Futility of “Colorblindness” & White Hegemony: Mere CEO Repudiations of the 45th President’s Comments–Insufficient, Useless

It is insufficient for corporate CEOs to denounce the words of President Donald Trump, while doing absolutely nothing to eradicate the stain of “colorblind” discrimination.

With the actions in Charlottesville, Va., in August 2017, the nation recoiled at the open display of racial hatred. However, the events in Charlottesville served as the culmination of the grinding microaggressions–covert, exclusionary, discriminatory-and “colorblind” systemic discrimination–that occur daily.

Into this systemically discriminatory reality (for some members of the U.S. society) enter corporate chief executive officers (CEO), many of whom, perhaps, are active or passive participants in the systemic discrimination. It is not enough to proclaim the words of the civil rights laws and then pursue reckless programs that permit the exclusionary practices, which the neo-nazis, kkk-ers, and other white hegemons stated openly in Charlottesville as well as uttered in other places in the United States.

merck ceo leaves council 2017

Dick Grote, Harvard Business School, Corporate America, & “Rank and Yank”.  Systemic discrimination is involved in the practice of forced-distribution “performance management”. This blog has covered Dick Grote’s “rank and yank” (aka forced distribution) program, which many corporations follow in order to dump employees should the financial numbers be insufficient to satisfy Wall Street. Other organizations have followed suit, some covered in this blog. Indeed, Harvard Business School, from which many corporate-executive MBAs come, publishes Grote’s materials.

Bucket (rank)

Percentage [“vitality curve”] (amounts can be adjusted)

Effect

A

20

Lavish rewards, encouragement

B

70

Little to paltry increase

C

10

Pressure to quit, firing

rank_yank
Artist: Michael Sloan

A quote from Grote (discussed previously at this blog):

But what if a company’s forced ranking procedure, honestly and objectively done, reveals that the blacks or women or disabled employees just aren’t as talented as the white ones? Should they do what some Harvard professors are said to do and award A’s to all the blacks, just to keep them from squawking?” (Grote, page 4 (a quote from a previous post)).

(Note: Consider this statement from Grote with the ever-present and persistent legacy of slavery and Jim Crow subjugation in the United States of America.)

White hegemony in the government. This questionable fidelity to white hegemony extends to the government. The Federal Reserve (its former Artis v. Greenspan Bernanke Yellen was covered in this blog), the Secret Service, and the U.S. Capitol Police Department have had or have long-term employment discrimination cases. The Federal Reserve acts grudgingly and haughtily towards any action that would threaten the mostly white workforce it has created. (Note: After 104 years of Federal Reserve inaction, Dr. Raphael Bostic became President of the Atlanta Federal Reserve Bank.)

Black/African American Permanent Board Employees, Table C-2, in whole numbers (in numerical order of significance), 2011–2013
2011 2012 2013
Total Black/African American employees 567 573 573
All other pay grade, FR-16 to FR-25 434 418 400
Mid-level professional pay grades, FR-26 to FR-28 106 125 136
Senior managers and officers pay grade, FR-29 to FR-00 27 30 37
Total employees of the Federal Reserve Board 2,187 2,279 2,353
Source: Board OIG Audit Report, 2015-MO-B-006, page 65.

The same is true for the U.S. Supreme Court, which lectures for a “colorblindness” (see John Marshall Harlan’s dissent in Plessy v. Ferguson) that practically means that most nonwhites are not welcome (for example, Antonin Scalia). The proof of this is the composition of a homogeneous law clerk workforce, who in turn apply their elite, majority life experiences into law. (For example, Graham v. Connor, Tennessee v. Garner, and all affirmative action cases.)

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Confirmation bias in the workplace and management. Discrimination extends into supervision, with writing being judged by high standards, exclusively (Reeves, Dr. Arin N. (2014, April). “Written in Black and White:  Exploring Confirmation Bias in Racialized Perceptions of Writing Skills.” Nextions Yellow Paper Series, 2014-0404.)  for the nonwhite subordinate. Such middling or low evaluations seriously hobble or end careers.

Conclusion. So, in closing, while the words of Trump were hard to hear, they are the result of covertly practiced and rampant systemic discrimination.

It is far past time for the United States to eradicate all discrimination from the society. Mere words from wealthy CEOs, who have lives of exclusion, are not enough. Only positive and definitive institutional action will satisfy the people of the United States.

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Federal Reserve Board: H.2 Release for Week Ending February 10, 2018; H.4.1 Release (Balance Sheet) for Week Ending February 15, 2018; Two Of Note Items


Of Note–

(1) February 2018 Monetary Policy Hearing.

Monetary Policy Report, February 2018

The Monetary Policy Report hearings will be held on February 28, 2018, and March 1, 2018. It will be the first for the new Chairman of the Board, Jerome Powell.

U.S. House of Representatives U.S. Senate
February 28, 2018, 10:00 a.m., House Financial Services Committee March 1, 2018, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402987 Press release:

(2) The Federal Reserve, millionaires, and skewed policymaking against the nonmillionaire people of the United States. The Congress must supervise the Federal Reserve and monetary policy in a more-stringent manner to ensure that policy is made for all, not just the rich.

There is an aura of authority of the Federal Reserve and monetary policy. I think a lot of that is due to the overly complicated way that the social science of economics is presented. Moreover, I think that the delegation of authority can be abused because the monetary policymakers are unelected and somewhat unaccountable for its decisions. (Yes, Congress does have a big say, as monetary policy is Congress’ power under the U.S. Constitution.) And, the so-called policymakers come overwhelmingly from the rich. The policy choices reflect this bias.

net worth fed chairs

For example, I am doing research on the Federal Reserve, globalization, and long-term unemployment. I happened to find a 2004 FRBSF Economic Letter that provides one view on this topic. It is clear that Robert Parry, then the President and CEO of the Federal Reserve Bank of San Francisco, felt comfortable with the changes (as it was likely not going to negatively affect him or people he knew). The way he casually mentioned the Depression-era unemployment insurance (up to 26 weeks) was sufficient that in the face of unemployment caused by offshoring jobs permanently outside the United States was an unwelcome and bracing read.

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Jason Furman, a millionaire and Harvard professor, praised globalization as providing lower prices. Unaccounted for is the massive costs incurred for that “low price”–long-term unemployment (that is unemployment that lasts longer than 26 weeks (perhaps even months or years) which the person will have to bear the complete cost of without any assistance. It is easy for a millionaire to gloss over these tragic details.

These examples amplify the toxic effects of millionaires (and their economists) as policymakers in that the story of regular people of the United States is (unacceptably) ignored or forgotten!


The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending February 10, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Bank Holding Companies Howard Bancorp, Inc., Ellicott City, Maryland — to acquire First Mariner Bank, Baltimore.
-Approved, February 9, 2018
Forms Forms — final Board review to extend without revision the Disclosure Requirements Associated with the Consumer Financial Protection Bureau’s Regulation DD (FR DD).
-Approved, February 9, 2018
 

Forms — initial Board review to extend without revision the Policy Impact Survey (FR 3075).
-Proposed, February 9, 2018
 

Forms — final Board review to complete the transition of the Federal Reserve’s Annual Company-Run Stress Test Report for State Member Banks, Bank Holding Companies, and Savings and Loan Holding Companies with Total Consolidated Assets Greater Than $10 Billion and Less Than $50 Billion (FR Y-16) to a Federal Financial Institutions Examination Council reporting form (FFIEC 016).
-Approved, February 9, 2018
 

Forms — final Board review to extend without revision the Recordkeeping and Disclosure Requirements Associated with Securities Transactions Pursuant to Regulation H (Reg H-3).
-Approved, February 9, 2018

 

Enforcement CBOA Financial, Inc., Tucson, Arizona — written agreement dated May 28, 2014, terminated February 2, 2018.
-Announced, February 6, 2018
 

NBRS Financial, Rising Sun, Maryland — issuance of a notice of intent to prohibit against Jacob H. Goldstein, a former institution-affiliated party.
-Approved, February 5, 2018
 

U.S. Bancorp, Minneapolis, Minnesota, and USB Americas Holdings Company — issuance of a consent cease-and-desist and order of assessment of a civil money penalty.
-Approved, February 9, 2018
 

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for February 15, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of February 14, 2018):  $4,482,155 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

 

Federal Reserve Board: H.2 Release for Week Ending February 3, 2018; H.4.1 Release (Balance Sheet) for Week Ending February 8, 2018; Two Of Note Items


Of Note–

(1) Millionaire economics “experts” that warn of inflation for any government spending not focused on the rich.

Comment:  Keep in mind that the U.S. Government fully bailed out Wall Street, where the richest 10 percent of Americans now own 84 percent of all U.S. stocks. (Source: Household Wealth Trends in the United States, 1962 to 2016: Has Middle Class Wealth Recovered? Edward N. Wolff, NBER Working Paper No. 24085, November 2017.)

(a) Jason Furman, Ph.D., estimated net worth in 2013 $24.6 million. (Open Secrets)

Observation: Jason Furman’s primary issue with deficit spending is based on “full employment.” Furman believes it is the U3 unemployment rate, 4.1 percent (February 2018). However, the U3 counts people receiving unemployment insurance. After the benefits run out (more or less 26 weeks), the person is no longer counted, whether or not that person has an income-producing job. After 26 weeks, the person seeking work without unemployment insurance payments is counted by the U6 measure. In February 2018, the U6 unemployment rate was 8.2 percent.

With so many left out of the so-called recovery, there is likely room for the government to do more to assist the suffering. As Furman is a millionaire, the idea that people are still broke from the Great Recession’s aftermath seems to be a difficult concept to understand.

Further, Furman believes in austerity, so this stance fits with it–no concern for the suffering. (See also Furman’s support of WalMart.)

Moreover, as the U.S. Government is in charge of its own currency, the notion that it will run out of money or go broke is nonsensical. When Wall Street had paper losses of trillions (bourne mostly by the richest in the United States), none of these economists raised this sort of issue when the government covered those rich people’s losses.

 

 

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(b) Steven Rattner, Wall Street financier and multimillionaire ($108 million to $688 million (2009)), who was involved in a pay-to-play scandal, thinks similarly to Furman on the subject of additional government spending and also that wage increases to workers is inflationary. Rattner also favors globalization that has caused suffering to the middle class with the rampant outsourcing of jobs to low-wage countries.

In light of globalization, will the government spending cause inflation or simply allow the people who are suffering to begin to reassemble their lives and merely exist with the basics (food, housing, and clothing)? It is worth a shot to see so that the long-ignored suffering people can finally receive some assistance (that is, jobs).

(2) February 2018 Monetary Policy Hearing.

Monetary Policy Report, February 2018 

The Monetary Policy Report hearings will be held on February 28, 2018,
and March 1, 2018. It will be the first for the new Chairman of the Board, Jerome Powell.

U.S. House of Representatives U.S. Senate
February 28, 2018, 10:00 a.m., House Financial Services Committee March 1, 2018, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402987 Press release:

The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending February 3, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Personnel Division of International Finance — appointment of Shaghil Ahmed, Brian M. Doyle, and Joseph W. Gruber as senior associate directors; Sally M. Davies as associate director; Carol C. Bertaut and Paul Wood as deputy associate directors; and Ricardo Correa, Andrea Raffo, and Robert Vigfusson as assistant directors.
-Announced, January 29, 2018
Regulations and Policies Regulation KK (Swaps Margin and Swaps Push-Out) — publication for comment of interagency amendments that would (1) conform the definition of “Eligible Master Netting Agreement” in the swap margin rule to restrictions adopted in final rules on certain qualified financial contracts of systemically important banking organizations (QFC Rules) and (2) ensure that any legacy swap would not become subject to the swap margin rule if it is amended solely to comply with one of the QFC Rules.
-Approved, January 23, 2018
(A/C)
Enforcement Bank of Gueydan, Gueydan, Louisiana — written agreement issued August 12, 2014, terminated January 25, 2018.
-Announced, January 30, 2018
J.P. Morgan Securities (Asia Pacific) Limited, Hong Kong, China — determination denying the request by Fang Fang, a former institution-affiliated party, for interlocutory review of an order issued by the administrative law judge in connection with an enforcement matter.
-Approved, January 29, 2018
Wells Fargo & Company, San Francisco, California — consent cease-and-desist order against Wells Fargo & Company for unsafe or unsound practices related to the firm’s governance and risk management that led to violations of law, and associated letters.
-Approved, February 2, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for February 8, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of February 7, 2018):  $4,467,962 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Federal Reserve Board: H.2 Release for Week Ending January 27, 2018; H.4.1 Release (Balance Sheet) for Week Ending February 1, 2018; Three Of Note Items


Of Note– 

(1) Janet Yellen completed her term as Fed Chair. CNBC reporter, Steve Liesman, posted photos of the Board’s farewell to Janet Yellen and welcome to the new Chairman, Jerome Powell, on Twitter.

According to Liesman, Yellen will be a “distinguished fellow at the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution in Washington, D.C.”

(2) Wells Fargo & Co. Before leaving the Board, Yellen signed a cease and desist order for Wells Fargo & Co. 

(3) Atlanta Fed Bank’s board chairman, Mike Jackson, CEO of AutoNation, on Bloomberg radio. On February 1, 2017, I happened to catch Bloomberg’s interview with millionaire Mike Jackson, chief executive officer of AutoNation. According to AutoNation’s 2017 proxy (page 29), Jackson had an executive compensation package valued at $11.1 million (2016).

On Bloomberg, Jackson had a response to a question about the still-low workforce participation rate (that demonstrates why having monetary policy from only corporate management executives, rather than from people from all walks of life, is a bad idea which leads to equally bad policy):

  • Comfort level with the social safety net post-financial crash. (!)
  • Skills gap.
  • Uncertain stance on immigration policy.

Comment:  What caught my attention was the mention of the “safety net.” Jackson did not elaborate on this point and the Bloomberg interviewer did not ask him to explain any of his points. What I do know is that the people of the United States (unemployed and underemployed) of the have not seen the recovery yet.

FRB Atlanta Bd. Member (2018) Title & Company (Ticker) Compensation Package
Michael J. Jackson (chair) Chairman, CEO, & President, AutoNation (AN) $11.1 million (2017 proxy, page 29)
Myron A. Gray (Deputy Chair) President, U.S. Operations, United Parcel Service (UPS) $4.75 million (2017 proxy, page 41)
Robert W. Dumas President & CEO, AuburnBank (AUBN) $153,251 (2017 proxy, page 41)
Thomas A. Fanning Chairman, President, & CEO, Southern Company (SO) $15.83 million (2017 proxy, page 62)
O.B. Grayson Hall, Jr. Chairman & CEO, Regions Financial Corporation (RF) $14.1 million (2017 proxy, page 91)
Gerard R. Host President & CEO, Trustmark Corporation (TRMK) $2.17 million (2017 proxy, page 30)
Mary A. Laschinger Chairman & CEO, Veritiv Corporation (VRTV) $8.3 million (2017 proxy, page 35)
Jonathan T.M. Reckford CEO, Habitat for Humanity International $332,338 (2016 Form 990, part VII)
Elizabeth A. Smith Chairman & CEO, Bloomin’ Brands, Inc. (BLMN) $5.5 million (2017 proxy, page 28)

But it is hard for privileged, rich people to see this point. The Atlanta Fed’s board of directors is dominated by millionaires and corporate executives. Yet, these so-called policymakers refuse to go to the Labor Department’s One-Stop Career Centers to ask the suffering directly about their experience of the U.S. economy (no rich economist’s anecdotes needed).

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The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending January 20, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Bank Holding Companies Associated Banc-Corp, Green Bay, Wisconsin — to acquire Bank Mutual Corporation, Milwaukee, a savings and loan holding company, and thereby indirectly acquire Bank Mutual, Brown Deer, a federal savings association.
-Approved, January 22, 2018
Regulations and Policies Disaster-Related CRA Consideration — interagency statement granting favorable consideration under Community Reinvestment Act regulations to financial institutions outside of the U.S. Virgin Islands or Puerto Rico for activities to help revitalize or stabilize these areas.
-Announced, January 25, 2018
Savings and Loan Holding Companies Wawel Financial Services, MHC, Garfield, New Jersey — (1) to dispose of its subsidiary, Wawel Bank, Garfield, pursuant to a merger agreement with Spencer Savings Bank, Elmwood Park, and to dissolve following the disposition of Wawel Bank; and (2) for the Board to delegate authority to the Reserve Banks to approve future dissolution requests from mutual holding companies.
-Approved, January 24, 2018
Supervision and Regulation Resolution Plans — issuance of joint letters with the Federal Deposit Insurance Corporation to 19 large foreign banking organizations regarding the firms’ resolution plans due in December 2018.
-Approved, January 23, 2018
Enforcement Putnam County Bank, Hurricane, West Virginia — issuance of a cease-and-desist order and assessment of a civil money penalty upon the consent of Jeffrey R. Davis, a former institution-affiliated party.
-Announced, January 25, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for February 1, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of January 31, 2018):  $4,465,593 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

 

Federal Reserve Board: H.2 Release for Week Ending January 20, 2018; H.4.1 Release (Balance Sheet) for Week Ending January 25, 2018; Four Of Note Items


Of Note– 

(1) Website information disarray. The Board has a website with a lot of information on it, but woe be to the person trying to find information on it. The website is logically disorganized and the website is designed like a maze.

Comment:  This is simply unacceptable for an agency that says it is trying to be transparent.

For example, I tried in vain to find the reports listed on the H.2 Release (below) and was unable to see them on the website. The H.2 should have links to relevant materials.

(2) The shutdown flub (as designed). U.S. Senator Charles Schumer‘s (D-N.Y.), failed strategy is the effect of big-dollar donors. People who cannot donate a lot of money are ignored, a result that emphasizes oligarchy.

 

800px-Paris_Tuileries_Garden_Facepalm_statue
paris_tuileries_garden_facepalm_statue

 

(3) Economists’ bizarre expectations: Janet Yellen, the FOMC, NAIRU, and high unemployment. To the dissatisfaction to people who are underemployed or unemployed, the Board, through its projections, favors higher unemployment (fearing inflation)! See the column by Matthew C. Klein in the Financial Times (paywall).

Something to consider when Board economists proclaim the Board’s “dual mandate,” maximum employment and stable interest rates. The people of the United States would expect that there would be enough available jobs for all who want them. That is, unemployment as close to zero percent as possible.

(4) Jerome Powell, attorney and financier, to lead the Board. The Senate confirmed the Board’s new Chair, Jerome Powell. Janet Yellen’s term as Board Chair ends on February 3, 2018.

Interesting fact: Powell graduated from Georgetown Preparatory School, Rockville, Maryland.

net worth fed chairs


The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending January 20, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Forms Forms — final Board review to extend without revision the Reporting, Recordkeeping, and Disclosure Requirements Associated with the Guidance on Response Programs for Unauthorized Access to Customer Information (FR 4100).
-Approved, January 17, 2018
Forms — initial Board review to extend with revision the Margin Credit Reports related to extensions of credit secured by margin stock (FR G-1, FR G-2, FR G-3, FR G-4, FR T-4, and FR U-1).
-Proposed, January 17, 2018
Forms — initial Board review to extend without revision the Recordkeeping Requirements Associated with Limitations on Interbank Liabilities (Regulation F).
-Proposed, January 17, 2018
Forms — final Board review to extend with revision the Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies (FR Y-11), Abbreviated Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies (FR Y-11S), Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR 2314), and Abbreviated Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR 2314S).
-Approved, January 18, 2018
Forms — final Board review to revise without extension the Structure Reporting Requirements for Domestic and Foreign Banking Organizations (FR Y-6, FR Y-7,  FR Y-10, and FR Y-10E).
-Approved, January 18, 2018
Forms — final Board review to extend without revision the Recordkeeping Requirements Associated with the Real Estate Lending Standards Regulation for State Member Banks (Reg H-5).
-Approved, January 17, 2018 
Personnel Division of Supervision and Regulation — appointment of Karen Caplan, Keith Coughlin, and Vaishali Sack as assistant directors.
-Approved, January 12, 2018
(A/C)
Regulations and Policies Reports to Congress — (1) interagency report to Congress on capital and accounting differences among the federal banking agencies as of September 30, 2017, and (2) report to Congress regarding the Board’s implementation of enhanced prudential standards under section 165 of the Dodd-Frank Act.
-Approved, December 26, 2017
(A/C)
Enforcement Heartland Bank, Little Rock, Arkansas — termination of a prompt-corrective-action directive issued on August 15, 2017.
-Approved, January 16, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for January 25, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of January 24, 2018):  $4,488,523 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

 

(See the release for further information.)

 

Federal Reserve Board: H.2 Release for Week Ending January 13, 2018; H.4.1 Release (Balance Sheet) for Week Ending January 18, 2018; Four Of Note Items


Of Note–

(1) Job guarantee rather than universal basic income. The Black Agenda Report published a column by Daniel Zamora who argues against universal basic income, viewing the policy as an “ideological capitulation to neoliberalism” and noting that it could lead to abuse of labor. Instead, the author advocated for a job guarantee and reduction of work hours.

See also an article in Vox by Dylan Matthews. It seems that racial discrimination may affect the implementation and support of the program.

In the 1970s, amid economic malaise driven by the oil crisis, the federal government began funding job positions through the Comprehensive Employment and Training Act (CETA). The program got some $47 billion in funding from its passage in 1973 to its dissolution in 1982; in 1977, President Jimmy Carter started directing more and more of that money toward public sector jobs, until by 1978 some 725,000 people had public sector jobs through CETA.

[…]

“It also became intertwined with race,” Brown political scientist and sociologist Margaret Weir notes. Joblessness was seen as a black problem, and blacks were seen as primary beneficiaries of the public sector positions created by CETA in cities.

(2) Modern Monetary Theory (or MMT) explained. There are pros and cons to MMT, but it is worthy of discussion and thought because economic policy is developed by human beings, ideally to serve all human beings fairly and equitably.

(3) A curious (anti-labor) discussion on Bloomberg Surveillance. In the mornings, I sometimes listen to Bloomberg Surveillance on the radio. The show slants toward the rich and the right wing, often it is (subtly) excessively so. In a discussion about airport food between host Tom Keene and Bloomberg’s Peter Elliott, somehow the fault of poor quality airport food lies with an unionized workforce, not cheap, profit-focused management.

In discussing restaurants and the difficulty of finding workers, Keene did ask an economist and Elliott whether an increase of pay would be the solution to the issue. Elliott mentioned that restaurants have low profit margins and cannot afford to pay more.

Comment:  Well, if restaurants cannot pay to operate their business, would they ask their landlord, food suppliers or the linen service to provide free rent or to give their services for free to subsidize the restaurant? No. Likewise, labor should not be expected to subsidize a business which labor does not have any say in ownership or management.

(4) The GOP’s war on the poor continues. Medicaid “work requirements” & Seema Verma, Administrator of the Centers for Medicare and Medicaid Services (who previously advised Kentucky and Indiana to include work requirements).

Comment:  Health care is a human right and should be available to all and never subject to any preconditions.

Author’s note:  Kentucky governor, Matt Bevin, is a multimillionaire, so he is playing with the lives of the vulnerable.

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The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending January 13, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Bank Holding Companies NATCOM Bancshares, Inc., Superior, Wisconsin — request for reconsideration of the Board’s approval of the application by NATCOM Bancshares, Inc., to acquire shares of Republic Bancshares, Inc., Duluth Minnesota, and thereby indirectly acquire Republic Bank, Inc.
-Denied, January 12, 2018
Banks, State Member Huron Community Bank, East Tawas, Michigan — to acquire certain assets and assume certain liabilities of a branch of First Federal of Northern Michigan, Alpena, a federal savings association subsidiary of First Northern Michigan Bancorp, Inc.
-Approved, January 12, 2018
Forms Forms — final Board review to extend with revision the Consolidated Financial Statements for Holding Companies (FR Y-9C), Parent Company Only Financial Statements for Large Holding Companies (FR Y-9LP), Parent Company Only Financial Statements for Small Holding Companies (FR Y-9SP), Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations (FR Y-7N), and Consolidated Report of Condition and Income for Edge and Agreement Corporations (FR 2886b); and to extend without revision the Financial Statements for Employee Stock Ownership Plan Holding Companies (FR Y-9ES) and Supplement to the Consolidated Financial Statements for Holding Companies (FR Y-9CS), Abbreviated Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations (FR Y-7NS), and Capital and Asset Report for Foreign Banking Organizations (FR Y-7Q).
-Approved, January 12, 2018

Forms — initial Board review to extend with revision the Reporting Requirements Associated with Regulation QQ.
-Proposed, January 12, 2018

 

Personnel Division of Financial Stability — appointment of Elizabeth Klee as deputy associate director, Namirembe Mukasa as assistant director and chief of staff, and Chiara Scotti as assistant director.
-Announced, January 9, 2018
Reserve Bank Operations Reserve Bank Directors — designation of chairs and deputy chairs of the Federal Reserve Banks for 2018.
-Announced, January 10, 2018
Enforcement American Express Company, New York, New York, and American Express Travel Related Services Company, Inc. — consent order dated October 1, 2012, terminated January 8, 2018.
-Announced, January 11, 2018
Enforcement Action — determination denying the motion by Christopher Ashton, a former institution-affiliated party of Barclays Bank PLC, to vacate, void, and dismiss the Board’s final decision, notice of assessment, and order of prohibition against him.
-Approved, January 11, 2018
Enforcement Actions — termination of enforcement actions related to residential mortgage loan servicing and foreclosure processing against 10 banking organizations (Bank of America Corporation; CIT Group, Inc., as successor to IMB HoldCo LLC; Ally Financial Inc.; The Goldman Sachs Group, Inc.; HSBC North America Holdings, Inc.; JPMorgan Chase & Co.; Morgan Stanley; The PNC Financial Services Group, Inc.; SunTrust Banks, Inc.; and U.S. Bancorp), civil money penalties against five banking organizations (Goldman Sachs; Morgan Stanley; CIT Group; U.S. Bancorp; and PNC), termination of two interagency orders against service providers (Lender Processing Services, Inc., succeeded by ServiceLink Holdings, LLC, and MERSCORP, Inc., now known as MERSCORP Holdings, Inc.) and other related actions.
-Approved, January 8, 2018
Goldman Sachs Bank USA, New York, New York — issuance of a consent order of assessment of a civil money penalty.
-Announced, January 12, 2018
Liberty Bank, South San Francisco, California — written agreement dated August 5, 2016, terminated January 8, 2018.
-Announced, January 11, 2018
Mega International Commercial Bank Co., Ltd., Taipei, Taiwan — issuance of a consent cease-and-desist order and assessment of a civil money penalty against Mega International Commercial Bank Co. and its New York, Chicago, and San Jose branches based on deficiencies in compliance with Bank Secrecy Act and anti-money-laundering laws.
-Approved, January 12, 2018

 

 

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for January 18, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of January 17, 2018):  $4,486,396 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

 

Federal Reserve Board: H.2 Release for Week Ending January 6, 2018; H.4.1 Release (Balance Sheet) for Week Ending January 11, 2018; Two Of Note Items


Of Note–

(1) Inhuman, immoral patient dumping a policy result of the present health-care system. At a Maryland teaching hospital, University of Maryland Medical Center, in Baltimore City, the hospital placed a patient on the street with just a hospital gown (in cold weather).

Comment:  This is an inhuman, immoral result of health-care policy. The only cure to ensure that this abhorrent behavior never happens is single-payer health care so that people can concentrate on their health rather than the current system’s focus on “health insurance” company bloat and outlandish executive compensation packages as well as Big Pharma’s shameless profit extraction from people who are ill.

The U.S. Commission on Civil Rights has published a report on this topic, “Patient Dumping.”

(2) The disgusting fig leaf of bias, “colorblindness,” has been removed by the 45th President of the United States of America, Donald J. Trump.

[Author’s note: This blog does not use vulgar language in its content, but as the President of the United States of America has used vulgar language in the exercise of his duties, the blog relates the word the President stated.]

U.S. President Donald J. Trump made disparaging remarks, referring to Haiti, El Salvador, and countries in the African continent as “shithole” countries, during a White House meeting on immigration legislation.

[Trump stated in a later tweet that “The language used by me at the DACA meeting was tough, but this was not the language used.” It is unclear what this statement means; however, it is not a condemnation of the reporting as incorrect—which confirms that the reporting is correct. Considering also Trump’s long history of biased comments, the reported comments also fit with his past behavior.]

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Comment:  In the United States, racial bias is couched in an underhanded way–hiding the biased intent (and representing that intent as “colorblind” that results in discrimination anyway. Trump’s comments just erase the disgusting, yet accepted, fig leaf. The removal of the fig leaf bothers people who barely concealed their bias with claims of “colorblindness.”

Now, as a result, his Administration’s policies (and any law he signs) should be reviewed to ensure that they are all fair and equitable.

Separately, as mentioned in a previous post, the culture of the United States includes the bias that Trump expressed. Rev. Thomas Merton wrote about it in his book “Seeds of Destruction” in 1964.

Moreover, the blog has followed the racial discrimination case at the Board of Governors of the Federal Reserve System (otherwise known as the Federal Reserve Board)–Artis v. Greenspan Bernanke Yellen.

(For more information on other books on bias in the United States of America, see the recommended reading list on the blog’s sidebar.)


The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending January 6, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

 

Category Action Taken
Board Operations Office of Inspector General — 2018 operating and capital budgets.
-Approved, December 15, 2017
(A/C)

 

[Note: This is the reason why the Board’s Office of Inspector General (OIG) is not independent. The Board appoints the IG, and the Board approves, as noted, the OIG’s independently prepared budget.

 

Regulations and Policies Rules of Practice for Hearings — final rule to adjust the Board’s maximum civil money penalties for 2018 to account for inflation.
-Approved, December 26, 2017
(A/C)

 

Supervisory Guidance for Large Financial Institutions — publication for comment of proposed guidance describing core principles of effective senior management, the management of business lines, and independent risk management and controls for large financial institutions.
-Approved, January 1, 2018

Enforcement AmBank Holdings, Inc., Davenport, Iowa — written agreement dated February 2, 2012, terminated December 27, 2017.
-Announced, January 4, 2018
J.P. Morgan Securities (Asia Pacific) Limited, Hong Kong, China — determination denying the request by Timothy Fletcher, a former institution-affiliated party, for immediate review of two interlocutory orders issued by the administrative law judge in connection with an enforcement matter.
-Approved, December 26, 2017
(A/C)

 

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for January 11, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of January 10, 2018):  $4,493,186 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Federal Reserve Board: H.2 Release for Week Ending December 30, 2017; H.4.1 Release (Balance Sheet) for Week Ending January 4, 2018; One Of Note Item

Of Note–

(1) An interesting article that I skimmed at the Naked Capitalism blog, “More Power to the Workers: Seymour Melman on Extraction by the Military, Managers, and Finance.”

The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending December 30, 2017, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Forms Forms — initial Board review to extend with revision the Consolidated Financial Statements for Holding Companies (FR Y-9C), Parent Company Only Financial Statements for Large Holding Companies (FR Y-9LP), Parent Company Only Financial Statements for Small Holding Companies (FR Y-9SP), Financial Statements for Employee Stock Ownership Plan Holding Companies (FR Y-9ES), and Supplement to the Consolidated Financial Statements for Bank Holding Companies (FR Y-9CS).

-Proposed, December 26, 2017

 

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for January 4, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of January 3, 2018):  $4,495,736 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)