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.)