Sunday, January 27, 2013

Federal Reserve

The Italian central bank has been busted for corruption.
"The Bank of Italy scrambled on Friday to deflect charges that it failed to prevent risky derivatives trades by the country's third-largest lender, which took place when ECB chief Mario Draghi headed Italy's central bank.
The escalating scandal over Monte dei Paschi di Siena, the world's oldest bank, has rocketed to the centre of the campaign for next month's Italian election with concerns that the ailing bank may need to be nationalized."
Not just any corruption. Political corruption. It's like the central bank is an arm of the central government, as if it could ever be any other way. A quick search turned up no articles about anonymous hacking the Fed. The Fed may be the only government institution that has decent protection from hackers.

The German central bank wants its gold back from the Fed. Interestingly, it is willing to wait seven years for receipt. That makes no sense unless the Fed doesn't have the physical gold.

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