James Galbraith: Fed Unlawfully Withholding Information from Congress

by: Washington

The Federal Reserve is unlawfully withholding information from Congress.

Says who?

Says noted economist James Galbraith:

To this day, Chairman Ben Bernanke has refused to disclose to Congress exactly who has received help under the many crisis measures and under what terms. The legal and constitutional situation is clear: Congress has a right to this information. There are no plausible national security concerns.

Galbraith also slams the idea that the Fed should be the main regulator:

Finally, there is the question of financial reform. In the new effort to bring systemically dangerous institutions (now called “Tier One Financial Holding Companies”) under effective supervision, the administration proposes to vest regulation of those entities in the Federal Reserve. The Federal Reserve naturally agrees. But the Federal Reserve has never been an effective regulator for the straightforward reason that it is dominated by economists and bankers and not by dedicated skeptics who make bank regulation a full-time profession.

If you think Galbraith is wrong about the Fed's capacity to act as regulator-in-chief, look at this article by the Washington Post.