Revise the Federal Reserve Act of 1913

At 2:39PM EST today, March 16, the Federal Reserve lowered the Key Interest Rate another .75 percentage points to 2.25%.
This further denotes a recession in the United States. We have all become "comfortable" with the way the Federal Reserve affects our economy and few of us understand how it does its job. However, it may be that time has come for us to be more knowledgeable of that organization and its functions.
The following URL reaches a "plain language" explanation of the Federal Reserve system, according to one of the twelve Reserve Banks [designated 10J].
Although it is anything but "plain and simple" it does give information that will help to explain.
http://www.stls.frb.org/publications/pleng/default.html

In my not so humble opinion, the Federal Reserve system has failed. I should say, that at least in one of its functions to examine the viability of each bank you and I use, regarding risk and liability...a sound and responsible performance. As each bank is examined, a rating is assigned which indicates the bank's processes and performance and further denotes if there are areas which require corrective action. So what happened regarding the fifth largest banking concern, Bear Stearns, that it was kept from collapse only by urgent action supported with special $30 billion Federal Reserve backing (bailout).


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Facts:
Bear Stearns has never reported an annual loss.
At the close of the quarter in February it claims a profit.
At the end of 2007 the "book value" of its shares of stock was $84.09 per share.
Mid-March Bear Stearns agreed to be acquired by J.P. Morgan at $2 per share.

This was the fifth largest banking concern in the United States!

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To use the imagery of a political candidate, the $30 Billion effort to get the bus out of the ditch doesn't concern me as much as how the bus got driven into the ditch in the first place with Federal Reserve oversight and examination.

Congress who oversees the Federal Reserve, established the Federal Reserve Act in 1913. Since then its responsibilities has been expanded and of course so has the infrastructure to carry out these functions...and like most such bureaucratic organizations it has metastasized into a maze of structure, regulations, personnel and officiousness. Banking reform was the reason it was created.

Time has come again to reform.