The Fed Will Pay GAO For Its Own Audits

Sound a little familiar? Hell, in the "real world", the client has to pay for his own audits too so why should the Fed be any different?

Well because whatever they have to pay comes out of that giant windfall that Treasury gets from them that we have conveniently dubbed "profits".

A left-handed jerk off is still jerk off no matter how you rub it.

Via the Hill

The failure to pass a full-year CR will not hinder the Government Accountability Office from carrying out its tasks in the coming months, including its new job of auditing the Federal Reserve.

The full-year continuing resolution (CR) had included increased funding for the Government Accountability Office (GAO) to conduct its oversight functions, and this funding adjustment did not make it into the March 4 CR.

Despite this, GAO had planned for no increase in funding and its duties will not be affected, spokeswoman Laura Kopelson said. The GAO under the Dodd-Frank financial reform bill is now required to audit the Federal Reserve’s emergency lending program, instituted in the wake of the financial crisis.

This new task will go forward because the Fed audit will be reimbursed by the Fed, she said.

I hope the GAO has some time to skim through the Fed's financial accounting manual ahead of this lovely little project, it might help make sense of their unique accounting flair.

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.


elf2006real said...

What do you think of Free Banking?

W.C. Varones said...

Free Banking sounds like the proponents are Free Basing.

Why would notes from different institutions be interchangeable if the different institutions have vastly different creditworthiness? And how do you stop shady little institutions from hiring Zimbabwe Ben and printing like MoFos and lying about how much they are printing?

W.C. Varones said...

I shouldn't rely on Wikipedia for my definitions.

If it comes from Hayek, it's obviously a lot more sound than the way Wikkans describe it.

I still think you'd have a lot of trouble with crappy little banks printing money and then going bankrupt. The public can't evaluate the creditworthiness of hundreds of different institutions just to accept a handful of banknotes in trade.

I think I'd prefer the gold standard or Friedman's computer.