Federal Reserve Board: H.2 Release for Week Ending June 29, 2019; H.4.1 Release (Balance Sheet) for Week Ending July 5, 2019; 3 Of Note Items

Of Note–

(1) Monetary Policy Report, July 2019

The Monetary Policy Report hearings will be held on July 10 and 11, 2019. (updated 7-9-19)

U.S. House of Representatives U.S. Senate
Wednesday, July 10, 2019, 10:00 a.m., House Financial Services Committee Thursday, July 11, 2019, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=403999 Press release: https://www.banking.senate.gov/hearings/07/08/2019/the-semiannual-monetary-policy-report-to-the-congress
Monetary Policy Report, issued July 5, 2019, https://www.federalreserve.gov/publications/files/20190705_mprfullreport.pdf

(2) Monetary policy only for the rich. The fruits of the so-called recovery did not reach many people, leaving grave doubt about the effectiveness of monetary policy. Via Washington Post

Comment: Some comments on the article attempt to blame the suffering for their malady, as if buying a $3 cup of coffee is the only thing keeping people from buying homes. [Assuming a cup of coffee 5 days a week for a year-(3*5)*52 =$780. A house in DC could cost at least $200,000]

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(3) The perils of stock buybacks. Via Naked Capitalism

 


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 29, 2019, is below.

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

Category Action Taken
Bank Holding Companies Banco Santander, S.A., Madrid, Spain — to indirectly acquire additional shares of Santander Consumer USA Holdings Inc., Dallas, Texas.

-Approved, June 26, 2019

 

Texas Independent Bancshares, Inc., Texas City, Texas — to acquire Preferred Bancshares, Inc., Houston, and thereby indirectly acquire Preferred Bank; and for Texas First Bank, Texas City, to merge with Preferred Bank and establish branches.

-Approved, June 26, 2019

 

Forms Forms — initial Board review to extend without revision the Recordkeeping Provisions Associated with Guidance on Leveraged Lending (FR 4203).

-Proposed, June 24, 2019

 

 

Personnel Division of Supervision and Regulation — appointment of James F. Price, Jr., as deputy director.

-Approved, June 20, 2019

(A/C)

 

Supervision and Regulation Stress tests and capital plan reviews — 2019 results.

-Approved, June 20, 2019

(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 July 5, 2019, 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 July 3, 2019):  $3,860,965 (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 30, 2017; H.4.1 Release (Balance Sheet) for Week Ending October 5, 2017; Seth Klarman, Billionaire, Owns Puerto Rican Debt: Bought for Pennies/Dollar–Nearly $1 Billion–Expects Full Face-Value Payment


Of Note

(1) Nearly one Billion dollars of Puerto Rican debt is held by a hedge fund managed by a billionaire, Seth Klarman (his attorney is Jeffrey Katz of law firm Ropes and Gray).

From the Intercept

The Baupost Group, a Boston-based hedge fund managed by billionaire Seth Klarman, owns nearly $1 billion of Puerto Rican debt, purchased under a shell company subsidiary and hidden from public scrutiny. Baupost acquired the debt through an on-paper Delaware-based corporation named Decagon Holdings LLC, whose beneficial owner had been unknown until now.

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Comment:  A key fact of this debt–it was bought for less than the face value, yet the holders are demanding repayment based upon the 100 percent of the debt’s face value. Who is ultimately to pay these “debt holders”–other U.S. citizens (that is, the poor and the (former) middle class).

A quote (again from the Intercept)–

Though the island, currently recovering from a catastrophic hurricane, has been mired in a borrowing crisis for years, it’s difficult to get precise information about the creditors. Many of them scooped up bonds on the cheap, seeking an astronomical payout by forcing the island to pay them back at par (or 100 cents on the dollar). This has led to widespread suffering, as punishing austerity has been imposed to encourage Puerto Rico to pay back the bondholders in full. (Only now has some of this austerity been lifted in the wake of Hurricane Maria.)

 

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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 30, 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 Interagency Notice of Change in Control (FR 2081A), Interagency Notice of Change in Director or Senior Executive Officer (FR 2081B), Interagency Biographical and Financial Report (FR 2081C), and Interagency Bank Merger Act Application (FR 2070).

-Proposed, September 25, 2017

 

Forms — interagency notice and request for comment to transition the Federal Reserve’s Annual Company-Run Stress Test Report for State Member Banks, Bank Holding Companies, and Savings and Loan Holding Companies with Total Consolidated Assets Greater Than $10 Billion and Less Than $50 Billion (FR Y-16) to a Federal Financial Institutions Examination Council reporting form (FFIEC 016).

-Proposed, September 27, 2017

Regulations and Policies Regulatory Capital Rule — publication for comment of interagency proposal to simplify certain aspects of the agencies’ regulatory capital rule. (NOTE: A revised capital proposal was approved on September 26, 2017.)

-Approved, September 20, 2017

(A/C)

Regulatory Capital Rule — publication for comment of interagency proposal to simplify certain aspects of the agencies’ regulatory capital rule to reduce regulatory burden, especially for banking organizations not subject to the advanced approaches capital rule.

-Approved, September 26, 2017

 

Supervision and Regulation Resolution Plans — joint determination with the Federal Deposit Insurance Corporation to extend the resolution plan filing dates (1) for eight large domestic banking organizations to July 1, 2019; and (2) for 82 foreign banking organizations with limited U.S. operations to December 31, 2018.

-Approved, September 27, 2017

Enforcement HSBC Holdings PLC, London, United Kingdom; and HSBC North America Holdings, Inc., New York, New York — issuance of a consent cease-and-desist order and order of assessment of a civil money penalty.

-Approved, September 14, 2017

(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 5, 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 October 4, 2017):  $4,507,035 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)