Why aren't our reps backing oversight?

The only thing worse than a bailout is a bailout with no oversight, and yet this now occurs as a matter of routine. The Federal Reserve Bank, the quasi-public central bank responsible for U.S. monetary policy, has created literally trillions of dollars out of thin air during the current financial crisis and is not required to tell anyone (even Congress) where the money is going; they are exempt from ordinary auditing requirements and are not accountable to anyone.

Recently, Rep. Ron Paul, a Texas Republican, introduced a bill (H.R. 1207, the Federal Reserve Transparency Act of 2009) that would require that the Fed be audited, a very modest proposal given its central role in the economy; although this bill now has 58 co-sponsors in the House from both sides of the aisle (including several from bordering states like Indiana and Wisconsin), not a single Illinois representative has joined them.

When I called my representative (Rep. Melissa Bean), her office couldn't explain exactly why she wasn't co-sponsoring the bill, but I have a good guess: She received more campaign contributions from Freddie Mac and Fannie Mae than any other member of the House and therefore has a vested interest in leaving the financial system "as is." I'm sure every Illinois representative would claim to be interested in transparency and economic recovery; if they really are, they should prove it by supporting this bill.

Ethan Sudman

Gurnee