... a Federalreserve system making sense OFTHEFEDERAL RESERVE 1 MAKING SENSE OFTHEFEDERAL RESERVE 171. Who created theFederalReserve System? (page 1)2. Name the three parts oftheFederal ... combines the seven members ofthe Board of Governors, the president oftheFederalReserve Bank of New York and four other Reserve bank presi-dents, who serve one-year terms on a rotating basis. The ... chairman ofthe FOMC is also the chairman ofthe Board of Governors. The FOMC typically meets eight times a year in Washington, D.C. At each meeting, a senior of cial of the FederalReserve Bank of...
... is the purpose ofthe Financial Remediation Framework? The Office ofthe Comptroller ofthe Currency (OCC) and the Board of Governors oftheFederal Reserve System (FRB) have developed the ... available since the origination ofthe loan, the estimated value ofthe home at the time of error will be based on the estimated value ofthe home at loan origination adjusted by the Case-Schiller ... modification agreement will determine whether or not the borrower is considered to be in 1 Office ofthe Comptroller ofthe Currency Board of Governors oftheFederalReserve System JUNE 21, 2012...
... viability.2 TheFederal Reserve, the Office ofthe Comptroller ofthe Currency, and theFederal Deposit Insurance Corporation (collectively, the “agencies”) are issuing this guidance to emphasize the ... stress testing activities on a regular basis to determine, among other things, the validity ofthe assumptions, the severity of tests, the robustness ofthe estimates, the performance of any underlying ... Letter 12-7 Attachment 1 Board of Governors oftheFederalReserve System Federal Deposit Insurance Corporation Office ofthe Comptroller ofthe Currency Guidance on Stress Testing...
... increasehasbeennotable,72Thisisnottodenysuccessfuleffortsbyanumber of countries,includingChina,toexpandmarketsinotherEME’s. Of coursethisstillleaves the broaderquestion ofthe robustness ofthe totality of thosemarketsin the event of aseriousdownturnin the AME’s.73ThisproblemisanalogoustothatfacedbyJapanesecorporationsin the 1990’s,aftermanyyears of debtfinancedinvestmentwhichprovedunprofitable.Koo(2003)stronglycontendsthat the weakness of investmentspendinginJapanin the 1990’swasduetothis“balancesheeteffect”,andwasnotduetoashortage of loanscausedbyaweakenedbankingsystem.74SeeBIS(2012)p29forafullerdocumentation.AlsoseeMcKinsey(2010)whoidentify the householdsectorinfive ofthe fourteencountriestheyconsiderashavingahighprobability of futuredeleveraging.TheyidentifySpain, the US, the UK,CanadaandKorea.While the householdsectorsinBrazil,Russia,ChinaandIndiawerenotjudgedtobeoverleveraged,notethat the dataconsideredextendedonlyto2009.Thus the reportmissed the recentsharpincreasesinhouseholddebtlevelsinthosecountries. ... isimportanttonotethatKeyneshimselfwasnotconvinced ofthe effectiveness of easymoneyinrestoring real growth in the face of a Deep Slump. This is one ofthe principal insights ofthe GeneralTheory.21Incurrentcircumstances,twoquestions ... if the desiretoborrowincreases.107And,finallyandlikelymostimportant,stilllowerpolicyratesthreatenstillmore ofthe unintendedconsequenceswhichbroughtus the currentcrisisin the firstplace.3) Otherunintendedconsequencesin the financialsectorGiven the unprecedentedcharacter ofthe monetarypoliciesfollowedinrecentyears,...
... Skeie. The views expressed in this paper are those ofthe authors and do not necessarily reflect the position of theFederalReserve Bank of New York or theFederalReserve System. 11 Sources of ... Sources of Bank Reserves Figure 5 illustrates the link between the size oftheFederalReserve s liquidity facilities and the quantity of reserves in the banking system. The top half of this figure ... presents the total assets of the FederalReserve System, divided into broad categories, while the bottom half presents the total liabilities ofthe System. Before the crisis, theFederalReserve s...
... Company Actof 1940. 35 Such recital consists in each case of a statement whether the mutual fund reserves freedom of action to engage in activities of such type; if such freedom of action is reserved, ... insofar as is practicable, the extent to which the fund intends to engage therein. See Section 8 ofthe Investment Company Actof 1940. 36 See Section 12 ofthe Investment Company Actof ... responsibilities under the Investment Company Act; these duties are beyond those required of other types of directors. Among other things, for example, they oversee the performance ofthe fund, fair...
... postponed the sale of shares due to the poor performance ofthe domestic stock market. The bank reportedly plans to conduct its IPO in the second half of 2011 and sell up to a 20% stake, 10% of which ... sector developments in the Asia Pacific region. The views expressed in this publication are solely that ofthe author and do not necessarily represent the position oftheFederalReserve System. V ... diversify the market participants in the banking industry, strengthen the resiliency ofthe banking sector, and follow internationally accepted banking standards. The success of further reform...
... make to the Commission. The impact of all of these initiatives, among other things, should be to enhance the ability both of rating agencies and investors to evaluate the credit quality of issuers. ... Report ofthe GIC With Credit Rating Downgrade Provisions Working Group ofthe American Academy of Actuaries to the Innovative Products Working Group ofthe Life and Health Actuarial Task Force of ... failed to disclose other important facts, thereby undermining the accuracy and reliability of their ratings.45 The second hearing panel consisted of two academics,46 the CEO of a credit research...
... that the current inflation rate depends on its lagged values, on the fluctuation ofthe exchange rate in the previous period and on the two-period lag ofthe output gap. The verticality ofthe ... non-significance ofthe real interest rate coefficient in the aggregate supply equation. Another result that is noteworthy concerns the effect ofthe terms of trade gap on the output gap. The evidence ... ã The parameters that guide the structure ofthe Peruvian economy are estimated, represented by equations (1)-(4). Thereafter, the obtained coefficients are inserted into the structure of the...
... 2012. As of September 22, the futures market for fed funds indicates an implied rate of about 24 bps for the July 2011 contract. Source: Bloomberg September 22, 2010 Federal Reserve Balance ... credit to AIG, and other Fed assets. Liabilities: Other—Reverse repos, Treasury cash holdings, and deposits with Federal Reserve Banks other than reserve balances and excluding the Supplementary ... Federal Reserve Summary The balance sheet remained little changed, decreasing by $9 billion for the week ended September 15. Bank reserve balances decreased $118 billion, offset...
... appropriate in the public interest or for the protection of investors”). See also section 408 ofthe Dodd-Frank Act. Section 407 ofthe Dodd-Frank Act, which adds section 203(l) to the Advisers Act, ... Congress amended theAct to exclude certain NRSROs from theAct s definition of “investment adviser”121 118 Using the authority provided in section 203A(c) ofthe Advisers Act, the Commission ... Advisers Act made by the Dodd-Frank Act. 11 5 See section 407 ofthe Dodd-Frank Act ( The Commission shall require such advisers to…provide to the Commission such annual or other reports as the...
... paper are those ofthe authors and do not necessarily reect the position oftheFederalReserve Bank of New York or the Federal Reserve System. Abstract The rapid growth ofthe market-based ... that the understanding ofthe plumbing ofthe shadow banking system is an important underpinning of any study of systemic interlinkages within the financial system. The remainder ofthe paper ... non-recipients of official liquidity. These entities failed too early on in the crisis to benefit from the liquidity facilities rolled out in the wake ofthe bankruptcy of Lehman Brothers, and their demise...
... those ofthe authors and are not necessar-ily reective of views at theFederalReserve Bank of New York or theFederal Reserve System. Any errors or omissions are the responsibility ofthe authors. Federal ... support of FHLB liabilities by the US Government. The secured nature of an advance, as well as the lien theFederal Home Loan Bank has on the other assets ofthe borrower, means that the claims of ... certification filed at the time of each offering off of a shelf registration statement, or takedown, by the chief executive officer ofthe depositor that the assets in the pool have characteristics that...
... get bid up by the amount that the money supply increases regardless of the fraction of traders in the economy, because the quantity of the endowment is constant. The determination of nominal interest ... currentrate of growth ofthe money supply). This works becausethere is no reason for people to change their expectations of what money growth will be in the future.However, if the deviation of inflation ... dis-cussions of earlier versions of this article.1 The term liquidity effect as now used in the literature refers to the effect of un-expected changes in money growth rather than the effect of changes...
... views expressed are those ofthe authors and do not necessarily reflect the position of theFederalReserve Bank of New York or theFederalReserve System. The FederalReserve s Commercial Paper ... between the credit and liquidity components of commercial paper rates at the height ofthe crisis. Purchases of commercial paper had to be secured to the satisfaction oftheFederal Reserve. ... magnitude. The legal basis for the CPFF stemmed from section 13(3) of theFederalReserve Act, requiring the use of such a facility in “unusual and exigent circumstances.” As such, theFederal Reserve...