G.O.P. to Paint Bernanke as Big Government Ally

[groovedaddy]

WASHINGTON — In a peculiar role reversal, Republican lawmakers are mounting a ferocious attack on the Republican chairman of the Federal Reserve, while Democrats are coming to his defense.
Ben S. Bernanke, the Fed chairman, will be grilled on Thursday by the House Oversight and Government Reform Committee about his role in orchestrating Bank of America’s controversial takeover of Merrill Lynch late last year.

The House investigation is heavily colored by partisanship. President Obama is proposing to give the Federal Reserve formidable new powers to regulate giant institutions, including Bank of America, that could pose risks to the financial system.

Republicans, along with some Democrats, argue that the Fed already has too much power.

Unhappy about the huge bank bailouts that the Fed arranged with the Treasury Department during the Bush administration, many Republicans are even more displeased that Mr. Bernanke is now working hand-in-glove with the Obama administration.

The result is a set of dueling narratives and agendas, all of which will be on full display when Mr. Bernanke testifies on Thursday. Henry M. Paulson Jr., the former Treasury secretary, is expected to testify next month.

http://www.nytimes.com/2009/06/25/business/25bank.html?_r=1&th&emc=th

[notesdev]

1. Democrats coming to his defense?

A handful, maybe. I actually listened to the whole hearing and I heard at least as many Democrats taking aim at him as came to his defense.

Big applause to Marcy Kaptur and Elijah Cummings who ripped Bernanke several new rectii today.

I have a feeling that the real target of all this is Paulson, though. July 1st is going to be a very very interesting day, and if you have to pick a day to take off work, hang out at home, and listen to CSPAN - that's the day to do it.

[dixiegrrrrl]

2. Admittedly strange to watch Issa blaming Bernanke of a cover up, tho.

Congress people of both sides of the aisle, with some few exceptions, seem to be very adept shape shifters, switching sides every so often, taking turns playing "good cop/bad cop".

None of this negates the fact that Issa is "good cop" on this issue.
The Federal Reserve is totally accountable for the fiscal mess we are in, with, of course, the Treasury as accomplice.
I am only surprised that some folks in Congress are bothering to act surprised and outraged.