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Home Alternative News News Ron Paul, FED, Kissinger Associates, BNL, LBS, Henry Gonzalez, Iraq And Yugoslavia

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March 3 (Bloomberg) -- House Financial Services Committee Chairman Barney Frank asked Federal Reserve Chairman Ben S. Bernanke to investigate allegations of Fed involvement in the Watergate scandal and Iraqi weapons purchases in the 1970s and 1980s.

Representative Ron Paul asked questions about “inappropriate political interference” and “hidden transfers of resources” during a Feb. 24 hearing with Bernanke, and the allegations “must be fully investigated,” Frank said in a letter today to Bernanke and obtained by Bloomberg News.

Frank, 69, said the Fed must address the charges because “continued concern about political interference” with the Fed and “allegations about a lack of transparency.” Bernanke and other Fed officials are trying to fend off a measure offered by Paul, which passed the House in December, that would open the Fed to audits of interest-rate decisions.

 

“These specific allegations you’ve made I think are absolutely bizarre, and I have absolutely no knowledge of anything remotely like what you just described,” Bernanke told Paul, a Texas Republican who wrote the 2009 book “End the Fed,” during last week’s hearing.

Bernanke, 56, joined the Fed in 2002 as a governor and was appointed chairman in 2006. The Senate confirmed him for a second four-year term in January by a 70-30 vote.

According to a 2008 book, “Deception and Abuse at the Fed,” by University of Texas Professor Robert D. Auerbach, then-Fed Chairman Arthur Burns tried to block lawmakers’ probes into the source of $6,300 found on the burglars of the Democratic National Committee’s offices in Washington’s Watergate complex in 1972. Burns, who served as Fed chief from 1970 to 1978, died in 1987.

Block Probe

Auerbach worked for Henry Gonzalez, a former chairman of the House committee who died in 2000 and investigated the sale of U.S. arms to Iraq in the 1980s, before the Gulf War. Gonzalez said the Fed and other agencies initially tried to block his probe, according to a 1992 New York Times article.

Fed bank examiners in Atlanta failed to note $5.5 billion being funneled to Iraq from a local branch of an Italian bank, Auerbach, a critic of the central bank and former congressional economist, said in his book.

“The Federal Reserve’s ability to manage monetary policy in an effective manner depends, in large part, on its reputation for independence and integrity,” Frank, a Massachusetts Democrat, said in the letter. “A complete investigation of these charges is necessary to maintain both.”

 

 

 

 

Henry Gonzalez: "During a special order last week, I revealed that Henry Kissinger was a paid member of the Banca Nazionale del Lavoro Consulting Board for International Policy. Mr. Kissinger held this position during the height of the biggest banking scandal in United States history-$4 billion in unreported loans to Iraq by the Atlanta branch of BNL. Other BNL advisory board members included David Rockefeller, the chairman of the Rockefeller Group and a director of Chase Manhattan Bank, Pierre Trudeau, the former Prime Minister of Canada, Lord Thornycroft, the former British Minister of Defense, and other politically well-connected international notables".



While conducting an investigation of the Banca Nazionale del Lavoro (BNL), House Banking Committee chairman Henry Gonzalez uncovered a link between BNL and LBS (Ljubljanska Banka).

Shortly after Yugoslavia began to disintegrate in 1991, U.S. Rep. Henry Gonzalez, investigating a banking scandal which involved the Reagan and Bush administrations' supplying of arms to Iraq, came into possession of CIA documents which exposed a concerted plan by the U.S. government to subvert the Yugoslav economy.

This was done through the Yugoslav banking system which had been partially privatized by the late 1980s. The central agent was Lawrence Eagleburger, George Bush's deputy secretary of state. Eagleburger, as head of the "consulting" firm Kissinger Associates, was director of Ljubljanska Banka, American subsidiary of Yugoslavia's largest bank, from 1986 to 1990. During his tenure, Ljubljanska Banka became embroiled in YugosIavia's largest ever banking scandal, according to the CIA documents, which Gonzalez publicized, the bank issued over $ 1 billion in false promissory notes "leaving Yugoslavia on the brink of political and economic collapse."


United Nations Information Department,MMF Bulletin.U.N. Mission of the Federal Republic of Yugoslavia. Rep. Henry Gonzalez


1991 Congressional Debates: SCANDAL INVOLVING ATLANTA AGENCY OF BANCA NAZIONALE DEL LAVORO - Henry B. Gonzalez