Federal Reserve Board: H.2 Release for Week Ending November 7, 2015; Background on the Board’s OMWI Program

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 November 7, 2015, is below.

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

Category Action Taken
Testimony and Statements Supervision and Regulation — statement by Chair Yellen before the House Committee on Financial Services on the Federal Reserve’s regulation and supervision of financial institutions.

-Published, November 4, 2015

Bank Holding Companies M&T Bank Corporation, Buffalo, New York — commenter’s request for reconsideration of the Board’s approval of the proposal by M&T Bank Corporation to acquire Hudson City Bancorp, Inc., Paramus, New Jersey.

-Denied, November 4, 2015

Forms Forms — final Board review to extend without revision the recordkeeping and disclosure requirements associated with the regulations implementing the Fair Credit Reporting Act (Regulation V).

-Approved, November 2, 2015

Forms — initial Board review to implement the Application for Membership for the Community Advisory Council (FR 1401).

-Proposed, November 2, 2015

Reserve Bank Operations Federal Reserve Bank of Minneapolis — appointment of Neel T. Kashkari as president, effective January 1, 2016.

-Approved, October 22, 2015

(A/C)

Reserve Bank Services Federal Reserve Priced Services — 2016 private sector adjustment factor and fee schedules for priced services and electronic access.

-Approved, November 2, 2015

Enforcement Deutsche Bank, AG, Frankfurt, Germany — issuance of a consent cease and desist order and assessment of a civil money penalty.

-Approved, November 2, 2015

Goldman, Sachs & Co., New York, New York — issuance of a consent order of prohibition against Rohit Bansal, a former institution-affiliated party.

-Announced, November 5, 2015

Separately, last week, Representative Maxine Waters (D-Calif.) and other Congressional Democrats issued a report (Waters Report) about diversity within the federal financial regulatory agencies. The executive summary for the report indicated that the Board’s director for the Office of Minority and Women Inclusion (at the time of this writing, the Board calls the office, the Office of Diversity and Inclusion (or ODI)) is Ms. Sheila Clark.

[Quote from Rev. Thomas Merton’ s book, “Seeds of Destruction.” (Pope Francis mentioned Rev. Merton during his remarks before a joint session of Congress.)–

But the [civil rights] laws have been framed in a way that in every case their execution has depended on the good will of white society, and the white man has not failed, when left to himself, to block, obstruct, or simply forget the necessary action without which the rights of the Negro cannot be engaged in fact. (Page 19).

]

Some pertinent background facts:

January 11, 2011: Artis v Greenspan–The Court of Appeals for the District of Columbia Circuit, issued a decision against the Board, remanding the case to the U.S. District Court for the District of Columbia.

January 11, 2011: The Board announced that it had created offices of diversity and inclusion for the Board and the Federal Reserve Banks. The director of the Board’s office was named–Ms. Sheila Clark.

Ms. Sheila Clark–

  • See a Huffington Post article by Professor Robert D. Auerbach, author of “Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan’s Bank,” in which he stated (reference (about letter) is located at page 123 of his book)–
    • “The Fed Press Release states that Sheila Clark will be one of the heads of the “diversity and inclusion offices” at the Board. I have a copy of a letter sent by her (10/27/1995) stating that “while the Board of Governors of the Federal Reserve System has taken the position that [missing ‘it”] is not subject to the [C]ivil [R]ights Act of 1964, as amended, and its associated executive orders and regulations, it subscribes fully to their basic goals and spirit.” Yet, the Federal government’s Equal Employment Opportunity Commission (EEOC) had told Greenspan emphatically as early as 1989 that the Commission’s position was that Title VII of the Civil Rights Act applied fully to the Federal Reserve.”
Sheila Clark's letter to the EEOC (printed in the Aurebach book, page 123).
Sheila Clark’s letter to the EEOC (printed in the Auerbach book, page 123).

In addition, the executive summary of the Waters Report (page 5) stated the following about the Board:

The Federal Reserve Board of Governors (“FRB”)

OMWI Director–Sheila Clark

The Federal Reserve Board is the central bank of the United States, and in addition to working to provide a safer, more stable and flexible monetary system, it also regulates bank holding companies, and the largest, most complex non-bank financial institutions in the country.

In racial, ethnic and gender categories, its workforce diversity was found to exceed the diversity found within the civilian labor force.

The FRB has the most diverse general workforce and the largest percentage of women employees in senior management.

Yet, notably the FRB OIG determined that the diversity data collected was not validated against the agency’s employee electronic human resources records which undermines the integrity of the agency’s diversity efforts and its strong empirical diversity data.

The FRB does not have a finalized set of diversity and inclusion standards as required under the Dodd-Frank Act.

Federal Reserve Board, Office of Minority and Women Inclusion, Reports to Congress

(Preface language for report submitted in 2015.) “Pursuant to section 342(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the Office of Diversity and Inclusion (ODI) of the Board of Governors of the Federal Reserve System must submit an annual report to the Congress outlining the activities, successes, and challenges of the office. This is the office’s report for calendar year 2014. Sheila Clark serves as the director of ODI.”

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