Category Archives: politics

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: 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

Futility of “Colorblindness” and Confirmation Bias: Can Poison Workplace Interaction of a Supervisor and Subordinate Employee; These Interactions Must Be Covered under Equal Employment Opportunity Law

In the United States, the manager of an organization is give great power to hire, supervise, instruct, discipline, and terminate employees, according to the laws relating to employment (indexed as master and servant) law.

Perhaps in a sufficient number of cases, manager’s assessment in a applicable discretionary power is correct, but in a situation of implied bias–that the supervisor is prone to disfavor the work of a subordinate just because of his or her skin color, such discretion becomes racially discriminatory and unfair. The subordinate cannot do anything to avoid the effects of a manager who applies a unconscious bias to such subordinate.

As a result, broad assertions (even with manager-supplied documented “proof”) of poor performance, must be viewed with a skeptical eye and with a view of ensuring that the manager’s assessment and documentation is itself fair and equitable to the subordinate and not just accepting the manager’s compilation of errors is the final word. This point is a definite weakness of the Grote forced distribution system (governed by manager’s unchecked “opinion”), covered separately in this blog.

Exploring the issue of unconscious bias, Dr. Arin N. Reeves, a researcher with Nextions, a consulting organization, investigated the effect of confirmation bias. Specifically, Dr. Reeves was investigating the reason from prior research finding that supervising lawyers perceived African American lawyers to be sub par in their writing skills in comparison to their Caucasian counterparts.

Dr. Reeves and her team performed a study, studying the issue from a perspective of unconscious or implicit bias. Five law partners were asked to write an legal research memo from a hypothetical third-year litigation associate that focused on trade secrets in Internet start-ups. The researchers then introduced 22 errors–spelling and grammar (7), substantive technical writing errors (6), errors of fact (5), and errors of analysis (4).

This error-amended memo was provided to 60 partners of law firms; one-half of them were told that the memo was written by an African American associate, and the other one-half of them were told that the author was Caucasian.

The result–from 53 law partners (24 having reviewed the African American associate’s memo and 29 having reviewed the Caucasian associates memo)–is as follows:

African American Associate Caucasian Associate
Overall quality of the memo (rated from 1 (poor) to 5 (extremely well written) 3.2/5.0 4.1/5.0
Qualitative comments
  • “needs lots of work”,
  • “can’t believe he went to NYU”,
  • average at best”
  • “generally good writer but needs to work on…”,
  • “has potential”,
  • “good analytical skills”
Specific errors
Spelling and grammar errors found 5.8/7.0 2.9/7.0
Technical writing errors 4.9/6.0 4.1/6.0
Errors in fact 3.9/5.0 3.2/5.0
Errors in analysis Rated better overall because he had fewer critical comments.
Formatting (not requested by research group, but 41 comments received) 29 comments / 41 11 comments / 41

The researchers noted that there was no significant correlation between a partners race/ethnicity and the differentiated patters of errors found between the two memos. In addition, there was no significant correlation between a partner’s gender and the differentiated patterns of errors found between the two memos, the researchers continued. The researchers stated that they did find that female partners generally found more errors and wrote longer narratives than the male partners.