The Fed Fails at Life and Everything, Says Fed Inspector General

Monday, September 14, 2009 , , , 0 Comments

I'm pretty sure this is the same Fed cop
who let me throw a quarter in their fountain
when I was in DC last month...
awwww, big scary Fed cops

Wait what?!


Federal Reserve examiners failed to rein in practices that led to losses from excessive real estate lending at two banks in California and Florida that later closed, the central bank’s inspector general said.

Riverside Bank of the Gulf Coast in Cape Coral, Florida, “warranted more immediate supervisory attention” by the Atlanta district bank, Fed Inspector General Elizabeth Coleman said in a report to the central bank’s board. In overseeing County Bank in Merced, California, the San Francisco Fed should have taken a “more aggressive supervisory” approach, Coleman said in another report, also dated Sept. 9.

The findings follow criticism by lawmakers including Senate Banking Committee Chairman Christopher Dodd, who say the Fed failed to curtail flawed underwriting and other lending abuses that contributed to the collapse of the housing market. Another report by the Fed’s inspector general in June faulted the Atlanta Fed’s oversight of First Georgia Community Bank.

Congress is reviewing a U.S. Treasury proposal to give the Fed more power by making it the supervisor for large and interconnected firms that may damage the U.S. financial system in the event of failure. The Treasury plan is part of an effort to overhaul U.S. financial regulation.

“The Fed does not come out smelling like a rose,” said Gilbert Schwartz, former associate general counsel of the Fed board and now a partner at law firm Schwartz & Ballen LLP in Washington. “There are things that could have been done better.”

LOLOLOLOL when does the Fed ever come out smelling like a rose?

I can speak from personal experience here and say that when I was dating the FedEx, he smelled more like failure and funny money. Or maybe that was just because he was a WoW-playing dork? Whatever.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.