Why is the Fed so opposed to being audited, and what does it have to hide?

SATURDAY, MAY 1, 2010 11:01 ET

The trillion-dollar fraud

Why is the Fed so opposed to being audited, and what does it have to hide?

BY JOHN R. TALBOTT

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Commercial banks, by law, have to hold a certain percentage of their deposits as cash at the Federal Reserve. From January 1959 until August 2008, the total of these reserves held by the commercial banks at the Fed grew from $11.1 billion to $46.2 billion. At no time during this almost 50-year period did the total bank reserves held at the Fed exceed the minimum required by law by more than $2 billion.

But since August 2008, these bank reserves held at the Fed have exploded to more than $1.2 trillion (as of March 2010), even though only $65.6 billion was required to be deposited by law.

The trillion-dollar fraud - Bank Reform News | Obama Bank Reform Bill - Salon.com