FEDERAL RESERVE BANK OF MINNEAPOLIS: “REPERCUSSIONS FROM THE FINANCIAL SHOCK”

October 12, 2008 at 1:10 am | In Economics, Financial, Globalization, Research | Leave a Comment

FEDNOTICE

FedNotice October 2008 (v.2)‏ Federal Reserve Bank of Minneapolis

on behalf of Diane Wells (dlw@MINNEAPOLISFED.ORG)

FedNotice Federal Reserve Bank of Minneapolis

Fri 10/10/08

In This Issue:
——————-
Federal Reserve Bank of Minneapolis

Gary Stern Speech

The Region
Board of Governors

Speech

Press Releases

Consumer Affairs Letters
Legal Developments
Legal Interpretations
Other Federal Reserve Banks

Publications

Speeches

Federal Reserve Bank of Minneapolis
GARY STERN SPEECH
Repercussions from the Financial Shock at the Council of Institutional Investors,
Chicago, Illinois, October 7, 2008.

THE REGION
Limiting Spillovers Through Focused Supervision,
Gary Stern on the too big to fail problem.
Interview with Christina and David Romer,
University of California, Berkeley, economic historians on the evolution of economic
understanding, FOMC forecasting and more.
Where Has All the Income Gone?
Middle American incomes rise substantially even while inequality increases.
The “Monster” of Chestnut Street,
The life and death of the Second Bank of the United States is a cautionary tale
about the exercise of monetary power.
Creative Disruption,
Economic theory has been unable to explain the bond between competition
and innovation. Until now.
Moving the Middle Forward,
A conference at the Minneapolis Fed looks to the economic future of the Midwest.
Cement to Our Union: Hamilton’s Economic Vision,
Student Essay Contest Winner.
The Region, September 2008.

Board of Governors
SPEECH
Chairman Ben S. BERNANKE: Current Economic and Financial Conditions
at the National Association for Business Economics 50th Annual Meeting,
Washington, D.C. October 7, 2008.

PRESS RELEASES
Written Agreement with Warren Bancorp. October 1, 2008.

Termination of enforcement action against Mitsubishi UFJ Financial Group.
October 1, 2008.

Order of prohibition against John H. Lohmeier. October 2, 2008.

Statement by the Board and OCC on new proposal from Wells Fargo to acquire
Wachovia. October 3, 2008.

Statement by Chairman Bernanke on action taken by Congress. October 3, 2008.

Board announces that it will begin to pay interest on depository institutions’
required and excess reserve balances. October 6, 2008.

Federal Reserve will offer $150 billion in 85-day credit through its Term Auction
Facility today. October 6, 2008.

Approval of proposal by Mitsubishi UFJ Financial Group to acquire voting shares
of Morgan Stanley. October 6, 2008.

Federal Reserve and other central banks announce schedules for term and forward
auctions of U.S. dollar liquidity for fourth quarter. October 7, 2008.

Board announces creation of the Commercial Paper Funding Facility (CPFF) to
help provide liquidity to term funding markets. October 7, 2008.

Federal Reserve announces results of auction of $150 billion in 85-day credit held
on October 6, 2008. October 7, 2008.

Minutes of Federal Open Market Committee, September 16, 2008. October 7, 2008.

CONSUMER AFFAIRS LETTERS
Extension of CRA Consideration Period for Community Development Activities
in Hurricanes Rita and Katrina Disaster Areas for an Additional 36 Months, CA 08-9.
October 2, 2008.

LEGAL DEVELOPMENTS
Federal Deposit Insurance Act, Section 19, August 28, 2008 and August 29, 2008.
October 3, 2008.

LEGAL INTERPRETATIONS
Federal Reserve Act, exemption from section 23A, letter dated October 6, 2008.
October 6, 2008.

Other Federal Reserve Banks
PUBLICATIONS
Foreclosures Chill Once-Hot Southeast Housing Market,
The housing market once added considerable sizzle to the Southeastern economy.
But the foreclosure crisis has roiled the region and spread its tentacles into many industries and residents’ lives. Foreclosures’ eventual cost to the region’s economy remains to be seen.
Remittances Ebb and Flow With the Immigration Tide,
Many people in developing countries rely on the remittance payments sent back home by
family members working abroad. An economic slowdown in the United States has dampened the growth of this payment method. Changing migration patterns, economic developments, and new technologies and policies are affecting how—and how many—remittances are sent abroad.
Plumbing the Gulf’s Depths for Oil and Gas,
Energy firms are busy exploring and drilling in the Gulf of Mexico, propelled by high oil prices and gradually dwindling supplies of easily accessible oil and gas deposits around the world. Technological and engineering breakthroughs have enabled these firms to reach depths never before possible, keeping energy production a major economic component of the Gulf Coast
EconSouth, FRB Atlanta. Third Quarter 2008.

Explaining the decline in the auction rate securities market,
Auction rate securities are an example of a relatively obscure financial market instrument that has been caught up in the recent negative sentiment affecting the financial markets. This article examines these securities and sheds some light on recent events.
Chicago Fed Letter, FRB Chicago. November 2008.

The Employment Situation-September 2008,
Nonfarm payrolls declined by 159,000 between August and September, with losses spread
across a wide range of industries. This marks the ninth consecutive month of employment decline and a continuation of the 6.1 percent unemployment rate, which remains the highest seen since September 2003.
Economic Trends, FRB Cleveland. October 6, 2008.

The Big Mac: A Global-to-Local Look at Pricing,
Readily tradable goods—oil, chemicals, metals and agricultural commodities, for example—tend to sell at world prices. Nontradable goods and services—housing, cab rides and such personal services as haircuts—are largely insulated from global competition, and their prices can vary from place to place.
Economic Letter, FRB Dallas. September 2008.

Are Energy Prices Threatening the Farm Boom?
This year’s farm incomes are expected to reach their highest levels in over three decades.
Profits have soared with record crop prices, strong export demand, the booming ethanol industry, and tightening global supplies. The robust profit opportunities for crop producers have more than offset losses for livestock producers.
Main Street Economist, FRB Kansas City, Issue 5, 2008.

Oil Prices and Inflation,
This Letter examines the impact of rising oil prices on core inflation over the last decade for four economies: the U.S., the euro area, Canada, and the U.K.
Economic Letter, FRB San Francisco. October 3, 2008

Community Colleges: Not So Junior Anymore,
Originally, their goal was to prepare students to transfer to a four-year college. Today,
they also offer work force training, certification in professions, adult continuing education—and even bachelor’s degrees.
Income Inequality: It’s Not So Bad,
Census data show that the income of the rich is growing faster than the income of the poor.
But such common measures exaggerate the degree of income inequality. In addition, income inequality is the result of—and not a detriment to—a well-functioning economy.
District Tops U.S. in Growth of Exports to China,
Missouri is leading the region’s pack, with an annual rate of growth topping 31 percent.
Did Credit Scores Predict the Subprime Crisis?
One might expect to find a connection between borrowers’ FICO scores and the incidence of default and foreclosure during the current crisis. The data don’t show such a cause and effect, however.
The Regional Economist, FRB St. Louis. October 2008.