Federal Reserve Board: H.2 Release for Week Ending May 27, 2017; H.4.1 Release (Balance Sheet) for Week Ending June 1, 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 May 27, 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 Notification of Nonfinancial Data Processing Activities (FR 4021).

-Proposed, May 23, 2017

 

Personnel Division of Supervision and Regulation — appointment of Steven Merriett as senior associate director; Jeffrey Gunther as associate director; and Constance Horsley, Laurie Priest, Thomas Odegard, and John Beebe as deputy associate directors.

-Announced, May 25, 2017

Regulations and Policies Regulation CC (Availability of Funds and Collection of Checks) — (1) final rule amending current check requirements to reflect electronic check collection and return, and (2) request for public comment on a proposed rule amending Regulation CC’s liability provisions.

-Approved, May 16, 2017

(A/C)

Enforcement Deutsche Bank AG, Frankfurt, Germany; Deutsche Bank AG New York Branch, New York, New York; DB USA Corporation; and Deutsche Bank Trust Company Americas — issuance of a consent cease-and-desist order and assessment of a civil money penalty based on deficiencies in the U.S. operations’ compliance with Bank Secrecy Act and anti-money-laundering requirements.

-Approved, May 25, 2017

 

North Georgia Community Financial Partners, Inc., Calhoun, Georgia — written agreement dated October 3, 2013, terminated May 11, 2017.

-Announced, May 25, 2017

 

SunTrust Bank, Atlanta, Georgia — issuance of a consent order of assessment of a civil money penalty.

-Approved, May 23, 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 1, 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  May 31, 2017):  $4,505,852 (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 May 20, 2017; H.4.1 Release (Balance Sheet) for Week Ending May 25, 2017; Three ‘Of Note’ Items


Of Note–

On May 22, 2017, Lael Brainard, a governor on the Board of Governors of the Federal Reserve System, provided remarks at the “Opportunity and Inclusive Growth Institute Conference,” at the Federal Reserve Bank of Minneapolis.

In it, Governor Brainard stated that monetary policy is broadly based (see page 4). Brainard described several areas where people were excluded from the economy–job security, education, housing–areas which are unstable for greater numbers of people. Brainard did indeed mention precarious employment (page 8).

Reality of precarious employment–featuring Uber CEO Travis Kalanick

The Fed needs to do more informative research on these topics, especially precarious employment. But desire to maintain the economist consensus of neoliberalism, even though it is a zombie idea now, may well thwart this tiny bit of minuscule effort. (The real issue that is involved is structural discrimination.)

Bloomberg had a story by Patricia Laya titled “Black American Workers Are Quickly Coming Back From the Sidelines.”

A quote:

The share of black workers at work or seeking employment touched 62.5 percent in April, the highest level since 2010, a recovery from a more than the three-decade low of 60.3 percent at the end of 2013. Even with that rebound, black labor force participation remains below the overall rate of 62.9 percent.

“This is evidence of the last hired, first fired phenomenon,” said Valerie Wilson, an economist at the Economic Policy Institute in Washington, DC. “As the recovery continues on you start to see the biggest improvements for the groups that were hit the hardest.”

In non-economic news, but somewhat related in terms of structural discrimination (which is involved in many issues that Brainerd mentioned in his remarks), Justice Sonia Sotomayor, noted  a trend of a difference of treatment of police-involved abuse toward citizens, in a dissent from the denial of certiorari:

“Our failure to correct the error made by the courts below leaves in place a judgment that accepts the word of one party over the word of another. It also continues a disturbing trend regarding the use of this Court’s resources. We have not hesitated to summarily reverse courts for wrongly denying officers the protection of qualified immunity in cases involving the use of force. But we rarely intervene where courts wrongly afford officers the benefit of qualified immunity in these same cases.”


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 May 20, 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 with revision the Ongoing Intermittent Survey of Households (FR 3016).

-Proposed, May 16, 2017

Enforcement Barclays Bank PLC, London, England — issuance of a final decision, order of prohibition, and assessment of a civil money penalty against Christopher Ashton, former institution-affiliated party of Barclays Bank PLC.

-Approved, May 17, 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 May 25, 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 May 24, 2017):  $4,517,463 (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 May 13, 2017; H.4.1 Release (Balance Sheet) for Week Ending May 18, 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 May 13, 2017, is below.

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

Category Action Taken
Monetary and Financial Policy Term Deposit Facility — floating-rate offering of seven-day term deposits with an early withdrawal feature, same-day settlement, and a maximum tender amount of $1 billion on May 18, 2017.

-Announced, May 11, 2017

 

Personnel Division of Financial Management — appointment of Ricardo Aguilera as director and chief financial officer.

-Announced, May 8, 2017

 

Enforcement First Carolina Bancshares, M.H.C., Walterboro, South Carolina — supervisory agreement issued by the Office of Thrift Supervision dated February 17, 2011, terminated May 9, 2017.

-Announced, May 11, 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 May 18, 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 May 17, 2017):  $4,513,622 (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 May 6, 2017; H.4.1 Release (Balance Sheet) for Week Ending May 11, 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 May 6, 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 Generic Clearance for Surveys of Consumer and Community Affairs Publications and Resources (FR 1378), Generic Clearance for Consumer and Stakeholder Surveys (FR 3073), Report of Net Debit Cap (FR 2226), Ad Hoc Payments Survey (FR 3054a), Currency Quality Sampling Survey (FR 3054b), Currency Quality Survey (FR 3054c), and Currency Functionality and Perception Survey (FR 3054d).

-Approved, May 5, 2017

Regulations and Policies Automated Clearinghouse (ACH) and Foreign Remittance Transfers — report to Congress regarding the use of the ACH and other payment mechanisms for remittance transfers to foreign countries, in accordance with the Dodd-Frank Act.

-Approved, April 13, 2017

(A/C)

Enforcement Credit Agricole S.A., Paris, France — remedial plan submitted by Credit Agricole, S.A. and its subsidiaries, including Credit Agricole Corporate and Investment Bank, Paris, as required under the Board’s 2015 enforcement action.

-Approved, April 24, 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 May 11, 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 May 10, 2017):  $4,520,001 (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 April 29, 2017; H.4.1 Release (Balance Sheet) for Week Ending May 4, 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 April 29, 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 Community Bank System, Inc., DeWitt, New York — to acquire Merchants Bancshares, Inc., South Burlington, Vermont, and thereby indirectly acquire Merchants Bank.

-Approved, April 25, 2017

 

Simmons First National Corporation, Pine Bluff, Arkansas — to merge with Hardeman County Investment Company, Inc., Jackson, Tennessee, and thereby indirectly acquire First South Bank.

-Approved, April 26, 2017

Supervision and Regulation Wells Fargo & Company, San Francisco, California — joint determination by the Board and the Federal Deposit Insurance Corporation that Wells Fargo & Company has adequately remedied the deficiencies in its 2015 resolution plan and therefore will no longer be subject to restrictions on its growth, activities, and operations that were imposed last year.

-Approved, April 24, 2017

Enforcement Credit Agricole S.A., Paris, France — remedial plan submitted by Credit Agricole, S.A. and its subsidiaries, including Credit Agricole Corporate and Investment Bank, Paris, as required under the Board’s 2015 enforcement action.

-Approved, April 24, 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 May 4, 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 May 3, 2017):  $4,517,566 (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 April 15, 2017; H.4.1 Release (Balance Sheet) for Week Ending April 20, 2017; Two “Of Note” Items


Of Note:

Is the United States becoming a two nations: One side with the wealth and the expectation of the so-called American Dream, and the other side with precarious employment, dispair, and everlasting debt? A web article (h/t naked capitalism blog) says yes.

Lynn Parramore, “America Is Regressing into a Developing Nation for Most People.” (Parramore is a Sr. Research Analyst with the Institute for New Economic Thinking.) Parramore describes an observation of a book, The Vanishing Middle Class: Prejudice and Power in a Dual Economy, by Peter Temin, Professor Emeritus of Economics at MIT. Temin stated–

The richest large economy in the world, says Temin, is coming to have an economic and political structure more like a developing nation. We have entered a phase of regression, and one of the easiest ways to see it is in our infrastructure: our roads and bridges look more like those in Thailand or Venezuela than the Netherlands or Japan. But it goes far deeper than that, which is why Temin uses a famous economic model created to understand developing nations to describe how far inequality has progressed in the United States. The model is the work of West Indian economist W. Arthur Lewis, the only person of African descent to win a Nobel Prize in economics. For the first time, this model is applied with systematic precision to the U.S.

The result is profoundly disturbing.

In the Lewis model of a dual economy, much of the low-wage sector has little influence over public policy. Check. The high-income sector will keep wages down in the other sector to provide cheap labor for its businesses. Check. Social control is used to keep the low-wage sector from challenging the policies favored by the high-income sector. Mass incarceration – check. The primary goal of the richest members of the high-income sector is to lower taxes. Check. Social and economic mobility is low. Check.

In the developing countries Lewis studied, people try to move from the low-wage sector to the affluent sector by transplanting from rural areas to the city to get a job. Occasionally it works; often it doesn’t. Temin says that today in the U.S., the ticket out is education, which is difficult for two reasons: you have to spend money over a long period of time, and the FTE sector is making those expenditures more and more costly by defunding public schools and making policies that increase student debt burdens.

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Another eye-opening article was at Bloomberg, “A Quarter of Millennials who Live at Home Don’t Work–or Study

Key quote:  According to the report, The Changing Economics and Demographics of Young Adulthood: 1975–2016

Almost 9 in 10 young people who were living in their parents’ home a year ago are still living there today, making it the most stable living arrangement for young adults,” the report said. “In 2005, the majority of young people lived independently in their own household (either alone, with a spouse, or an unmarried partner), which was the predominant living arrangement in 35 states. By 2015—just a decade later—only six states had a majority of young people living independently.

Recall that the Great Recession was in 2008. And, in order to start a household, one needs a secure job and a sufficient wage to support this activity.


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 April 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
Banks, Foreign Nordea Bank AB (publ), Stockholm, Sweden — to establish a branch in New York, New York.

-Approved, April 12, 2017

Enforcement The Baraboo Bancorporation, Inc., Baraboo, Wisconsin — written agreement issued April 30, 2013, terminated April 7, 2017.

-Announced, April 11, 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 April 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 April 19, 2017):  $4,525,602 (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: President of Richmond Fed Admits to Confirming Confidential FOMC Information to a Reporter, Resigns

This blog has covered a leak to Medley Global Advisors, which had occurred with Federal Open Market Committee (FOMC) information. According to Reuters, the person claiming to be responsible for the leak was a member of the FOMC, Jeffrey Lacker, president of the Federal Reserve Bank of Richmond. He has resigned on April 4, 2017.  (He had planned to retire in October 2017.)

Lacker has come up in another story of the blog, the story of laughter at the vulnerable at FOMC meetings in 2011. (Lacker did not seem to participate in the laughter.)

That the Fed’s Office of Inspector General did not uncover this information shows again the fraility of an non-independent inspector general. As stated in a previous blog post–

“In addition, the leak situation demonstrates the weak position of the IG. Sadly, the Board’s IG is akin to a toothless tiger.

  • The Board selects its [Inspector General] IG. The IG is not nominated by the President and approved by the U.S. Senate. Thus, an immediate conflict of interest and lack of independence is created.
  • Further, the IG submits a budget to the Board for its approval (See Board Annual Report, 2013, page 314 (paragraph 3)). Again, the IG instantly is subservient to the head of the agency. As a result, the IG cannot function.”