Might update later.
Will definitely try to keep the ranting to a minimum (tradingview is permanent, you know..)
Anyways, interesting view. Citigroup, monthly.
Will definitely try to keep the ranting to a minimum (tradingview is permanent, you know..)
Anyways, interesting view. Citigroup, monthly.
Comment:
As they say, "a picture is worth a thousand words".
Comment:
Apparently Citigroup owns 42.8% of the New York Fed..
Matt Levine, Bloomberg, February 26, 2020
"Who owns the Fed?
This is good trolling, I like this:
The question comes from foil-hatted conspiracists, good government advocates, and sober academics: Who owns the New York Federal Reserve Bank?
Under the Federal Reserve Act of 1913, each of the 12 regional reserve banks of the Federal Reserve System is owned by its member banks, who originally ponied up the capital to keep them running.
The number of capital shares they subscribe to is based upon a percentage of each member bank’s capital and surplus.
But the New York Fed – by far the most important of the regional banks – as a matter of policy has previously not disclosed the capital share holdings of its 70-plus member banks. … Now, thanks to a Freedom of Information Act request filed late last year by Institutional Investor, we know the truth.
The answer is basically Citibank (with 42.8%) and JPMorgan Chase Bank (with 29.5%), though each bank gets one vote regardless of share holdings, the “shares cannot be traded, shorted, or pledged as collateral,” and big banks get dividends on their money at the 10-year Treasury rate. It is not conventional share ownership. But next time Citi or JPMorgan does a bad thing you can be like “isn’t it a scandal that this happened at a bank that controls the Fed,” etc."
Matt Levine, Bloomberg, February 26, 2020
"Who owns the Fed?
This is good trolling, I like this:
The question comes from foil-hatted conspiracists, good government advocates, and sober academics: Who owns the New York Federal Reserve Bank?
Under the Federal Reserve Act of 1913, each of the 12 regional reserve banks of the Federal Reserve System is owned by its member banks, who originally ponied up the capital to keep them running.
The number of capital shares they subscribe to is based upon a percentage of each member bank’s capital and surplus.
But the New York Fed – by far the most important of the regional banks – as a matter of policy has previously not disclosed the capital share holdings of its 70-plus member banks. … Now, thanks to a Freedom of Information Act request filed late last year by Institutional Investor, we know the truth.
The answer is basically Citibank (with 42.8%) and JPMorgan Chase Bank (with 29.5%), though each bank gets one vote regardless of share holdings, the “shares cannot be traded, shorted, or pledged as collateral,” and big banks get dividends on their money at the 10-year Treasury rate. It is not conventional share ownership. But next time Citi or JPMorgan does a bad thing you can be like “isn’t it a scandal that this happened at a bank that controls the Fed,” etc."
Comment:
The Fed uses three tools to implement monetary policy, the most important being open market operations. These “domestic operations” are conducted for the System only by the New York Fed under direction of the FOMC. Through open market operations, the Fed buys or sells U.S. Treasury securities in the secondary market to produce a desired level of bank reserves. These securities are held in the System’s portfolio, which is known as the System Open Market Account or “SOMA.”
The “primary dealers,” designated by the New York Fed, serve as its counterparties in open market operations and other securities transactions. The Fed adds extra credit to the banking system when it buys Treasury securities from the dealers and drains credit when it sells to the dealers. As the laws of supply and demand take over in the reserves market, the cost of funds for the remaining reserves finds its level at the federal funds rate.
The “primary dealers,” designated by the New York Fed, serve as its counterparties in open market operations and other securities transactions. The Fed adds extra credit to the banking system when it buys Treasury securities from the dealers and drains credit when it sells to the dealers. As the laws of supply and demand take over in the reserves market, the cost of funds for the remaining reserves finds its level at the federal funds rate.