–Key Republican Senator: Says Rep. Frank’s Plan Is ‘Horrible Idea’
–Frank Plan Would ‘Totally Concentrate’ Fed Power
–Senate GOP To Release GSE Reform Ideas ‘Very Soon’
By John Shaw
WASHINGTON (MNI) – Sen. Richard Shelby, the ranking Republican on
the Senate Banking Committee, told Market News International Wednesday
that new legislation to overhaul the voting practices of the Federal
Reserve Board is “totally dead” and is “going nowhere.”
In an interview, Shelby was referring to legislation offered this
week by Rep. Barney Frank, the ranking Democrat on the House Financial
Services Committee, to strip regional Fed presidents from voting on the
FOMC.
Shelby said Frank’s bill is a “horrible idea,” adding that it would
“totally concentrate the Fed’s power in Washington.”
“Personally I think it makes sense for the Fed to hear from voices
outside of Washington when they debate monetary policy,” Shelby said.
Frank has said the regional Fed presidents are chosen by “a self
perpetuating group of private citizens who disproportionately represent
the private financial services industry.”
Frank said the perspectives of the regional Fed presidents are
valuable but “they should not vote on this extremely important issue of
public policy.”
Shelby said he is certain that Frank’s legislation will not advance
in Congress.
On another matter, Shelby said that Senate Republicans on the
Banking Committee continue to discuss the best way to overhaul Fannie
Mae and Freddie Mac and will release a number of GSE reform ideas “very
soon.”
“We need to keep this debate on GSE reform alive. We still have a
system that really needs to get fixed. We got to keep the public aware
of how bad the current system is,” Shelby said.
“We’ll have some reform ideas ready for the debate very soon,” he
added.
** Market News International Washington Bureau: (202) 371-2121 **
[TOPICS: M$U$$$,MFU$$$,MCU$$$]