select the regional president. It seems counterproductive, yet the banking system has provided case after case of regulated entities selecting their own regulator.

Third, the Federal Reserve has continually resisted efforts to engage in discussion on structural and governance reform at the System. Most recently, Bloomberg reported yesterday that the Federal Reserve has rejected a White House request that [the Federal Reserve] conduct a public review of its structure and operations.

Despite a request from the administration that provided ample opportunity for the Federal Reserve to have input into its own reforms, the central bank has simply refused. It is because of this attitude that I argue that real financial regulatory reform cannot occur without an examination into the structure of this entity.

Fourth, and most importantly, the Federal Reserve has shown a repeated unwillingness to accept efforts to improve transparency for the System.

As we are reminded in the report, it was only through your persistence, Chairman Dodd, that we were finally able to grasp the nature and extent of the counterparty payments. Despite repeated objections by the Federal Reserve System that the release of this information would have a detrimental effect on the health of AIG, their counterparties, and the markets, we now have the requested information, and the markets continue to function. As Mr. Barofsky stated – “the sky did not fall”.

As I and so many others have stated since the bailout first began – transparency must be the hallmark of any use of government funds.

Concluding, we respectfully request that for the reasons enunciated herein, that a Congressional examination of the governance structure at the Federal Reserve be undertaken, and also that the regulatory reform bills moving through your committees include a complete and public audit of the Federal Reserve System. The actions requested would shine much needed-light on this creature of Congress.

Please contact me or Martin Levine on my staff at 202.225.4741 or at martin.levine@mail.house.gov with questions.

Sincerely,

Elijah E. Cummings

Lloyd Doggett

Alan Grayson

Maurice Hinchey

John F. Tierney

Tim Walz

Peter Welch

Labor always loses, always kicked to the curb.

Just look at EFCA. That is if you can find it anywhere in the closet where it has been buried.

What is the position of Obama and Geithner on this? How about the Democratic Congressional leadership? And who would do the auditing? Would it reflect, say, the manner in which the SEC monitored Bernie Madoff?

Every week there is another revelation about one or another Congressman sponsoring one or another bill or amendment that may just as well been written on Wall Street.

And maybe another Democratic Congressman can attach an anti gay marriage amendment to that amendment. Or bolster the Stupak amendment by making unplanned pregnancies a crime.

Indeed, the Republicans will not have to do anything at all.

Again.

AND THE KILLIN’ GOEZ ON AND ON AND…

Citizen Hamsher and the Firepup Freedom Fighters:

Thanks for the report Sister Jane, the signature is on the petetion now nail that thing on the doors to the Rotunda.

But let’s be careful about how far we commit ourselves to an alliance with Ron Paul and Alan Grayson. Remember that Ron Paul’s “libertarianism” and particularly his stand against the Federal Reserve go back to the 1930′s and the anti-New Dealers, this was the alliance of the politics of the oligrachic families bonded to the red-necked rable of the No Nothing South. And Alan Grayson studied at the feet of Bork and Scalia for God’s sake. So let’s be careful not to get completely relaxed in the hot tub with these two folks.

KEEP THE FAITH AND PASS THE AMMUNITION AND MAKE SURE YOU LOOK ‘EM IN THE EYE FIRST!

You gotta be fucking joking me. The heads of the SEIU and the AFL-CIO accusing people of cronyism? This is some sort of gag, right?

What next, Tim Geithner and Charlie Rangel accusing people of not paying their taxes? William Jefferson accusing someone of corruption? Bill Clinton calling someone a philandering draft dodger? Al Gore calling accusing someone of using too much electricity at their home? Dan Rather calling someone a loony nutcase?
Honestly, you can’t make this shit up.

Well, you actually can make shit up and throw around wild accusations that you can’t back up. Or, you can provide links.

Which column shall we put you in?

Citizen masanf:

Ok now that you had your moment in the sunlight, go back under the bridge, take a pill and dream of those nicely starched brown shirts on those virile, blond man-children.

the “companies” that took tarp money should be prosecuted as criminal enterprises under RICO.

There’s more profit in cronyism than loving your neighbor..it’s written in the Republican Old Testicalment.

Cronyism and favoritism is so rampant in the Executive/Legislative branch (singular these days), it must be in Constitution somewhere?

So what if true, – Brutus studied at the feet of Caesar.

But caution is a good rule to follow, esp. where politics are concerned.

wouldn’t RICO have to address both sides of the illicit transaction?

Citizen Arbusto:

And cronyism and favoritism aren’t also shared with the judicial branch? Come on, that is exactly what we’re fightin’ here, systemic corruption and we fight with the tools we have and the troops we brought to the fight. That’s what politics in a democracy is all about. We have a moment of opportunity here to use the muscle and bone of the common folks through a re-energized and mobilized union movement to force those we put in office to either hide in the closet with their corporate stash until we boot their asses back to Illinois (or where ever) in November ’10 or turn toward the light and get it right.

Is this some kind of new, non phony populism? Despite my respect for Gerard and Trumka, I’m skeptical they can actually make a difference without a real labor party. As an aside, I wonder if Trumka is trying to woo Stern back into the federation, I think that would be a bad idea considering the turmoil [he has created] inside SEIU and how badly it’s “brand” has been skunked.

Citizen fuckno:

I said to be careful. Also remember that the Federal Reserve was used very effectiely at one time when we had a strong executive who used the muscle and bone of the workers to advance policies and programs that saved common folks and relieved the sufferin’ of millions. If it weren’t for the Federal Reserve and FDR’s use of it, there would have been no New Deal.

Citizen dpboehm:

We have been fightin’ ta get labor a place on the battlefield of politics in this country for 30 years and you are worried about how they might be dressed or how they might act in the mess hall??!! Get real, in fact organized labor is gunna help us win the fight for healthcare and economic recovery if we can detox from the KoolAide we been fed for at least 3 decades.

The heads of the SEIU and the AFL-CIO accusing people of cronyism?

Yeah, unions can be corrupt. But in dollar amounts this corruption is a tiny, tiny, tiny fraction of the corruption that went on between the Congressional finance committees, the White House economic team and Wall Street. You know, the trillions and trillions of dollars that were spent bailing out the Big Buckmeister bankers.

It’s called crony capitalism. Or, in China, state capitalism.

Six of one, half a dozen of the other, right?

Ms. Jane Hamsher would like to extend an invitation to read her latest post: “Ryan Grim and Naomi Klein on MSNBC, Discuss FDL Audit the Fed Letter”

I could care less about their attire or cafeteria antics. What I can say is that tying our collective fortunes to a Democratic Party who mostly abandoned us a generation ago hasn’t worked out too well the union movement. I think its time for a new political party that stands for working people. I also see Gerard and Trumka both as people of vision motivated by something bigger than themselves. I can’t say the same for Stern.

Agree re union corruption v. Wall Street/Legislature/Exec/etc corruption.

Unions have their problems, but it’s chump change in comparison to the big bucks ripped off of the US taxpayer by Wall Street, the Corporations & our very own gubmint (at nearly all levels).

But citizens have been well trained to fling the poo at each other rather than at those who are really breaking our backs. Hence unions are villified by so many workers who directly or indirectly benefit from the fights won by unions. Sad really.

I would love to see a real “union based” political party, but I’m not holding my breath. The days when the unions held more power than they do now are long gone and unlikely to return.

But kudos for this effort. I do appreciate it and will sign the petition.

Ewww, someone should have told Sen. Ensign…or, no, I guess he partook of both!

Bravo for them. Labor has been so relatively quiet and docile for years, I almost forgot they exist.

The amount of corruption in D.C. must be higher than any witnessed before in this world, short of that which infected the Stalinist USSR just prior to and consequent upon its dissolution.

Uh oh.

Just a shout-out for everyone involved in this effort.
I continue to read a lot of economics-related information and have become convinced that this move is absolutely **essential**.

My attitude about Goldman and the other banksters at this point is, “Tell it to the FBI.”

Good on the unions for stepping up to this task.

FWIW, there are a number of written explanations that this was a **massive** secret bailout. One of the best-written, easy-to-follow is the first chapter of Nomi Prins’ “It Takes A Pillage”. She points to an almost astronomical ‘gap’ between what it would have taken to pay off all the subprime mortgages, as opposed to how much was actually ‘lent’ by the Fed. And we haven’t come close to getting the Big Picture, I’m sure.

Curious the unions are getting worked up about the Fed. What brought on that?

Love the show of solidarity on this issue. Union leadership is strong and essential to getting our country back.

I believe Ms. Hamsher had a major role in bringing these parties together, although she hasn’t said so.

This is encouraging. As I have said before, I am very hopeful about the synergy I’m seeing between the unions and the netroots.

It’s long past time that something is done about all of this mess.

Solidarity is what we need. The people should not be afraid of their government. The government should be afraid of the people.