Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank [Hardcover]

Robert D. Auerbach (Author)

Book Description

Publication Date: May 5, 2008

The Federal Reserve--the central bank of the United States--is the most powerful peacetime bureaucracy in the federal government. Under the chairmanship of Alan Greenspan (1987-2006), the Fed achieved near mythical status for its part in managing the economy, and Greenspan was lauded as a genius. Few seemed to notice or care that Fed officials operated secretly with almost no public accountability. There was a courageous exception to this lack of oversight, however: Henry B. Gonzalez (D-TX)--chairman of the U.S. House of Representatives Financial Services (banking) Committee. In Deception and Abuse at the Fed, Robert Auerbach, a former banking committee investigator, recounts major instances of Fed mismanagement and abuse of power that were exposed by Rep. Gonzalez, including: • Blocking Congress and the public from holding powerful Fed officials accountable by falsely declaring--for 17 years--it had no transcripts of its meetings; • Manipulating the stock and bond markets in 1994 under cover of a preemptive strike against inflation; • Allowing $5.5 billion to be sent to Saddam Hussein from a small Atlanta branch of a foreign bank--the result of faulty bank examination practices by the Fed; • Stonewalling Congressional investigations and misleading the Washington Post about the $6,300 found on the Watergate burglars. Auerbach provides documentation of these and other abuses at the Fed, which confirms Rep. Gonzalez's belief that no government agency should be allowed to operate with the secrecy and independence in which the Federal Reserve has shrouded itself. Auerbach concludes with recommendations for specific, broad-ranging reforms that will make the Fed accountable to the government and the people of the United States.

Editorial Reviews

About the Author

ROBERT D. AUERBACH was an economist with the U.S. House of Representatives Financial Services Committee for eleven years, assisting with oversight of the Federal Reserve. Today he is Professor of Public Affairs at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin.

Product Details

• Hardcover: 285 pages
• Publisher: University of Texas Press (May 5, 2008)
• Language: English
• ISBN-10: 0292717857
• ISBN-13: 978-0292717855
• Product Dimensions: 9 x 6.1 x 1 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #1,082,297 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

6 of 6 people found the following review helpful:

5.0 out of 5 stars A MUST read for any student of economics, July 5, 2009

By 

the-coelacanth "the-coelacanth" (Southwest, USA) - See all my reviews

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This review is from: Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank (Hardcover)

Prof. Auerbach is THE authority on the inner workings of the Fed. He very humble gives all the credit for attempts to restrain the Fed to Congressman Gonzalez, but, he is the one did the investigating and provided the Congressman with the ammo he needed to get Greenspan to answer questions that had never been asked. This book also serves to remove the mythical "Golden" sheen surrounding Greenspan. He was no genius. I honestly believe that he never really understood what was happening to our economy. He presided over the most unregulated economy in the world, and ultimately, one of the worst meltdowns. To this day Greenspan claims he never saw it coming. This is an excellent resource for anyone who wants to understand why our economy is in the state is in today.

5 of 5 people found the following review helpful:

5.0 out of 5 stars Excellent Insight, August 25, 2008

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A. Dowd (Baltimore, Maryland) - See all my reviews
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This review is from: Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank (Hardcover)

Auerbach- Has the credentials and the experience to back up his claims about the Federal Reserve. It is unbelievable that Americans and our Elected Officials have become so complacent and negligent in their protection of our rights and economy. One gets the impression that Auerbach's testimony is just the tip of the iceberg. Auerbach does not totally dismiss the Fed as most would but also offers suggestions on how to create better Checks and Balances for this institution which is a critical part of the US economy.

8 of 10 people found the following review helpful:

5.0 out of 5 stars This may not be accurate but..., September 17, 2009

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Mervyn Keane, Club Man (Riverwoods, IL) - See all my reviews

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This review is from: Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank (Hardcover)

I confess that I have yet to read this book. However, about 40 years ago, Dr. Auerbach taught Economics & Finance at the UIC and I was fortunate to have taken several classes with him... I remember him as a great teacher and original thinker. He has influenced me forever and I look forward to reading this. If it's half as good as any number of the powerful statements that have stayed with me for over 4 decades, then it's a charm.

(About 6 weeks later) The book finally arrived and I read it quickly. It's rigorously researched, timely and should be required reading for anyone at all interested in banking or political economics. But please read the footnotes - Dr. Auerbach's side comments are especially enlightening and entertaining.