New York Fed
The Escape Artist
February 10, 2011
How Timothy Geithner survived.
The Unnecessary Fall
August 12, 2010
A counter-history of the Obama presidency.
Regulators, Mount Up
March 26, 2010
Noam Scheiber: Obama's next big crusade.
March 25, 2010
The new council that will cripple financial reform.
"Large Integrated Financial Groups": Can't Live Without 'Em?
December 08, 2009
Increasingly, leading bankers repeat versions of the argument made recently by E. Gerald Corrigan in his Dolan Lecture at Fairfield University. Corrigan, former President of the New York Fed and a senior executive at Goldman Sachs for more than a decade, makes three main points. (1) “Large Integrated Financial Groups”--at or around their current size--offer unique functions that cannot otherwise be provided.
Feudal Lords of Finance
December 01, 2009
In some influential circles, these questions are now asked: What’s wrong with high levels of inequality in general, and with having very rich bankers in particular? After all, human societies have survived the presence of extremely wealthy individuals in the past--in fact, some now argue, the presence of such a “new aristocracy” can finance growth and spur innovation. This argument is deeply flawed along three dimensions. (1) Such super-elites care very little for anyone other than themselves. Certainly, there will be some charity--but remember that John D.
Should Geithner Resign?
November 24, 2009
So far the members of Congress who think the Treasury Secretary should go don't quite constitute a full-blown caucus, much less anything resembling a majority. But they're expressing their opinions with increasing passion. Early this month Democratic Senator Maria Cantwell confessed that she was "not sure" why Geithner still had his job given his too-soft treatment of Wall Street.
Why Didn't AIG Bargain With Goldman?
November 17, 2009
Today's big financial story is the TARP inspector general report criticizing the New York Fed for not negotiating a better deal with all the banks--like Goldman and Merrill Lynch--whose mortgage-backed securities AIG had effectively insured, and to whom it owed big money once the market melted down.
The New York Fed Beefs Up Its Trading Desk
August 11, 2009
Interesting nugget from the FT: The Federal Reserve Bank of New York is aggressively hiring traders as it seeks to manage its burgeoning securities holdings, making the central bank one of Wall Street’s most active recruiters of financial talent. The New York Fed – the arm of the US central bank that implements its monetary policy – plans to increase the staff in its markets group to 400 by the end of the year – up from 240 at the end of 2007. The Fed, which says that most of its new recruits come from private sector financial firms, is hiring employees as many banks, rating agencies, hedge f
A New Direction For The Fed?
July 07, 2009
Policymakers like to make particular kinds of statements at a "low attention" moment, e.g., right before a holiday weekend. This gets items onto the public record but ensures they do not get too much attention. And if you are asked about these substantive issues down the road, you can always say, "we told you this already, so it's not now news"--usually this keeps things off the front page. Released on July 3rd (a federal holiday), and buried inside the Washington Post on Saturday (p.A12): An important speech (from June 26th) by the New York Fed's controversial President, William C.