Fed holds its meetings at posh resorts, too -- but taxpayers don't foot the bill
Filed under: Economy, People, Media
The Federal Reserve is certainly practicing the "do as I say, not as I do" rule when it comes to setting up meetings. Two conferences at luxurious sites, one hosted by the Boston Federal Reserve and one hosted by the San Francisco Federal Reserve, would certainly have raised eyebrows if AIG booked them. If companies that received bailout funding have to cut back on their lavish spending, why does the Fed continue to book top resorts?The Fed's answer: The conferences don't cost the U.S. taxpayer anything. The organizing agencies recover all of their costs through fees charged to the attendees, and the attendees pay their own way. Yes, the venues are high-end. At the Bacara Resort & Spa near Santa Barbara, Calif., where the San Francisco Fed held its event, rooms range from $250 to $400 per night and suites range from $800 to $2,000 a night. The Wequassett Inn on Cape Cod, Mass., where the Boston Fed held its meeting, regular rooms go for about $320 night and suites can be as high as $1,860 a night. But the Fed negotiates lower rates for its attendees at both events.
Nor are these events the frivolous retreats that financial institutions like AIG have been lambasted for hosting. This year's Boston Fed conference was an serious symposium focused on financial regulatory reform. It's an annual meeting that is open to the media and gets widespread coverage each year, so its location has never been a secret. In fact, that conference has been held at the Wequassett Inn for 15 years, and a spokesman for the Boston Fed told ABC News that they were getting better rates from the inn during the off-season then they would get in Boston.
The San Francisco Fed's meeting was a first-of-its-kind Asia conference, and the site was picked to make it easy for interested parties from Asia and around the world to attend. Could they have found cheaper rates in San Francisco hotels? Attendees got a discounted rate of $300 per night, but, again, their fees paid for the the costs of conference, and they paid for their own rooms -- U.S. taxpayers didn't pick up the check.
Still, given the backlash over lavish spending by financial institutions, Fed Chairman Ben Bernanke told ABC News that the Fed should take a look at what it's doing and issue guidelines for future meetings to avoid such controversies in the future.
The largest annual Fed meeting has been held in recent years in Jackson Hole, Wyo. It focuses on important economic issues facing the U.S. and world economies, and symposium participants include prominent central bankers, finance ministers, academics and financial market participants from around the world. The conference is held at Jackson Lake Lodge in Grand Teton National Park, where cottages range from $224 to $329, rooms in the main lodge run from $224 to $319, and suites can cost from $599 to $775. The Fed recovers all costs of this event, too, with attendees paying their own way. As with the annual Boston conference, members of the media attend and it gets widespread coverage.
While the Fed does hold these meetings in the public eye, given the current state of the economy, it ought to plan them in a way that minimizes costs. Even if attendees cover the full cost of these events, their expenses are being written off by the financial institutions and governments that employ them. Indirectly, the public does pay some of the costs for these conferences -- Chairman Bernanke should show the public the respect it deserves, and move the Fed toward a less luxurious lifestyle.
Lita Epstein has written more than 25 books, including The Complete Idiot's Guide to the Federal Reserve and Reading Financial Reports for Dummies.
The San Francisco Fed's meeting was a first-of-its-kind Asia conference, and the site was picked to make it easy for interested parties from Asia and around the world to attend. Could they have found cheaper rates in San Francisco hotels? Attendees got a discounted rate of $300 per night, but, again, their fees paid for the the costs of conference, and they paid for their own rooms -- U.S. taxpayers didn't pick up the check.
Still, given the backlash over lavish spending by financial institutions, Fed Chairman Ben Bernanke told ABC News that the Fed should take a look at what it's doing and issue guidelines for future meetings to avoid such controversies in the future.
The largest annual Fed meeting has been held in recent years in Jackson Hole, Wyo. It focuses on important economic issues facing the U.S. and world economies, and symposium participants include prominent central bankers, finance ministers, academics and financial market participants from around the world. The conference is held at Jackson Lake Lodge in Grand Teton National Park, where cottages range from $224 to $329, rooms in the main lodge run from $224 to $319, and suites can cost from $599 to $775. The Fed recovers all costs of this event, too, with attendees paying their own way. As with the annual Boston conference, members of the media attend and it gets widespread coverage.
While the Fed does hold these meetings in the public eye, given the current state of the economy, it ought to plan them in a way that minimizes costs. Even if attendees cover the full cost of these events, their expenses are being written off by the financial institutions and governments that employ them. Indirectly, the public does pay some of the costs for these conferences -- Chairman Bernanke should show the public the respect it deserves, and move the Fed toward a less luxurious lifestyle.
Lita Epstein has written more than 25 books, including The Complete Idiot's Guide to the Federal Reserve and Reading Financial Reports for Dummies.
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Reader Comments (Page 1 of 5)
10-30-2009 @ 1:06PM
Maurice Abraham said...
Absolutely the Fed should re-examine its policy on where they hold conferences. Any expense by government or private sector attendees does, in some form, get passed on to taxpayers or consumers.
But, let's not stop at the Fed's practices. This kind if over-the-top expense occurs at all levels of government and business. And, these retreats are often nothing more to the participants than a perk. Do they really return to their jobs more informed or better prepared to carry on with business? From my own personal experience, I doubt it.
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10-31-2009 @ 1:17AM
cjbill said...
I was a meeting planner for a government organization. The employer DOES pay for these people to attend, air fare, transfers, and meals - as well as receiving their pay for the time spent. There are clever ways to mask the 'perks' of these "meetings" and the other sponsors get access to decision makers with cocktail parties and entertainment complete with exclusive fine dining and cigar bars. Meetings are often shortened to allow for the pre-function golf and ski activities - also maneuvered into the per diem and travel expenses reported. Government and corporate credit cards are provided for participants without much restraint given to high level executives.
The information is rarely dissiminated to front line or even middle management personnel. Very little is put into practice or accounted for - back at the office. The folk who have to implement new information seldom get to go to these CONferences. They're too busy actually doing the WORK, that the meetings talk about.
10-30-2009 @ 1:24PM
nick said...
LITA EPSTEIN if you beleive this one I got a bridge in New Mexico to sell you. This is like the stupid employment figures that Obama and Biden try to fool the follks with, These two thugs should be put in jail for all the lies they put out their, along with Dingy Dirty Harry Ried and Deer in the headlights Pleosi.
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10-30-2009 @ 2:28PM
Russ said...
I agree with Nick. All of the key movers and shakers pay for access to the Fed. members at these meeting! They are more than happy to pay for the outing for this access! No conflict of interest! The Fed. needs oversieght and transparency! More press spin!
10-30-2009 @ 1:41PM
Don said...
The Fed is not part of the government they are nothing more than thieving bastard criminals that have blood on their hands with this financial crisis. You might as well
know this too, Goldman Sachs is the federal reserve and they have profited on the backs of hard working americans. They need to be audited and then abolished and after that a global reset of the financial system is needed to make up for the stolen money. Put these criminals in JAIL !!!!!!!!
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10-31-2009 @ 10:29AM
MyKisa said...
....the root of all evil., as stated in that ``Good Book", the love of money, and believe me they love only one thing....$$$$$$$$...end the parasitic fed....free the world
10-30-2009 @ 2:12PM
clem said...
the federal reserve is not federal nether is fed ex >>>>>>>>>"[The] Bank of the United States... is one of the most deadly hostility existing, against the principles and form of our Constitution... An institution like this, penetrating by its branches every part of the Union, acting by command and in phalanx, may, in a critical moment, upset the government. I deem no government safe which is under the vassalage of any self-constituted authorities, or any other authority than that of the nation, or its regular functionaries. What an obstruction could not this bank of the United States (THE FEDERAL RESERVE), with all its branch banks, be in time of war! It might dictate to us the peace we should accept, or withdraw its aids. Ought we then to give further growth to an institution so powerful, so hostile?" --Thomas Jefferson to Albert Gallatin, 1803. ME 10:437
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10-30-2009 @ 4:25PM
NDP29 said...
Since when do any of the principles of our founding fathers matter to any of the statists and liberals who have turned our country upside down from the original intent of the founding fathers. The whole thing makes me sick.
10-30-2009 @ 1:59PM
Steve said...
The Fed represents the best of America, wealth. They should drive their private jets to their resorts and pay whatever they wish, but not at personal expense. We should pay for them. God Bless the Republican Party and the Conservatives of America. One party uber alles.
All democratic liberals should be drafted and made to fight for the Conservative rich. God decides who is rich, not democrats. Insider trading for the rich is what America is all about.
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10-31-2009 @ 6:37AM
MrDoughnut said...
You should enjoy yourself in hell also.
10-30-2009 @ 5:09PM
Wayne said...
Just goes to show you the government people are out of touch with reality. They make too much money and/or spend ours for their lifestyle. Big business and big government are not in touch with us normal people. Why should they care? We just re-elect them anyways!
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10-31-2009 @ 1:39AM
James said...
Then why do you keep voting them back in?
10-30-2009 @ 2:19PM
andrnewh said...
I did not know until a month ago that the fed. reserve was not part of the government. I happened to come a crossed this article that was about a bill coming up for a vote on nov. 22 having to do with the federal reserve. I could not believe that the fed was not part of the government because this entity does give the impression that it is affiliated with the government in some capacity.
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10-30-2009 @ 2:24PM
clem said...
check out ron paul website he is pushing to have the private bank called the federal reserve audited please send daily request for this audit to your congressmsn and sentor
10-30-2009 @ 9:07PM
Bob Sirop said...
Where have you been sleeping? The bank before this was called the US Bank. Andrew Jackson finally closed them down. then in the early 1900's we got the federal reserve Bank. We need to do away with this dictorial self engaged entity. Their only intrest is themselves and other banks, at taxpayer expence. they are not under ANY goverment control !
10-31-2009 @ 12:29AM
phil said...
Don't feel badly andrnewh. Most people have no idea that "the fed" is not part of The U.S. government. It's sad that we as Americans have little knowledge of our history. Enjoy the last years of America. Thanks to The Federal Reserve and perversion of our political system, we have become as sheep being lead to slaughter.
10-31-2009 @ 11:03AM
MyKisa said...
...I didn`t know until I was 15....some 41 years ago...just think of the criticism I have faced all these years as I attempted to inform my family and friends....thing is...you know it now
10-30-2009 @ 2:24PM
John P said...
So, what do they do? Just print up some money and take some freshly printed bills in a suitcase?
Cash is King!!!
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10-30-2009 @ 7:29PM
Ghide said...
Whether it is from my pocket: as a tax payer, or from his/her pocket who belongs to the corporate; the whole craziness of spendin extravagantly should stop. Because all those rich people cannot be rich without stealing or rip off the poor consumer inproperly. This should stop, if not one day when the mobs get frustrated they will lash out the hard way on the callous rich and super rich of the nation. The government has absolute responsibility to teach and train them to be morally personable and be thrifty. If not the national economy will continue to go from bad to the worst and will never recover again.
10-30-2009 @ 2:44PM
Fred said...
And who reimburses the expenses of the attendees at these conferences? Their employers (and taxpayers!) of course!
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