Federal Reserve Board: H.2 Release for Week Ending May 11, 2018; H.4.1 Release (Balance Sheet) for Week Ending May 16, 2019

Of Note–

(1) The Federal Reserve Board removed the Artis v. Greenspan Bernanke Yellen case from its list of legal developments. The Artis case has ended; the lessons from it are everlasting.

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Comment: The Board should not expect in the Internet age that it will have the last word.  The Board thinks that it can delete information from its convoluted webpage and the “people” will just forget. This is nonsensical.

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The last word belongs, always, to Walter Charlton, Artis counsel, and the Artis plaintiffs. To that end, I have a section on the blog for the Artis case.


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 11, 2019, 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 Reporting, Recordkeeping, and Disclosure Requirements Associated with Regulation NN (FR NN).

-Proposed, May 7, 2019

 

Forms — final Board review to extend without revision the Recordkeeping Requirements of Regulation H and Regulation K Associated with the Procedures for Monitoring Bank Secrecy Act Compliance (FR K).

-Approved, May 7, 2019

 

Forms — final Board review to extend with revision the Application to Become a Savings and Loan Holding Company or to Acquire a Savings Association or Savings and Loan Holding Company (FR LL 10(e)).

-Approved, May 7, 2019

 

Forms — final Board review to extend with revision the Suspicious Activity Report (FR 2230).

-Approved, May 7, 2019

 

Forms — initial Board review to extend without revision the Recordkeeping Provisions Associated with the Interagency Statement on Complex Structured Finance Activities (FR 4022).

-Proposed, May 7, 2019

 

Monetary and Financial Policy Financial Stability Report — publication of the semiannual report presenting the Board’s assessment of financial stability conditions.

-Published, May 6, 2019

 

 

Personnel Division of International Finance — appointment of Joseph W. Gruber as deputy director and Matteo Iacoviello and Andrea Raffo as deputy associate directors.

-Announced, May 9, 2019

 

Regulations and Policies Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E. Act) — final rule to repeal the regulations incorporating the S.A.F.E. Act, which have been superseded by a final rule issued by the Bureau of Consumer Financial Protection.

-Approved, May 7, 2019

 

Reserve Bank Services Enhanced Same-Day Automated Clearing House (ACH) Service — publication for comment of (1) potential modifications to the operating hours of the Federal Reserve Banks’ National Settlement Service and Fedwire Funds Service to support enhancements to the same-day ACH service; and (2) corresponding changes to the Federal Reserve Policy on Payment System Risk.

-Approved, May 7, 2019

 

Supervision and Regulation Supervision and Regulation Report — publication of the semiannual report summarizing banking conditions and the Board’s current and ongoing supervisory and regulatory activities.

-Published, May 10, 2019

 

Enforcement First American Bancorp, Greenwood Village, Colorado — written agreement dated August 20, 2010, terminated May 3, 2019.

-Announced, May 7, 2019

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 16, 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 May 15, 2019):  $3,912,691 (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 May 4, 2018; H.4.1 Release (Balance Sheet) for Week Ending May 9, 2019

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 27, 2019, 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 with revision the Central Bank Survey of Foreign Exchange and Derivatives Market Activity (FR 3036).

-Approved, April 23, 2019

 

Forms — initial Board review to extend with revision the Notice Claiming Status as an Exempt Transfer Agent (FR 4013).

-Proposed, April 23, 2019

Regulations and Policies Determination of Control Over Banking Organizations — publication for comment of a notice of proposed rulemaking to simplify and increase the transparency of rules for determining control of a banking organization.

-Approved, April 23, 2019

Enforcement Sumitomo Mitsui Banking Corporation, Tokyo, Japan; and Sumitomo Mitsui Banking Corporation, New York Branch, New York, New York — written agreement with the Federal Reserve Bank of New York.

-Announced, April 25, 2019

 

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 2, 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 May 1, 2019):  $3,937,421 (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 27, 2019; H.4.1 Release (Balance Sheet) for Week Ending May 2, 2019


Of Note

The composition of the Atlanta Federal Reserve Banks board of directors is on the blog.


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 27, 2019, 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 with revision the Central Bank Survey of Foreign Exchange and Derivatives Market Activity (FR 3036).

-Approved, April 23, 2019

 

Forms — initial Board review to extend with revision the Notice Claiming Status as an Exempt Transfer Agent (FR 4013).

-Proposed, April 23, 2019

Regulations and Policies Determination of Control Over Banking Organizations — publication for comment of a notice of proposed rulemaking to simplify and increase the transparency of rules for determining control of a banking organization.

-Approved, April 23, 2019

Enforcement Sumitomo Mitsui Banking Corporation, Tokyo, Japan; and Sumitomo Mitsui Banking Corporation, New York Branch, New York, New York — written agreement with the Federal Reserve Bank of New York.

-Announced, April 25, 2019

 

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 2, 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 May 1, 2019):  $3,937,421 (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 20, 2018; H.4.1 Release (Balance Sheet) for Week Ending April 25, 2019

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 20, 2019, 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 implement the Report of Institution-to-Aggregate Granular Data on Assets and Liabilities on an Immediate Counterparty Basis (FR 2510).

-Approved, April 15, 2019

 

Forms — initial Board review to extend without revision the Written Security Program for State Member Banks (FR 4004).

-Proposed, April 15, 2019

 

Forms — final Board review to extend without revision the Registration of a Securities Holding Company (FR 2082).

-Approved, April 15, 2019

 

Forms — initial Board review to extend with revision the Reporting Requirements Associated with Regulation Y (Extension of Time to Conform to the Volcker Rule) (FR Y-1).

-Proposed, April 15, 2019

 

Regulations and Policies Capital Rule — publication for comment of an interagency proposed rule to modify a capital requirement for banking organizations predominantly engaged in custodial activities, in accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act.

-Approved, April 11, 2019

(A/C)

 

Enforcement BB&T Corporation, Winston-Salem, North Carolina — cease-and-desist order dated January 25, 2017, terminated April 17, 2019.

-Announced, April 18, 2019

 

Princeton Capital Holdings LLC, Ewing, New Jersey; Princeton Capital LLC; and PrinCap Holdings One LLC — written agreement with the Federal Reserve Bank of Philadelphia.

-Announced, April 16, 2019

 

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 25, 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 April 24, 2019):  $3,976,256 (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 13, 2018; H.4.1 Release (Balance Sheet) for Week Ending April 18, 2019

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 13, 2019, 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 Semiannual Report of Derivatives Activity (FR 2436).

-Proposed, April 10, 2019

 

Forms — initial Board review to extend without revision the Senior Credit Officer Opinion Survey on Dealer Financing Terms (FR 2034).

-Proposed, April 9, 2019

 

Regulations and Policies Collection of Debts — final rule to provide for collection of outstanding debts owed to the Board, primarily by referral to the U.S. Department of the Treasury.

-Approved, April 8, 2019

 

Prudential Standards and Resolution Plans — publication for comment of notices of proposed rulemaking on enhanced prudential standards for foreign banks and resolution-plan requirements for foreign and domestic banks.

-Approved, April 8, 2019

 

Enforcement Standard Chartered plc, London, United Kingdom; Standard Chartered Bank; and Standard Chartered Bank, New York Branch, New York, New York — issuance of a consent cease-and-desist order and assessment of a civil money penalty for unsafe and unsound practices relating to inadequate sanctions controls and failure to disclose sanctions risks.

-Approved, April 8, 2019

 

UniCredit S.p.A., Milan, Italy; UniCredit Bank AG, Munich, Germany; and UniCredit Bank Austria AG, Vienna, Austria — issuance of a consent cease-and-desist order and assessment of a civil money penalty for unsafe and unsound practices relating to U.S. sanctions laws.

-Approved, April 9, 2019

 

 

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 18, 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 April 17, 2019):  $3,979,736 (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 March 30, 2018; H.4.1 Release (Balance Sheet) for Week Ending April 4, 2019

Of Note

(1) Update–The Backsliding Board on Diversity and Inclusion. (Note: A more-detailed analysis of this report was posted to the blog.) I am extremely disappointed (yet unsurprised) with the leadership of Jerome Powell. He is a multimillionaire who does not care (except for the interests of the rich and powerful).

The Board released its 2019 Office of Minority and Women Inclusion Report to Congress.

Comment from the analytical post: According to the report, Powell stated that he would take personal interest in diversity and inclusion. (On this, I am uncertain as to the Chairman’s sincerity because his portfolio on diversity and inclusion is thin (no speeches, some town hall (no transcript available to the public), and a video on the Board’s website), and a paragraph that describes how Sheila Clark meets with the chairman, the chief operating officer, the chief human capital officer and senior leadership to discuss EEO, diversity and inclusion, which was in the 2018 report (page 7, fourth full paragraph, right column), was removed from the 2019 report.

 

 

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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 March 30, 2019, is below.

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

Category Action Taken
Personnel Division of Reserve Bank Operations and Payment Systems — appointment of Jennifer Liu, Jennifer Lucier, and David Mills as associate directors; Tim Maas as deputy associate director; Casey Clark, Jason Hinkle, and Nicholas Trotta as assistant directors and managers; and Mark Manuszak as assistant director and chief.

-Announced, March 25, 2019

 

Office of the Chief Operating Officer — appointment of Patrick McClanahan as chief operating officer.

-Approved, March 29, 2019

Regulations and Policies Federal Reserve Policy on Payment System Risk — amendments to part II of the Federal Reserve Policy on Payment System Risk concerning intraday credit provided by the Federal Reserve Banks to U.S. branches and agencies of foreign banking organizations.

-Approved, March 21, 2019

(A/C)

Office of Minority and Women Inclusion — 2018 annual report to Congress, in accordance with the Dodd-Frank Act.

-Published, March 29, 2019

 

Regulation Q (Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks) — publication for comment of an interagency notice of proposed rulemaking to (1) require advanced approaches banking organizations to deduct from their regulatory capital certain investments in long-term debt issued by global systemically important banking organizations in order to reduce both interconnectedness within the financial system and systemic risk, and (2) modify related reporting requirements.

-Approved, March 21, 2019

(A/C)

 

Supervision and Regulation Flood-Related Supervisory Practices — interagency statement on supervisory practices regarding financial institutions and their customers affected by flooding in the Midwest.

-Announced, March 25, 2019

 

Resolution Plans — issuance of joint letters with the Federal Deposit Insurance Corporation to 14 domestic large banking organizations (1) to issue expectations for their next resolution-plan submissions, (2) to inform Northern Trust Corporation that the shortcomings in its 2015 resolution plan have been satisfactorily addressed, and (3) to move the date for the next resolution-plan submission by Discover Financial Services to December 31, 2019.

-Approved, March 21, 2019

(A/C)

Stress Testing — release of additional information on the Board’s stress testing program, including changes intended to increase the transparency of its stress tests without compromising its ability to test the resiliency of the nation’s largest banks.

-Announced, March 28, 2019

 

Enforcement Barclays Bank PLC, New York Branch, New York, New York — issuance of an order granting parties’ joint motion to temporarily stay proceedings in the Board’s enforcement action against Peter Little, a former institution-affiliated party, pending assignment of an administrative law judge.

-Approved, March 14, 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 April 4, 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 April 3, 2019):  $3,983,167 (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: Board Issues 2019 Office of Minority and Women Inclusion Report; There is Evidence of Backsliding; Caution is Warranted

In March 2019, the Federal Reserve Board (Board) posted the 2019 version of its Office of Minority and Women Inclusion (OMWI).  As discussed previously in this blog, there had been some attention in inclusion issues by the Congress and the Board’s Office of Inspector General (IG). The blog had covered these developments, and also a former long-running case (not mentioned by the OMWI report), Artis v. Greenspan Bernanke Yellen.

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.”

Year Link
2012 http://www.federalreserve.gov/publications/minority-women-inclusion/2012-omwi-preface.htm
2013 http://www.federalreserve.gov/publications/minority-women-inclusion/2013-omwi-preface.htm
2014 http://www.federalreserve.gov/publications/minority-women-inclusion/2014-omwi-preface.htm
2015 http://www.federalreserve.gov/publications/minority-women-inclusion/2015-omwi-preface.htm
2016 http://www.federalreserve.gov/publications/minority-women-inclusion/files/omwi-report-20160331.pdf
2017 https://www.federalreserve.gov/publications/files/omwi-report-20170331.pdf
2018 https://www.federalreserve.gov/publications/files/omwi-report-20180330.pdf
2019 https://www.federalreserve.gov/publications/files/omwi-report-20190329.pdf

In reading the 2019 OMWI report, the report has essentially the same content and structure as in 2018; however, there were some additions–and a critical deletion.

Caution: (1) People interested in working for the Federal Reserve Board must understand the reality of a rank and yank performance management system. It is rather distressing to see that the Board is stating its interest to cast a wide net to get people to apply. Observers should not expect much from this. First, just because the Board does all this so-called outreach, that activity does not guarantee job offers.

Second, those who are hired will be subject to a ruthless forced-distribution-based performance management program (PMP), in which the friends of management will succeed. Those who are not will be fired. The Board had a turnover rate of 14% last year while staff headcount ticked up slightly. Additionally, the example of the now-concluded but everlasting court case, Artis v. Greenspan Bernanke Yellen, remains relevant.

MK-BR963_RANKIN_E_20120130183150 michael sloane

(2) I was hopeful with Board Chairman Jerome Powell‘s words about diversity and inclusion despite severe concern about his statement at his nomination hearing that change for diversity and inclusion take a long time. What I have seen in public statements raise tremendous concern.

  • According to the report, Powell stated that he would take personal interest in diversity and inclusion. (On this, I am uncertain as to the Chairman’s sincerity because his portfolio on diversity and inclusion is thin (no speeches, some town hall (no transcript available to the public), and a video on the Board’s website), and a paragraph that describes how Sheila Clark meets with the chairman, the chief operating officer, the chief human capital officer and senior leadership to discuss EEO, diversity and inclusion, which was in the 2018 report (page 7, fourth full paragraph, right column), was removed from the 2019 report.

I must conclude that the Board is backsliding despite its claims to the contrary. Reading chapter 8 of “Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan’s Bank” by Robert Auerbach, I gathered that the Board seems to have had a plan to frustrate of black employees (see, for example, Bennett v. Greenspan, No.93-1813-RMU (10-17-1994) and the Artis case) .  Such a vicious, hateful, and ingrained anti-black hatred is difficult to eliminate with pliant, cavalier, and indifferent leadership. Powell does not appear to be up to the serious task of diversity and inclusion, like his predecessors.

Other topics that I noticed in the 2019 report:

  • An updated section on equal employment contained more discussion. (But given the Board’s history on this subject, still more is needed.)
  • The workforce profile is more or less similar to the previous year. (Table 2, page 4)
  • The Board’s OMWI stated that it monitors if there is a problem with retention of women and minorities. (I do not trust the OMWI’s mere words, again given that the director was involved in the problems. Significant action is needed to defeat this skepticism.) Caution is warranted because The Chairman appears to be disinterested in diversity and inclusion (see discussion above).
  • Hiring increased overall above last year. Because the total number of employees in 2018 is not much over the 2017 level. It may indicate that the Board is still using forced distribution, firing a set amount of the staff each year. (Table 3, page 5)

 

Board Hiring and Promotions, 2015-2018
2015 2016 2017 2018
Positions filled 576 576 399 505
Interns 118 127 111 116
Positions filled w/o counting interns 458 449 288 389
Total number of Board employees 2673 2766 2745 2773
Percentage of new non-intern hires over total number of employees 17.1% 16.2% 10.5% 14.0%

 

Given the issues presented by the IG previously and with the long running time of the now-ended Artis v. Greenspan Bernanke Yellen case, the Board’s activities with regard to diversity and inclusion are an issue of grave concern until demonstrable, sustained and consistent improvement is shown. Meetings, scorecards, and reports are a start, but insufficient compared to firm results.

In all the tables in the “Equal Employment of Minorities and Women and Diversity and Inclusion at the Board” section, the delineation of non-minority and minority is obscure, specifically the minority category. Such obscurity can hide issues with specific subgroups under the umbrella of minority.

2014-03-04-auerbach
Sheila Clark’s letter to the EEOC (printed in the Auerbach book, page 123).

Conclusion: With this report, serious concern remains that the Board is committed to addressing the failures of its past. The activities for diversity and inclusion detailed in the report are weak without strong leadership at the top.The experience of the long-running Artis v. Greenspan Bernanke Yellen case casts a profound shadow over the Board for diversity and inclusion issues. It is up to the Board to redeem itself; however, it is backsliding.