#Gonzalez – Federal Financial Analytics

9 12, 2021

Daily120921

Arezou Rafikian2023-05-23T12:50:03-04:00December 9th, 2021|2- Daily Briefing|

IMF Presses for Fast, Hard Global Crypto Standards
The IMF today reiterated its commitment to work with global regulators to craft crypto regulation due to inherent risks in the sector exacerbated by disorderly capital flows resulting from regulatory arbitrage.

FRB-NY Tackles Maternal-Health Inequity
Although Reserve Banks are facing harsh criticism from Senate Banking Ranking Member Toomey (R-PA) about “woke” actions he believes beyond the Fed’s mission, the New York Federal Reserve today released a study of maternal health that – despite public concern in this area – may spark renewed criticism with problematic implications for Vice-Chair nominee Brainard.

LIBOR Fix Powers Through House
By an overwhelming 415-9 vote, the House late yesterday passed H.R. 4616, the Sherman (D-CA) bill providing legal certainty for legacy LIBOR contracts (see FSM Report LIBOR6). The bill finally reached the House floor following a revision to the reported bill ensuring that rate resets are not taxable events.

BIS: Bond Funds Need Radical Regulatory Rewrite
Today, we follow our analysis yesterday of the BIS paper on DeFi regulatory policy with an assessment of another high-impact analysis of open-end funds.

FDIC Does, Doesn’t, May Advance New Bank M&A Policy
In a most unusual move, the FDIC today announced it did not release an RFI on bank merger policy hours after two directors – Messrs. Gruenberg and Chopra – said it had.

HFSC Ducks Tough Asset-Management Diversity Demands
Although the majority staff report released ahead of today’s HFSC Diversity and Inclusion Subcommittee hearing highlighted several legislative proposals, Members …

13 10, 2021

Daily101321

Arezou Rafikian2023-06-15T15:03:35-04:00October 13th, 2021|2- Daily Briefing|

Quarles Quandary Not Key to Fed Reg, M&A Action
Late yesterday, the Federal Reserve Board announced that Randy Quarles will cease his duties as supervision vice chair starting today. Mr. Quarles’ term as a governor continues until 2032 but the vice chairmanship is a position appointed by the President and confirmed by the Senate.

FSB Sets Ambitious Course for Cross-Border Payment Redesign
The FSB today published both a progress report on its cross-border payment roadmap (see FSM Report PAYMENT21) and a final set of forward-looking plans. Work on the roadmap has advanced well, with the FSB now expressly incorporating CBDC into its forward-looking work.

Senate GOP Heightens Pressure on Reserve-Bank Appointments
Countering an array of Democratic demands for diversity, Senate Banking Republicans today urged the boards of the Boston and Dallas Reserve Banks to ensure an apolitical appointment process.

AI Task Force Considers Algo Privacy, Transparency, Bias
As anticipated, today’s HFSC AI Task Force hearing on ethical AI kicked off Congressional work on this hot topic, making it clear that Democrats may advance consumer-data privacy, algorithm transparency, and anti-bias standards.

Brown Fires Fusillade at Fed Regulatory Policy
Making it more than clear that he takes at best a guarded approach to Jay Powell’s renomination, Senate Banking Chairman Brown (D-OH) today sent Mr. Powell a letter demanding a “new direction” in bank regulation regardless of who succeeds Vice Chairman Quarles and chairs the Fed.

Daily101321.pdf…

13 09, 2021

M091321

Arezou Rafikian2023-08-03T16:18:36-04:00September 13th, 2021|6- Client Memo|

Are Federal Reserve Banks Forever?

After my latest opinion piece appeared in Barron’s on Thursday, I was stunned by the virulence with which Barron’s readers — not exactly a bunch of Democratic Socialists — agreed with me not because of my reasoning, but because they believe the Fed in general and Jay Powell in particular are engaged in a sweeping conspiracy on behalf of the wealthiest global capitalists. The new controversy over Reserve Bank president stock holdings only adds fuel to this fire. Are Federal Reserve Banks forever? Their history suggests maybe not.

m091321.pdf …

13 09, 2021

Karen Petrou: Are Federal Reserve Banks Forever?

Arezou Rafikian2023-08-03T16:18:47-04:00September 13th, 2021|The Vault|

After my latest opinion piece appeared in Barron’s on Thursday, I was stunned by the virulence with which Barron’s readers — not exactly a bunch of Democratic Socialists — agreed with me not because of my reasoning, but because they believe the Fed in general and Jay Powell in particular are engaged in a sweeping conspiracy on behalf of the wealthiest global capitalists. The new controversy over Reserve Bank president stock holdings only adds fuel to this fire. Are Federal Reserve Banks forever? Their history suggests maybe not.

Reserve Banks are creatures of 1913, created in concert with the Federal Reserve Board in Washington as part of the awkward compromise that persuaded those who feared a dominant federal banking powerhouse that the central bank would have roots outside the largest cities and thus be beyond the reach of New York’s powerful bankers.

This balancing act is in fact one reason the Board is headquartered in Washington, not New York, and also why the New York Fed is the most powerful among nominal equals when it comes to its fellow Reserve Banks. The fundamental anachronism of the System is evident in its geographic footprint — a heavy concentration of Reserve banks up to Kansas City and St. Louis and then not a single Reserve Bank for all of the mountain and western states but the lone edifice still standing apart in San Francisco.

The ethics rules now at issue due to recent revelations are also artifacts of not just the Reserve …