Fed to Treasury: Mind Your Own Damn Business




Bwhahahahahahahaha, Timmy! Nice try! What the hell makes you think the Fed is going to tell you what they are doing?! Get in line, buddy!

Bloomberg:

The Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said.

The Obama administration proposed on June 17 a financial- regulatory overhaul including a “comprehensive review” of the Fed’s “ability to accomplish its existing and proposed functions” and the role of its regional banks. The Fed was to lead the study and enlist the Treasury and “a wide range of external experts.”

Some top central bank officials, after agreeing to the review, saw a potential threat to Fed independence after the Treasury released the proposal, two of the people said. The Obama plan said the Treasury would consider recommendations from the review and “propose any changes to the Fed’s governance and structure.”

“It is not obvious at all why that is a Treasury responsibility or even appropriate why the Treasury would undertake that kind of study,” said Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc. in Vineland, New Jersey, and a former Atlanta Fed research director. “The Fed was created by Congress and it is not part of the executive branch.”


Whoa, dude has a point. It's none of the Treasury's business.

Bwhahahahahaha, starting to regret that whole 1913 Federal Reserve Act thing are we?

Also, shouldn't Timmy be able to produce this information himself? I mean seeing as how he was still President of the NY Fed just a year ago, certainly he remembers how the Fed's structure works? Hell, Jr Deputy Accountant could probably produce this damn information.

What an asshat. Don't you just hate when the Fed tells you to fuck off when you go knocking on their door, Timmy? Someone should really do something about that.

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.

3 comments:

Bad Economy said...

The more they keep each other in the dark, the easier it is for blame redirection. Instead of working together to solve problems, they cause further ones.

Anonymous said...

My father worked for Treasury in the 1960s. He said that in those days the Fed Chairman as a condition of appointment had to give Treasury an open dated resignation letter which Treasury kept in it's files. Guess things have changed since then, assuming Dad's info was accurate.

BE,

Word. Which actually works out for *our* agenda since the more bickering we can get across agency lines, the better it is for facilitating their inevitable demise.

Anon,

thank you for that little history lesson. Very interesting and not really that surprising. The Fed has evolved over the years and without a real system of checks and balances in place, I guess Treasury just let it happen right under their noses. Funny how last year when the bailout madness was raging the Fed and Treasury were BFFs and all the sudden they are like warring factions. I'm pretty excited to see how this one turns out!

AG