Jan. 5, 2024, Fairfax, Va.—Americans for Limited Government President Rick Manning today issued the following statement urging members of the House and Senate to cosponsor and pass Sen. Rand Paul’s (R-Ky.) Audit the Federal Reserve legislation when it is introduced next week to get to the bottom of the regional bank bailout, the Bank Term Funding Program, now up to $132 billion according to the Fed’s latest H.4.1. release:
“Every member of Congress should support Sen. Rand Paul’s legislation to audit the Federal Reserve. This is not just a rhetorical talking point, it is a fiscal and monetary responsibility of Congress to unveil how the Fed has been negating the impacts of higher interest rates on too big to fail banking balance sheets in the regional bank bailout, the Fed’s now $132 billion Bank Term Funding Program. This designed mitigation and socialization of interest rate risk for some banks while other smaller banks have been forced to close their doors under the Congressionally passed Dodd-Frank law, needs to be understood to ensure that political favor does not drive the picking of winners and losers, including whether these bailouts are going to too big to fail and foreign banks.
“In 2010, under Dodd-Frank, the Fed was audited, too, of the $1.25 trillion of mortgage-backed securities bought by the Fed, foreign entities sold some $442.7 billion of their mortgage securities to the Fed, too. Similarly, it stands to reason that interest rate exposure would not be merely limited to domestic regional banks, but only a full audit will reveal the truth.
“This is not a partisan issue, it is a basic right of the people and their representatives in Washington, D.C. to know if laws need to be changed to prevent the politicization of our capital and Treasury market systems. With the increased involvement of the U.S. banking industry to promote social and economic change programs, including DEI and green agenda programs, it is essential that the public and their representatives ensure that Treasury markets particularly, with the national debt set to rise to more than $50 trillion by 2033, are not being abused for political gain.
“Please cosponsor Sen. Paul’s legislation to audit the Federal Reserve.”
For media availability contact Americans for Limited Government at media@limitgov.org.
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