Federal Reserve Board: H.2 Release for Week Ending November 3, 2018; H.4.1 Release (Balance Sheet) for Week Ending November 8, 2018

Of Note

(1) The So-Called Great Times: Many Millennial Men Unemployed. Jeanna Smialek writes an article for Bloomberg to examine why 500,000 millennial men are missing from the workforce. Perhaps they want to avoid the reduced pay with increasing (and undercompensated) demands.

The excuses that the economists offer in the article border on the nonsensical. Someone is going to incur debts to play video games? People have to live with their parents because the wages paid for work is insufficient to pay for first and last month rent and a security deposit for an apartment.

Other social changes could be exacerbating the trend. Better video games might make leisure time more attractive, some economists hypothesize, and opioid use might make many less employable. Young adults increasingly live with their parents, and cohabitation might be providing a “different form of insurance,” said Erik Hurst, an economist at the University of Chicago.

 

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(2) Globalization and the U.S. Worker. (Note: This item is from a previous post. Still it is relevant here.) An investment professional wrote a book on the glut of labor that globalization caused. The United States did not prepare any programs to compensate for the job losses and decreases in income.

Daniel Alpert, “The Age of Oversupply.”


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 November 3, 2018, is below.

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

Category Action Taken
Change in Bank Control CapStar Financial Holdings, Inc., Nashville, Tennessee — change in bank control of CapStar Financial Holdings, Inc., and its subsidiary, CapStar Bank, Nashville.

-Permitted, November 2, 2018

Forms Forms — initial Board review to extend with revision the Consolidated Holding Company Report of Equity Investments in Nonfinancial Companies (FR Y-12) and Annual Report of Merchant Banking Investments Held for an Extended Period (FR Y-12A).

-Proposed, October 29, 2018

 

Forms — initial Board review to extend without revision the Notice Requirements Associated with Regulation W (FR W).

-Proposed, November 1, 2018

Personnel Division of Financial Management — appointment of Karen Vassallo as associate director.

-Announced, November 2, 2018

Regulations and Policies Derivatives Contracts — publication for comment of an interagency proposal that would implement a new method for calculating the exposure amount of derivative contracts under the agencies’ regulatory capital rules.

-Approved, October 30, 2018

 

Reduced Reporting for Depository Institutions — publication for comment of an interagency proposal to streamline regulatory reporting for qualifying small institutions, in accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act.

-Approved, October 29, 2018

 

Regulations and Policies — (1) two proposed rules to establish a revised framework for tailoring prudential standards to the risk profiles of large U.S. banking organizations; and (2) initial Board review to amend the Consolidated Financial Statements for Holding Companies (FR Y-9C), Parent Company Only Financial Statements for Large Holding Companies (FR Y-9LP), Capital Assessments and Stress Testing (FR Y-14), Complex Institution Liquidity Monitoring Report (FR 2052a), and Banking Organization Systemic Risk Report (FR Y-15) information collections.

-Approved, October 31, 2018

 

Supervisory Rating Systems — (1) final rule adopting a new rating system for large financial institutions and (2) notice to apply the Board’s existing supervisory rating system to certain savings and loan holding companies.

-Approved, November 1, 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 November 8, 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 November 7, 2018):  $4,189,782 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

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Federal Reserve Board: H.2 Release for Week Ending October 27, 2018; H.4.1 Release (Balance Sheet) for Week Ending November 1, 2018

Of Note

(1) The “American Dream” is dead (except for the rich). Joseph Stiglitz wrote an article for the Scientific American, “The American Economy is Rigged.” (November 2018)

Key Quote:

An alternative theory is far more consonant with the facts. Since the mid-1970s the rules of the economic game have been rewritten, both globally and nationally, in ways that advantage the rich and disadvantage the rest. And they have been rewritten further in this perverse direction in the U.S. than in other developed countries—even though the rules in the U.S. were already less favorable to workers.


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 October 27, 2018, is below.

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

Category Action Taken
Advisory Councils Community Advisory Council — announcement of six new members of the council.

-Announced, October 25, 2018

Enforcement AllNations Bank, Calumet, Oklahoma — written agreement with the Federal Reserve Bank of Kansas City and the Oklahoma State Banking Department.

-Announced, October 25, 2018

 

First Iowa State Bank, Keosauqua, Iowa — issuance of consent order of prohibition against Joel Shumate, a former institution-affiliated party.

-Announced, October 23, 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 November 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 October 31, 2018):  $4,186,805 (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 October 20, 2018; H.4.1 Release (Balance Sheet) for Week Ending October 25, 2018

Of Note

(1) Management surveillance aggression.

How Employers Track Their Employers | The Atlantic | Ellen Ruppel Shell

Comment: As the software for surveillance become more powerful and cheaper to implement, the watched reacts to avoid the constant tracking. This then leads to management doubling down on surveillance tactics, as the money spent does not find any wrongdoing.

With management seeking further surveillance, there are a few topics that are unmentioned: the effect and the opinion of labor on the topic and the lack of pay increases despite demands for more work.


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 October 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 Old National Bancorp, Evansville, Indiana — to acquire and merge with Klein Financial, Inc., Chaska, Minnesota, and thereby indirectly acquire KleinBank.

-Approved, October 15, 2018

Forms Forms — initial Board review to extend without revision the Basel II Interagency Pillar 2 Supervisory Guidance (FR 4199).

-Proposed, October 15, 2018

Forms — to discontinue the Monthly Report of Traveler’s Checks Outstanding (FR 2054).

-Approved, October 15, 2018

Regulations and Policies Changes in U.S. Payments Fraud — report on changes in U.S. noncash payments fraud from 2012 to 2016, as tracked in the Federal Reserve Payments Study.

-Published, October 16, 2018

Enforcement The Royal Bank of Scotland Group, PLC, Edinburgh, Scotland; and The Royal Bank of Scotland PLC — cease-and-desist order dated December 11, 2013, terminated October 10, 2018.

-Announced, October 16, 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 October 25, 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 October 24, 2018):  $4,220,813 (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 October 13, 2018; H.4.1 Release (Balance Sheet) for Week Ending October 18, 2018


Of Note

(1) Affording Economic Justice in the United States.

“Can We Afford Economic Justice in the United States” by Daniel Jose Camacho in Sojourners Magazine

Daniel Camacho wrote an article for Sojourners Magazine, which described his attendance at a conference of Modern Monetary Theory in September 2018 in New York. Camacho provided a brief description of MMT.

Camacho then explored several issues that MMT could support:

  • Federal job guarantee, an idea of Coretta Scott King
  • Religion and money, in which religious leaders become interested in learning about the monetary system and its relationship to societal issues and where people become interested in religion and Theology because of MMT (Nathan Tankus, inspired by the book Debt: The First 5,000 Years by David Graeber).

(2) The inhuman abasement of the vulnerable. Meanwhile, rich people who lavish in doing nothing receive shrugs.

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The Bad Behavior of the Richest: What I Learned from Wealth Managers” by Brooke Harrington in the Guardian.

Key quote–

These disparate perceptions aren’t just evidence of hypocrisy; they are literally a matter of life and death. In the US, the widespread belief that the poor are simply lazy has led many states to impose work requirements on aid recipients –even those who have been medically classified as disabled. Limiting aid programs in this way has been shown to shorten recipients’ lives: rather than the intended consequence of pushing recipients into paid employment, the restrictions have simply left them without access to medical care or a sufficient food supply. Thus, in one of the richest counties in America, a boy living in poverty died of a toothache; there were no protests, and nothing changed.


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 October 13, 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 Mergers Security Trust & Savings Bank, Storm Lake, Iowa — to purchase the assets and assume the liabilities of First National Bank of Rembrandt (FNB Bank), Rembrandt, and to establish a branch at the location of FNB Bank’s main office.

-Approved, October 10, 2018

Forms Forms — initial Board review to extend without revision the Disclosure Requirements of Subpart H of Regulation H (Consumer Protections in Sales of Insurance) (Reg H-7).

-Proposed, October 10, 2018

Regulations and Policies Supervisory Practices — interagency statement on supervisory practices for financial institutions affected by Hurricane Michael.

-Announced, October 10, 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 October 18, 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 October 17, 2018):  $4,223,185 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

 

The Futility of “Colorblindness”: Eric Blankenstein’s View Would Allow White People to Deem Verbal Anti-Black Insults as Mere “Mind Games”

Eric Blankenstein, head of the supervision, enforcement, and fair lending division at the Consumer Financial Protection Bureau (CFPB), wrote for a blog, in 2004, in which he asserted that dehumanizing words against black people (“boy”, the “n-word“) are just words or “mind games”. Such so-called mind games are not hate crimes, he asserted. He continued stating that a hate crime occurs if there is physical injury or damage to property.

 

This blog came up again in 2018, because of the position that Blankenstein holds at the CFPB. Some staffers there did not appreciate Blankenstein’s musings.

Blankenstein is free to hold any view he likes, but these views are contrary to the position he holds. As a result, all his actions in that office must be scrutinized to ensure their fairness and equitableness. He must not be allowed any discretionary authority, as he has demonstrated antagonism with the idea of the law he is in charge of enforcing.

Specifically, Blankenstein’s view is an apology for white hegemony. This situation of allowing the aggressor to determine how a victim should perceive attacks on their racial characteristics is peculiar to the United States, as the statutes against discrimination do not define racism but rather permit an aggrieved person to sue if a white person prevents them from doing something. However, a critical element in these cases is that the accused are allowed to demand the victim to define racism.


 


A quote from Reverend Thomas Merton’s book, “Seeds of Destruction” (Letters to a White Liberal), page 19-20, demonstrates the weakness of reliance on a definition from the aggressor:

We have been willing to grant the Negro rights on paper, even in the South. But the laws have been framed in such a way that in every case their execution has depended on the good will of white society, and the white man has not failed, when left to himself, to block, obstruct, or simply forget the necessary action without which the rights of the Negro cannot be enjoyed in fact. Hence, when laws have been passed, then contested, dragged through all of the courts, and finally upheld, the Negro is still in no position to benefit by them without, in each case, entering into further interminable lawsuits every time he wants to exercise a right guaranteed to him by law.

(Note: Emphasis, above (in bold), the blog author’s.)

In contrast, in the United Kingdom, racial abuse is defined in the law and punished with jail. Notably, the perception of the victim of the abuse is the primary factor for the crime.

Federal Reserve Board: H.2 Release for Week Ending October 6, 2018; H.4.1 Release (Balance Sheet) for Week Ending October 11, 2018

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 October 6, 2018, 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 Regulation and Economic Growth — statement by Vice Chairman for Supervision Quarles before the Senate Committee on Banking, Housing, and Urban Affairs on the Federal Reserve’s implementation of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

-Published, October 2, 2018

Regulations and Policies Bank Secrecy Act Compliance — issuance of an interagency statement about banks and credit unions sharing resources to improve the efficiency and effectiveness of Bank Secrecy Act compliance.

-Announced, October 3, 2018

Presidential Coins — Annual report to the Congress on the Presidential $1 Coin Program.

-Approved, September 19, 2018

(A/C)

Reserve Bank Operations Foreign Bank International Cash Services (FBICS) Program — requests by the Federal Reserve Bank of New York under Regulation N (1) to establish a program (and standard agreement templates) to permit certain foreign banks to open limited-purpose accounts at the New York Reserve Bank for the purpose of distributing U.S. dollar banknotes internationally, and (2) to negotiate with foreign banks and related parties regarding participation in the program.

-Approved, September 18, 2018

(A/C)

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 October 11, 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 October 10, 2018):  $4,224,609 (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 September 29, 2018; H.4.1 Release (Balance Sheet) for Week Ending October 4, 2018

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 29, 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 Branches, Domestic Compass Bank, Birmingham, Alabama — to establish a branch at 12525 Memorial Drive, Houston, Texas.

-Approved, September 25, 2018

Personnel Division of Consumer and Community Affairs — appointment of Angelyque Campbell as assistant director.

-Approved, September 24, 2018

Regulations and Policies Interbank Settlement of Faster Payments — notice requesting public comments on potential Federal Reserve actions to facilitate interbank settlement of faster payments.

-Approved, September 28, 2018

Enforcement Presidential Holdings, Inc., Bethesda, Maryland — supervisory agreement issued by the Office of Thrift Supervision dated May 3, 2010, terminated September 25, 2018.

-Announced, September 27, 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 October 4, 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 October 3, 2018):  $4,222,393 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)