UPDATE: Financial Crisis Investigation Commission / Federal Reserve Transparency Act

Posted by AzBlueMeanie:

President Obama signed the bill on Wednesday creating a 10-member commission with subpoena power to investigate the financial crisis. But somewhat troubling, Obama also issued a signing statement limiting the administration's duty to comply with its requests.

As reported at the New York TimesThe Caucus Blog:

[A]fter signing the bill, the White House issued what is called a signing statement by Mr. Obama, which includes this advisory to agencies about the financial panel’s potential reach:

Section 5(d) of the Act requires every department, agency, bureau, board, commission, office, independent establishment, or instrumentality of the United States to furnish to the Financial Crisis Inquiry Commission, a legislative entity, any information related to any Commission inquiry. As my administration communicated to the Congress during the legislative process, the executive branch will construe this subsection of the bill not to abrogate any constitutional privilege.

In other words, the president is reserving the right to claim executive privilege if the commission seeks information or documents that the White House considers to be beyond the bounds of public information and/or privileged communications and negotiations within the executive branch.

There is some speculation in the blogoshere that this is to protect Treasury Secretary Timothy Geithner, who was president of the New York Reserve Bank last fall, and Federal Reserve Chairman Ben Bernanke, for their roles in the TARP bail out plan. Perhaps. But this signing statement does not appear to me to be anything out of the ordinary reservation of executive privilege.

Tyler Durden reports at Zero Hedge: Time To Make The Federal Reserve Accountable For Its Actions

Rep. Alan Grayson has distributed the letter below [see link] to all Democrats in the House and will use it to generate Democratic co-sponsorship for the HR1207 Bill, aka The Federal Reserve Transparency Act, allowing the GAO to audit the Federal Reserve, and also require a Fed report to Congress by the end of 2010.

This is the critical first step for U.S. Taxpayers to regain some semblance of control over the insanity that happens each and every day over at the Federal Reserve. The status quo must change.

Zero Hedge recommends all readers who believe in transparency and accountability join Glenn Greenwald, Naomi Klein, James K. Galbraith, Dean Baker, Bill Black, Tyler Durden, Yves Smith, US PIRG, Public Citizen, Mike Farrell, Digby, Rob Kuttner, Ian Welsh, Bill Greider, Stirling Newberry, ANWF, Les Leopold, Mike Lux and others in supporting Alan Grayson and asking Democratic members of Congress to cosponsor the Federal Reserve Transparency Act. Endorse your approval of the proposal and go to this site to sign the petition.

Tell your friends, tell your newspapers, make it viral. Let's bring accountability back.

Again, the petition link is here.

Jane Hamsher at firedoglake.com reports that our own Rep. Raul Grijalva Joins Alan Grayson, Cosponsors Federal Reserve Transparency Act:

Rep. Rajul Grijalva (D-AZ) has signed on to cosponsor H.R. 1207, the Federal Reserve Transparency Act. Rep. Alan Grayson sent a letter to his Democratic colleagues this morning asking them to join him cosponsoring the bill which gives the GAO the authority to audit the Federal Reserve.

Bernie Sanders has a similar bill in the Senate, but has no cosponsors.

Rep. Grijalva brings the total of Democratic cosponsors to 30. There are 136 Republican House members already cosponsoring the bill, and 218 votes are needed in the House for passage.

You can endorse the bill and Rep. Grayson's letter to his colleagues here.