Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank by Robert D. Auerbach
Publisher: University of Texas Press | Number Of Pages: 288 | Publication Date: 2008-05-05 | ISBN-10: 0292717857 | PDF | 3 Mb
The Federal Reserve—the central bank of the United States—is the most powerful peacetime bureaucracy in the federal government. Under the chairmanship of Alan Greenspan (1987-2006), the Fed achieved near mythical status for its part in managing the economy, and Greenspan was lauded as a genius. Few seemed to notice or care that Fed officials operated secretly with almost no public accountability. There was a courageous exception to this lack of oversight, however: Henry B. Gonzalez (D-TX)—chairman of the U.S. House of Representatives Financial Services (banking) Committee.
In Deception and Abuse at the Fed, Robert Auerbach, a former banking committee investigator, recounts major instances of Fed mismanagement and abuse of power that were exposed by Rep. Gonzalez, including:
* Blocking Congress and the public from holding powerful Fed officials accountable by falsely declaring—for 17 years—it had no transcripts of its meetings;
* Manipulating the stock and bond markets in 1994 under cover of a preemptive strike against inflation;
* Allowing $5.5 billion to be sent to Saddam Hussein from a small Atlanta branch of a foreign bank—the result of faulty bank examination practices by the Fed;
* Stonewalling Congressional investigations and misleading the Washington Post about the $6,300 found on the Watergate burglars.