United States Treasury security
A United States Treasury security is a government debt instrument issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Treasury securities are referred to as Treasuries. Since 2012 the management of government debt has been arranged by the Bureau of the Fiscal Service, succeeding the Bureau of the Public Debt. There are four types of marketable treasury securities: Treasury bills, Treasury notes, Treasury bonds, Treasury Inflation Protected Securities. There are several types of non-marketable treasury securities including State and Local Government Series, Government Account Series debt issued to government-managed trust funds, savings bonds. All of the marketable Treasury securities are liquid and are traded on the secondary market; the non-marketable securities are issued to subscribers and cannot be transferred through market sales. Federal Reserve Banks are required to hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts into circulation.
This collateral is chiefly held in the form of U. S. Treasury debt and government-sponsored enterprise securities. To finance the costs of World War I, the U. S. Government increased government debt, called war bonds. Traditionally, the government borrowed from other countries, but there were no other countries from which to borrow in 1917; the Treasury raised funding throughout the war by selling $21.5 billion in'Liberty bonds.' These bonds were sold at subscription where officials created coupon price and sold it at par value. At this price, subscriptions could be filled in as little as one day, but remained open for several weeks, depending on demand for the bond. After the war, the Liberty bonds were reaching maturity, but the Treasury was unable to pay each down with only limited budget surpluses; the resolution to this problem was to refinance the debt with variable short and medium-term maturities. Again the Treasury issued debt through fixed-price subscription, where both the coupon and the price of the debt were dictated by the Treasury.
The problems with debt issuance became apparent in the late 1920s. The system suffered from chronic over-subscription, where interest rates were so attractive that there were more purchasers of debt than supplied by the government; this indicated. As government debt was undervalued, debt purchasers could buy from the government and sell to another market participant at a higher price. In 1929, the US Treasury shifted from the fixed-price subscription system to a system of auctioning where'Treasury Bills' would be sold to the highest bidder. Securities were issued on a pro rata system where securities would be allocated to the highest bidder until their demand was full. If more treasuries were supplied by the government, they would be allocated to the next highest bidder; this system allowed the market, rather than the government. On December 10, 1929, the Treasury issued its first auction; the result was the issuing of $224 million three-month bills. The highest bid was at 99.310 with the lowest bid accepted at 99.152.
"Treasury bill" redirects here. Note that the Bank of England issues these in the United Kingdom. Treasury bills mature in less. Like zero-coupon bonds, they do not pay interest prior to maturity. Regular weekly T-Bills are issued with maturity dates of 28 days, 91 days, 182 days, 364 days. Treasury bills are sold by single-price auctions held weekly. Offering amounts for 13-week and 26-week bills are announced each Thursday for auction at 11:30 a.m. on the following Monday and settlement, or issuance, on Thursday. Offering amounts for 4-week bills are announced on Monday for auction the next day, Tuesday at 11:30 a.m. and issuance on Thursday. Offering amounts for 52-week bills are announced every fourth Thursday for auction the next Tuesday at 11:30 am, issuance on Thursday. Purchase orders at TreasuryDirect must be entered before 11:00 on the Monday of the auction; the minimum purchase, effective April 7, 2008, is $100. Mature T-bills are redeemed on each Thursday. Banks and financial institutions primary dealers, are the largest purchasers of T-bills.
Like other securities, individual issues of T-bills are identified with a unique CUSIP number. The 13-week bill issued three months after a 26-week bill is considered a re-opening of the 26-week bill and is given the same CUSIP number; the 4-week bill issued two months after that and maturing on the same day is considered a re-opening of the 26-week bill and shares the same CUSIP number. For example, the 26-week bill issued on March 22, 2007, maturing on September 20, 2007, has the same CUSIP number as the 13-week bill issued on June 21, 2007, maturing on September 20, 2007, as the 4-week bill issued on August 23, 2007 that matures on September 20, 2007. During periods when Treasury cash balances are low, the Treasury may sell cash management bills; these are sold by auction just like weekly Treasury bills. They differ in that they are irregular in amount and day of the week for auction and maturity; when CMBs mature on the same day as a regular weekly bill Thursday, they are said to be on-cycle.
The CMB is considered another reopening of the bill and has the
Loretta J. Mester
Loretta J. Mester is President and CEO of the Federal Reserve Bank of Cleveland. Mester was born in Baltimore, Maryland on October 24, 1958, she is married to George Mailath, extolled as being one of the world’s top game theorists, an economist at the University of Pennsylvania. Both Loretta and George are avid opera fans. In fact, Mester has – on more than one occasion – cited Richard Wagner’s epic four-opera Ring Cycle as an analogy for the housing boom and crisis. Mester has a Bachelor of Arts degree from Barnard College, Columbia University in Mathematics and Economics and a Masters and Ph. D. in Economics from Princeton University. She was a National Science Foundation Fellow at Princeton. Dr. Mester became the President and CEO of the Federal Reserve Bank of Cleveland on June 1, 2014, she was the 11th CEO of Cleveland's Fourth District Federal Reserve Bank. A year she took on the additional position of “alternate voting member of the Federal Open Market Committee.” In her capacity in these leading roles at the Fed, Mester plays an active part in the establishment of U.
S. monetary policy, while supervising 950 employees throughout Cleveland and Pittsburgh. These staff members engage in economic research, administer banking institutions and prepare payment services to commercial banks and the American government; as well as her current position with the Fed, Mester is an adjunct professor of finance at the Wharton School of the University of Pennsylvania and a fellow at the Wharton Financial Institutions Center. Other positions Mester holds include: Greater Cleveland Partnership director, a trustee of both the Cleveland Clinic and the Musical Arts Association, a founding director of the Financial Intermediation Research Society, a member of the advisory board of the Financial Intermediation Network of European Studies, the American Economic Association, the American Finance Association, the Econometric Society, the Financial Management Association International. Mester has published articles in various journals on the subjects of central banking and finance.
She is co-editor of the Journal of Financial Services Research and the International Journal of Central Banking. She is an associate editor of: the Journal of Financial Intermediation, she is a Co-editor of the International Journal of Central Banking. Mester came to her current position at the Cleveland Fed with experience from her work at the Federal Reserve Bank of Philadelphia, where she was Executive Vice President, Director of Research and Chief Policy Advisor, she began work with the Federal Reserve Bank back in 1985 as an economist, thereafter being promoted to Senior Vice President, Director of Research, Executive Vice President. During her time with the Fed, Mester has participated in Federal Open Market Committee meetings, supervising analysts and economists from the Research Department and professionals in both the Financial Statistics Department and the Payments Cards Center. In the past, Mester taught in both the MBA and BA business courses at Wharton and the Ph. D. finance course at New York University.
Dr. Mester is a director of the Greater Cleveland Partnership, a trustee of the Cleveland Clinic, a trustee of the Musical Arts Association, a founding director of the Financial Intermediation Research Society, a member of the advisory board of the Financial Intermediation Network of European Studies, she is a member of the American Economic Association, the American Finance Association, the Econometric Society and the Financial Management Association International. Mester is perceived as a leader in the field of measuring the economies of scale exhibited by large banks, she has undertaken extensive research in this area with Joseph Hughes of Rutgers University. According to a former Fed Vice Chairman, Donald Kohn, “She expresses herself and isn’t afraid to make her views known when they go against received wisdom, but she is reasonable and open to data and studies that might change her mind.” Richard Fisher, President of the Dallas Federal Reserve said, “she has been a key, influential advisor to Charles Plosser and, as you know, Charles and I are like-minded as regards monetary policy.
That said, Loretta will speak her own mind at FOMC. I expect her to be an effective voice at the table.”
Jerome Hayden "Jay" Powell is the 16th and current Chair of the Federal Reserve, serving in that office since February 2018. He was nominated to the Fed Chair position by President Donald Trump, confirmed by the United States Senate. Powell earned a degree in politics from Princeton University in 1975 and a Juris Doctor from Georgetown University Law Center in 1979, he moved to investment banking in 1984, has since worked for several financial institutions. He served as Under Secretary of the Treasury for Domestic Finance under President George H. W. Bush in 1992. More he was a visiting scholar at the Bipartisan Policy Center from 2010 to 2012, he has served as a member of the Federal Reserve Board of Governors since 2012. He is the first Chair of the Federal Reserve to not hold a Ph. D. in Economics since 1987. Powell was born on February 4, 1953 in Washington, D. C. as one of six children to Patricia and Jerome Powell, a lawyer in private practice and a World War II veteran. His maternal grandfather, James J. Hayden, was Dean of the Columbus School of Law at Catholic University of America and a lecturer at Georgetown Law School.
He has five siblings, Matthew, Tia and Monica. In 1972, Powell graduated from Georgetown Preparatory School, a Jesuit university-preparatory school, he received a Bachelor of Arts in politics from Princeton University in 1975, where his senior thesis was titled "South Africa: Forces for Change." In 1975–76, he spent a year as a legislative assistant to Pennsylvania Senator Richard Schweiker. Powell earned a Juris Doctor degree from Georgetown University Law Center in 1979, where he was editor-in-chief of the Georgetown Law Journal. In 1979, Powell moved to New York City and became a clerk to Judge Ellsworth Van Graafeiland of the United States Court of Appeals for the Second Circuit. From 1981 to 1983, Powell was a lawyer with Davis Polk & Wardwell, from 1983 to 1984, he worked at the firm of Werbel & McMillen. From 1984 to 1990, Powell worked at Dillon, Read & Co. an investment bank, where he concentrated on financing, merchant banking, mergers and acquisitions, rising to the position of vice president.
Between 1990 and 1993, Powell worked in the United States Department of the Treasury, at which time Nicholas F. Brady, the former chairman of Dillon, Read & Co. was the United States Secretary of the Treasury. In 1992, Powell became the Under Secretary of the Treasury for Domestic Finance after being nominated by George H. W. Bush. During his stint at the Treasury, Powell oversaw the investigation and sanctioning of Salomon Brothers after one of its traders submitted false bids for a United States Treasury security. Powell was involved in the negotiations that made Warren Buffett the chairman of Salomon. In 1993, Powell began working as a managing director for Bankers Trust, but he quit in 1995 after the bank got into trouble when several customers suffered large losses due to derivatives, he went back to work for Dillon, Read & Co. From 1997 to 2005, Powell was a partner at The Carlyle Group, where he founded and led the Industrial Group within the Carlyle U. S. Buyout Fund. After leaving Carlyle, Powell founded Severn Capital Partners, a private investment firm focused on specialty finance and opportunistic investments in the industrial sector.
In 2008, Powell became a managing partner of the Global Environment Fund, a private equity and venture capital firm that invests in sustainable energy. Between 2010 and 2012, Powell was a visiting scholar at the Bipartisan Policy Center, a think tank in Washington, D. C. where he worked on getting Congress to raise the United States debt ceiling during the United States debt-ceiling crisis of 2011. Powell presented the implications to the economy and interest rates of a default or a delay in raising the debt ceiling, he worked for a salary of $1 per year. In December 2011, along with Jeremy C. Stein, Powell was nominated to the Federal Reserve Board of Governors by President Barack Obama; the nomination included two people to help garner bipartisan support for both nominees since Stein's nomination had been filibustered. Powell's nomination was the first time that a president nominated a member of the opposition party for such a position since 1988, he took office on May 2012, to fill the unexpired term of Frederic Mishkin, who resigned.
In January 2014, he was nominated for another term, and, in June 2014, he was confirmed by the United States Senate in a 67-24 vote for a 14-year term ending January 31, 2028. In 2013, Powell made a speech regarding financial regulation and ending "too big to fail". In April 2017, he took over oversight of the "too big to fail" banks. On November 2, 2017, President Donald Trump nominated Powell to serve as the Chair of the Federal Reserve. On December 5, 2017, the Senate Banking Committee approved Powell's nomination to be Chair in a 22–1 vote, with Senator Elizabeth Warren casting the lone dissenting vote, his nomination was confirmed by the Senate on January 2018 by an 84 -- 13 vote. Powell assumed office as Chair on February 5, 2018. A survey of 30 economists in March 2017 noted that Powell was more of a monetary dove than the average member of the Board of Governors. However, The Bloomberg Intelligence Fed Spectrometer rated Powell as neutral. Powell has been a skeptic of round 3 of quantitative easing, initiated in 2012, although he did vote in favor of implementation.
Powell "appears to support" the Dodd–Frank Wall Street Reform and Consumer Protection Act, although he has stated that "we can do it more efficiently". In an October 2017 speech, Powell stated that higher capital and liquidity requ
Randal Keith Quarles is an American private equity investor and government official who has served as a member and vice chair for supervision of the Federal Reserve Board of Governors since October 2017. He was founder and head of The Cynosure Group, a private investment firm, a former partner of The Carlyle Group, one of the world's largest private equity firms. From August 2001 until October 2006, he held several financial policy posts in the George W. Bush administration serving as Under Secretary of the Treasury for Domestic Finance. In July 2017, Quarles was nominated by President Donald Trump to be board member and vice chair for supervision of the Federal Reserve, he was confirmed by the United States Senate on October 5, 2017, by a 65–32 vote on the board seat and by voice vote on the vice chair position. The bank supervision position had been created under the 2010 Dodd-Frank financial law but had never before 2017 been filled. In 2012, Quarles was mentioned as a possible Treasury Secretary or senior White House adviser in future Republican administrations.
Born in San Francisco, Quarles was raised in Roy, graduating from Roy High School in 1975. After graduating from Columbia University with a BA summa cum laude in philosophy and economics in 1981, he entered Yale Law School, graduating with a JD in 1984. Upon graduation from Yale, Quarles was hired as an associate at the Wall Street law firm of Davis Polk & Wardwell, he spent most of his career there in the New York office but worked in the London office from 1987 to 1989. He specialized in financial institutions law becoming co-head of the firm's Financial Institutions Group and advising on transactions that included a number of the largest financial sector mergers completed. In 1990, Nicholas Brady, Treasury Secretary under George H. W. Bush, asked Quarles to join a team working to develop the governmental response to the savings and loan crisis in the financial sector and to propose improvements for the financial regulatory system going forward. Quarles served in the first Bush administration as Special Assistant to the Secretary of the Treasury for Banking Legislation and as Deputy Assistant Secretary of the Treasury for Financial Institutions Policy, returning to the law firm of Davis Polk & Wardwell in January 1993.
In 2001, Secretary Paul O'Neill asked Quarles to return to the Treasury, where he served until the mid-term elections in 2006. At the Treasury, Quarles was a senior official under all three of George W. Bush's Treasury Secretaries and developed policy on an unusually broad range of matters in both domestic and international financial affairs; as Under Secretary, Quarles led the Department's activities in financial sector and capital markets policy, including coordination of the President’s Working Group on Financial Markets, development of administration policy on hedge funds and derivatives, regulatory reform of Fannie Mae and Freddie Mac, proposing fundamental reform of the U. S. financial regulatory structure. Quarles was the lead advocate for imposing greater regulation on Fannie Mae and Freddie Mac, arguing that they posed significant risk to the financial sector, argued for fundamental reform of the entire financial regulatory system—extending broader and more uniform federal regulation to investment banks and insurance companies—because the current system restricted regulators' ability to observe and limit risk in the system.
From April 2002 until August 2005, Quarles was Assistant Secretary of the Treasury for International Affairs. Quarles had a leading role in issues ranging from Chinese currency policy to the Argentine debt default, from Iraqi and Afghan economic reconstruction to the reform of collective action in sovereign debt agreements. In addition, Quarles was the policy chair of the Committee on Foreign Investment in the United States, which reviews potential investments that raise national security issues, negotiated the historic debt relief agreement for the world's poorest countries reached at the G7 meetings in London in 2005. From August 2001 until April 2002, Quarles was the U. S. Executive Director of the International Monetary Fund, where he represented the United States in negotiations over the IMF's response to financial crises in Argentina and Turkey. In his earlier positions in the administration he had a key role in response to several international crises—the Argentine debt default, as well as near defaults in Brazil and Uruguay—and chaired the international working group that led to changes in the terms of sovereign debt finance that now permit collective action by creditors in such crises.
He argued for improving international coordination of financial regulation, initiating a regular dialogue with the European Union on financial regulatory matters and representing the United States at the Financial Stability Forum. He negotiated the historic debt relief agreement for the world's poorest countries reached at the G7 Meetings in London during 2005. At the time of his departure from government, Hank Paulson, the Treasury Secretary, noted that he had played a role in an unusually large range of matters in the history of the Treasury – "from the Argentine debt default to terrorism risk insurance, from Chinese currency flexibility to GSE reform", awarded him the Alexander Hamilton Medal, the Treasury Department's highest honor. After his departure from the Treasury, Quarles joined the Carlyle Group, a leading private equity firm, to help the firm develop a focus on transactions in the financial services sector. After his departure from Carlisle, Quarles led the Cynosure Group which manages the money of the Eccles family among others.
The family forbears included David Eccles, who emigrated from Scotland sailing on the Cynosure who subsequentl
United States House Committee on Financial Services
The United States House Committee on Financial Services referred to as the House Banking Committee and known as the Committee on Banking and Currency, is the committee of the United States House of Representatives that oversees the entire financial services industry, including the securities, insurance and housing industries. The Financial Services Committee oversees the work of the Federal Reserve, the United States Department of the Treasury, the U. S. Securities and Exchange Commission and other financial services regulators, it is chaired by Democrat Maxine Waters from California. Waters was elected as chair of the committee, assumed office on January 3, 2019; the Banking and Currency Committee was created on December 11, 1865, to take over responsibilities handled by the Ways and Means Committee. It continued to function under this name until 1968. Sources: H. Res. 7, H. Res. 8, H. Res. 57, H. Res. 68 Sources: H. Res. 6, H. Res. 7, H. Res. 29, H. Res. 45 The Financial Services Committee operates with six subcommittees.
The jurisdiction over insurance was transferred in 2001 to the then-House Banking and Financial Services Committee from the House Energy and Commerce Committee. Since that time it had been the purview of the Subcommittee on Capital Markets and Government Sponsored Enterprises, but "with plans to reform Fannie Mae and Freddie Mac expected to take up much of that panel's agenda, insurance instead moved to a new Subcommittee on Insurance and Community Opportunity." In the 115th Congress, a new subcommittee on Terrorism and Illicit Finance was created, dedicated to disrupting the financing of terrorist organizations. United States Senate Committee on Banking and Urban Affairs List of current United States House of Representatives committees House Committee on Financial Services Homepage House Financial Services Committee. Legislation activity and reports, Congress.gov. House Financial Services Committee Hearings and Meetings Video. Congress.gov
Federal Reserve Board of Governors
The Board of Governors of the Federal Reserve System known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the monetary policy of the United States. Governors are appointed by the President of the United States and confirmed by the Senate for staggered 14-year terms. By law, the appointments must yield a "fair representation of the financial, agricultural and commercial interests and geographical divisions of the country"; as stipulated in the Banking Act of 1935, the Chair and Vice Chair of the Board are two of seven members of the Board of Governors who are appointed by the President from among the sitting Governors. The terms of the seven members of the Board span multiple congressional terms. Once a member of the Board of Governors is appointed by the president, he or she functions independently; the Board is required to make an annual report of operations to the Speaker of the U.
S. House of Representatives, it supervises and regulates the operations of the Federal Reserve Banks, the U. S. banking system in general. The Board obtains its funding from charges that it assesses on the Federal Reserve Banks, not from the federal budget. Membership is by statute limited in term, a member that has served for a full 14 year term is not eligible for reappointment. There are numerous occasions where an individual was appointed to serve the remainder of another member's uncompleted term, has been reappointed to serve a full 14-year term. Since "upon the expiration of their terms of office, members of the Board shall continue to serve until their successors are appointed and have qualified", it is possible for a member to serve for longer than a full term of 14 years; the law provides for the removal of a member of the Board by the President "for cause". The Chair and Vice Chair of the Board of Governors are appointed by the President from among the sitting Governors, they both serve a four-year term and they can be renominated as many times as the President chooses, until their terms on the Board of Governors expire.
All seven board members of the Federal Reserve Board of Governors and five Federal Reserve Bank presidents direct the open market operations that sets U. S. monetary policy through their membership in the Federal Open Market Committee. Records of the Federal Reserve Board of Governors are found in the Record Group n. 82 at the National Archives of the United States. The current members of the Board of Governors are as follows: *Indicates the date of term expiration for the individual nominated to this vacant position. President Donald Trump had nominated Marvin Goodfriend and Nellie Liang to fill the remaining two vacancies. Mr. Goodfriend and Ms. Liang never received a Senate vote. Liang withdrew herself as a nominee on January 7, 2019, after months passed without the Republican-led Senate granting her a hearing. Trump nominated Stephen Moore and Herman Cain. Source: Source: Federal Reserve List of Governors Nomination hearings for Chairmen and Members of the Board of Governors of the Federal Reserve System Public Statements of Federal Reserve Board Members and Chairmen Minutes of Meetings of the Board of Governors of the Federal Reserve System Works by the Board of Governors This article incorporates public domain material from websites or documents of the National Archives and Records Administration