Federal Reserve Bank of New York

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New York Fed President William C. Dudley served 10 years as Goldman Sachs's chief economist. Photo Credit: By Kevin Clark -- The Washington Post

See also Federal Reserve, Federal Reserve bibliography, Federal Reserve Act, primary dealers, Reform of the Federal Reserve,and repo.



The Federal Reserve Bank of New York is one of the 12 Federal Reserve banks of the United States. It is located at 33 Liberty Street, New York, NY. It is responsible for the Second District of the Federal Reserve System, which encompasses New York state, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico, and the U. S. Virgin Islands.

Working within the Federal Reserve System, the New York Fed implements monetary policy, supervises and regulates financial institutions and helps maintain the nation's payment systems.

System Open Market Account (SOMA)

The Federal Reserve System Open Market Account (SOMA) is a portfolio of U.S. Treasury and Federal Agency securities1, foreign currency investments and reciprocal currency arrangements. At the end of 2008, the domestic securities portfolio held $496 billion in securities outright and $80 billion in repurchase agreements. The foreign currency portfolio held $25 billion in non-dollar assets denominated in euros and yen at the end of 2008. Reciprocal currency arrangements with foreign institutions totaled $554 billion at the end of 2008.

Interest on the portfolio provides a large portion of the Fed's income; nevertheless, the central bank buys and sells securities purely to implement monetary policy and not for profit. The System Open Market Account consists of the Federal Reserve's domestic and foreign portfolios, in addition to reciprocal currency arrangements made with foreign official institutions.

The SOMA domestic portfolio involves U.S. Treasury and Federal Agency securities held on both an outright and a temporary basis. The SOMA foreign currency portfolio is made up of investments denominated in euros and yen.

The Federal Open Market Committee (FOMC) has designated the Federal Reserve Bank of New York to execute open market transactions on behalf of the entire Federal Reserve System. The resulting investments are held in the SOMA portfolio.

In addition, while the Treasury, in consultation with the Federal Reserve System, has responsibility for setting U.S. exchange rate policy, the New York Fed is responsible for executing foreign exchange intervention.

The U.S. monetary authorities—the Treasury and the Fed—may intervene in the foreign exchange market to counter disorderly market conditions, using funds that belong to the Federal Reserve and to the Exchange Stabilization Fund of the Treasury Department.

Open market operations

Traditional open market operations—the buying and selling of securities in the marketplace—are one of the basic tools the Federal Reserve uses to conduct monetary policy, that is, influencing the cost and availability of money and credit in the U.S. economy.

To add reserves to the banking system, the Federal Reserve buys government securities. To drain reserves from the banking system, the Federal Reserve sells securities.

The Federal Reserve Act and the Monetary Control Act of 1980 provide the Fed with the authority to exchange maturing securities and to buy and sell obligations of the U.S. government in the open market.

A specified portion of the System's holdings is allocated to each of the 12 Reserve Banks. The percentage allotments of the portfolio are adjusted annually to reflect movements of deposits among Reserve Banks.

Portfolio value and composition

Most of the assets in the domestic portfolio are Treasury and Federal Agency securities that are held outright. The Federal Reserve also holds government securities on a temporary basis under repurchase agreements and occasionally issues temporary liabilities delivering securities under reverse repurchase agreements.

The composition and value of the portfolio change as a result of the Fed's open market operations. Expansion is achieved by outright purchases, mostly in the secondary market from primary dealers, supplemented by some purchases from foreign central banks and other international institutions that hold accounts with the Federal Reserve. Contraction is achieved by redeeming securities at maturity or outright sales. At the end of 2008, the par value of domestic portfolio holdings was $576 billion.

The U.S. monetary authorities invest their foreign currency balances in a variety of instruments that yield market-related rates of return and have a high degree of liquidity and credit quality.

To the greatest extent practical, the investments are split evenly between the System Open Market Account and the Exchange Stabilization Fund. A significant portion of the U.S. monetary authorities’ foreign exchange reserves is invested in European and Japanese government securities. On an outright basis, the U.S. monetary authorities hold German, French, and Japanese government securities.

At the end of 2008, the SOMA foreign portfolio was $25 billion, valued at the current exchange rate, in euros and yen. The SOMA is not marked to market, so the value is measured at par each day. However, the foreign exchange component of the foreign exchange reserves is marked to market.

Swap lines with central banks

On December 12, 2007, the FOMC announced that it had authorized temporary reciprocal currency arrangements—central bank liquidity swap lines—with the European Central Bank and the Swiss National Bank to help provide liquidity in U.S. dollars to overseas markets. Subsequently, the FOMC authorized liquidity swap lines with additional central banks.

Swap lines are now authorized with the following institutions:

  • the Reserve Bank of Australia,
  • the Banco Central do Brasil,
  • the Bank of Canada,
  • Danmarks Nationalbank,
  • the Bank of England,
  • the European Central Bank,
  • the Bank of Japan,
  • the Bank of Korea,
  • the Banco de Mexico,
  • the Reserve Bank of New Zealand,
  • Norges Bank,
  • the Monetary Authority of Singapore,
  • Sveriges Riksbank, and
  • the Swiss National Bank.

The FOMC has authorized these liquidity swap lines through October 30, 2009. At the end of 2008, these swap lines totaled $554 billion.

The interest received by the Federal Reserve on its portfolio holdings constitutes a large portion of the System's income. Unlike individuals or private institutions, however, the Fed acquires and sells securities purely to implement monetary policy and not for profit. The interest earned on those holdings is apportioned to the individual Federal Reserve Banks according to the percentage of the portfolio each owns. A portion of the earnings is used for salaries and other operation expenses of the Banks, with a small amount set aside in a surplus account. The remaining income is paid to the U.S. Treasury.

SOMA manager

The SOMA portfolio is managed on a daily basis. The manager is appointed by the FOMC and customarily is a senior officer of the New York Fed. The account manager attends the FOMC meetings to report on domestic operations, as well as to be fully informed of the discussions leading to the adoption of the committee's monetary policy directive to the New York Fed.

Significant increase in "direct bidders"

"A topic we have been investigating recently has been the sudden surge in direct bidding, at least as it pertains to the near end of the Treasury curve, and what the identity of the actual entity doing the buying may be. Explanations offered have ranged from China and Petrodollar accounts buying covertly, to primary dealers ramping up their activity to justify to the Fed that they are worthy for admission, all the way to the Fed conducting yet more 'under the radar' QE purchases. Today we present the opinion from Barclays, which provides another, fourth, view on things, theirs being the most benign one, namely that plain vanilla accounts have been purchasing Treasuries via the direct bid.

IMF evaluates the Fedwire Securities Service

This Detailed Assessment of Observance of the Fedwire Securities Service’s Observance of the CPSS-IOSCO Recommendations for Securities Settlement Systems for the United States was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in May 7, 2010.

The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the United States or the Executive Board of the IMF.

Fed alleged to support Wall Street

Source: Wall Street profits from trades with Fed Financial Times, August 2, 2009

"Wall Street banks are reaping outsized profits by trading with the Federal Reserve, raising questions about whether the central bank is driving hard enough bargains in its dealings with private sector counterparties, officials and industry executives say.

The Fed has emerged as one of Wall Street’s biggest customers during the financial crisis, buying massive amounts of securities to help stabilise the markets. In some cases, such as the market for mortgage-backed securities, the Fed buys more bonds than any other party.

However, the Fed is not a typical market player. In the interests of transparency, it often announces its intention to buy particular securities in advance. A former Fed official said this strategy enables banks to sell these securities to the Fed at an inflated price.

The resulting profits represent a relatively hidden form of support for banks, and Wall Street has geared up to take advantage. Barclays, for example, e-mails clients with news on the Fed’s balance sheet, detailing the share of the market in particular securities held by the Fed.

“You can make big money trading with the government,” said an executive at one leading investment management firm. “The government is a huge buyer and seller and Wall Street has all the pricing power.”

A former official of the US Treasury and the Fed said the situation had reached the point that “everyone games them. Their transparency hurts them. Everyone picks their pocket.”

Fed buys notes Fannie Mae sold yesterday

"The Federal Reserve bought $170 million of two-year notes sold yesterday by Fannie Mae, the quickest purchase after issuance of benchmark bonds from the company or similar institutions since the central bank began acquiring so-called agency debt.

The purchase was part of $2.6 billion of buying today, the New York Fed said on its Web site. The central bank listed the notes among ones it would accept bids for yesterday, about 90 minutes after Washington-based Fannie Mae announced the results of its $5 billion sale in a statement.

The Fed last month said it would begin buying “on-the- run” agency debt, or the most recently issued notes in different maturities. It has purchased $136.3 billion of Fannie Mae, Freddie Mac or Federal Home Loan Bank bonds since December, according to data complied by Bloomberg.

The $200 billion program was extended to March 31, from yearend, by the central bank last month. David Giradin, a spokesman for the New York Fed, didn’t immediately return a telephone message seeking additional comment."

Largest regional Federal Reserve Bank

Since the founding of the Federal Reserve banking system, the Federal Reserve Bank of New York in Manhattan Financial District has been the place where monetary policy in the United States is implemented, although policy is decided in Washington, D.C. by the Board of Governors of the Federal Reserve System.

The New York Federal reserve is the largest, in terms of assets, and the most important of the twelve regional banks. Operating in the financial capital of the U.S., the New York Fed is responsible for conducting open market operations, the buying and selling of outstanding U.S. Treasury securities.

Note that the responsibility for issuing new U.S. Treasury securities lies with the Bureau of the Public Debt.

In 2003, Fedwire, the Federal Reserve's system for transferring balances between it and other banks, transferred $1.8 trillion a day in funds, of which about $1.1 trillion originated in the Second District.

It transferred an additional $1.3 trillion a day in securities, of which $1.2 trillion originated in the Second District.

The New York Fed is also responsible for carrying out exchange rate policy by buying and selling dollars at the direction of the United States Treasury Department.

The New York Federal Reserve is the only regional bank with a permanent vote on the Federal Open Market Committee and its president is traditionally selected as the Committee's vice chairman. The current president is William C. Dudley.

The New York Fed opened for business on November 16, 1914 under the leadership of Benjamin Strong Jr., who was previously president of the Bankers Trust Company. He led the Bank until his death in 1928. The Bank grew rapidly during the early years, bringing about the need for a new home.

Investigation of Stephen Friedman and stock purchases

Dear Chairman Bernanke:

We write you in connection with the House Oversight and Government Reform Committee's hearings on the federal bailout of American International Group (AIG). The Committee is the principal oversight committee in the U.S. House of Representatives, with jurisdiction over "any matter." Under Rules X and XI ofthe Rules of the House of Representatives, the Committee is investigating this matter further.

As you may recall, in the fall of 2008, at the height ofthe financial crisis, Mr. Stephen Friedman served both as a member ofthe Board of Directors of Goldman Sachs and as Chairman of the Board of Directors ofthe Federal Reserve Bank of New York (New York Fed). In September 2008, Goldman Sachs converted from an investment bank into a bank holding company, making the New York Fed its primary regulator. At the time ofthe conversion, Mr. Friedman owned approximately 46,000 shares in Goldman.

Notably, under a long-standing policy ofthe Board of Governors ofthe Federal Reserve System (Federal Reserve), Mr. Friedman was prohibited from owning shares of any company under the supervision ofthe Federal Reserve. Despite the clear prohibition and apparent conflict of interest, Mr. Friedman requested a waiver1 from the Board of Governors in Washington and was allowed to continue serving as chairman, in direct violation of Fed policy, until a decision on the waiver was made.

In the meantime, on December 17, 2008, despite the prohibition, Mr. Friedman bought an additional 37,000 shares of Goldman Sachs, a company that was under the supervision at the New York Fed. A waiver was granted by the Board of Governors on January 21, 2009.

It is also noteworthy that at the time of Mr. Friedman's dual role, the New York Fed was actively considering the possibility of paying tens of billions of dollars in taxpayer funding to AIG's credit default swap counterparties, including Goldman. In Goldman's case, this counterparty payment was made in November of 2008 and it amounted to roughly $13 billion, courtesy of the American taxpayer.

What makes these transactions and the waiver that the Federal Reserve granted Mr. Friedman even more troubling is that the precise financial exposure Goldman faced from AIG was not publicly known when Mr. Friedman bought the Goldman stock in December of 2008.

Indeed, the precise amount AIG paid Goldman was not released until March of 2009, after Congress placed considerable pressure on the Federal Reserve to disclose that information. Mr. Friedman's dual role at the New York Fed and Goldman, his purchase of the Goldman stock in December 2008, and the Federal Reserve's waiver of its conflict of interest policy after the fact, raise serious questions about the integrity ofthe Fed's operations.

The Committee on Oversight and Government Reform received testimony from Mr. Friedman at a hearing on January 27, 2010, but key questions remain unanswered.

Please provide written answers to the following questions: see Towns letter for more

Senior Federal Reserve officials had “serious misgivings” about allowing the former chairman of the Federal Reserve Bank of New York’s board to serve while owning shares of Goldman Sachs Group Inc., a House chairman said.

The Fed officials argued against allowing Stephen Friedman to stay on as chairman while simultaneously investing in Goldman Sachs before the central bank waived its conflict of interest policy in January 2009, House Oversight and Government Reform Committee Chairman Edolphus Towns said in a statement today.

“Senior officials had misgivings about granting the waiver but were overruled,” Towns, a New York Democrat, and Representative Stephen Lynch, a Massachusetts Democrat, said in the statement.

The Oversight Committee will schedule a hearing “to learn more from Mr. Friedman and senior Fed officials about how he was permitted to make windfall profits by trading stock in a company he had a role in regulating,” the lawmakers said.

After Goldman Sachs opted to become a Fed-supervised bank in September 2008, the Fed approved a waiver for Friedman to remain chairman of the New York Fed’s board.

Friedman bought additional stock in Goldman Sachs after receiving the waiver, drawing criticism from members of Congress including Towns and Senator Richard Shelby of Alabama, the senior Republican on the Senate Banking Committee. Friedman resigned the Fed post in May 2009, citing the distraction caused by the controversy.

The Fed changed its policies in November to bar non-bankers serving as directors of a regional Fed bank from being board members or employees of a company that owns or is part of a bank, thrift or credit union.

To contact the reporter on this story: Jeff Plungis in Washington at jplungis@bloomberg.net.

Resignation of Stephen Friedman, Chair

Stephen Friedman resigned as Chair of the Federal Reserve Bank of New York on Thursday, May 7th, 2009 effective immediately.

Friedman, former CEO of Goldman Sachs, had been criticized for seemingly benefiting from his role as Chair of the New York Fed branch due to the US Government's aid to Goldman Sachs in recent months. The announcement came within an hour of the government's release of the stress tests for 19 US banks. Dennis Hughes, formerly Deputy Chair, was designated as Interim Chair following Friedman's resignation.

FRBNY bails out real estate firm

Tishman Speyer, whose 5.7 million sq. foot portfolio acquired from Blackstone in 2007, has been unable to renovate its insolvent properties as lenders have been unwilling to negotiate a restructuring. One of the lenders is none other than the Federal Reserve, which took over loan commitments by Bear Stearns. Crains New York reports that the FRBNY has finally relented and at what likely is a loss to taxpayers, has given Tishman $100 million to restructure its loans at preferential terms. Tishman's take on this development was pretty clear: "It's great for our tenants and it's great news for everybody we do business with,” said Casey Wold, Tishman senior managing director in Chicago. “We now have enough capital to improve the properties and lease up the entire portfolio to stabilization." Thank you taxpayers - you now have indirectly bailed out the following Chicago properties: Civic Opera Building, 10 & 30 S. Wacker Drive complex,1 N. Franklin St., 161 N. Clark St. and 30 N. LaSalle St.

More from Crains:

Tishman Speyer Properties has reached an agreement to restructure a $1.4-billion loan package covering five downtown Chicago office properties, a move that should help the buildings compete for tenants in a tough leasing market.

Manhattan-based Tishman had been negotiating a restructuring for months with lenders including the Federal Reserve Bank of New York, which took over the loans on the properties after the 2008 collapse of Bear Stearns Cos., the original lender.

The Fed last year froze reserve accounts set up to pay for tenant improvements and leasing commissions, hurting Tishman's ability to attract tenants to the buildings, which include landmarks like the Civic Opera Building and the 10 & 30 S. Wacker Drive complex.

Under the debt restructuring, money will now be available to cover those costs.

Under the agreement, more than $100 million is expected to be made available to cover tenant improvements and leasing commissions, with more than $50 million being directly invested by Tishman. The maturity date on the loans also will be extended to 2014 from 2012.

Tishman financed the $1.7-billion acquisition with about $1.4 billion in debt. The Fed is still holding about $737 million in loans after selling the rest.

NY Fed defends AIG counterparty payments

The New York Federal Reserve has hit out at claims that it ignored advice from its own advisers to force counterparties of American International Group, a failed insurance firm, to accept losses on their credit default swap contracts. Advertisement

The New York Fed repaid the insurer's eight biggest counterparties - Bank of America, Barclays, Calyon, Deutsche Bank, Goldman Sachs, Merrill Lynch, Société Générale and UBS - in full for their credit default swap exposure to AIG after all of the counterparties bar UBS refused to make voluntary concessions. UBS said it would take a 2% haircut if others did.

A report which appeared on the front page of the New York Times on 30 June claimed "regulators ignored recommendations from their own advisers to force the banks to accept losses on their AIG deals and instead paid the banks in full for the contracts." In a letter dated 9 July, Thomas Baxter, the general counsel and an executive vice president of the New York Fed, said this was untrue. "We asked our advisers - BlackRock, Morgan Stanley and Ernst & Young - to provide options for our consideration, but the fact that options were provided simply cannot be interpreted as a recommendation that we should or could force concessions. No such recommendation was ever made." The New York Fed published statements from the three advisers on its website, each of which confirmed that they did not call on the central bank to force the banks to accept losses.

The article further stated that 250,000 pages of largely undisclosed documents seen by the New York Times "suggest that regulators were overly punitive toward AIG and overly forgiving of banks during the bailout - signified [analysts said] by the fact that the legal waiver undermined AIG and its shareholders' ability to recover damages."

Baxter also denied this. "The article suggests that a ‘legal waiver' clause in the agreement that terminated the credit default swap was unusual; that regulators forced AIG. into the agreement; and that it unduly benefited the counterparties. We disagree in every respect," he said. "Regulators did not force AIG into the waiver clause. The waiver clause was a standard legal provision. It was a mutual release, by which AIG and the counterparties released each other from liability."

2nd Circuit Appeals Court rejects Fed's request to stay disclosure

A U.S. appeals court refused to reconsider a ruling that requires the Federal Reserve Board to disclose documents identifying financial firms that might have failed without the largest U.S. government bailout.

The U.S. Court of Appeals in New York, in a docket entry dated Aug. 20, denied a May 4 request by the Fed to review its unanimous March 19 decision requiring the agency to release records of the unprecedented $2 trillion U.S. loan program begun primarily after the 2008 collapse of Bear Stearns Cos.

The Fed may still ask the U.S. Supreme Court to reverse the appeals court. The Clearing House Association LLC, an organization of 20 commercial banks that joined the Fed in defense of the lawsuit, has already said it will appeal to the high court.

“The decision is of exceptional importance,” the Fed’s lawyers wrote in a legal brief on May 4 in which they asked the circuit court to reconsider its decision. “The real-world consequence of the panel’s decision will be serious, perhaps irreparable harm to the institutional borrowers whose information will be revealed.”

The ruling upheld a decision of a lower-court judge in Manhattan who in August 2009 ordered that the information be released.

“We are reviewing the decision and considering our options for appeal,” David Skidmore, a Fed spokesman, said.

‘Competitive Injury’

The Fed argued in the case, which was brought by Bloomberg LP, the parent of Bloomberg News, that disclosure of the documents threatens to stigmatize borrowers and cause them “severe and irreparable competitive injury,” discouraging banks in distress from seeking help. The appeals court panel rejected that argument.

The 157-year-old, New York-based Clearing House Payments Co., which processes transactions among banks, is owned by its 20 members. They include JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Bank of New York Mellon Corp., Deutsche Bank AG, HSBC Holdings Plc, PNC Financial Services Group Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.

The Clearing House Association, a lobbying group with the same members, joined the lawsuit in September 2009, after the initial ruling against the central bank in federal court in Manhattan.

Iya Davidson, a spokeswoman for the Clearing House, didn’t immediately return calls seeking comment.

Seven Days

The Fed and Clearing House have seven days to ask the circuit court for a stay, which would free them from having to release the 231 loan documents at issue, according to Willkie Farr & Gallagher LLP, Bloomberg’s attorneys in the case. If the court issues the stay, the Fed and the Clearing House have 90 days to petition the Supreme Court to consider their appeal.

If the circuit court doesn’t issue a stay, the Fed would have to release the documents, also called term sheets, the law firm said.

The amount the Fed and the U.S. government lent, spent or guaranteed to stem the recession and rescue the banking system peaked in March 2009 at $12.8 trillion, most of it following the September 2008 bankruptcy of Lehman Brothers Holdings Inc.

The New York Times Co., the Associated Press and Dow Jones & Co., publisher of the Wall Street Journal, are among media companies that have signed up as friends of the court in support of Bloomberg.

The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 09-04083, U.S. Court of Appeals for the Second Circuit (New York).

Fed asks full Appeals Court to review bailout disclosure

The Federal Reserve Board asked an appeals court to reconsider a ruling requiring the agency to disclose documents identifying financial firms that might have collapsed without the largest U.S. government bailout ever.

Attorneys for the Fed yesterday asked the full U.S. Court of Appeals in New York to reconsider a unanimous ruling by a three-judge panel. If the court refuses, the Fed can appeal to the U.S. Supreme Court.

“The decision is of exceptional importance,” the Fed’s lawyers wrote in a legal brief. “The real-world consequence of the panel’s decision will be serious, perhaps irreparable harm to the institutional borrowers whose information will be revealed.”

The Court of Appeals panel ruled March 19 that the Fed must release records of the unprecedented $2 trillion U.S. loan program launched primarily after the 2008 collapse of Lehman Brothers Holdings Inc. The ruling upheld a decision of a lower- court judge who in August ordered that the information be released.

The Fed argued in the case, which was launched by Bloomberg LP, the parent of Bloomberg News, that disclosure of the documents threatens to stigmatize borrowers and cause them “severe and irreparable competitive injury,” discouraging banks in distress from seeking help. The appeals court panel rejected that argument.

Freedom of Information

The U.S. Freedom of Information Act, or FOIA, “sets forth no basis for the exemption the board asks us to read into it,” U.S. Circuit Chief Judge Dennis Jacobs wrote in the March 19 opinion. “If the board believes such an exemption would better serve the national interest, it should ask Congress to amend the statute.”

The court was asked to decide whether loan records are covered by FOIA. Historically, the type of government documents sought in the case has been protected from public disclosure because they might reveal competitive trade secrets.

The Fed argued that it could withhold the information under an exemption that allows federal agencies to refuse disclosure of “trade secrets and commercial or financial information obtained from a person and privileged or confidential.”

The Clearing House Association, which processes payments among banks, joined the case and sided with the Fed. The group includes ABN Amro Bank NV, a unit of Royal Bank of Scotland Plc, Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase & Co., US Bancorp and Wells Fargo & Co.

Clearing House Petition

The Clearing House yesterday also filed a petition asking the full court to reconsider the decision.

Bloomberg, majority-owned by New York Mayor Michael Bloomberg, sued after the Fed refused to name the firms it lent to or disclose loan amounts or assets used as collateral under its lending programs. Most of the loans were made in response to the deepest financial crisis since the Great Depression.

Lawyers for Bloomberg argued in court that the public has the right to know basic information about the “unprecedented and highly controversial use” of public money.

In its new court papers, the Fed argued in a 16-page brief that the three-judge panel made two “significant but erroneous” legal rulings in March.

First, the panel created a conflict among circuit courts of appeals by refusing to consider the potential harm to the agency’s “ability to carry out its functions” and to “manage the national economy.”

Fed Arguments

“Disclosure of the identities of borrowers using the emergency lending facilities will dramatically reduce the effectiveness of those facilities,” the Fed argued. “Borrowers will be deterred by the stigma associated with use of these facilities, and will avoid using them, as is evident from the very high interest rates banks are willing to pay to borrow in the private federal funds markets, rather than come to the discount window.”

Second, the Fed said, the three judges were incorrect in March when they ruled that the documents reflected the agency’s own actions. In fact, the documents were obtained from the borrowers themselves and should not have been made public under exceptions to the federal disclosure rule, the Fed argued.

The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 09-04083, U.S. Court of Appeals for the Second Circuit (New York).

New York Board of Directors

The following people are on the board of directors as of 2010:

Class A
Name Title Term Expires
James Dimon Chairman and Chief Executive Officer

JPMorgan Chase & Co. New York, New York

Richard L. Carrión Chairman, President and Chief Executive Officer

Banco Popular de Puerto Rico , Inc. San Juan, Puerto Rico

Charles V. Wait President, Chief Executive Officer, and Chairman

Adirondack Trust Company Saratoga Springs, NY

Class B
Name Title Term Expires
Jeffrey B. Kindler Chairman and Chief Executive Officer


James S. Tisch President and Chief Executive Officer

Loews Corporation

Jeffrey R. Immelt Chairman and Chief Executive Officer

General Electric Company Fairfield, Connecticut


Class C
Name Title Term Expires
Lee C. Bollinger



Columbia University New York, New York

Kathryn S. Wylde President and Chief Executive Officer

Partnership for New York City

Denis M. Hughes



New York State AFL-CIO New York, New York


All terms expire on December 31.


Presidents of the bank since its founding have been:

  • William C. Dudley, 2009-
  • Timothy Geithner, 2003–2009
  • William J. McDonough, 1993–2003
  • E. Gerald Corrigan, 1985–1993
  • Anthony M. Solomon, 1980–1985
  • Paul Volcker, 1975–1979
  • Alfred Hayes, 1956–1975
  • Allan Sproul, 1941–1956
  • George L. Harrison, 1928–1940
  • Benjamin Strong Jr., 1914–1928

33 Liberty Street

Federal Reserve Bank of New York building
Federal Reserve Bank of New York building

A public architectural design competition was held and the architectural firm of York and Sawyer submitted the winning design. The bank moved to its current location in 1928.

The Federal Reserve Bank of New York maintains a vault that lies 86 feet below sea level, resting on Manhattan bedrock. By 1927, the vault contained ten percent of the world's official gold reserves.

Currently, it is reputedly the largest gold repository in the world (though this cannot be confirmed as Swiss Banks do not report their gold stocks) and holds approximately 5,000  metric tons of gold bullion ($160 billion as of March 2008), more than United States Bullion Depository (Fort Knox).

The gold is owned by many foreign nations, central banks and international organizations. The Federal Reserve Bank does not own the gold but serves as guardian of the precious metal, which it protects at no charge as a gesture of goodwill to other nations.


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