Troubled by unexplained cash surpluses at the San Antonio branch of the Federal Reserve Bank of Dallas and its member banks, Rep. Henry Gonzalez, D-Texas, Monday called for hearings on money laundering and tougher legislation to trace drug profits.
"For over a decade I've sought an explanation to the persistent cash surpluses," Rep. Gonzalez said in a statement. "But neither law enforcement agencies nor bank regulators have provided me anything other than anecdotes and speculation."
At the request of Rep. Gonzalez, the Treasury Department investigated the San Antonio Fed branch and reported in August on massive currency movements through several of its institutions, but federal officials said they lacked the authority to examine bank records that would pinpoint the nature of the transactions.
"We are left wondering whether the excess cash moving through South Texas is legitimate," he said.
Rep. Gonzalez pledged to introduce legislation that would allow the Internal Revenue Service to examine bank records and their links to Federal Reserve cash surpluses.