GAO audit reveals massive conflicts of interest at the private Federal Reserve http://endthelie.com/2011/10/19/gao-audit-reveals-massive-conflicts-of-interest-at-the-private-federal-reserve/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EndTheLie+%28End+the+Lie%29&utm_content=FeedBurner#axzz1bUPGMfO4

A Government Accountability Office (GAO) audit released today revealed systematic conflicts of interest within the Federal Reserve where top executives of financial institutions and corporations directly manipulated and benefitted from Fed policy.Unfortunately, this is not just one instance, but has become a widespread cancer in the Federal Reserve System where no less than 18 current and former Fed board members were directly tied to banks and corporations that received bailouts and other special treatment from the Fed.

The Federal Reserve has no restrictions whatsoever about directors owning stock or even working directly for banks that are regulated and overseen by the Federal Reserve, which has become commonplace.Federal Reserve directors have direct ties to major players including General Electric, JP Morgan Chase, Goldman Sachs and Lehman Brothers which the non-partisan report characterized as “reputational risks” to the Fed.I would say calling it a “reputational risk” is a bit of an understatement.This is irrefutable proof that the corrupt system of crony capitalism is being used at the highest levels of finance to unfairly benefit the few while emptying the pockets of Americans who don’t happen to be executives at multinational corporations or banks.

Senator Bernie Sanders, an Independent from Vermont, essentially made the audit happen thanks to his amendment to the Wall Street reform law passed last year.Previously the Federal Reserve System and their criminal practices have never been subjected to any expert independent inquiry of this caliber, which is likely why they have been able to get away with this for so long.“Clearly it is unacceptable for so few people to wield so much unchecked power,” Sanders said. “Not only do they run the banks, they run the institutions that regulate the banks.”