By Eric Tymoigne
For convenience, I have put the balance sheet of the Fed below. Post 2 examined the balance sheet and Post 3 provided important information about the meaning of reserves and other basic concepts and their relation to the balance sheet of the Fed. Now let us look at monetary-policy implementation.
What does the Fed do in terms of monetary policy and why? Continue reading
- On Day One, the President directs each relevant federal financial agency to restore a superb criminal referral process, the criminal referral mandate, and criminal referral coordinators, at every federal financial agency. Local and state police forces rarely investigate sophisticated financial frauds. That work is done overwhelmingly by roughly 2,000 FBI agents in the white-collar section. That means that we have roughly two FBI agents per industry. Those numbers mean that FBI agents don’t “walk a beat” – they only come when they receive a criminal referral alerting them to a likely fraud. It also means that they cannot possibly have more than a few agents with expertise in the particular industry. There is one other key fact to keep in mind – corporations don’t make criminal referrals against their own CEOs for obvious reasons, even though frauds led by CEOs cause by far the greatest harm of any form of fraud.
William K. Black
January 30, 2016 Bloomington, Minneapolis
Well, this is slightly embarrassing. Gary Aguirre, Bill Black, Richard Bowen, and Michael Winston came together to form a pro bono effort by bank whistleblowers to restore the rule of law on Wall Street. As a placeholder in the drafting process, I called us the “Bank Whistleblowers’ Group” and that name survived the drafting process and was announced yesterday by me on New Economic Perspectives (NEP). Michael Winston deserves credit for suggesting that we call ourselves “Bank Whistleblowers United” – a name that everyone in our pro bono group prefers. We’ve changed the documents posted yesterday on NEP that make public our initiatives to reflect our new name. The “announcement” document I posted yesterday has been changed to reflect the new name and I used the opportunity to make a few edits as well.