Federal Reserve Board: H.2 Release for Week Ending July 22, 2017; H.4.1 Release (Balance Sheet) for Week Ending July 27, 2017; Macroeconomics and “Colorblindness” = Wickedness


Of Note items

(1) From the Guardian Newspaper (United Kingdom)

One quote about “balanced budgets”–

“Despite these significant shifts, myths about the economy refuse to go away and hamper a more productive debate. They concern how the government manages public finances – “tax and spend”, if you will.

The first is that there is an inherent virtue in balancing the books. Conservatives still cling to the idea of eliminating the budget deficit, even if it is with a 10-year delay (2025, as opposed to George Osborne’s original goal of 2015). The budget-balancing myth is so powerful that Labour feels it has to cost its new spending pledges down to the last penny, lest it be accused of fiscal irresponsibility.

However, as Keynes and his followers told us, whether a balanced budget is a good or a bad thing depends on the circumstances. In an overheating economy, deficit spending would be a serious folly. However, in today’s UK economy, whose underlying stagnation has been masked only by the release of excess liquidity on an oceanic scale, some deficit spending may be good – necessary, even.”

(2) From the Board’s working paper series “Finance and Economics Discussion Series (FEDS), Economists Tomaz Cajner, Tyler Radner, David Rattner, and Ivan Vidangos authored a staff working paper titled “Racial Gaps in Labor Market Outcomes in the Last Four Decades and over the Business Cycle.”

My observation:  In summary, the effect of persistent, systemic discrimination has terrible effects on black people in the labor market. This paper shows why economist-consensus talk of “full employment” level being reached is patently unfair and dangerous to black people in the United States. The United States was built on the backs of black people, forced to work for free and under inhuman conditions. The legacy lives on even with so-called civil rights acts. (See Reverend Thomas Merton (1964), “Seeds of Destruction,” pages 19-20, and this blog’s posts on “colorblindness.”)

This slideshow requires JavaScript.

[Note:  The Board itself is not excluded from discriminatory behavior. See this blog’s posts on the former case of Artis v. Greenspan Bernanke Yellen. Eighteen years of the plaintiffs’ lives were lost because of Board obstinancy.

2014-03-04-auerbach
Sheila Clark’s letter to the EEOC (printed in Robert D. Auerbach’s book, “Deception and Abuse at the Fed,” page 123).

A quote from a previous blog update–“On June 20, 2016, the plaintiffs filed a petition for certiorari (No. 15-1543). On October 3, 2016, the Supreme Court announced that it denied cert for TERRELL, GEORGIANNA, ET AL. V. YELLEN, CHAIR, BD. OF GOVERNORS (page 15 of pdf).”]

(3) Related to item (2), there was a column on Bloomberg.com by Narayana Kocherlakota (2017), “Macroeconomists Can’t Keep Ignoring Race and Gender.” July 27.

Key quote–

“Economics is supposed to be concerned with figuring out what makes people better off, and how we can have more of it. For decades, macroeconomists have operated with the (largely unspoken) presumption that such questions are best addressed using models that ignore race and gender differences. The more we learn about these differences, the clearer it becomes that this is a mistake. The models need to change.”


 

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 July 22, 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 — final Board review to extend without revision the Recordkeeping and Disclosure Requirements Associated with Regulation R (FR 4025).

-Approved, July 17, 2017

Forms — initial Board review to extend without revision the Application for Exemption from Prohibited Service at Savings and Loan Holding Companies (FR LL-12).

-Proposed, July 17, 2017

Regulations and Policies Covered-Fund Seeding Period — delegation of authority to the Federal Reserve Banks to approve requests for extensions of time to conform certain “seeding” investments in hedge funds or private equity funds under the Volcker Rule, provided certain criteria are met.

-Approved, July 17, 2017

Minority Depository Institutions — annual report to Congress on preserving minority depository institutions, in accordance with the Dodd-Frank Act.

-Approved, June 30, 2017

(A/C)

Prepaid Cards — annual report to Congress on government-administered, general-use prepaid cards, in accordance with the Dodd-Frank Act.

-Approved, July 3, 2017

(A/C)

Volcker Rule — interagency coordination of reviews of the treatment of certain foreign funds under the Volcker Rule.

-Announced, July 21, 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 July 27, 2017, 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 July 26, 2017):  $4,512,020 (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 July 15, 2017; H.4.1 Release (Balance Sheet) for Week Ending July 20, 2017

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 July 15, 2017, 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 Monetary Policy — statement by Chair Yellen before the House Committee on Financial Services on July 12 and the Senate Committee on Banking, Housing, and Urban Affairs on July 13, 2017, on the semiannual monetary policy report to the Congress.

-Published, July 12, 2017

Bank Branches, Domestic Regions Bank, Birmingham, Alabama — to establish a total of 19 branches in Georgia, Indiana, Missouri, Tennessee, and Texas.

-Approved, July 14, 2017

Forms Forms — initial 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).

-Proposed, July 10, 2017

 

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 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).

-Proposed, July 10, 2017

Regulations and Policies Appraisal Requirements — publication for comment of a proposed interagency rule to increase the dollar threshold at or below which appraisals are not required for commercial real estate transactions.

-Approved, July 14, 2017

 

Regulatory Flexibility Act and Small-Entity Compliance Guides — (1) principles for a handbook on the act and the development of compliance guides and (2) related delegations to approve and publish the guides and submit required reports to Congress.

-Approved, July 14, 2017

Enforcement BNP Paribas S.A., Paris, France; BNP Paribas USA, Inc., New York, New York; and BNP Paribas Securities Corp. — issuance of a consent cease-and-desist order and assessment of a civil money penalty.

-Approved, June 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 July 20, 2017, 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 July 19, 2017):  $4,523,637 (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 July 8, 2017; H.4.1 Release (Balance Sheet) for Week Ending July 13, 2017; July 2017 MPR–Rep. Keith Ellison Exposes Flaw of Economists’ Consensus, Automation


An interesting observation of the hearing for the Monetary Policy Report in the House of Representatives.

At about 1:20:18 of the webcast, Rep. Keith Ellison (D-MN) had his turn to make a comment or ask questions of Board Chair Janet Yellen. During this time he questioned a tired excuse of economists for the destruction of jobs–automation.

Ellison read a quote from a book “Makers and Takers” by Rana Foroohar in which he noted her observation that the financial services sector is 7 percent of the economy, 4 percent of the jobs available and 25 percent of corporate profits. He asked Yellen to provide insight about the quote.

Yellen, as a neoliberal economist and representative of the economist consensus, did not directly address the observation. Unsurprisingly she kept the consensus line of automation despite the quote from Foroohar.

Foroohar’s quote questioned economists’ reliance on automation, which serves as method of excuse for corporations (jobs not filled because of “skills mismatch”), and poor outcomes of the economy (income inequality, not public services (concerns with “debt” and “deficit” —>austerity), and a method to blame the underemployed and the unemployed for their plight.

An illuminating question and answer.

 

This slideshow requires JavaScript.

The semiannual Monetary Policy Report to the Congress was held in the House of Representatives on July 12, 2017.  Senate testimony was on July 13, 2017.

The Board announced on June 29, 2017, that it would release the Monetary Policy Report several days before the hearing (a new procedure–previously, the MPR was released to the Congress less than 24 hours before the first hearing).

Monetary Policy Report, July 2017

The Monetary Policy Report hearings will be held on July 12 and 13, 2011.

Monetary Policy Report (July 7, 2017): https://www.federalreserve.gov/monetarypolicy/files/20170707_mprfullreport.pdf

Testimony:  https://www.federalreserve.gov/newsevents/testimony/yellen20170712a.htm

U.S. House of Representatives U.S. Senate
July 12, 2017, 10:00 a.m., House Financial Services Committee July 13, 2017, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402097 Press release:

https://www.banking.senate.gov/public/index.cfm/2017/7/the-semiannual-monetary-policy-report-to-the-congress

 

 


 

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 July 8, 2017, 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 Veritex Holdings, Inc., Dallas, Texas — to merge with Sovereign Bancshares, Inc., Dallas, and thereby indirectly acquire Sovereign Bank; and for Veritex Community Bank, Dallas, to merge with Sovereign Bank and thereby establish branches.

-Approved, July 5, 2017

 

Forms Forms — final Board review to extend with revision the Survey of Terms of Lending (FR 2028).

-Approved, July 4, 2017

 

Personnel Legal Division — appointment of Mark Van Der Weide as director and general counsel of the Board and reassignment of Scott Alvarez as senior adviser.

-Approved, July 5, 2017

 

Regulations and Policies Credit Card Plans — annual report to Congress on the profitability of credit card operations of depository institutions.

-Approved, June 30, 2017

(A/C)

Supervision and Regulation Resolution Plans — joint determination with the Federal Deposit Insurance Corporation to extend to December 31, 2018, the resolution plan filing dates for American International Group, Inc., and Prudential Financial, Inc.

-Approved, June 22, 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 July 13, 2017, 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 July 12, 2017):  $4,513,366 (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 July 1, 2017; H.4.1 Release (Balance Sheet) for Week Ending July 6, 2017; July 2017 MPR Press Release


 

The semiannual Monetary Policy Report to the Congress will begin in the House of Representatives on July 12, 2017.  Senate testimony will be on July 13, 2017.

The Board announced on June 29, 2017, that it would release the Monetary Policy Report several days before the hearing (a new procedure–previously, the MPR was released to the Congress less than 24 hours before the first hearing).

Monetary Policy Report, July 2017

The Monetary Policy Report hearings will be held on July 12 and 13, 2011.

Monetary Policy Report (July 7, 2017): https://www.federalreserve.gov/monetarypolicy/files/20170707_mprfullreport.pdf

Testimony:  https://www.federalreserve.gov/newsevents/testimony/yellen20170712a.htm

U.S. House of Representatives U.S. Senate
July 12, 2017, 10:00 a.m., House Financial Services Committee July 13, 2017, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402097 Press release:

https://www.banking.senate.gov/public/index.cfm/2017/7/the-semiannual-monetary-policy-report-to-the-congress

 

 

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 July 1, 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 without revision the Government Securities Dealers Reports (FR 2004, composed of: FR 2004A, FR 2004B, FR 2004C, FR 2004SI, FR 2004SD, FR 2004SD ad hoc, FR 2004WI, FR 2004FA, FR 2004FB, FR 2004FC, and FR 2004FM).
-Proposed, June 29, 2017

Forms — initial Board review to extend with revision the Weekly Report of Selected Assets and Liabilities of Domestically Chartered Commercial Banks and U.S. Branches and Agencies of Foreign Banks (FR 2644).
-Proposed, June 29, 2017

Forms — final Board review to extend without revision the Annual Daylight Overdraft Capital Report for U.S. Branches and Agencies of Foreign Banks (FR 2225).
-Approved, June 30, 2017
Regulations and Policies Host State Lending Ratios — interagency release of the host state loan-to-deposit ratios used by the banking agencies to determine compliance with the Riegle-Neal Interstate Banking and Branching Efficiency Act.

-Announced, June 21, 2017

Supervision and Regulation Regulation TT (Supervision and Regulation Assessments of Fees) — 2016 supervisory assessments, assessed companies, and related matters, pursuant to the Dodd-Frank Act and Regulation TT.
-Approved, June 30, 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 July 6, 2017, 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 June 28, 2017):  $4,513,790 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Rank and Yank / Forced Distribution–Dick Grote: Giving Advice on Bad Reviews—Agree with Poor Rating

[Note:  This blog has covered Dick Grote’s wicked “rank and yank” program previously.]

Dick Grote has authored another article on “rank and yank,” “What to do when you think your performance review is wrong” (published in the Harvard Business Review (March 7, 2017)). This time the defense of the system is indirect—informing the recipient of a “C-Bucket” rating to accept it. Indeed, as Grote states in the article, nothing the employee argues against the rating is likely to change it.

Indeed that is true in the rank and yank process. The decision made in the calibration meeting for managers is final. Those in the C-Bucket receive negative ratings in order to convince them to quit.

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

Because of the calibration meeting, where managers rank employees, changing a rating means changing it for others, given that rank and yank is a rigid, inhuman, and employee-abusive system.

rank_yank
Artist: Michael Sloan

A key Grote quote:

“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.)


Grote offers three options for an employee facing an unacceptable performance rating:

  • Accept the rating (Grote preferred).
  • Disagree with the rating (Grote disfavored this option because the manager is invested in the rating, errors look bad on the manager (rather interesting an aggrieved employee must defend unacceptable management behavior, while the employee is expected to satisfy any whim of the manager).
  • Quit (Grote advises for people who get c-bucket ratings to go on a “decision-making” leave to decide either to attempt to fulfill the impossible to meet expectations or quit. The resignation of the employee is the ultimate goal.)

While Grote thinks managers should be given absolute authority in performance appraisal, the personnel record is the property of the employee. The employee has the right to state what is allowed in that property; hence, the reason why employees must sign reviews. The company merely has possession of the employee’s property—the contents of the file.

Save

Federal Reserve Board: July 2017 Monetary Policy Report Released Before Hearing for the First Time; MPR Hearing Info

The semiannual Monetary Policy Report to the Congress will begin in the House of Representatives on July 12, 2017.  Senate testimony will be on July 13, 2017.

The Board announced on June 29, 2017, that it would release the Monetary Policy Report several days before the hearing (a new procedure–previously, the MPR was released to the Congress less than 24 hours before the first hearing).

Monetary Policy Report, July 2017

The Monetary Policy Report hearings will be held on July 12 and 13, 2017.

Monetary Policy Report (July 7, 2017):  https://www.federalreserve.gov/monetarypolicy/files/20170707_mprfullreport.pdf

U.S. House of Representatives U.S. Senate
July 12, 2017, 10:00 a.m., House Financial Services Committee July 13, 2017, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402097 Press release:

https://www.banking.senate.gov/public/index.cfm/2017/7/the-semiannual-monetary-policy-report-to-the-congress

 

 

 

 

Federal Reserve Board: H.2 Release for Week Ending June 24, 2017; H.4.1 Release (Balance Sheet) for Week Ending June 29, 2017; July 2017 MPR Press Release


The semiannual Monetary Policy Report to the Congress will be in the House of Representatives on July 12, 2017. The Senate’s hearing has not been announced (as of the date of this blog post), but it will likely be held on the next day, July 13.

Monetary Policy Report, July 2017

The Monetary Policy Report hearings will be held on July 12 and 13, 2011.

U.S. House of Representatives U.S. Senate
July 12, 2017, 10:00 a.m., House Financial Services Committee July 13, 2017, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402097 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 June 24, 2017, 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 Regulation and Economic Growth — statement by Governor Powell before the Senate Committee on Banking, Housing, and Urban Affairs on the relationship between regulation and economic growth.

-Published, June 22, 2017

Forms Forms — initial Board review to extend without revision the Compensation and Salary Surveys (FR 29a, FR 29b).

-Proposed, June 22, 2017

Regulations and Policies Host State Lending Ratios — interagency release of the host state loan-to-deposit ratios used by the banking agencies to determine compliance with the Riegle-Neal Interstate Banking and Branching Efficiency Act.

-Announced, June 21, 2017

Savings and Loans Holding Companies Seneca Federal Savings and Loan Association, Baldwinsville, New York, and Ponce de Leon Federal Bank, Bronx — requests for limited waivers under Regulation MM in connection with their proposed reorganizations to mutual holding company form and related initial public offerings; and delegation of authority to the Federal Reserve Banks to grant waivers of certain provisions concerning mutual holding company stock issuances in similar circumstances that do not raise significant legal, policy, or supervisory concerns.

-Granted, June 22, 2017

Supervision and Regulation Stress Tests and Capital Plan Reviews — 2017 results.

-Approved, June 21, 2017

Enforcement Bank of New York Mellon Corporation, New York, New York — issuance of a consent order of assessment of a civil money penalty.

-Approved, June 19, 2017

 

JPMorgan Chase & Co., New York, New York — written agreement dated July 6, 2011, terminated June 16, 2017.

-Announced, June 20, 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 June 29, 2017, 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 June 28, 2017):  $4,509,646 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)