Category Archives: Federal Reserve

Congress and the President Must Counteract the Wealth Inequality the Fed Will Create

By | March 23, 2020

Courtesy of Todd Phillips* This morning, the Federal Reserve announced it would begin open-ended quantitative easing, offering to buy “Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy.” This expands on its announcement last week that it’d buy up to $700 billion worth… Read More »

Coronavirus and Climate Change: Tragedies of the Horizon

By | March 18, 2020

Courtesy of Joseph Smith Can the current health crisis teach us about the looming environmental one?  I think so, particularly as a study of horizons in both time and space. While there is consensus among experts that climate change is real and its potential impact catastrophic or worse, there is also consensus that the worst-case… Read More »

Testimony of the Honorable Sarah Bloom Raskin Before the Senate Democrats’ Special Committee on the Climate Crisis

By | March 17, 2020

Courtesy of Sarah Bloom Raskin On Thursday, March 12, 2020, the Senate Democrats’ Special Committee on the Climate Crisis had a hearing on “The Economic Risks of Climate Change.” One of the witnesses, Sarah Bloom Raskin, provided the following testimony:   Chairman Schatz and members of the Committee, thank you for inviting me here to… Read More »

Central Banks in the Hot Seat: How Should Central Banks Join the Fight Against Climate Change?

By | February 10, 2020

Courtesy of Juliana B. Bolzani Although some skepticism remains about the causes and effects of climate change, scientists have concluded that human activity is significantly accelerating global warming.  In response to this emergency scenario, important voices in the private and public sectors have stressed the need for action, standing in contrast with the US government’s… Read More »

The Fed Must Reject Stealth Cut of Bank Capital Requirements

By | December 5, 2019

Courtesy of Gregg Gelzinis In a recent speech, Federal Reserve Vice Chair for Supervision Randal Quarles again publicly outlined his plan to engineer yet another decrease in the loss-absorbing capacity of the nation’s largest banks. The plan would re-design the countercyclical capital buffer (CCyB) and use misdirection to make it appear as though there would… Read More »

Federal Reserve Supervision and Disclosure of Enforcement Data

By | October 24, 2019

Courtesy of Gaurav Vasisht At an open meeting of the Federal Reserve Board (“Fed”) held earlier this month, Vice Chair for Supervision, Randal Quarles, said he was eager to identify changes to the Fed’s supervisory framework. Following these comments, the Fed solicited input on the supervisory ratings system used to evaluate the condition of depository… Read More »

What Should We Expect of Bank Directors? It Depends on Whom You Ask

By | March 21, 2018

Courtesy of Joseph A. Smith Jr. In August, the Board of Governors of the Federal Reserve (Fed) issued for comment a release entitled “Proposed Guidance on Supervisory Expectation for Boards of Directors” (Proposed Guidance).[1]  This note will briefly review the Proposed Guidance and the comments the Fed received on it.  I will focus primarily on… Read More »

Federal Reserve Consent Order Represents Worst Case Scenario for Wells Fargo Directors

By | February 6, 2018

Janet Yellen ended her tenure as Chair of the Federal Reserve with a bang last Friday when the Federal Reserve Board (the Board) voted 3-0 to issue a consent cease and desist order that imposes unprecedented sanctions on Wells Fargo for its phony-accounts scandal and other “widespread consumer abuses.” The primary sanction is a restriction… Read More »

Response to the Federal Reserve’s Proposal to Enhance the Effectiveness of Boards of Directors

By | August 29, 2017

Courtesy of Joseph A. Smith Jr. On August 3, 2017, the Board of Governors of the Federal Reserve System (“Federal Reserve”) released a proposal regarding its supervisory expectations for the boards of directors of bank holding companies, savings and loan holding companies, state member banks, U.S. branches and agencies of foreign banks, and non-bank systemically… Read More »

A Review of the Book “Fed Up”

By | April 28, 2017

To many, the Federal Reserve is a super-secretive organization, unaccountable to the public and endowed with extraordinary power to influence the world economy. To me, it was simply my workplace until last August. And just like any workplace, it has its own distinct rhythms and culture that manifest themselves in a variety of ways. This… Read More »