Federal Reserve System Presidents: "This is Your Ass!"

Look carefully for the LOLs

"Walked past a large industrial 'Code Shred' truck parked outside of the Federal Reserve building this evening. I guess everyone is in need of cheap and speedy "document shredding solutions" sometimes..." says WNYC's Uncommon Economic Indicators.

I guess this means Dick Fisher wasn't spying on me with a pair of binoculars while I was visiting his fine city at the same time he and his fellow Fed Presidents were trying to save their own asses.

Business Week:

Some Federal Reserve regional bank presidents, concerned that financial-overhaul legislation will imperil their institutions, are making their own case to Congress.

Leading the effort are the Kansas City Fed’s Thomas Hoenig, the longest-serving policy maker, and Jeffrey Lacker of Richmond, chairman of the Fed’s Conference of Presidents, said officials with knowledge of the deliberations. In an opening salvo, Hoenig sent a letter Feb. 19 to 14 senators saying proposed laws in the Senate wouldn’t improve financial regulation.

The lobbying “reflects the frustration on the part of the district banks with the board’s efforts to retain its supervision and regulatory powers over community banks,” said Camden Fine, president of the Independent Community Bankers of America, a Washington group representing about 5,000 firms. The Fed has a “very steep, uphill fight” against the legislative proposals, Fine said.

Fed bank presidents held a conference call Feb. 18 to plot strategy and plan to contact individual lawmakers, said officials with knowledge of the discussions, and Hoenig is scheduled to appear on C-Span this week. The call was separate from a regularly scheduled talk on Mondays with Fed congressional liaisons.

Do you know what this means? First of all it means that Jr Deputy Accountant possesses some really bizarre (but awesome) power of Fed clairvoyance since I called this months ago but secondly it means that even the Fed wants to get away from the Fed. Hate to say I told you so. No I don't.

Why would regional banks want to distance themselves from the nonsense at the Board?

I can just imagine the phone call. I'll give you a hint if you're having trouble visualizing it yourself: imagine this guy getting thrown under one of these to save the Fedheads' you know whats and you're halfway there.

"Some presidents decided that the Board of Governors’ lobbying efforts didn’t produce any wins for the Fed" wins for greatest piece of obvious copy I've ever read. Did they have to have a conference call to decide the Board has its head shoved directly up its ass and absolutely no desire to protect its 12 arms? Please. New York is the only safe bank and that's just because they've been complicit in the crime if not outright involved.

Let's explain why it is important to define the difference between those asshats at the Board and the paper-pushing, researching-their-asses-off, check-processing, macro pricks at the regional banks. But before we can do that, it's important to point out that not even the Fed's own people know the difference. (see also: this photo)

Like this chick. She used to be Director of the LA branch of the San Francisco Fed. First of all, SF Fed is about as low on the Fed food chain as you can get. Hello, it's the magnetic field, none of our research makes sense and our Fed president is a raging nutcase who wants the Fed to issue its own debt. God help us all, let's just print money with Gavin Newsom's face on it. She links to the Board's website and is obviously caught up in the romanticism of background checks. Please. If you know the story, JDA used to date an accountant from the SF Fed who was "deported" to the LA branch, presumably because he played too much WoW and therefore sucked at his job. Just a guess.

Anyway, there's a difference. Janet hates to widen the spread, meanwhile Kansas City's Hoenig is trying to reverse repo the Fed's balls that have been on loan to the Treasury since, uh, crooked pinky Hank Paulson:

“It is a striking irony to me that the outcome of the public anger directed toward Washington and Wall Street may lead to the further empowerment of both Washington and Wall Street in regulating financial institutions."

Snap! That guy is fucking pissed! Or how about St Louis Fed's James Bullard insisting the Fed is the firefighter, not the arsonist? How the fuck can one actually pay attention to this?

Hope you got that 30 year fixed mortgage. And maybe some guns. Whatever.

Maybe Richard Fisher was watching me from the Dallas Fed last week, he did sit out this little Fed cheerleading session (more Business Week):

“We’re all pulling in the same direction,” which is to have the supervision powers “that are appropriate for the Federal Reserve to do our duty” as the lender of last resort, Dallas Fed President Richard Fisher said in an interview. He said he hasn’t contacted lawmakers on the issue and doesn’t plan to.

Good boy. What other tricks do you have?

Strap the fuck in, kids, this is going to be one fun ride and I don't just say that because I have a really sick, really inappropriate fixation on the Fed. Um, 5% that maybe.

Timing truly is everything when you're trying to charm the pants off of the country while simultaneously stabbing the Board in the back of the heel. Can they pull it off? I'm rooting for them. Seriously.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.