(1) The 2016 Survey of Consumer Finances was released. According to a FEDS Notes article, the net worth for nonwhites, despite a showing of growth, did not begin to approach or match the significantly higher net worth of whites. At similar educational levels, white net worth surpassed, by far, the net worth of blacks and of latinos.
Comment: This result, while stunning, is unsurprising, given the history and policies of the United States of America.
(2) Fed Governor Lael Brainard gave two speeches on the effect of persistent employment disparities (for black and latino peoples) on the wider economy. (Both speeches reflected her own views, not those of the Federal Open Market Committee (FOMC) or the Board.)
Comment: For the Board, I do not have confidence, given the closed-door FOMC views and overall derision toward people not socio-economically fortunate. (See blog posts on an article in the Intercept and on the Board’s own nearly 19-year obstinance with its black employees in Artis v.
Greenspan Bernanke Yellen)
Such observations would have to become policy positions. With this context, mere reporting on known facts (without remedial policy ideas/proposals) is not sufficient.
(3) Interesting New York Times op-ed by Rana Foroohar, “How Big Banks Became Our Masters.”
Observation: Representative Keith Ellison (D-Minn.) directed a question to Chair Janet Yellen at the July 2017 Monetary Policy Report hearing. He referred to Foroohar’s book, “Makers and Takers: How Wall Street Destroyed Main Street.”
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 September 23, 2017, is below.
H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received
|Bank Holding Companies||PacWest Bancorp, Beverly Hills, California — to acquire CU Bancorp, Los Angeles, and thereby indirectly acquire California United Bank.
-Approved, September 20, 2017
|Forms||Forms — initial Board review to extend without revision the Recordkeeping Requirements Associated with the Real Estate Lending Standards Regulation for State Member Banks (Reg H-5).
-Proposed, September 21, 2017
|Personnel||Division of Monetary Affairs — appointment of Brian Madigan and Stephen Meyer as senior advisers and Matthew Luecke as associate director.
-Announced, September 22, 2017
Management Division — appointment of Curtis Eldridge as associate director and Katherine Perez-Grines and Daniela Wegmann as assistant directors.
-Announced, September 21, 2017
|Regulations and Policies||Presidential $1 Coin Program — annual report to Congress on the Presidential $1 Coin Program.
-Approved, September 8, 2017
|Enforcement||AB&T Financial Corporation, Gastonia, North Carolina — written agreement issued May 7, 2012, terminated September 13, 2017.
-Announced, September 19, 2017
The First Bank of Baldwin, Baldwin, Wisconsin — written agreement issued July 26, 2011, terminated September 19, 2017.
-Announced, September 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 September 28, 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 September 27, 2017): $4,502,238 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).
(See the release for further information.)