Capital Briefs: Gonzalez Bill Would Shake Up Federal Reserve

Renewing his attacks on the Federal Reserve System, Rep. Henry B. Gonzalez introduced a bill Thursday that would make reserve bank presidents subject to Senate confirmation.

Under Rep. Gonzalez's Federal Reserve System Audit and Accounting Act, the General Accounting Office would audit the vault of each reserve bank at least once every three years. The bill would also eliminate the Fed chairman's authority to fire the inspector general.

"When you have a large government bureaucracy that has, over the decades, ballooned into a kingdom with few internal and external controls, an unlimited budget, and no signs of cutting back, you can be sure it is time to clean house," the Texas Democrat said in a written statement.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER