Chris Dodd Taps the Fed's Secret Backdoor
If I ever said Chris Dodd was an idiot, I take it back. I meant to say he's a diabolically clever asshat.
Fed independence? Hahahahaha, surely you jest. Firstly, Washington figured out the front door operation a long time ago: Stay out of the Fed's business and get a float. It seems clever Chris Dodd has also discovered the Fed's equally seedy back door operation - he must have read the thing about $45 billion in Fed profits and been blinded by the zeroes. How is it we never thought of this genius plan before?
David Wessel via WSJ's Real Time Economics:
The Federal Reserve funds itself, making money on the buying and selling and holding of U.S. government and mortgage-backed securities, among other things. After paying its expenses, any profits go to the U.S. Treasury. It prizes this independence from the congressional appropriations process.
It seems the Senate Banking Committee has discovered the advantages of what one might call off-balance-sheet financing. In the latest version of the financial-regulatory bill unveiled by Chairman Chris Dodd on Monday, the committee shifts the budgets of all financial consumer-protection activities from half a dozen federal agencies to the Fed –- and then makes explicit that the Fed would have little say over what the new consumer bureau, to be headed by a presidential appointee, would do.
The Fed wanted to keep bank supervision and it got what it wished for but I'm fairly sure this isn't what the Fed Presidents meant when they were canvassing for the Save the Fed's Ass 2010 campaign. Again, Fed independence? Hahahahahaha, what independence?
Stupid as a fox, that Chris Dodd. Except at least a fox has the decency to do most of its diabolical out-clevering in secret and under the cover of brush. This asshat is all out in the open about it. Why not? He's about to retire, I know a little something about being short and shitty.
Dodd is doing the government no large favor though certainly in his twisted little mind he believes he is. Oh well, it's not my job to convince him, just inform you. Grease up and bend over, Federal Reserve System, this is what you wanted.