Tuesday, November 8, 2011

GAO and the Federal Reserve

Ron Paul has been calling for a full and complete audit of the Federal Reserve. Ron Paul's bill H.R. 459, to allow the GAO to conduct a full audit, has 191 co-sponsors.

Barron's reports that a recent limited review by the GAO found conflict of interest and self-dealing at the Federal Reserve:
The history of this cozy arrangement between the regulators and the regulated is outlined in a 266-page, July 2011 audit by the Government Accountability Office that came to light during an Oct. 4 hearing by the House Subcommittee on Domestic Monetary Policy and Technology, which is chaired by Texas Republican Rep. Ron Paul. The story is also contained in a companion 127-page GAO audit, released Oct. 19, attacking the Fed's inadequate safeguards against potential conflicts of interest among board members at its regional banks. Both reports are one-time audits required by the Dodd-Frank Wall Street reform law.

Where there is smoke there is fire, and where there is one cockroach there are many more. When the Government Accountability Office is allowed to do a full and complete audit of the Federal Reserve, there will be fire and cockroaches.