Federal Reserve Board: H.2 Release for Week Ending January 16, 2016; Monetary Policy Report Hearings; A Comment

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 January 16, 2016, 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 Unione di Banche Italiane, S.p.A., Bergamo, Italy — to establish a representative office in New York, New York.

-Approved, January 14, 2016


Forms Forms — final Board review to extend with revision the Capital Assessments and Stress Testing information collection (FR Y-14A/Q/M).

-Approved, January 13, 2016



Monetary Policy Report, February 2016

In addition, the Monetary Policy Report hearings before the House and Senate have been announced.

U.S. House of Representatives U.S. Senate
February 10, 2016, 10:00 a.m., House Financial Services Committee February 11, 2016, 10:00 a.m., Senate Banking Committee
http://financialservices.house.gov/news/documentsingle.aspx?DocumentID=400197 http://www.banking.senate.gov/public/index.cfm/2016/2/semiannual-monetary-report-to-congress


A Comment

A slight digression follows. This blog covers the use of Dick Grote’s rank and yank program. Despite leading followers to destruction, organizations like the Board, and recently Mount St. Mary’s University, use (or propose to use) it. The Board additionally is carrying on a long-term case, Artis v. Greenspan Bernanke Yellen.

A quote from the Reverend Thomas Merton (mentioned by Pope Francis during his apostolic visit to the United States of America) to consider in thinking about the Board’s (unacceptable and backward) attitude toward employment discrimination claims:

“In effect we are not going to give the Negro a right to live where he likes, eat where he likes, go to school where he likes or work where he likes, but only to sue the white man who refuses to let him do these things. If every time I want an ice cream soda I have to sue the owner of the drugstore, I think I will probably keep going to the same old places in my ghetto.” (Merton, “Seeds of Destruction,” page 20)

These statements introduce a festering institution in decline–Vanguard, which was exposed in the Philadelphia Inquirer of using Grote’s rank and yank to cull staff. Vanguard, despite using the cruel program, does not want publicity. The only silver lining to the story were the humane managers (some of them also fired) who testified on behalf of their subordinates in their legal suits against Vanguard.

The rank injustice for an abused, paycheck-to-paycheck, employee to have to appeal to an expensive legal system, filled with persons who worked for corporations, to seek “relief” for abuse from a corporate institution, to the extent you have the Benjamins to pay, cries out earnestly for urgent remedy. Without it, the financially vulnerable employee faces a future of being discarded to the bin in penury. This result is bitter and needs serious reform.





Federal Reserve Board: Legal Cases against the Board (Current as of January 3, 2016)

Board of Governors of the Federal Reserve System

Legal Cases against the Board (current as of January 3, 2016)

[Board information last updated on November 4, 2015.]

(Case dockets can be accessed through www.pacer.gov.)

Case name Docket number Issue of Case (and case history)
White Arnold & Dowd, P.C., v. Board of Governors No 15-CV-00789 (N.D. Ala., filed May 12, 2015) Freedom of Information Act case.

On October 30, 2015, the district court dismissed the case on the parties’ stipulation.




Love v. Board of Governors No. 16-CV-1077 (D. Kan., filed March 13, 2015) Claim involving the Board’s alleged failure to comply with its mandate under the Federal Reserve Act. On June 11, 2015, the district court granted the Board’s motion to dismiss.
Ramey v. Board of Governors No. 14-CV-220 (D.D.C., filed December 22, 2014) Freedom of Information Act case.
The Loan Syndications and Trading Association v. Board of Governors No. 14-1240 (D.C. Cir., petition for review filed November 10, 2014) Petition for review of credit risk retention rules issued under Section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Richardson v. Board of Governors No. 14-CV-01673 (D.D.C., filed October 8, 2014) Employment discrimination claim.
Community Financial Services Association of America, Ltd., v. Board of Governors No. 14-CV-00853 (D.D.C., filed June 11, 2014) Administrative Procedure Act challenge to actions of the Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency that allegedly disadvantage payday lenders.
NACS et al. v. Board of Governors No. 13-5720 (D.C. Circuit, notice of appeal filed August 21, 2013) Appeal from district court ruling invalidating Board regulations issued pursuant to section 1075 of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to debit card interchange fees. On March 21, 2014, the Court of Appeals reversed the district court’s grant of summary judgment and remanded the action to the district court. On August 18, 2014, the plaintiff filed a petition for certiorari. On January 20, 2015, the Supreme Court denied NACS’s petition for certiorari (No. 14-200). On October 2, 2015, the district court entered judgment for the Board.
WMI Liquidating Trust v. Board of Governors   No. 13-CV-01706 (W.D. Washington, filed September 20, 2013) Action for a declaratory judgment regarding golden parachute payments. On July 3, 2014, the action was transferred to the United States Bankruptcy Court for the District of Delaware (Adv. Pro. No. 14-50435-MFW (Bankr. D. Del.)), and on March 19, 2015, the district court withdrew the reference and took jurisdiction of the matter (No. 14-CV-01097).
Ferrer v. Bernanke     No. 13-CV-01145 (S.D. Fla, filed July 30, 2013) Claim on behalf of putative class of mortgagors that the Board’s Independent Foreclosure Review and related enforcement actions failed to provide sufficient benefits to borrowers. On October 28, 2014, the district court granted the Board’s motion to dismiss the action. On November 25, 2014, the plaintiffs filed a notice of appeal (Eleventh Circuit, No. 14-15325).
Ball v. Board of Governors No. 13-CV-00603 (D.D.C., filed April 30, 2013) Freedom of Information Act case. On March 31, 2015, the district court granted the Board’s motion for summary judgment.
Crisman v. Board of Governors No. 12-CV-1871 (D.D.C., filed November 19, 2012) Freedom of Information Act and Privacy Act case.
Wise v. Federal Reserve Board No. 12-CV-1636 (D.D.C., filed October 2, 2012) Federal Tort Claims Act case.
State National Bank of Big Spring v. Bernanke No. 13-5247 (D.C. Cir. Notice of appeal filed August 2, 2013) Appeal from district court’s dismissal of challenge to the constitutionality of the Consumer Financial Protection Bureau and the Financial Stability Oversight Council. On July 24, 2015, the Court of Appeals affirmed in part and remanded in part to the district court to consider issues related to the CFPB.
Artis v. Greenspan No. 01-CV-0400(ESG) (D.D.C., complaint filed February 22, 2001) Employment discrimination action. On September 29, 2014, the district court denied the plaintiffs’ motion for class certification. On January 14, 2015, the D.C. Circuit denied plaintiffs’ petition to appeal that ruling (No. 14-8003). On June 22, 2015, the district court dismissed the case with prejudice.


No. 15-5260 (D.C. Cir., notice of appeal filed September 19, 2015). Appeal of dismissal of plaintiffs’ Equal Employment Opportunity claims.


[Author’s note: The Artis case has some related blog posts.]

U.S. Judiciary: Chief Justice John Roberts Issues 2015 Year-End Report

John Roberts, Chief Justice of the United States, issued a 2015 year-end report on the judiciary.

The Chief Justice focused on amendments to the Federal Rules of Civil Procedure (FRCivP), which became effective on December 1, 2015. The Chief Justice remarked that the government is responsible for providing a tribunal for peaceful resolution of disputes. Unlike that that occurred in the history of the United States, when disputes were resolved by dueling.

The Chief Justice noted that an advisory committee in 2010 determined that “while the federal courts are fundamentally sound, in many cases civil litigation has become too expensive, time consuming, and contentious, inhibiting effective access to the courts.”

[Author’s note: I have noticed the profound injustice explained in this observation in the employment discrimination case facing the Federal Reserve Board–Artis v. Greenspan Bernanke Yellen. The length, circuitous route, and incredible expense of time (18+ years), effort and money that the plaintiffs have had to endure in this case to resolve this claim is offensive to the conscience. Such conditions demonstrate that the court system is also broken.]

The advisory committee in 2010, the Chief Justice explained, identified four needs for procedural reform, which would–

  • Encourage greater cooperation among counsel,
  • Focus discovery–the process of obtaining information within the control of the opposing party–on what is truly necessary to resolve the case,
  • Engage judges in early and active case management, and
  • Address serious new problems associated with vast amounts of electronically stored information.


The Chief Justice then described some of the changes brought by the amended FRCivP envision that the parties and the court work toward controlling the time and expense of litigation.

The Chief Justice explained that idea is contained within Rule 1 of the amended FRCivP, which provides that “the Federal Rules should be construed, administered, and employed by the court and the parties to secure the just, speedy, and inexpensive determination of every action and proceeding.”

The Chief Justice noted that fulfillment of this goal can only occur with the willingness of the legal community to make it happen.

[Note 1: Judicial pay has increased for 2016. See Executive Order 13715, schedule 7) (https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/pay-executive-order-2016-adjustments-of-certain-rates-of-pay.pdf).


Position Pay in 2010-2013 (in dollars) Pay in 2014 (in dollars) Pay in 2015 (in dollars) Pay in 2016 (in dollars)
Chief Justice of the United States 223,500 255,500 255,500 260,700
Associate Justices of the Supreme Court 213,900 244,400 244,400 249,300
Circuit Judges 184,500 211,200 211,200 215,400
District Judges 174,000 199,100 199,100 203,100
Judges of the Court of International Trade 174,000 199,100 199,100 203,100


In the appendix to the report, the Chief Justice provides and explanation of the workload of the judiciary. I will focus on the Supreme Court’s workload. Eight per curiam decisions were issued during this term in cases that were not argued.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Filings 8521 8857 8241 7738 8159 7857 7713 7509 7376 7033
In forma pauperis 6846 7132 6627 6142 6576 6299 6160 6005 5808 5488
Paid docket 1671 1723 1614 1596 1583 1558 1553 1504 1568 1545
argued 87 78 75 87 82 86 79 77 79 75
disposed 82 74 72 83 77 83 73 76 77 75
signed opinions 69 67 67 74 73 75 64 73 67 66

Federal Reserve Board: Walter T. Charlton, Counsel for Cynthia Artis, Artis v. Bernanke, on C-Span in 2002; A note on John Roberts and Antonin Scalia

Walter T. Charlton, Counsel for Cynthia Artis, et al., in the extremely long duration employment discrimination case, Artis v. Greenspan Bernanke Yellen spoke about the Federal Reserve Board in 2002. Thirteen years later, the case is still active.

The Board acts as if equal opportunity is an undeserved burden, one which it does not have to respond to. This whole case is an abomination because one witnesses the Board as a passive yet determined and obstinate barrier against equal employment opportunity.

See video on the C-Span website. (http://www.c-span.org/person/?waltercharlton)

[Author’s note: A slight, but related, digression follows. Chief Justice of the United States John Roberts commented in oral argument for Fisher v. University of Texas that the United States of America will be able to resolve its centuries-old mistreatment of nonwhite persons, and promotion of white citizens, in a mere 25 years (Court transcript, page 49).

B9j2m1qIIAAV7-W.jpg large
The price of white hegemony is borne by other people.

(The Chief Justice did not cite authority for such a time limit; the 14th Amendment (clause 5) is enforced by the Congress, not the Court (the Court has moved to limit the plain language of the text) however, setting time limits is political and is an exercise of legislative power. Such legislating is perverse for an unelected, unaccountable body to dare to think of imposing.)


Moreover, Roberts’ 25-year target for the “resolution” of race is an astoundingly exasperating statement to hear from the Supreme Court, a body which has not had any black justices (save Justice Thurgood Marshall–I deliberately exclude Clarence Thomas) until recently. Before historically recent times, no black people were involved in setting the precedential cases of the institution (as voting justices); all they do now is carry out the laws generated by the white justices before them. This result shows the injustice of the blind application of stare decisis in the United States of America.

Not to forget, Associate Justice Antonin Scalia deigned all black people (a people who pay taxes for the institution of the Supreme Court) as intellectually slow and proposed (during oral argument) essentially the  re-institution of separate but equal policies based on perceived intellectual power. (Court transcript, pages 67 and 68.) (How Scalia has the power to determine another human beings’ intellectual value was unstated; I certainly do not accept Scalia as a trustworthy arbiter or as God.) Regardless of the intent of the argument, fulfillment of Justice John Harlan’s dissent is the ultimate goal. The Supreme Court is yet another huge mountain in the path of progress.

Scalia’s remarks broadcast (from a U.S. government microphone and U.S. government property) are the result of odious scientific racism, and those remarks also reflected the soiled workings of his mind. He is not alone–Google James Watson.

Furthermore, to witness an institution with a legal workforce that is mostly or all white (and male) having the audacity to lecture the country on the meaning of race–especially black people who suffer under the unfair policies–is truly insulting, and, yes, unacceptable.]



Federal Reserve Board: H.2 Release for Week Ending November 21, 2015; A Brief Comment on Diversity Practices of the Board

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 21, 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 Community Bank System, Inc., DeWitt, New York — to acquire Oneida Financial Corp., Oneida, and thereby indirectly acquire Oneida Savings Bank and State Bank of Chittenango, Chittenango.

-Approved, November 17, 2015











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 $5 billion on December 3, 2015.

-Announced, November 19, 2015



Regulations and Policies Liquidity Coverage Ratio (LCR) — publication for comment of a proposed rule to implement public disclosure requirements for depository institution holding companies and nonbank financial companies subject to the LCR requirements, and extension of compliance period for companies newly subject to the modified LCR rule.

-Approved, November 13, 2015




Enforcement BNP Paribas S.A. (BNP), Paris, France — request to select K2 Intelligence as an independent consultant to perform certain requirements under the June 30, 2014, enforcement action against BNP.

-Approved, November 20, 2015


Independent Foreclosure Review Payment Agreement — redistribution plan for unclaimed funds under the agreement to eligible borrowers who have cashed or deposited checks.

-Approved, November 18, 2015


Jones Bancshares, L.P., Waycross, Georgia, and PrimeSouth Bancshares, Inc. — written agreement issued July 12, 2011, terminated November 13, 2015.

-Announced, November 19, 2015


Regent Bancorp, Inc., Davie, Florida — written agreement issued April 25, 2011, terminated November 10, 2015.

-Announced, November 19, 2015





Separately, the Board publishes a confounding table for its EEO-1 report and purports to be an inclusive and diverse workforce. However, the results of the report by Representative Maxine Waters (D-Calif.) (Waters report) and of the Board’s own Inspector General, shows that the current Board practices have exclusive and non-diverse outcomes.

[Regarding the Board’s EEO-1 report–such a confusing list of numbers and percentages. If monetary policy was conducted in such a cavalier and obscure fashion (as it does for diversity and inclusion programs), the Board would be asked to resign.]

The present director of the Board’s Office of Minority and Women Inclusion, Sheila Clark, has evidenced that the Board itself has a self-perception that it is separate from the country in civil rights matters, for example, in the hiring black employees, and the retention those few black persons that are hired. [The Waters report (page 12) showed that across all of the federal financial regulatory agencies, including the Board, blacks received lower ratings.] The Board’s Chief Operating Officer, Don Hammond, is yet another huge obstacle to progress.


Sheila Clark’s letter to the Equal Employment Opportunity Commission (printed in the Auerbach book, page 123).


The Board’s separate but equal worldview is totally unacceptable in 2015; change is absolutely necessary–not simply diversity scorecards (???), an extremely facile and passive response (considering the Board’s 18+ year legal fight in Artis v. Greenspan, an employment discrimination case). The Board should also update its equal employment opportunity regulations to ensure that current-day employment discrimination rules are reflected in those regulations.



Federal Reserve Board: H.2 Release for Week Ending November 7, 2015; Background on the Board’s OMWI Program

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 7, 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 Supervision and Regulation — statement by Chair Yellen before the House Committee on Financial Services on the Federal Reserve’s regulation and supervision of financial institutions.

-Published, November 4, 2015

Bank Holding Companies M&T Bank Corporation, Buffalo, New York — commenter’s request for reconsideration of the Board’s approval of the proposal by M&T Bank Corporation to acquire Hudson City Bancorp, Inc., Paramus, New Jersey.

-Denied, November 4, 2015

Forms Forms — final Board review to extend without revision the recordkeeping and disclosure requirements associated with the regulations implementing the Fair Credit Reporting Act (Regulation V).

-Approved, November 2, 2015

Forms — initial Board review to implement the Application for Membership for the Community Advisory Council (FR 1401).

-Proposed, November 2, 2015

Reserve Bank Operations Federal Reserve Bank of Minneapolis — appointment of Neel T. Kashkari as president, effective January 1, 2016.

-Approved, October 22, 2015


Reserve Bank Services Federal Reserve Priced Services — 2016 private sector adjustment factor and fee schedules for priced services and electronic access.

-Approved, November 2, 2015

Enforcement Deutsche Bank, AG, Frankfurt, Germany — issuance of a consent cease and desist order and assessment of a civil money penalty.

-Approved, November 2, 2015

Goldman, Sachs & Co., New York, New York — issuance of a consent order of prohibition against Rohit Bansal, a former institution-affiliated party.

-Announced, November 5, 2015

Separately, last week, Representative Maxine Waters (D-Calif.) and other Congressional Democrats issued a report (Waters Report) about diversity within the federal financial regulatory agencies. The executive summary for the report indicated that the Board’s director for the Office of Minority and Women Inclusion (at the time of this writing, the Board calls the office, the Office of Diversity and Inclusion (or ODI)) is Ms. Sheila Clark.

[Quote from Rev. Thomas Merton’ s book, “Seeds of Destruction.” (Pope Francis mentioned Rev. Merton during his remarks before a joint session of Congress.)–

But the [civil rights] laws have been framed in 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 engaged in fact. (Page 19).


Some pertinent background facts:

January 11, 2011: Artis v Greenspan–The Court of Appeals for the District of Columbia Circuit, issued a decision against the Board, remanding the case to the U.S. District Court for the District of Columbia.

January 11, 2011: The Board announced that it had created offices of diversity and inclusion for the Board and the Federal Reserve Banks. The director of the Board’s office was named–Ms. Sheila Clark.

Ms. Sheila Clark–

  • See a Huffington Post article by Professor Robert D. Auerbach, author of “Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan’s Bank,” in which he stated (reference (about letter) is located at page 123 of his book)–
    • “The Fed Press Release states that Sheila Clark will be one of the heads of the “diversity and inclusion offices” at the Board. I have a copy of a letter sent by her (10/27/1995) stating that “while the Board of Governors of the Federal Reserve System has taken the position that [missing ‘it”] is not subject to the [C]ivil [R]ights Act of 1964, as amended, and its associated executive orders and regulations, it subscribes fully to their basic goals and spirit.” Yet, the Federal government’s Equal Employment Opportunity Commission (EEOC) had told Greenspan emphatically as early as 1989 that the Commission’s position was that Title VII of the Civil Rights Act applied fully to the Federal Reserve.”
Sheila Clark's letter to the EEOC (printed in the Aurebach book, page 123).
Sheila Clark’s letter to the EEOC (printed in the Auerbach book, page 123).

In addition, the executive summary of the Waters Report (page 5) stated the following about the Board:

The Federal Reserve Board of Governors (“FRB”)

OMWI Director–Sheila Clark

The Federal Reserve Board is the central bank of the United States, and in addition to working to provide a safer, more stable and flexible monetary system, it also regulates bank holding companies, and the largest, most complex non-bank financial institutions in the country.

In racial, ethnic and gender categories, its workforce diversity was found to exceed the diversity found within the civilian labor force.

The FRB has the most diverse general workforce and the largest percentage of women employees in senior management.

Yet, notably the FRB OIG determined that the diversity data collected was not validated against the agency’s employee electronic human resources records which undermines the integrity of the agency’s diversity efforts and its strong empirical diversity data.

The FRB does not have a finalized set of diversity and inclusion standards as required under the Dodd-Frank Act.

Federal Reserve Board, Office of Minority and Women Inclusion, Reports to Congress

(Preface language for report submitted in 2015.) “Pursuant to section 342(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the Office of Diversity and Inclusion (ODI) of the Board of Governors of the Federal Reserve System must submit an annual report to the Congress outlining the activities, successes, and challenges of the office. This is the office’s report for calendar year 2014. Sheila Clark serves as the director of ODI.”

Federal Reserve Board: H.2 Release for Week Ending October 31, 2015; Rep. Maxine Waters Issues Report on Diversity at Fed. Financial Agencies, Incl. the Board

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 31, 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 Margin and Capital Requirements for Covered Swap Entities — (1) interagency final rule to establish minimum margin and capital requirements for swaps and security-based swaps that are not cleared through a clearinghouse, in accordance with the Dodd-Frank Act, and (2) request for comment on interim final rule to exempt from margin requirements certain non-cleared swaps, such as those used for hedging purposes by commercial end-user counterparties.

-Approved, October 30, 2015

Regulations Q and YY — publication for comment of proposed rule to require U.S. global systemically important banking organizations and the U.S. operations of systemically important foreign banks to meet a new long-term debt requirement and a new total loss-absorbing capacity requirement.

-Approved, October 30, 2015

In addition, on November 5, 2015, the Board permanently barred Mr. Rohit Bansal, former investment banker at Goldman Sachs & Co. from participating in the banking industry.


Separately, and also on November 5, 2015, Representative Maxine Waters (D-Calif.), Ranking Member of the House Committee on Financial Services, and the Tri-Caucus, issued a report, “The Dodd-Frank Act Five Years Later: Diversity in the Financial Services Agencies.” In addition, the Committee Democrats issued a letter, with the report, to the agency heads, requesting a response by December 7, 2015.

Notably, but sadly unsurprisingly, the report found that across the federal financial agencies, black/African American employees, overall, received lower performance management scores than white employees (see graphs on page 12 of the report, especially the one for the Board at the bottom of the page).

In addition, the report had specific comments for each agency. I will quote the portion of the report relating to the Board below.

The Federal Reserve Board of Governors (FRB)

Empirically, the FRB workforce was among the most diverse of all the Agencies, both generally and with respect to the senior management. In racial, ethnic, and gender categories, its workforce diversity was found to exceed the CLF. However, the OIG found several areas where the FRB has failed to adhere to statutory requirements.

Procedurally, the FRB did not follow the statutory instructions to name the newly-established diversity office, “the Office of Minority and Women Inclusion,” and instead opted to call it the “Office of Diversity and Inclusion” (“OD&I”).

Substantively, the OIG also recommended that the OD&I Director ensure that No-FEAR Act training is offered on a regular basis, is tailored to the FRB, and includes EEO and diversity and inclusion topics in accordance with the Board’s No-FEAR Act Written Training Plan.[48. Federal Reserve Board, Office of Inspector General, THE BOARD CAN ENHANCE ITS DIVERSITY AND INCLUSION EFFORTS, (2015-MO-B006, Mar. 31, 2015), 54.] Further, the OIG suggested that such trainings be updated as necessary to address any deficiencies identified, and that attendance records be retained.[49. Id.] The OIG noted that the EEOC’s MD-715 “guidance advocates that all employees receive information about the EEO program through training on the EEO process and the protections afforded to employees, related policy statements, and reasonable accommodation procedures.”[50. Id. at 53.] Such diversity and inclusion training is critical to the proper functioning of the human resources office within the agency. Notably, the OIG found that the “data collected [for the OD&I’s MD-715 processes] were not validated against the employee electronic records stored in HR” during the audit period from FY 2011 through FY 2013. The lack of controls for diversity data found at the FRB by the OIG undermines the integrity of the agency’s diversity and inclusion programs, and may in fact be contrary to required EEOC reporting regulations.

Ultimately, the FRB’s implementation of the Section 342 requirements suggests to the Committee staff a tendency toward maintaining the status-quo with respect to workforce diversity efforts. “Although the FRB established the OD&I to include an OMWI function in response to the Dodd-Frank Act requirements, according to the OD&I official, the OD&I has not significantly modified its approach because these activities were already being covered prior to the enactment of the Dodd-Frank Act.”[51. Id. at 55.] Also, like several other agencies, as of the date of the OIG’s report, the OD&I had not finalized a formal set of diversity and inclusion standards, as required by Section 342.

[Author’s note: This blog covered some parts of these audit reports from the Inspectors General, especially that for the Board.]

Federal Financial Agency Report Number Internet Link Comment
Consumer Financial Protection Bureau Audit report 2015-MO-C-002 http://oig.federalreserve.gov/reports/cfpb-diversity-inclusion-mar2015.pdf American Banker article about racial disparities of CFPB staff evaluations.
Department of the Treasury, Office of the Comptroller of the Currency OIG-15-017 http://www.treasury.gov/about/organizational-structure/ig/Audit%20Reports%20and%20Testimonies/OIG-15-017.pdf
Federal Deposit Insurance Corporation Eval-15-001 http://www.fdicoig.gov/reports15/15-001EV.pdf
Federal Housing Finance Agency EVL-2015-003 http://fhfaoig.gov/Content/Files/EVL-2015-003.pdf
Federal Reserve Board Audit report 2015-MO-B-006 http://oig.federalreserve.gov/reports/board-diversity-inclusion-mar2015.pdf What is left out of the report is significant: Artis v. Bernanke (now Yellen). Also 12 U.S.C. 244 needs Congressional attention to ensure that Title 5 of the U.S. Code applies to the Board; the Board’s record-keeping on, and reporting of, its internal management is lax.
National Credit Union Administration OIG-14-09 http://www.ncua.gov/about/Leadership/CO/OIG/Documents/OIG201409EqualOpportunityDiversity.pdf Click for blog post on this report
Securities and Exchange Commission 528 http://www.sec.gov/oig/reportspubs/528.pdf Report is thorough, thoughtful, and well done.