Okay one last thing...?

Question

Why was there never an independent audit of the Federal Reserve System? Who is watching the watchers? Or are we just taking their word for it?

Answer 1

That's just conspiracy web site nonsense that the Fed has never been audited.

You can review the audits and other reports to congress at http://www.federalreserve.gov/boarddocs/... .

Per the fed Site

"The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review. Under the Federal Banking Agency Audit Act (enacted in 1978 as Public Law 95-320), which authorizes the Comptroller General of the United States to audit the Federal Reserve System, the Government Accountability Office (GAO) has conducted numerous reviews of Federal Reserve activities. In addition, the Board's Office of Inspector General (OIG) audits and investigates Board programs and operations as well as those Board functions delegated to the Reserve Banks. Completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board’s Annual Report "

"To ensure financial accountability, the financial statements of the Federal Reserve Banks and the Board of Governors are audited by an independent outside auditor. In addition, the General Accounting Office, as well as the Board's Office of Inspector General, can audit Federal Reserve activities. "

(ref: http://www.federalreserve.gov/generalinf... )

More sources:

Confirmation of indepenent audits from Deloitte and Touche, and Price Waterhouse coopers

http://www.clevelandfed.org/about_us/ann...

http://www.clevelandfed.org/about_us/ann...

A GAO audit of the Dallas branch: http://www.gao.gov/archive/1996/ai96005....

NY Board Audit requirements (including review by external auditor): http://www.newyorkfed.org/aboutthefed/au...



A memo on Auditing of the Fed that describes the use of various external auditors:

http://www.fmcenter.org/atf/cf/%7BDFBB27...

http://www.publiceye.org/conspire/flaher...