Needed: More Transparency at the Fed

George Yacik - Contributor - Fed & Interest Rates

The Federal Reserve is starting to feel some heat from both the right and the left about how secret its activities deserve to be from American taxpayers. The fact that next year is a presidential election year and the heat is being brought by two candidates for the Oval Office may mean that the pressure may amount to something this time.

On January 28 Sen. Rand Paul, R-KY, reintroduced his "Audit the Fed" bill that would subject the Fed's monetary policy discussions and decisions to audits by the Government Accountability Office (GAO).

"This secretive government-run bureaucracy promotes policies that have impacted the lives of all Americans," Paul said. "Citizens have the right to know why the Fed's policies have resulted in a stagnant economy and record numbers of people dropping out of the workforce."

Previous versions of Paul's bill – originally sponsored by his father, former presidential hopeful Ron Paul, and others – have gotten nowhere, largely because Democrats controlled the Senate. Now, of course, that body is now controlled by the Republicans. Paul got 30 co-sponsors to his bill. Continue reading "Needed: More Transparency at the Fed"

Firms That Fail: What to Look For in an FCM

By: DeWayne Reeves

Recent bankruptcies and failures of PFG and MFG have made execution and rates just a part of the search for a commodity brokerage. Now it is vital to know the features of the firms themselves. For years, brokers have relied on the CME's Safeguards in the CME brochure that described the step-by-step process for the financial failure of a commodity firm. The trading world was not prepared for default based on theft and manipulation by a trusted figure in the trading world. Trust is what the exchanges thrived on for years, along with the intensive background checks of the floor brokers and the financial requirements to weed out only the elite candidates for membership to the exchange. Falsifying bank records, which actually affected the holding accounts of the firm, was a shock to the trading world. Continue reading "Firms That Fail: What to Look For in an FCM"