Boring Conferences and High Incentives

Anon E. MooseEconomy

In a march 2015 press conference, FOMC press reporter Pedro Da Costa raised the issue of financial crimes and transparency to FED Chair Janet Yellen. Pedro no longer has his job.

PEDRO DA COSTA. Pedro da Costa with Dow Jones Newswires. I guess I have two follow-ups, one with regard to Craig’s question. So, before the IG’s investigation, according to Republican Congressman Hensarling’s letter to your office, he says that, “It is my understanding that although the Federal Reserve’s General Counsel was initially involved in this investigation, the inquiry was dropped at the request of several members of the FOMC.” Now, that predates the IG. I want to know if you could tell us who are these members of the FOMC who struck down this investigation? And doesn’t not revealing these facts kind of go directly against the sort of transparency and accountability that you’re trying to bring to the central bank?

Just a warning… this video is REALLY boring. It’s loaded with language that is obtuse, meaningless, and distracting from the underlying issues our financial system faces. The interesting moments start at around 45m 40s. 

Press Conference with Chair of the FOMC, Janet L. Yellen – YouTube.

Kill This Entitlement Program: The 6% Risk-Free Dividend the Fed Has Been Paying Wall Street Banks For Almost a Century – WallStreetOnParade

The stock is not like regular common stock: it can’t be traded, sold, pledged as collateral, gifted to family members, shorted, or aggregated to effect a takeover. It’s this “stock” that’s receiving the risk-free 6 percent dividend from the Fed. This corporate welfare program gets even better: if the shares of stock were acquired prior to March 28, 1942, the 6 percent risk-free dividend is tax exempt and the bank doesn’t have to pay corporate taxes on it.

“Bond bubble!” (eg. government spending), Alan Greenspan has some worries about circular stagnation and bond bubbles… “We’ve never been in a position such as this.”