Author Archives: Alex W.

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"We, who believe in freedom, cannot rest." Sweet Honey in the Rock Twitter: alexwdc

Federal Reserve Board: H.2 Release for Week Ending July 18, 2015

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 18, 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 Monetary Policy — statement by Chair Yellen before the House Committee on Financial Services on July 15 and the Senate Committee on Banking, Housing, and Urban Affairs on July 16, 2015, on the semiannual monetary policy report to the Congress.

-Published, July 15, 2015

Bank Holding Companies Cathay General Bancorp, Los Angeles, California — to acquire Asia Bancshares, Inc., Flushing, New York, and thereby indirectly acquire Asia Bank, National Association.

-Approved, July 16, 2015

Forms Forms — final Board review to extend with revision the Report of Selected Money Market Rates (FR 2420).

-Approved, July 14, 2015

Forms — final Board review (1) to extend with revision the Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900); and (2) to extend without revision the Annual Report of Deposits and Reservable Liabilities (FR 2910a), Report of Foreign (Non-U.S.) Currency Deposits (FR 2915), Allocation of Low Reserve Tranche and Reservable Liabilities Exemption (FR 2930), Supervisory and Regulatory Survey (FR 3052), and Consumer Financial Stability Surveys (FR 3053).

-Approved, July 16, 2015

Forms — initial Board review (1) to extend without revision the Registration of a Securities Holding Company (FR 2082) and (2) to extend with revision the Request for Proposal (RFP) and Request for Price Quotations (RFPQ).

-Proposed, July 16, 2015

Personnel Division of Financial Management — appointment of Stephen J. Bernard as deputy director.

-Approved, July 16, 2015

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

-Approved, July 6, 2015

(A/C)

Regulations Y (Bank Holding Companies and Change in Bank Control) and YY (Enhanced Prudential Standards) — publication for comment of a proposed rule to revise the capital plan and stress test rules for large bank holding companies and certain banking organizations with total consolidated assets of more than $10 billion, to take effect for the 2016 capital plan and stress test cycles.

-Approved, July 16, 2015

Enforcement Raton Capital Corporation, Raton, New Mexico — written agreement with the Federal Reserve Bank of Kansas City.

-Announced, July 14, 2015

Village Bancshares, Inc., St. Francis, Minnesota — written agreement dated December 1, 2010, terminated July 8, 2015.

-Announced, July 14, 2015

Federal Reserve Board: Inadvertent Release of Federal Open Market Committee Projections Disclosed; Information Now Available, Release Referred to IG

On July 24, 2015, the Federal Reserve Board (Board) explained that an inadvertent release of confidential staff projections provided to the Federal Open Market Committee (FOMC) for its June 16-17, 2015, meeting. The release of the projections occurred on June 29, 2015. However, the projections are based on publicly available data. The Board stated that the released information will now be made available to the public. [Note: On 7-25-15, the Board released a table, which provides the staff projections that were prepared for the June FOMC meeting as well as the projections issued with the press release discussed in this post.]

Because the information has already been released, the Federal Reserve is today providing general public notification and making those projections more easily accessible on our website within the FRB/US model package (ZIP) data folder.

(With economists working at the Board and then with some of them returning to academia or industry, it is likely that these projections are already known.)

The Board also noted that the release has been referred to its Inspector General for investigation under its Program for Security of FOMC Information policy.

[Author’s note: The Board’s IG is not truly independent, rather an arm of the Board’s Chair. The Board’s Chair appoints the IG. (See Auerbach, Robert D. (2008), Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan’s Bank, Austin: University of Texas Press, pages 113-115 (esp. first full paragraph on page 114).) In addition, the Board funds the operations of the IG (see, for example, Board Annual Report, 2013, page 314 (paragraph 3)). So, the purpose of such referrals is unknown.

Also, there is a pending investigation of a more-serious previous release of information to Medley Global Advisors. Rep. Sean Duffy asked the Board’s Chair, Janet Yellen, at a July 2015 hearing, about the processs of investigation of this matter (now with the Justice Department).

http://player.cnbc.com/cnbc_global?playertype=synd&byGuid=3000397798&size=530_298]

Federal Reserve Board: Long-Running Employment Discrimination Case, Artis v. Bernanke (Yellen), Dismissed with Prejudice; Length of Case Offends Conscience

After 18+ years of litigation, the U.S. District Court for the District of Columbia has dismissed with prejudice the employment discrimination case Artis v. Greenspan Bernanke Yellen.

Memorandum opinion (6-22-15)

Order dismissing case with prejudice (7-22-15)

The case changed from class action to one of individual claims, with some class members receiving settlements.

The tragedy of this case was the incredible length of time and waste of precious resources to resolve a claim of employment discrimination. It shows why there must be alternative dispute resolution for these type of cases; the judiciary often provides no relief commensurate with the expenditure of time, money, and effort. The adversarial system generates much expense with satisfactory resolution wanting after the cost expended attaining it.

The notion that a suffering employee, earning a federal government salary, must have six figures plus of money to address claims of employment discrimination is a gross injustice and is an effective blockade to the civil rights laws and regulations.

Federal Reserve Board: Presidential Nominees for the FRB and Action by the U.S. Senate

Date Method of Announcement Nominee Name Position & Agency Senate Banking Committee Action
Jan. 6, 2015 Press release Landon, Allan R. Governor, Board of Governors of the Federal Reserve System Allan R. Landon, of Utah, to be a Member of the Board of Governors of the Federal Reserve System for the unexpired term of fourteen years from February 1, 2016 [PN 3]. (Reappointment)

Status:

01-13-2015 January 7, 2015 – Received in the Senate and referred to the Committee.
July 20, 2015 Press release Dominguez, Kathryn M. Governor, Board of Governors of the Federal Reserve System Kathryn M. Dominguez, of Michigan, to be a Member of the Board of Governors of the Federal Reserve System for the unexpired term of fourteen years from February 1, 2004, vice Jeremy C. Stein, resigned [PN 674].

Status:

07-21-2015 July 21, 2015 – Received in the Senate and referred to the Committee.

Note:  Table updates. On July 24, 2015, Senate Banking Committee information added for Dr. Dominguez.

Federal Reserve Board: H.2 Release for Week Ending July 11, 2015

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 11, 2015 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 BB&T Corporation, Winston-Salem, North Carolina — to merge with Susquehanna Bancshares, Inc., Lititz, Pennsylvania, and thereby indirectly acquire Susquehanna Bank.

-Approved, July 7, 2015

Forms Forms — final Board review to revise without extension the following reports for holding companies, foreign banking organizations, and Edge and Agreement corporations: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, FR Y-12, FR Y-15, FR Y-11, FR Y-11S, FR 2314, FR 2314S, FR Y-7N, FR Y-7NS, FR Y-7Q, FR 2320, FR H-(b)11, and FR 2886b.

-Approved, July 10, 2015

Personnel Division of Monetary Affairs — appointment of Min Wei as deputy associate director and Francisco Covas, Christopher Gust, Jason Wu, and Don Kim as assistant directors.

-Approved, July 10, 2015

Division of Research and Statistics — appointment of Jeff Campione as senior associate director; Paul Smith, John Sabelhaus, and Tim Mullen as assistant directors; and Arthur Kennickell and Andrew Figura as advisers.

-Announced, July 10, 2015

Enforcement MSB Capital Corporation, Columbus, Ohio — cease and desist order issued by the Office of Thrift Supervision, dated April 7, 2010, terminated June 29, 2015.

-Announced, July 9, 2015

Santander Holdings USA, Inc., Boston, Massachusetts — written agreement with the Federal Reserve Bank of Boston.

-Announced, July 7, 2015

Federal Reserve Board: H.2 Release for Week Ending July 4, 2015

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 4, 2015 is below.

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

Category Action Taken
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 29, 2015

Enforcement Cherokee Bancshares, Inc., St. Paul, Minnesota — written agreement dated December 17, 2008, terminated June 29, 2015.

-Announced, July 2, 2015

Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., Utrecht, Netherlands, and Rabobank Nederland New York Branch, New York, New York — written agreement with the Federal Reserve Bank of New York and the New York State Department of Financial Services.

-Announced, July 2, 2015

First Chatsworth Bankshares, Inc., Chatsworth, Georgia — written agreement dated June 22, 2011, terminated June 30, 2015.

-Announced, July 2, 2015

Olmsted Holding Corporation, Rochester, Minnesota — written agreement dated March 3, 2010, terminated June 30, 2015.

-Announced, July 2, 2015

Seaway Bancshares, Inc., Chicago, Illinois — written agreement with the Federal Reserve Bank of Chicago.

-Announced, July 2, 2015

Federal Reserve Board: H.2 Release for Week Ending June 27, 2015

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 27, 2015 is below.

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

Category Action Taken
Enforcement Bank of the Orient, San Francisco, California — issuance of a consent cease and desist order.

-Announced, June 23, 2015

Fayette County Bank, St. Elmo, Illinois — prompt corrective action directive dated October 2, 2014, terminated June 22, 2015.

-Announced, June 25, 2015

Fayette County Bank, St. Elmo, Illinois — written agreement with the Federal Reserve Bank of St. Louis.

-Announced, June 25, 2015