September 29, 2011
That’s right, Representative Barney Frank, the ranking Democrat on the House Financial Services Committee, proposed legislation that would take away the votes that the banking industry has on the Federal Reserve Board’s Open Market Committee (FOMC). As the FOMC is currently structured, 12 of the 19 members are essentially appointed by the banks, with 5 of the 12 voting at any one time.
George Will is outraged that Frank would take away the banks’ direct control over the country’s monetary policy. After all, if we followed Frank’s logic, drug companies wouldn’t be able to appoint commissioners to the Food and Drug Administration, phone companies wouldn’t be able to appoint commissioners to the Federal Communications Commission, and airline companies would not be able to appoint commissioners to the Federal Aviation Authority.
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