Among the largest borrowers were JPMorgan Chase, Goldman Sachs and Citigroup, three of the Wall Street banks that were at the center of the subprime and derivatives crisis in 2008 that brought down the U.S. economy. That’s blockbuster news. But as of 7 a.m. this morning, not one major business media outlet has reported the details of the Fed’s big reveal.
JPMorgan Chase and Citigroup’s Citibank are among the largest deposit-taking, federally-insured banks in the U.S. Why they needed to borrow from the Fed on an emergency basis in the fall of 2019.
Never before seen a total news blackout of a financial news story of this magnitude in 35 years of monitoring Wall Street and the Fed.
To established a Crypto Bank,a company needs SDPI charter from the local authorities then a master account with Federal Reserve to arrange payments with Central Bank and to conduct settlements with other financial institutions.
Kraken and Avanti are two entities active in Crypto business ,both have received permission under Wyoming law to become Special Purpose Depository Institutions(SDPI)-a new type of financial entity that can transact in Crypto while also performing traditional banking services.
After receiving SDPI charter from authorities,next step is to require a master account at Federal Reserve to arrange payments with Central Bank and conduct settlements with other financial institutions.
But here comes the main problem, Federal Reserve blocked the applications to open the master account without any legitimate reasons.Not only this, Federal Reserve sat on SDPI applications for more than a year and has been slow to communicate with Crypto Banks on why the whole process is taking so much time.
Fed Chair Jerome Powell defending the FED's decision to block Crypto Banks with this statement
>if we start granting these, there will be a couple hundred of them soon.They are hugely precedential, which is why I am taking my time on this"
Even though Mr. Jerome Powell agreed that there are good arguments for treating them as eligible to receive accounts.Just because it's "Crypto Bank" they can't get the permission for master account.
And people think authorities are now realizing the potential of Crypto and ready to accept it as a part of financial system.They are just saying nice words so that their public image remain intact, and their actions are in the direction to stop Crypto at any cost.
Source : https://decrypt.co/90186/powell-lummis-spdi-kraken-wyoming
Federal Reserve Chair Jerome Powell said the central bank will prevent higher inflation from becoming entrenched while cautioning that the post-pandemic economy might look different than the previous expansion.
“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” Powell said in a brief opening statement prepared for delivery at his confirmation hearing before the Senate Banking Committee. “We can begin to see that the post-pandemic economy is likely to be different in some respects. The pursuit of our goals will need to take these differences into account,” he said in the remarks, released Monday ahead of Tuesday’s hearing.
https://www.bloomberg.com/news/articles/2022-01-10/powell-says-fed-to-ensure-inflation-doesn-t-take-root-in-economy
That deadline being the Federal Reserve Annual Stress Test.
Remember last year’s shitshow where they did a test in Q2 2021 using the data from October 2020? Well this April (report due late June) they’ll have to submit their data from October 2021.
First and foremost this is not financial advice and purely speculation. Just opinions and trying to connect the tea leaves
Most of this is courtesy of /r/Slave_to_the_bets
Previously in November if you searched the federal reserve site and looked at the H.2A list you would see this: https://i.redd.it/1uepqrf84ab81.jpeg
However at some point from then to today when searching the website sofi is gone.
What is the H.2A list? https://i.redd.it/7nuvz3gf4ab81.jpeg
As you can see Sofi did fall in section of law "3" which deals with mergers and acquisitions which makes sense as they acquired GPB.
The key part is in the FAQ: https://www.federalreserve.gov/apps/h2a/faq.aspx
Go to this link and look at the last question and the answer. You will see that one of the reasons why someone might be deleted from the H.2A list is "Also, once the System has acted on a proposal, it will be deleted from the H.2A
Thus the assumption is the federal reserve has acted upon sofi proposal and it is complete. But as you know the govt is tricky so at the end of the day your guess is as good as ours. Just very encouraging.
To be honest we were tempted to say ‘..whatever shitty central bank..’ in the title because for the majority of countries it is unfortunately true. A central bank is just one of many state or public institutions human beings established and delegated decision making rights to in order not to starve to death or kill each other. In some places having those institutions in place did not help because when you have such control and power in your hands it is very difficult to avoid abusing the power without even noticing it or thinking that it is all for the good reasons. Today, as part of Canary Academy initiative, we’ll try to ponder if DAO is a legitimate turn in the evolution of governance institutions that can help us break through the current mire.
https://miro.medium.com/max/700/1*eU3sGYg0bKkA7tIjuW0RLw.png
First off, DAO stands for Decentralised Autonomy Organisation and it is just a form of the existence of an organisation and nothing else. Organisation is a number of agents (people or other organisations or maybe artificial intelligence in the future) who pursue common interests thus they need coordination. Examples of the organisation is a commercial corporation, a government, a charity fund, an army or a band. Some are extremely complex (a country’s government), some are very simple (band).
As soon as agents get together to pursue common interests they need to establish some rules, ways of working to coordinate their actions in order to progress otherwise it will be a mess. One of the most important areas where they need to agree is how decisions are to be made and this can take different forms either stemming from the cultural and religious heritage or from the buoyancy of reckless youth or from whatever other values you put in the first place. For example, if we look at how the countries are ruled — there are so many variations but the most notable are monarchy/dictatorship (the decisions are ultimately made by ‘just because they were born like that’ Queen or King or by a self-appointed dictator), democracy (the decisions are made by the elected officials elected by the representative bodies whose members are elected by the public) — there are different variations of those that differ in details and authenticity (raise a hand who can relate to a ‘fake’ democracy) and things are often mixed, i.e. monarchy is maint
... keep reading on reddit ➡
Wondering if anyone has any insight into this. I may need to take out Direct Unsubsidized Loan and Direct PLUS Loan for graduate school around Summer/Fall 2023. If I subsequently get a job at a Federal Reserve bank or a (non-profit) university, would either count toward the public service requirement?
EDIT: Thank you to very helpful redditors, after some confusion, here’s a summary of the findings:
- Universities: likely qualify as non-profit institutions (I’d imagine this was well-known by the sub)
- Federal Reserve Board of Governors: this is the ‘main ‘ one in DC. I saw evidence to the contrary, but eventually confirmed that it is Eligible.
- Federal Reserve Banks: these are the 12 regional banks. Looks like mileage may vary here. With evidence that some may be Not Eligible (e.g. the NY Fed)
From the Article:
Jelena McWilliams, the chairman of the Federal Deposit Insurance Corporation (FDIC), told Reuters in an interview at a fintech conference Monday that a team of U.S. bank regulators is working on providing a roadmap for banks to engage with crypto assets.
The team comprises the FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency (OCC). Federal Reserve Vice Chair of Supervision Randal Quarles revealed the collaboration between the three U.S. regulators in May.
McWilliams said on a conference panel:
>My goal in this interagency group is to basically provide a path for banks to be able to act as a custodian of these assets, use crypto assets, digital assets as some form of collateral … At some point in time, we’re going to tackle how and under what circumstances banks can hold them on their balance sheet.
While establishing clear rules for banks to provide custody services is easy, the FDIC boss explained that it is difficult to figure out how to allow a volatile asset to be used as collateral and include it on bank balance sheets.
She was quoted as saying: “Valuation of these assets and the fluctuation in their value that can be almost on a daily basis … You have to decide what kind of capital and liquidity treatment to allocate to such balance sheet holdings.”
The OCC, under the leadership of Brian Brooks, clarified in June 2020 that national banks and federal savings associations can provide cryptocurrency custody services for customers. However, Brooks has resigned and the new Acting Comptroller of the Currency, Michael Hsu, has requested a review of the cryptocurrency standards established by the OCC prior to him taking office.
“I think that we need to allow banks in this space, while appropriately managing and mitigating risk,” McWilliams opined, elaborating:
>If we don’t bring this activity inside the banks, it is going to develop outside of the banks … The federal regulators won’t be able to regulate it.
Federal Reserve Chair Jerome Powell said the central bank will prevent higher inflation from becoming entrenched while cautioning that the post-pandemic economy might look different than the previous expansion.
“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” Powell said in a brief opening statement prepared for delivery at his confirmation hearing before the Senate Banking Committee. “We can begin to see that the post-pandemic economy is likely to be different in some respects. The pursuit of our goals will need to take these differences into account,” he said in the remarks, released Monday ahead of Tuesday’s hearing.
https://www.bloomberg.com/news/articles/2022-01-10/powell-says-fed-to-ensure-inflation-doesn-t-take-root-in-economy
This can't be good.
"Among the largest borrowers were JPMorgan Chase, Goldman Sachs and Citigroup, three of the Wall Street banks that were at the center of the subprime and derivatives crisis in 2008 that brought down the U.S. economy. That’s blockbuster news. But as of 7 a.m. this morning, not one major business media outlet has reported the details of the Fed’s big reveal.
JPMorgan Chase and Citigroup’s Citibank are among the largest deposit-taking, federally-insured banks in the U.S. Why they needed to borrow from the Fed on an emergency basis in the fall of 2019.
Never before seen a total news blackout of a financial news story of this magnitude in 35 years of monitoring Wall Street and the Fed."
https://www.reddit.com/r/Superstonk/comments/rv4dam/four_days_ago_the_federal_reserve_released_the/
This link has an image of the source article.
https://www.reddit.com/r/Superstonk/comments/rv5uer/theres_a_news_blackout_on_the_feds_naming_of_the/
