FED GOES ON SPENDING SPREE

Speaking of spending money, the government's central bank has been on a virtual spending spree. The Federal Reserve and its 12 regional banks have doubled their total expenses since 1988 to $2 billion. The problems were uncovered in the first extensive audit of the central bank's spending practices.

The Fed disputes any loose spending habits, but auditors have uncovered some troubling facts. Salary, travel and computer-equipment costs have increased by more than 50 percent in the past six years. Benefits for the Fed's employees doubled over the same time.

The banking industry that the Federal Reserve regulates has cut back jobs and offices and nearly every other federal agency has made budget cuts. The agency also awarded millions of dollars in contracts to private companies without competitive bids.

The Federal Reserve also added 1,000 new bank examiners and erected new office buildings. The General Accounting Office said the Federal Reserve Bank couldn't account for the $168 million spent on the Dallas office building.

Come on, people, that is what you do: make sure banks are accountable. There's no excuse for the Federal Reserve's lack of accounting.

Federal agencies must live by the same guidelines and procedures they hand down. The Fed must move into the real world and face the same downsizing efforts as anyone else. The government's central bank must lead by example.