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Profile: Financial Stability Board (FSB)
Financial Stability Board (FSB) was a participant or observer in the following events:
Conservative pundits on Fox News and other media outlets falsely claim that President Obama ceded the government’s authority over its economy to an international consortium during the G-20 summit, which concluded on April 2, 2009 in London. On April 3, pundit Dick Morris appears on Fox News’s America’s Newsroom to claim that Obama “effectively ceded massive areas of American sovereignty to Europe and to the global economic mavens.… [T]his literally is a massive surrender of sovereignty to an essentially European body.” On April 3, US Representative Don Manzullo (R-IL) tells CNN’s Kitty Pilgrim that Treasury Secretary Timothy “Geithner’s proposing, with the help of the administration, a worldwide international control over all financial interests—in fact, over any corporation, to the extent of even controlling the compensation of the employees. That’s not only radical, Kitty, that’s frightening.” Pilgrim responds, “Yeah, it certainly is.” On April 5, Fox News host Monica Crowley, appearing on the syndicated McLaughlin Group, says the G-20 agreement is “the first step to abrogating American sovereignty here, because… it is going to allow European bureaucrats to step in, not just on the hedge fund regulation and the other explicit things that they agreed to, but buried deep down in this communiqué was the ability for European bureaucrats sitting in Brussels to decide what kind of executive compensation American executives should—” Financial Times US managing editor Chrystia Freeland interjects, “No, there was no authority like that there, Monica.” Crowley responds, “I read it in the communique this morning.” [Media Matters, 4/7/2009] In an April 6 column titled “The Declaration of Independence Has Been Repealed,” Morris writes: “On April 2, 2009, the work of July 4, 1776 was nullified at the meeting of the G-20 in London. The joint communique essentially announces a global economic union with uniform regulations and bylaws for all nations, including the United States. Henceforth, our SEC [Securities and Exchange Commission], Commodities Trading Commission, Federal Reserve Board, and other regulators will have to march to the beat of drums pounded by the Financial Stability Board (FSB), a body of central bankers from each of the G-20 states and the European Union.… Obama, perhaps feeling guilty for the US role in triggering the international [economic] crisis, has, indeed, given away the store. Now we may no longer look to presidential appointees, confirmed by the Senate, to make policy for our economy. These decisions will be made internationally.” Noting that the FSB is numerically dominated by European members, Morris writes: “The Europeans have been trying to get their hands on our financial system for decades. It is essential to them that they rein in American free enterprise so that their socialist heaven will not be polluted by vices such as the profit motive. Now, with President Obama’s approval, they have done it.” [Dick Morris, 4/6/2009] On the evening of April 6, Morris makes the same claims on Fox News’s Hannity, telling viewers: “Basically, from an economic standpoint, [Obama’s] repealed [the Declaration of Independence]. We no longer have economic sovereignty.” [New York Times, 4/3/2009] None of these claims are true, as Freeland tried to assert. The FSB has no cross-border authority and therefore no authority over American economic decisions. On April 3, the New York Times reports, “While the [G-20] leaders agreed to create a new Financial Stability Board to monitor the financial system for signs of risks, they stopped well short of giving regulators cross-border authority, something France has long advocated.” [New York Times, 4/3/2009; Media Matters, 4/7/2009]
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