Finger on the Scale

I have earlier written on how the accounting profession bears much of the blame for our many financial crisis's (see: Off Balance)  Now our august Federal Reserve Bank is sneaking a finger on the scale by changing an accounting methodology so that its balance sheet will no longer be truly reflective of its financial condition (see: Accounting Tweak)  This change is, to me, not just a "tweak."  It is a very dangerous action on the part of this trusted institution.  It is not just moving potential liabilities off its balance sheet.  It is moving them to the income statements of its regional banks (if, in fact, they even show up there) where they will not be so obvious.

I know that Ron Paul is now the incoming Chairman of the House's Domestic Monetary Policy Subcommittee (see: Here) and has sworn to hold hearings on many of the Fed's actions of late.  I would hope that he makes this accounting "tweak" his first order of business.