Title: No Need To Audit the Federal Reserve According to Herman Cain Source:
[None] URL Source:[None] Published:Jul 6, 2011 Author:Tennessee Sons of Liberty Post Date:2011-07-06 09:52:15 by HAPPY2BME-4UM Keywords:None Views:195 Comments:11
Since Cain was the chairman of the Kansas City Federal Reserve Bank he knows something you don't know. The Federal Banking Agency Audit Act (1978), PL 95- 320, 31 USC § 714, has the GAO auditing the FED and other federal financial institutions. The FED used to be audited by Price Waterhouse and I think they switched a few years back to Deloitte as their auditor.
We have audited the accompanying balance sheets of the Board of Governors of the Federal Reserve System (the "Board") as of December 31, 2008 and 2007, and the related statements of revenues and expenses and changes in the cumulative results of operations, and cash flows for the years then ended. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audits.
So they audit the balance sheets that the fed creates, as though the fed would voluntarily list everything they do. Is that really supposed to be meaningful?
The Federal Reserve is subject to oversight by Congress. Board governors and staff testify before Congress frequently to discuss issues within the Federal Reserve's purview. For example, in 2008, governors and Board staff testified 35 times before Congress. During the first quarter of 2009, governors and staff have testified 12 times. Board staff also meet with Congressional staff to brief them on topics related to the Federal Reserve's operations and future direction.
Wow. They actually testified before Congress. I feel better already.
The Government Accountability Office (GAO) has broad authority to review and audit Federal Reserve activities.1 The legislative limits on the GAO's access to the Federal Reserve System are very specific and stated in the law.2 The GAO conducts reviews and audits at the direction of the Congress and also under its own authority. These engagements cover a wide variety of Federal Reserve activities. As of March 31, 2009, there were 20 GAO engagements underway, 17 of which were initiated by Congress. During 2008, the GAO completed 15 similar engagements.
So, it seems some things are subject to audit, but not all. One thing that isn't subject to review is international transactions, which is kind a like auditing half a check book, don't you think?
Since Cain was the chairman of the Kansas City Federal Reserve Bank he knows something you don't know.