1.
Federal Reserve System
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The Federal Reserve System is the central banking system of the United States. Over the years, events such as the Great Depression in the 1930s, the U. S. Congress established three key objectives for monetary policy in the Federal Reserve Act, maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserves dual mandate. S, the Fed conducts research into the economy and releases numerous publications, such as the Beige Book. S. member banks, and various advisory councils. The federal government sets the salaries of the seven governors. Nationally chartered commercial banks are required to hold stock in the Federal Reserve Bank of their region, thus, the Federal Reserve System has both private and public components to serve the interests of the public and private banks. The structure is considered unique among central banks and it is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used. The U. S. Government receives all the annual profits, after a statutory dividend of 6% on member banks capital investment is paid. In 2015, the Federal Reserve made a profit of $100.2 billion, the primary motivation for creating the Federal Reserve System was to address banking panics. Before the founding of the Federal Reserve System, the United States underwent several financial crises, a particularly severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Federal Reserve System has responsibilities in addition to ensuring the stability of the financial system. S. S and this practice is called fractional-reserve banking. As a result, banks usually invest the majority of the funds received from depositors, on rare occasions, too many of the banks customers will withdraw their savings and the bank will need help from another institution to continue operating, this is called a bank run. Bank runs can lead to a multitude of social and economic problems, the Federal Reserve System was designed as an attempt to prevent or minimize the occurrence of bank runs, and possibly act as a lender of last resort when a bank run does occur. Many economists, following Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to banks during the bank runs of 1929. Because some banks refused to clear checks from certain others during times of economic uncertainty, to address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system. It took over this role from the private sector clearing houses which operated during the Free Banking Era, whether public or private, through its discount window and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals. Longer term liquidity may also be provided in exceptional circumstances, the rate the Fed charges banks for these loans is called the discount rate. By making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and this contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates. For example, on September 16,2008, the Federal Reserve Board authorized an $85 billion loan to stave off the bankruptcy of international insurance giant American International Group
2.
Central bank
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A central bank, reserve bank, or monetary authority is an institution that manages a states currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries, Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists, prior to the 17th century most money was commodity money, typically gold or silver. However, promises to pay were widely circulated and accepted as value at least five hundred years earlier in both Europe and Asia. The Song dynasty was the first to issue generally circulating paper currency, in 1455, in an effort to control inflation, the succeeding Ming Dynasty ended the use of paper money and closed much of Chinese trade. The Bank of Amsterdam, established in the Dutch Republic in 1609, is considered to be the forerunner to modern central banks. The Wisselbanks innovations helped lay the foundations for the birth and development of the banking system that now plays a vital role in the worlds economy. Along with a number of local banks, it performed many functions of a central banking system. Lucien Gillard calls it the European guilder, and Adam Smith devotes many pages to explaining how the bank guilder works, the model of the Wisselbank as a state bank was adapted throughout Europe, including the Bank of Sweden and the Bank of England. Established by Dutch-Latvian Johan Palmstruch in 1668, Sveriges Riksbank is often considered by many as the worlds oldest central bank, the lenders would give the government cash and also issue notes against the government bonds, which could be lent again. A Royal Charter was granted on 27 July through the passage of the Tonnage Act 1694, the bank was given exclusive possession of the governments balances, and was the only limited-liability corporation allowed to issue banknotes. The £1. 2M was raised in 12 days, half of this was used to rebuild the Navy and these modern central banking functions evolved slowly through the 18th and 19th centuries. The currency crisis of 1797, caused by panicked depositors withdrawing from the Bank led to the government suspending convertibility of notes into specie payment. The bank was accused by the bullionists of causing the exchange rate to fall from over issuing banknotes. Nevertheless, it was clear that the Bank was being treated as an organ of the state, henry Thornton, a merchant banker and monetary theorist has been described as the father of the modern central bank. An opponent of the real bills doctrine, he was a defender of the bullionist position, thorntons process of monetary expansion anticipated the theories of Knut Wicksell regarding the cumulative process which restates the Quantity Theory in a theoretically coherent form. Until the mid-nineteenth century, commercial banks were able to issue their own banknotes, many consider the origins of the central bank to lie with the passage of the Bank Charter Act of 1844. Under this law, authorisation to issue new banknotes was restricted to the Bank of England, at the same time, the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt
3.
Federal Reserve Act
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The Act was signed into law by President Woodrow Wilson. The Federal Reserve Act created a system of private and public entities, there were to be at least eight and no more than twelve private regional Federal Reserve banks. Twelve were established, and each had various branches, a board of directors, the Federal Reserve Board, consisting of seven members, was created as the governing body of the Fed. Each member is appointed by the President of the U. S, in 1935, the Board was renamed and restructured. Also created as part of the Federal Reserve System was a 12-member Federal Advisory Committee and a single new United States currency, the Federal Reserve Note. The Federal Reserve Act created a currency and a monetary system that could respond effectively to the stresses in the banking system. With the passing of the Federal Reserve Act, Congress required that all nationally chartered banks become members of the Federal Reserve System, since 1980, all depository institutions have been required to set aside reserves with the Federal Reserve. Such institutions are entitled to certain Federal Reserve services, central banking has made various institutional appearances throughout the history of the United States. These institutions started with the First and Second banks of the United States, the American financial system was deeply fragmented after the American Revolutionary War. The government was burdened with large debts, and the new republic needed a strong financial institution to give the country a resilient financial footing. Alexander Hamilton and Thomas Jefferson had opposing views regarding whether or not the US could benefit from a European-style national financial institution, Hamilton was in favor of building a strong centralized political and economic institution to solve the country’s financial problem. He argued that a bank could bring order to the US monetary system, manage the government’s revenues and payments. On the other hand, Jefferson was deeply suspicious of a bank because, he argued. The First Bank of the United States was established in 1791 chartered for a period of twenty years, the US government was the largest shareholder of the bank. Despite its shareholder status, the government was not permitted to participate in management of the bank, the bank accepted deposits, issued bank notes, and provided short-term loans to the government. It also functioned as a clearinghouse for government debt, the bank could also regulate state-charted banks to prevent overproduction of banknotes. The bank was successful in financing the government and stimulating the economy. In spite of its successes, hostility against the bank did not fade, in 1811, the first bank of the United States failed to be renewed by one vote in both the House and the Senate
4.
Federal Open Market Committee
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The Federal Open Market Committee, a committee within the Federal Reserve System, is charged under the United States law with overseeing the nations open market operations. This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply, the FOMC is the principal organ of United States national monetary policy. The Committee sets monetary policy by specifying the objective for the Feds open market operations. The Federal Open Market Committee was formed by the Banking Act of 1933, four of the Federal Reserve Bank presidents serve one-year terms on a rotating basis. The New York President always has a voting membership, the Committee meets eight times a year, approximately once every six weeks. By law, the FOMC must meet at least four times each year in Washington, since 1981, eight regularly scheduled meetings have been held each year at intervals of five to eight weeks. At each regularly scheduled meeting, the Committee votes on the policy to be carried out during the interval between meetings. Reports prepared by the Manager of the System Open Market Account on operations in the open market. At the meeting itself, staff officers present oral reports on the current and prospective business situation, on conditions in financial markets, the Manager of the System Open Market Account also reports on account transactions since the previous meeting. After these reports, the Committee members and other Reserve Bank presidents turn to policy, typically, each participant expresses his own views on the state of the economy and prospects for the future and on the appropriate direction for monetary policy. Then each makes a more explicit recommendation on policy for the coming intermeeting period, the directive is cast in terms designed to provide guidance to the Manager in the conduct of day-to-day open market operations. The directive sets forth the Committees objectives for long-run growth of certain key monetary and it also sets forth operating guidelines for the degree of ease or restraint to be sought in reserve conditions and expectations with regard to short-term rates of growth in the monetary aggregates. Policy is implemented with emphasis on supplying reserves in a consistent with these objectives. The committees practice of interest rate targeting has been criticized by commentators who argue that it may risk an inflationary bias. Under inflationary pressure in 1979, the Fed temporarily abandoned interest rate targeting in favor of targeting non-borrowed reserves and it concluded, however, that this approach led to increased volatility in interest rates and monetary growth, and reversed itself in 1982. Former Fed Chairman Ben Bernanke spoke sympathetically as a Governor in 2003 of the inflation targeting approach, together, these two elements promote both price stability and well-anchored inflation expectations, the latter in turn facilitates more effective stabilization of output and employment. Thus, a well-conceived and well-executed strategy of inflation targeting can deliver results with respect to output. Although communication plays several important roles in inflation targeting, perhaps the most important is focusing and anchoring expectations, clearly there are limits to what talk can achieve, ultimately, talk must be backed up by action, in the form of successful policies
5.
Federal Reserve Bank of Boston
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It is headquartered in a distinctive 614-foot tall, 32-story Federal Reserve Bank Building at 600 Atlantic Avenue, Boston. Designed by architecture firm Hugh Stubbins & Associates, the portion of the building is suspended between two towers on either side. The code of the Bank is A1, meaning that dollar bills from this Bank will have the letter A on them and its current president is Eric S. Rosengren, who replaced Cathy E. Minehan in July 2007. The Boston Fed describes its mission as promoting growth and financial stability in New England, the Boston Fed also includes the New England Public Policy Center. The following people serve on the board of directors as of 2015, All terms expire December 31
6.
Federal Reserve Bank of New York
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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. S, among the other regional banks, New York Federal Reserve Bank and its president are considered first among equals. Its current president is William C and it is by far the largest, most active and most influential of the 12 regional Federal Reserve Banks. The New York Fed is the largest in terms of assets of the regional banks. Operating in the capital of the U. S. the New York Fed is responsible for conducting open market operations. The Trading Desk is the office at the Federal Reserve Bank of New York that manages the FOMC Directive to sell or buy bonds, note that the responsibility for issuing new U. S. Treasury securities lies with the Bureau of the Public Debt. It transferred an additional $1.3 trillion a day in securities, the New York Fed is also responsible for carrying out exchange rate policy by buying and selling dollars at the discretion of the United States Treasury Department. The New York Federal Reserve is the regional bank with a permanent vote on the Federal Open Market Committee. A public competition for the design of the building was held, the bank moved to its current location in 1924. The Federal Reserve Bank of New York maintains a vault that lies 80 feet below street level and 50 feet below sea level, by 1927, the vault contained 10% of the worlds official gold reserves. Currently, it is reputedly the largest gold repository in the world and holds approximately 7,000 tonnes of gold bullion, nearly 98% of the gold at the Federal Reserve Bank of New York is owned by the central banks of foreign nations. The rest is owned by the United States and international such as the IMF. The Federal Reserve Bank does not own the gold but serves as guardian of the metal, which it stores at no charge to the owners. Moving the bars requires special footwear for the staff, to protect their feet in case they drop one of the gold bars weighing 28 pounds, the vault is open to tourists. On October 17,2012, Quazi Mohammad Rezwanul Ahsan Nafis,21, was arrested attempting to detonate what he believed to be an 800-pound bomb. A joint FBI/NYPD operation flagged the suspect on the Internet and set up the sting with fake explosives, in 2013, Nafis pleaded guilty and was sentenced to 30 years in federal prison. The Federal Reserve Bank of New York Buffalo Branch used to be the branch of the Federal Reserve Bank of New York. The New York Fed opened for business on November 16,1914 and he led the Bank until his death in 1928
7.
Federal Reserve Bank of Philadelphia
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The Federal Reserve Bank of Philadelphia, also known as the Philadelphia Fed and the Philly Fed – headquartered at 10 N. Its geographical territory is by far the smallest in the system, the current President of the Philadelphia Fed is Patrick T. Harker. The Philadelphia Fed conducts research on both the national and regional economy, the Federal Reserve Bank of Philadelphia publishes a quarterly survey of professional economic forecasters, the Survey of Professional Forecasters, also called The Anxious Index. It is a highly predictive report on the prospects for the Economy of the United States and it also publishes a quarterly publication entitled Business Review. The Federal Reserve Bank of Philadelphia also publishes the Livingston Survey, the following people serve on the board of directors as of 2013, All terms expire December 31. Eastburn, former President of the Federal Reserve Bank of Philadelphia
8.
Federal Reserve Bank of Cleveland
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The Federal Reserve Bank of Cleveland is the Cleveland-based headquarters of the U. S. Federal Reserve Systems Fourth District. The district is composed of Ohio, western Pennsylvania, eastern Kentucky, and it has branch offices in Cincinnati and Pittsburgh. The check processing center in Columbus, Ohio, was closed in 2005, the chief executive officer and president is Loretta Mester. The bank building is a 13 story 203 foot high-rise, located at Superior Avenue and East 6th Street in downtown Cleveland was designed by the Cleveland firm of Walker and Weeks and its exterior architecture emulates an Italian Renaissance palazzo, is clad in pink Sienna marble. An extension to the building designed by HOK was completed in 1998, providing new facilities for check processing, the building is listed on the National Register of Historic Places. The buildings entrances feature allegorical sculptures by Henry Hering representing Security and Integrity flanking the East Sixth Street entrance and its original 100 short tons bank vault door is the largest in the world. The hinge has an height of 19 feet and weighs over 47 short tons fully assembled. The door casting itself was 20 short tons and it incorporates the largest hinge ever built. The vaults use was discontinued in 1997, though it is preserved intact for posterity, in January 2006, the bank opened the Learning Center and Money Museum, replacing the public teller windows vacated after September 11,2001. Over 30 hands-on exhibits focus on the history of money, its effects on societies and cultures, the museum is open from Monday through Thursday, except for bank holidays, and admission is free. The following people are listed as on the board of directors as of January 2017, class A directors are elected by member banks to represent member banks. Class B directors are elected by member banks to represent the public, class C directors are appointed by the Board of Governors to represent the public. Terms expire on December 31 of the year shown, so some of these listed have just finished their service on the board
9.
Federal Reserve Bank of Richmond
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The Federal Reserve Bank of Richmond is the headquarters of the Fifth District of the Federal Reserve located in Richmond, Virginia. It covers the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, branch offices are located in Baltimore, Maryland and Charlotte, North Carolina. Currently, the president is Jeffrey M. Lacker, the former president, J. Alfred Broaddus, retired in 2004. The Federal Reserve Bank of Richmond is located in Downtown Richmond and it has an aluminum facade and was designed by Minoru Yamasaki, who also designed the former World Trade Center. Despite being one of the tallest buildings in the state, 49% of the total floor area is located underground. The building was proposed in 1972, and built from 1975-1978, the Federal Reserve Bank of Richmond is the third-largest Federal Reserve Bank by assets held, after New York and San Francisco, as of April 2015
10.
Federal Reserve Bank of Atlanta
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The Federal Reserve Bank of Atlanta, is one of the 12 Federal Reserve Banks of the United States. The Sixth District operates branches in Atlanta, Birmingham, Jacksonville, Miami, Nashville and these branches provide cash to banks, savings and loans, and other depository institutions, transfer money electronically, and clear millions of checks. The bank is located at 1000 Peachtree Street NE in Midtown Atlanta. Prior to 2001, the bank was located in downtown Atlanta at 104 Marietta Street NW, the Atlanta Fed has three main functions, monetary policy, operation of nationwide payment system, and bank supervision and regulation. Its job is to decide the interest rates, and the president meets with other bank presidents, the Bank’s board of directors makes recommendations on the levels of discount rates. The following people are on the board of directors as of September,2016, clarence Otis, Jr. Chairman and Chief Executive Officer, Darden Restaurants, Inc. The current president, Dennis P. Lockhart, took office March 1,2007, as the 14th president and chief officer of the Sixth District Federal Reserve Bank. Facing his mandatory retirement, FRBA announced Lockhart would be stepping down in February,2017, the firm Spencer Stuart had been named to help with the search for a replacement in September,2016. First Vice President Marie Gooding would hold the job on a basis if a permanent successor was not found before Lockharts February 28 departure date
11.
Federal Reserve Bank of Chicago
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The Federal Reserve Bank of Chicago is one of twelve regional Reserve Banks that, along with the Board of Governors in Washington, D. C. make up the nations central bank. S. Government, and monitors economic conditions in its District, as one of the Reserve Banks that make up the Federal Reserve System, the Chicago Fed is responsible for, Helping to formulate national monetary policy. The Chicago Feds CEO, Charles L. Evans, helps formulate monetary policy by taking part, providing financial services such as cash, check clearing and electronic payment processing. Each day the Federal Reserve System processes millions of payments in the form of paper checks and electronic transfers. These payments services are offered to institutions in the Seventh District on a fee basis, because of a nationwide reduction in the use of checking instruments, the Chicago Fed and most other Reserve Banks ceased processing paper checks on November 17,2009 and electronic checks in 2010. Items previously routed to this facility are now routed to the Federal Reserve Bank of Cleveland or to the Federal Reserve Bank of Atlanta, supervising and regulating state-chartered banks that are members of the Federal Reserve System, bank holding companies, and financial holding companies. These organizations are located within the Seventh Federal Reserve District, Charles L. Evans is the president of the Chicago Fed. He took office on September 1,2007 as the ninth president, ellen Bromagen is first vice president and chief operating officer of the Chicago Fed. The Chicago Fed annually co-hosts in Chicago an international banking conference to examine cross-national banking, the Banks Money Museum is free and open to the public year-round from 8, 30am to 5pm, Monday through Friday, except on Bank holidays. All visitors must show a photo identification, walk through a detector and have their bags x-rayed before entering the Money Museum. No food or drink are allowed in the museum, a presentation lasting roughly 45 minutes is available at 1pm on Monday through Friday, or by appointment. The rest of the Money Museum is accessible at any time during open hours, the museum includes a free kiosk, which takes a guests picture in front of a million dollars in $100 bills. A million dollars in $1 bills and a million dollars in $20 bills are on display, the museum has been known for giving out bags of shredded money as souvenirs. The Federal Reserve Bank of Chicago Detroit Branch is the branch of the Federal Reserve Bank of Chicago. The following people are on the board of directors as of 2016, class A directors are elected by member banks to represent member banks. Class B directors are elected by member banks to represent the public, class C directors are appointed by the Board of Governors to represent the public
12.
Federal Reserve Bank of St. Louis
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The Federal Reserve Bank of St. Louis is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington, D. C. make up the United States central bank. Missouri is the state to have two main branches of Federal Reserve Banks. Located in downtown St. Louis, the St and it has branches in Little Rock, Louisville and Memphis. Its building, at 411 Locust Street, was designed by St. Louis firm Mauran, the following people serve on the board of directors as of April 13,2016. James Bullard took office as president and chief officer of the Federal Reserve Bank of St. Louis in April 2008. He directs the activities of the head office in St. Louis as well as its three branches in Little Rock, Louisville and Memphis. In addition, he participates in the Federal Open Market Committee, Bullard is an accomplished economic theorist, whose fundamental contributions to monetary economics and policy analysis are highly regarded in the profession. Bullard joined the division of the Federal Reserve Bank of St. Louis in 1990. Prior to being appointed president, he was deputy director of research for monetary analysis, congress gave the Federal Reserve responsibility for setting monetary policy under the Federal Reserve Act of 1913 so that actions taken by the central bank would be free from political concerns. Along with the other 11 regional Feds, the St. Louis Fed helps guide the economy by participating on the Federal Open Market Committee. The St. Louis Fed supervises state-member banks and bank holding companies, examiners collect and verify data from financial institutions to ensure an accurate accounting of financial institutions’ conditions, as well as data on the money and reserves in the banking system. The St. Louis Fed processes bank applications for acquisitions and new activities, the chairman of the St. Louis Feds CDIAC represents the Eighth District at the Board of Governors CDIAC meetings, held twice annually. As part of Banking Supervision and Regulation, the St, the department also facilitates partnerships between lenders and their communities and seeks to generate economic development and affordable housing throughout the Eighth District. The executives are all experts in community and economic development and represent nonprofit organizations, financial institutions, universities, local governments, publications include Bridges, a quarterly publication for community organizations and leaders. The St. Louis Fed’s research division, led by vice president Christopher J. Waller. In the 1960s, the St. Louis Fed garnered a reputation as a maverick in the Federal Reserve System because of its espousal of monetarism. Spurred by bank president Darryl Francis and research director Homer Jones, monetarist theories have since been adopted widely. Four times a year, St. Louis Fed economists release the Burgundy Books, patterned after the Federal Reserve System’s Beige Book, as an economic snapshot of the four zones in the district
13.
Federal Reserve Bank of Minneapolis
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Although its geographical territory is the third largest of the 12 Federal Reserve banks, it serves the smallest population base of the system. It has one branch, which is in Helena, Montana, the bank has a staff of over 1000 people. Neel Kashkari became the president on January 1,2016. The Minneapolis Fed has strong ties to the department at the University of Minnesota. Nobel laureate economist Edward Prescott was affiliated with institutions for a long time. The Bank publishes The Region, a magazine featuring articles about economic policy, three buildings have served as headquarters for the district, all within a few blocks of each other. All three buildings are standing as of 2017 and it was designed by Cass Gilbert, architect of the Minnesota State Capitol building. The building was unusual in that there were no windows on the walls close to the street—from the start. Only up at the top was anyone able to look out from the building, the structure only became more strange in the 1950s, when a small skyscraper eight stories tall was added on top. The modern superstructure clashed with the granite Roman columns on the buildings façade, after a three-year development the National City Bank of Minneapolis moved into the building as its principal tenant. After the renovation, the received the Minneapolis Committee on the Urban Environment award for contributed the most to Minneapoliss urban environment. In 2013, the 510 Marquette building was sold for $6.69 million, at the time it was reported to have 198,552 square feet. It was purchased by Marquette Partners LLC, an affiliate of Minneapolis-based Swervo Development, the seller was OP2 Marquette, an affiliate of Opportunity Advisors of Eden Prairie, Minnesota. Opportunity Advisors had purchased the building in May 2012 for somewhere around $5-$6 million and it is noted as the first building ever made to use catenary support. Design problems, along with asbestos contamination, led the Federal Reserve to decide to move into a new complex, the new owner rehabilitated the building and added on, and the building temporarily housed the central Minneapolis Public Library while its new building was under construction. The building was designed to accommodate another cable to complete the circle, designed by architecture firm HOK, a complex along the Mississippi River now serves as home to the Minneapolis Fed, which moved there in 1997. The address was set as 90 Hennepin Avenue to match the 9th district designation and it is located on the site of the former Minneapolis Great Northern Depot adjacent to the Hennepin Avenue Bridge and the Pacific sawmill once owned by T. B. Walker and George A. Camp. The following people are on the board of directors as of 2016, class A directors are elected by member banks to represent member banks
14.
Federal Reserve Bank of Kansas City
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The current president is Esther George. The Fed in Kansas City is second only to the Federal Reserve Bank of San Francisco in size of area served. Missouri is the state with two main branches of Federal Reserve Banks. The other is in St. Louis, Federal Reserve Notes issued by the bank are identified by J on the face of one and two dollar bills and the J10 on the face of other currency. The first bank building was the R. A, shortly after it was established, the bank rented space to outside tenants. President Harry S. Truman had his office in Room 1107 of the building from when he left the Presidency in 1953 until the Truman Library was completed in 1957. In 2002, the announced plans to build a new facility at 1 Memorial Drive 20 blocks south at 29th. The historic 925 Grand Building was the oldest building of any Federal Reserve Bank operating at that time and it was sold to Townsend LLC in March 2005 and the Reserve leased back the structure until the new building opened. It was designed by Henry N. Cobb of Pei Cobb Freed & Partners, the bank employs 925 people in Kansas City. Since 1978, the Kansas City Fed has held an annual economic policy symposium, from 1978–1981, it was held at different locations, and from 1982 it has been held in Jackson Hole, Wyoming. From 1978 to 1981 the symposia focused on economic issues. Since 1981 topics have been broad and the symposia have gotten broader attention. In 2003 and 2005, papers were presented at the symposium that were critical of the status quo and these ideas in these papers were rejected at the time, but later were seen as having predicted the financial crisis of 2007-2010. The Fed operates a museum at its new site, called The Money Museum and it offers visitors opportunities to learn about the functions Federal Reserve system and Americas financial systems. Truman Coin Collection, and an opportunity to lift a real gold bar, the museum is open weekdays for self-guided tours and for one-hour guided tours, except holidays. Under the Class A category, a director will be elected by a group of member banks classified as either 1,2 or 3. This classification is based on the amount of capital and surplus for each commercial bank. Each group within the class elects one director, Class B - Three Class B directors represent the public
15.
Federal Reserve Bank of Dallas
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The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico, a district sometimes referred to as the Oil Patch. The Federal Reserve Bank of Dallas is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington, the Dallas Fed is the only one where all external branches reside in the same state. The Dallas Fed has branch offices in El Paso, Houston, the Dallas bank is located at 2200 Pearl St. in the Uptown neighborhood of Oak Lawn, just north of downtown Dallas and the Dallas Arts District. Prior to 1992, the bank was located at 400 S. Akard Street, the Dallas Fed also focused on research dealing with maquiladoras and other U. S. -Mexico border economics. The president is Robert Steven Kaplan, who replaced Richard W. Fisher in September 2015
16.
Federal Reserve Bank of San Francisco
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The Federal Reserve Bank of San Francisco is the federal bank for the twelfth district in the United States. The twelfth district is made up of nine western states-—Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington—plus the Northern Mariana Islands, American Samoa, and Guam. The Federal Reserve Bank of San Francisco has branch offices in Los Angeles, Portland, Salt Lake City and it also has a cash processing center in Phoenix. The twelfth district is the nations largest by area and population, the Federal Reserve Bank of San Francisco is the second-largest by assets held, after New York. In 2004 the San Francisco Fed processed 20.8 billion currency notes and 1.5 billion commercial checks, the current president, appointed in 2011, is John C. Williams. The Federal Reserve Bank in San Francisco has one of the largest collections of U. S. paper money in the United States, which is displayed in the American Currency Exhibit. In 1924, the San Francisco staff moved out of locations and into the Banks newly built headquarters at 400 Sansome Street. In 1983, the relocated to 101 Market St. The old headquarters building of the bank, designed by George W. Kelham, has an Ionic colonnade that is pure Beaux-Arts, the lobby with murals by Jules Guerin who created the palette for the 1915 Panama-Pacific International Exhibition. In 1983 the bank relocated to larger and more facilities on 101 Market Street as the 400 Sansome Street location was sold to private developers who rented out the space. Prominent law firm Orrick Herrington & Sutcliffe was headquartered in the building until 2002 when the firm moved out of the space, the building continues to be owned by private developers and current tenants include the Bar Association of San Francisco. It is listed on the National Register of Historic Places, there is also a Federal Reserve Bank of San Francisco building in Los Angeles. The 1929 built building is also NRHP-listed, from 1951 to 2008, the Seattle branch was headquartered at the Federal Reserve Bank Building in Downtown Seattle, which had been built in 1951 for the branch and is listed on the NRHP. The following people serve on the board of directors as of 2013, All terms expire December 31. 7943°N122. 4008°W /37.7943, -122.4008
17.
Eccles Building
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The Marriner S. Eccles Federal Reserve Board Building houses the main offices of the Board of Governors of the Federal Reserve System. It is located at 20th Street and Constitution Avenue, N. W. in Washington, the building, designed in the stripped classicism style, was designed by Paul Philippe Cret and completed in 1937. President Franklin Delano Roosevelt dedicated the building on October 20,1937, the building was named after Marriner S. Eccles, Chairman of the Federal Reserve under President Roosevelt, by an Act of Congress on October 15,1982. Previously it had known as the Federal Reserve Building. The principal officials overseeing the competition were Charles Moore, chairman of the United States Commission of Fine Arts, miller, a member of the Board since 1914. In describing the character of the building as governmental, it is not, however, for this reason it is suggested that the use of columns, pediments and other such forms may be altogether omitted and should be restricted to the character of the building as above described. Proposals were received from such as John Russell Pope and James Gamble Rogers. Ultimately, the winner of the competition was the classical design by Paul Philippe Cret. Paul Philippe Cret was a naturalized U. S. citizen who had trained at the École des Beaux-Arts in Lyons and he was invited to the United States in 1903 to establish the department of architecture at the University of Pennsylvania, and established his own practice in 1907. His first major commission was the Pan American Union Building, in Washington and this led to many other commissions for war memorials, civic buildings, court houses, and museums in cities such as Detroit, Hartford, Philadelphia, Indianapolis and Washington, D. C. By 1935, under the influence of Modernism, Crets style had evolved toward the classicism of buildings such as the Folger Shakespeare Library. But true to the Beaux-Arts tradition, he oversaw every aspect of the project, including technical. The four-story building, with an exterior of Georgia marble, is in the shape of the letter H, the interior has a two-story atrium with dual staircases and a skylight etched with the outline of an eagle. The atrium floor is of marble and its walls are of travertine marble, the largest meeting space is the two-story Board Room. Construction of the began in 1935 and was completed in 1937. Its pragmatic classicism captured the spirit of Depression-era and wartime Washington, Cret employed nationally recognized artists to complete the ornamentation and furnishing of the building. Samuel Yellin, a noted wrought-iron craftsman from Philadelphia, designed and executed numerous railings, gates, the furniture was produced by W. & J. Sloane, New York, with the architects having the final responsibility. Federal Reserve 1937 newsreel announcement of FED’s new headquarters
18.
Washington, D.C.
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Washington, D. C. formally the District of Columbia and commonly referred to as Washington, the District, or simply D. C. is the capital of the United States. The signing of the Residence Act on July 16,1790, Constitution provided for a federal district under the exclusive jurisdiction of the Congress and the District is therefore not a part of any state. The states of Maryland and Virginia each donated land to form the federal district, named in honor of President George Washington, the City of Washington was founded in 1791 to serve as the new national capital. In 1846, Congress returned the land ceded by Virginia, in 1871. Washington had an population of 681,170 as of July 2016. Commuters from the surrounding Maryland and Virginia suburbs raise the population to more than one million during the workweek. The Washington metropolitan area, of which the District is a part, has a population of over 6 million, the centers of all three branches of the federal government of the United States are in the District, including the Congress, President, and Supreme Court. Washington is home to national monuments and museums, which are primarily situated on or around the National Mall. The city hosts 176 foreign embassies as well as the headquarters of international organizations, trade unions, non-profit organizations, lobbying groups. A locally elected mayor and a 13‑member council have governed the District since 1973, However, the Congress maintains supreme authority over the city and may overturn local laws. D. C. residents elect a non-voting, at-large congressional delegate to the House of Representatives, the District receives three electoral votes in presidential elections as permitted by the Twenty-third Amendment to the United States Constitution, ratified in 1961. Various tribes of the Algonquian-speaking Piscataway people inhabited the lands around the Potomac River when Europeans first visited the area in the early 17th century, One group known as the Nacotchtank maintained settlements around the Anacostia River within the present-day District of Columbia. Conflicts with European colonists and neighboring tribes forced the relocation of the Piscataway people, some of whom established a new settlement in 1699 near Point of Rocks, Maryland. 43, published January 23,1788, James Madison argued that the new government would need authority over a national capital to provide for its own maintenance. Five years earlier, a band of unpaid soldiers besieged Congress while its members were meeting in Philadelphia, known as the Pennsylvania Mutiny of 1783, the event emphasized the need for the national government not to rely on any state for its own security. However, the Constitution does not specify a location for the capital, on July 9,1790, Congress passed the Residence Act, which approved the creation of a national capital on the Potomac River. The exact location was to be selected by President George Washington, formed from land donated by the states of Maryland and Virginia, the initial shape of the federal district was a square measuring 10 miles on each side, totaling 100 square miles. Two pre-existing settlements were included in the territory, the port of Georgetown, Maryland, founded in 1751, many of the stones are still standing
19.
Alexander Hamilton
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Alexander Hamilton was an American statesman and one of the Founding Fathers of the United States. As the first Secretary of the Treasury, Hamilton was the author of the economic policies of the George Washington administration. He took the lead in the funding of the debts by the Federal government, as well as the establishment of a national bank, a system of tariffs. His vision included a central government led by a vigorous executive branch. This was challenged by Virginia agrarians Thomas Jefferson and James Madison who formed a rival party and they favored strong states based in rural America and protected by state militias as opposed to a strong national army and navy. They denounced Hamilton as too friendly toward Britain and toward monarchy in general, Hamilton was born out of wedlock in Charlestown, to a married mother of British and French Huguenot ancestry and a Scottish father. His father, James A. Hamilton, was the son of laird Alexander Hamilton of Grange. Orphaned as a child by his mothers death and his fathers abandonment, Hamilton was taken in by an older cousin and he was recognized for his intelligence and talent, and sponsored by a group of wealthy local men to travel to New York City to pursue his education. Hamilton attended Kings College, choosing to stay in the Thirteen Colonies to seek his fortune, discontinuing his studies before graduating when the college closed its doors during British occupation of the city, Hamilton played a major role in the American Revolutionary War. At the start of the war in 1775, he joined a militia company, in early 1776, he raised a provincial artillery company, to which he was appointed captain. He soon became the aide to General Washington, the American forces commander-in-chief. Hamilton was dispatched by Washington on numerous missions to convey plans to his generals, after the war, Hamilton was elected as a representative to the Congress of the Confederation from New York. He resigned to practice law, and founded the Bank of New York, Hamilton was among those dissatisfied with the weak national government. He led the Annapolis Convention, which successfully influenced Congress to issue a call for the Philadelphia Convention in order to create a new constitution, Hamilton became the leading cabinet member in the new government under President Washington. These programs were funded primarily by a tariff on imports, to overcome localism, Hamilton mobilized a nationwide network of friends of the government, especially bankers and businessmen, which became the Federalist Party. A major issue in the emergence of the American two-party system was the Jay Treaty and it established friendly trade relations with Britain, to the chagrin of France and the supporters of the French Revolution. Hamilton played a role in the Federalist party, which dominated national. In 1795, he returned to the practice of law in New York and he tried to control the policies of President Adams
20.
United States Secretary of the Treasury
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This position in the Federal Government of the United States is analogous to the Minister of Finance in many other countries. The Secretary of the Treasury is a member of the Presidents Cabinet, nominees for The Secretary of the Treasury undergo a confirmation hearing before the United States Senate Committee on Finance before being confirmed by the United States Senate. The Secretary of the Treasury is a member of the U. S. National Security Council. The Secretary along with the Treasurer must sign Federal Reserve notes before they can become legal tender, the Secretary also manages the United States Emergency Economic Stabilization fund. Most of the Departments law enforcement agencies such as the U. S. Customs Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, secret Service were reassigned to other Departments in 2003 in conjunction with the creation of the Department of Homeland Security. The Secretary of the Treasury salary is $205,700 annually,2 Deputy Secretary of the Treasury M. Peter McPherson served as Acting Secretary of the Treasury from August 17,1988, to September 15,1988. 4 Deputy Secretary of the Treasury Kenneth W. Dam served as Acting Secretary of the Treasury from December 31,2002,5 Deputy Secretary of the Treasury Robert M. Kimmitt served as Acting Secretary of the Treasury from June 30,2006, to July 9,2006. 7 Deputy Secretary of the Treasury Neal Wolin served as Acting Secretary of the Treasury from January 25,2013, as of April 2017, there are eleven living former Secretaries of the Treasury, the oldest being George P. Shultz. The most recent Secretary of the Treasury to die was Lloyd M. Bentsen, United States Department of the Treasury
21.
George Washington
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George Washington was an American politician and soldier who served as the first President of the United States from 1789 to 1797 and was one of the Founding Fathers of the United States. He served as Commander-in-Chief of the Continental Army during the American Revolutionary War and he is popularly considered the driving force behind the nations establishment and came to be known as the father of the country, both during his lifetime and to this day. Washington was widely admired for his leadership qualities and was unanimously elected president by the Electoral College in the first two national elections. Washingtons incumbency established many precedents still in use today, such as the system, the inaugural address. His retirement from office two terms established a tradition that lasted until 1940 when Franklin Delano Roosevelt won an unprecedented third term. The 22nd Amendment now limits the president to two elected terms and he was born into the provincial gentry of Colonial Virginia to a family of wealthy planters who owned tobacco plantations and slaves, which he inherited. In his youth, he became an officer in the colonial militia during the first stages of the French. In 1775, the Second Continental Congress commissioned him as commander-in-chief of the Continental Army in the American Revolution, in that command, Washington forced the British out of Boston in 1776 but was defeated and nearly captured later that year when he lost New York City. After crossing the Delaware River in the middle of winter, he defeated the British in two battles, retook New Jersey, and restored momentum to the Patriot cause and his strategy enabled Continental forces to capture two major British armies at Saratoga in 1777 and Yorktown in 1781. In battle, however, Washington was repeatedly outmaneuvered by British generals with larger armies, after victory had been finalized in 1783, Washington resigned as commander-in-chief rather than seize power, proving his opposition to dictatorship and his commitment to American republicanism. Washington presided over the Constitutional Convention in 1787, which devised a new form of government for the United States. Following his election as president in 1789, he worked to unify rival factions in the fledgling nation and he supported Alexander Hamiltons programs to satisfy all debts, federal and state, established a permanent seat of government, implemented an effective tax system, and created a national bank. In avoiding war with Great Britain, he guaranteed a decade of peace and profitable trade by securing the Jay Treaty in 1795 and he remained non-partisan, never joining the Federalist Party, although he largely supported its policies. Washingtons Farewell Address was a primer on civic virtue, warning against partisanship, sectionalism. He retired from the presidency in 1797, returning to his home, upon his death, Washington was eulogized as first in war, first in peace, and first in the hearts of his countrymen by Representative Henry Lee III of Virginia. He was revered in life and in death, scholarly and public polling consistently ranks him among the top three presidents in American history and he has been depicted and remembered in monuments, public works, currency, and other dedications to the present day. He was born on February 11,1731, according to the Julian calendar, the Gregorian calendar was adopted within the British Empire in 1752, and it renders a birth date of February 22,1732. Washington was of primarily English gentry descent, especially from Sulgrave and his great-grandfather John Washington emigrated to Virginia in 1656 and began accumulating land and slaves, as did his son Lawrence and his grandson, Georges father Augustine
22.
First Bank of the United States
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It followed the Bank of North America, the nations first de facto central bank. In 1791, The First Bank of the United States was one of the four major financial innovations proposed and supported by Hamilton, first Secretary of the Treasury. In addition to the bank, the other measures were assumption of the state war debts by the U. S. Government, establishment of a mint. The goals of Hamiltons three measures were to, Establish financial order, clarity and precedence in and of the newly formed United States, Establish credit—both in country and overseas—for the new nation. Resolve the issue of the currency, issued by the Continental Congress immediately prior to. The remaining $8 million of stock would be available to the public, there were other, nonnegotiable conditions for the establishment of the First Bank of the United States. Among these were, That the bank was to be a private company and that the bank, to avoid any appearance of impropriety, would, be forbidden to buy government bonds. Have a mandatory rotation of directors, neither issue notes nor incur debts beyond its actual capitalization. That foreigners, whether overseas or residing in the United States, would be allowed to be First Bank of the United States stockholders, but would not be allowed to vote. To achieve this, Hamilton repeated a suggestion he had nearly a year before—increase the duty on imported spirits, plus raise the excise tax on domestically distilled whiskey. Local opposition to the tax led to the Whiskey Rebellion, Hamiltons bank proposal faced widespread resistance from opponents of increased federal power. Like most of the Southern members of Congress, Jefferson and Madison also opposed a second of the three proposals of Hamilton, establishing an official government Mint. Furthermore, they contended that the creation of such a bank violated the Constitution, the Senate version of the bill did likewise, with considerably fewer, and milder, objections. It was when the two bills changed houses, complications set in, in the Senate, Hamiltons supporters objected to the Houses alteration of the plans for the excise tax. The establishment of the also raised early questions of constitutionality in the new government. Hamilton, then Secretary of the Treasury, argued that the bank was a means to utilize the authorized powers of the government implied under the law of the Constitution. Secretary of State Thomas Jefferson argued that the bank violated traditional property laws, another argument came from James Madison, who believed Congress had not received the power to incorporate a bank, or any other governmental agency. His argument rested primarily on the Tenth Amendment, that all powers not endowed to Congress are retained by the States, additionally, his belief was that if the Constitutions writers had wanted Congress to have such power, they would have made it explicit
23.
Second Bank of the United States
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The banks formal name, according to section 9 of its charter as passed by Congress, was The President, Directors, and Company, of the Bank of the United States. A private corporation with public duties, the bank handled all fiscal transactions for the U. S. Government, and was accountable to Congress, twenty percent of its capital was owned by the federal government, the banks single largest stockholder. Four thousand private investors held 80% of the capital, including one thousand Europeans. The bulk of the stocks were held by a few hundred wealthy Americans, in its time, the institution was the largest monied corporation in the world. The federal deposits endowed the BUS with its regulatory capacity, failing to secure recharter, the Second Bank of the United States became a private corporation in 1836, and underwent liquidation in 1841. A national alliance arose to legislate a central bank to address these needs, calhoun of South Carolina and Henry Clay of Kentucky was decisive in the successful chartering effort. The charter was signed into law by Madison on April 10,1816, opposition to the banks revival emanated from two interests. if Congress could incorporate a bank, it might emancipate a slave. Hostile to the effects of the central bank, private banks—proliferating with or without state charters—had scuttled rechartering of the first BUS in 1811. These interests played significant roles in undermining the institution during the administration of U. S. President Andrew Jackson, Government land sales in the West, fueled by European demand for agricultural products, ensured that a speculative bubble would form. When the U. S. Further, it transpired that branch directors for the Baltimore office had engaged in fraud and larceny. Resigning in January 1819, Jones was replaced by Langdon Cheves who continued the contraction in credit in an effort to stop inflation and stabilize the bank, the central banks reaction to the crisis—a clumsy expansion, then a sharp contraction of credit—indicated its weakness, not its strength. The effects were catastrophic, resulting in a recession with mass unemployment. The financial crisis raised doubts among the American public as to the efficacy of paper money, upon this widespread disaffection the anti-bank Jacksonian Democrats would mobilize opposition to the BUS in the 1830s. The national bank was in disrepute among most Americans when Nicholas Biddle. Under Biddles guidance, the BUS evolved into a banking institution that produced a strong and sound system of national credit. From 1823 to 1833, Biddle expanded credit steadily, but with restraint, albert Gallatin, former Secretary of the Treasury under Thomas Jefferson and James Madison, wrote in 1831 that the BUS was fulfilling its charter expectations. By the time of Jacksons inauguration in 1829, the bank appeared to be on solid footing. Public perceptions of the bank were generally positive
24.
Bank War
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The Bank War refers to the political struggle that developed over the issue of rechartering the Second Bank of the United States during the Andrew Jackson administration. When Congress voted to reauthorize the Bank, Jackson, as incumbent and candidate in the race, Pro-Bank National Republicans warned the public that Jackson would abolish the Bank altogether if granted a second term. In the presidential campaigns of 1832, the BUS served as the issue in mobilizing the opposing Jacksonian Democrats. Jackson and Biddle personified the positions on each side, Jacksonians successfully concealed the incompatibility of their hard money and paper money factions in the anti-Bank campaign, allowing Jackson to score an overwhelming victory against Henry Clay. Fearing economic reprisals from Biddle and the Bank, Jackson moved swiftly to remove deposits from the institution. In 1833, he succeeded in distributing the funds to several private banks throughout the country. The new Whig Party emerged in opposition to his abuse of executive power. In an effort to promote sympathy for the survival, Biddle retaliated by contracting Bank credit, inducing a serious. A reaction set in throughout America’s financial and business centers against Biddle’s economic warfare, by the close of 1834, recharter was a lost cause. Rather than permitting the Bank to go out of existence, Biddle arranged its conversion to a chartered corporation in Pennsylvania just weeks before its federal charter expired in March 1836. This episode in the Bank’s decline and fall ended in 1841 with liquidation of the institution, Jackson’s campaign against the Bank had triumphed. Vast western lands were opening for settlement, accompanied by rapid development, enhanced by steam power. Economic planning at the level was deemed necessary by Republican nationalists to promote expansion. And employ Hamiltonian means to Jeffersonian ends, Jackson’s forces were immensely strengthened by the revival of the Old Republican North-South agrarian alliance and its state sovereignty precepts. Upon these principles, the Missouri Compromise would be honored, federal institutions that conferred privileges producing artificial inequality would be eliminated through a return to strict constructionism. The planter of the South and the plain Republican of the north would provide the support and these precepts would necessarily bring the Jacksonian Democracy politically into collision with the Second Bank of the United States. As such, the Second Bank of the United States was not an issue in the 1828 elections, Jackson would not publicly air his grievances with the BUS until December 1829. When Jackson entered the White House in March 1829, dismantling the Bank was not part of his reform agenda and his new administration made routine efforts to enlist the Bank as a pro-Democratic Party institution, as part of their spoils victory, but Biddle was uncooperative
25.
Panic of 1907
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Panic occurred, as this was during a time of economic recession, and there were numerous runs on banks and trust companies. The 1907 panic eventually spread throughout the nation when many state and local banks, primary causes of the run included a retraction of market liquidity by a number of New York City banks and a loss of confidence among depositors, exacerbated by unregulated side bets at bucket shops. The panic was triggered by the attempt in October 1907 to corner the market on stock of the United Copper Company. The collapse of the Knickerbocker spread fear throughout the citys trusts as regional banks withdrew reserves from New York City banks, Panic extended across the nation as vast numbers of people withdrew deposits from their regional banks. This highlighted the impotence of the nations Independent Treasury system, which managed the money supply. By November, the contagion had largely ended, only to be replaced by a further crisis. This was due to the borrowing of a large brokerage firm that used the stock of Tennessee Coal, Iron. Collapse of TC&Is stock price was averted by a takeover by Morgans U. S. Steel Corporation—a move approved by anti-monopolist president Theodore Roosevelt. Each autumn money flowed out of the city as harvests were purchased and—in an effort to attract money back—interest rates were raised, foreign investors then sent their money to New York to take advantage of the higher rates. From the January 1906 Dow Jones Industrial Average high of 103, the April 1906 earthquake that devastated San Francisco contributed to the market instability, prompting an even greater flood of money from New York to San Francisco to aid reconstruction. From their peak in January, stock prices declined 18% by July 1906, by late September, stocks had recovered about half of their losses. The Hepburn Act, which gave the Interstate Commerce Commission the power to set railroad rates. This depreciated the value of railroad securities, between September 1906 and March 1907, the stock market slid, losing 7. 7% of its capitalization. Between March 9 and 26, stocks fell a further 9. 8%, the economy remained volatile through the summer. In the first nine months of 1907, stocks were lower by 24. 4%, on July 27, The Commercial & Financial Chronicle noted that the market keeps unstable. No sooner are these signs of new life in evidence than something like a suggestion of a new outflow of gold to Paris sends a tremble all through the list, and the gain in values and hope is gone. Several bank runs occurred outside the US in 1907, in Egypt in April and May, in Japan in May and June, in Hamburg and Chile in early October. The fall season was always a time for the banking system—combined with the roiled stock market
26.
J. P. Morgan
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John Pierpont J. P. Morgan was an American financier and banker who dominated corporate finance and industrial consolidation in late 19th and early 20th Century United States. In 1892, Morgan arranged the merger of Edison General Electric and he was instrumental in the creation of the United States Steel Corporation, International Harvester and AT&T. He directed the banking coalition that stopped the Panic of 1907 and he was the leading financier of the Progressive Era, and his dedication to efficiency and modernization helped transform American business. Morgan has been described as America’s greatest banker, Morgan died in Rome, Italy, in his sleep in 1913 at the age of 75, leaving his fortune and business to his son, John Pierpont Morgan, Jr. His fortune was estimated at only US$80 million, prompting John D. Rockefeller to say, Morgan was born into the influential Morgan family in Hartford, Connecticut, and was raised there. He was the son of Junius Spencer Morgan and Juliet Pierpont, Pierpont, as he preferred to be known, had a varied education due in part to the plans of his father. In the fall of 1848, Pierpont transferred to the Hartford Public School and then to the Episcopal Academy in Cheshire, Connecticut, boarding with the principal. In September 1851, Morgan passed the exam for The English High School of Boston. In the spring of 1852, an illness struck which was to more common as his life progressed. Rheumatic fever left him in so much pain that he could not walk and he convalesced there for almost a year, then returned to the English High School in Boston to resume his studies. After he graduated, his father sent him to Bellerive, a school near the Swiss village of Vevey and his father then sent him to the University of Göttingen in order to improve his German. He attained a level of German within six months and also a degree in art history, then traveled back to London via Wiesbaden. Morgan went into banking in 1857 at the London branch of merchant banking firm Peabody, in 1858, he moved to New York City to join the banking house of Duncan, Sherman & Company, the American representatives of George Peabody and Company. Morgan had avoided serving during the war by paying a substitute $300 to take his place, from 1860 to 1864, as J. Pierpont Morgan & Company, he acted as agent in New York for his fathers firm, renamed J. S. Morgan & Co. upon Peabodys retirement in 1864, from 1864–72, he was a member of the firm of Dabney, Morgan, and Company. In 1871, he partnered with the Drexels of Philadelphia to form the New York firm of Drexel, at that time, Anthony J. Drexel became Pierponts mentor at the request of Junius Morgan. After the death of Anthony Drexel, the firm was rechristened J. P. Morgan & Company in 1895, retaining close ties with Drexel & Company of Philadelphia, Morgan, Harjes & Company of Paris, and J. S. By 1900, it was one of the most powerful banking houses of the world, Morgan had many partners over the years, such as George W. Perkins, but always remained firmly in charge
27.
Lender of last resort
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The term lender of last resort originates from the French expression dernier ressort. In 1763, the king was the lender of last resort in Prussia, different definitions of the lender of last resort exist in the literature. That means that the bank is the lender of last resort. The function has been performed by many banks since the beginning of the 20th century. The goal is to prevent financial panics and bank runs spreading from one bank to the next from a lack of liquidity, although some of the details remain controversial, their general theory is still widely acknowledged in modern research and provides a suitable benchmark. Thornton and Bagehot were mostly concerned with the reduction of the money stock and that was because they feared that the deflationary tendency caused by a reduction of the money stock could reduce the level of economic activity. If prices did not adjust quickly, it would lead to unemployment, by keeping the money stock constant, the purchasing power remains stable during shocks. They increase the amount of cash they hold relative to deposits, banks, on the other hand, afraid of becoming illiquid, increase their reserves. Taken together, it reduces the money multiplier which, multiplied by the amount of base money, if the multiplier is reduced from a shock and the amount of base money is constant, the money stock will decrease as a consequence. Thornton and Bagehot, therefore, suggested that the lender of last resort should increase the base to offset the reduction of the multiplier. That was meant to keep the money stock constant and prevent an economic contraction, Thornton first published An Enquiry into the Nature and Effects of the Paper Credit of Great Britain in 1802. His starting point was only a central bank could perform the task of lender of last resort because it holds a monopoly in issuing bank notes. Unlike any other bank, the bank has a responsibility towards the public to keep the money stock constant. Bagehot was the second important contributor to the classical theory, in his book Lombard Street, he mostly agreed with Thornton without ever mentioning him but also develops some new points and emphases. Bagehot advocates, Very large loans at high rates are the best remedy for the worst malady of the money market when a foreign drain is added to a domestic drain. His main points can be summarized by his famous rule, lend it most freely, to merchants, to minor bankers, to this and that man, whenever the security is good. Many of the points remain controversial today but it seems to be accepted that the Bank of England strictly followed these rules during the last third of the 19th century, most industrialized countries have had a lender of last resort for many years. Why it is done can be explained by different models, the various models propose that a bank run or bank panic can arise in any fractional reserve banking system and that the lender of last resort function is a way of preventing panics from happening
28.
Carter Glass
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Carter Glass was a newspaper publisher and Progressive politician from Lynchburg, Virginia. He served many years in the United States Congress as a member of the Democratic Party, as House co-sponsor, he played a central role in the development of the 1913 Glass–Owen Act that created the Federal Reserve System. Glass subsequently served as the U. S. Secretary of the Treasury under President Woodrow Wilson, Carter Glass was born on January 4,1858 in Lynchburg, Virginia, the last child born to Robert Henry Glass and his first wife, the former Augusta Elizabeth Christian. His mother died on January 15,1860, when Carter was only 2 years old, so his sister Nannie, ten years older, Carter, a slight boy, got his nickname, Pluck, for his pugnacious willingness to stand up to bullies. His father, Robert Henry Glass was Lynchburgs postmaster beginning in 1853, Major Glass ultimately remarried and had seven additional children, including Meta Glass (president of Sweet Briar College and Edward Christian Glass. When American Civil War broke out, Lynchburg was pro-Union but also pro-slavery, since its economy depended on the manufacture of tobacco as well as slave-trading and the new railroads. R. H. Glass volunteered and joined the Virginia forces in 1861, and then joined the Confederate Army, Floyd, a former Governor of Virginia. Although Glasss father survived the Civil War,18 of his mothers relatives did not, in poverty-stricken Virginia during the post-War period, the young Glass received only a basic education at a private school run by one-legged former Confederate Henry L. Daviess. However, his father kept an extensive library and he became an apprentice printer to his father when he was 13 years old, and continued his education through reading. Carter Glass read Plato, Edmund Burke and William Shakespeare, among others that stimulated a lifelong intellectual interest, in 1876, Major Glass accepted an offer to edit the Petersburg News, and Carter joined him as a journeyman printer. Not long afterward, Major Glass accepted the editorship of the Danville Post, but Carter did not join him, when Glass was 19 years old, he moved with his father to Petersburg. Glass was a clerk in the office at the railroads headquarters. Several years later, under new owners and with headquarters relocated to Roanoke, however, by then Glass had found the newspaper job he had initially wanted. At the age of 22, Glass finally became a reporter and he rose to become the morning newspapers editor by 1887. The following year, the retired and offered Glass an option to purchase the business. Desperate to find financial backing, Glass received the assistance from a relative who loaned him enough for a $100 down payment on the $13,000 deal. Free to write and publish whatever he wished, Glass wrote bold editorials and encouraged tougher reporting in the morning paper, soon, Glass was able to acquire the afternoon Daily Advance, then to buy out the competing Daily Republican. Thus he became Lynchburgs sole newspaper publisher, the modern-day Lynchburg News, as a prominent and respected newspaper editor, Glass often supported candidates who ran against Virginias Democrats of the post-Reconstruction period, who he felt were promoting bad fiscal policy
29.
Robert Latham Owen
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Robert Latham Owen Jr. was one of the first two U. S. senators from Oklahoma. He served in the Senate between 1907 and 1925, in 1920 Owen unsuccessfully sought the Democratic Partys nomination for the presidency. Owens ancestors had emigrated from Wales, and the family had a record of service as doctors and teachers. His father Robert Latham Owen Sr. served in the Virginia State Senate after the American Civil War, during Owens boyhood, the family lived in Lynchburgs best-known mansion, Point of Honor. Owen attended private schools in Lynchburg and in Baltimore, Maryland, the American Civil War destroyed most of Virginias railroads. In late 1867, Robert Latham Owen Sr, in June 1873, however, when Owen was 16, his father died a financially ruined man, due to the Panic of 1873, which struck the consolidating railroads especially hard. He also received the Universitys gold medal for debating prowess, Owens mother, Narcissa Chisholm Owen, was partCherokee. She did much to foster her sons career, as well as became a distinguished painter, however, the precise extent of her Cherokee ancestry is unclear. Owens listing on the Dawes Rolls, dating from around 1900, however, Narcissas Memoirs, self-describe her as 1/16th Cherokee, which if correct would imply that her son was 1/32nd Cherokee. He served during 1879-80 as the teacher of the Cherokee Orphan Asylum. His mother joined him in 1880 and taught music for years at the Cherokee Female Seminary. Owen read law and was admitted to the bar in 1880, during 1881-84 he served as Secretary of the Board of Education of the Cherokee Nation, and worked on reorganizing the Cherokee school system. In parallel, he served in 1882,1883 and 1884 as the President of the International Fair at Muscogee, IT, now Muscogee, Oklahoma and he was owner and editor of the Indian Chieftain newspaper, based in present-day Vinita, Oklahoma, in 1884. His mother served as his hostess until his marriage on New Years Eve,1889, to Daisy Deane Hester, with whom he had one daughter, Dorothea, born in 1894. After the White House again changed hands in 1889, Owen left government service and organized the First National Bank of Muskogee in 1890 and this panic demonstrated the complete instability of the financial system of America and the hazards which businessmen had to meet under a grossly defective banking system. As a lawyer and lobbyist, Owen handled a number of significant cases dealing with Indian land issues, in 1906, after six years, Owen won the case and obtained compensation of close to $5 million for the Eastern Cherokees. He was also successful in his handling of important cases for the Western Cherokees, beyond his obvious drive and ambition, neither his legal nor his political career was to be hampered by Owens physical presence. He was a man of erect bearing, who kept a full head of hair to the end of his life
30.
Woodrow Wilson
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Thomas Woodrow Wilson was an American politician and academic who served as the 28th President of the United States from 1913 to 1921. Born in Staunton, Virginia, he spent his years in Augusta, Georgia and Columbia. In 1910, he was the New Jersey Democratic Partys gubernatorial candidate and was elected the 34th Governor of New Jersey, while in office, Wilson reintroduced the spoken State of the Union, which had been out of use since 1801. Leading the Congress that was now in Democratic hands, he oversaw the passage of progressive legislative policies unparalleled until the New Deal in 1933. The Federal Reserve Act, Federal Trade Commission Act, the Clayton Antitrust Act, through passage of the Adamson Act that imposed an 8-hour workday for railroads, he averted a railroad strike and an ensuing economic crisis. Upon the outbreak of World War I in 1914, Wilson maintained a policy of neutrality, Wilson faced former New York Governor Charles Evans Hughes in the presidential election of 1916. By a narrow margin, he became the first Democrat since Andrew Jackson elected to two consecutive terms, Wilsons second term was dominated by American entry into World War I. In April 1917, when Germany had resumed unrestricted submarine warfare and sent the Zimmermann Telegram, the United States conducted military operations alongside the Allies, although without a formal alliance. During the war, Wilson focused on diplomacy and financial considerations, leaving military strategy to the generals, loaning billions of dollars to Britain, France, and other Allies, the United States aided their finance of the war effort. On the home front, he raised taxes, borrowing billions of dollars through the publics purchase of Liberty Bonds. In his 1915 State of the Union Address, Wilson asked Congress for what became the Espionage Act of 1917, the crackdown was intensified by his Attorney General A. Mitchell Palmer to include expulsion of non-citizen radicals during the First Red Scare of 1919–1920. Wilson staffed his government with Southern Democrats who implemented racial segregation at the Treasury, Navy and he gave department heads greater autonomy in their management. Following his return from Europe, Wilson embarked on a tour in 1919 to campaign for the treaty. The treaty was met with concern by Senate Republicans, and Wilson rejected a compromise effort led by Henry Cabot Lodge. Due to his stroke, Wilson secluded himself in the White House, disability having diminished his power, forming a strategy for re-election, Wilson deadlocked the 1920 Democratic National Convention, but his bid for a third-term nomination was overlooked. Wilson was a devoted Presbyterian and Georgist, and he infused his views of morality into his domestic and he appointed several well known radically progressive single taxers to prominent positions in his administration. His ideology of internationalism is now referred to as Wilsonian, an activist foreign policy calling on the nation to promote global democracy and he was the third of four children of Joseph Ruggles Wilson and Jessie Janet Woodrow. Wilsons paternal grandparents immigrated to the United States from Strabane, County Tyrone, Ireland and his mother was born in Carlisle, England, the daughter of Rev. Dr. Thomas Woodrow from Paisley, Scotland, and Marion Williamson from Glasgow
31.
Benjamin Strong Jr.
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Benjamin Strong Jr. was an American banker. He served as Governor of the Federal Reserve Bank of New York for 14 years until his death, Strong exerted great influence over the policy and actions of the entire Federal Reserve System—and indeed over the financial policies of all of the United States and Europe. Strong was born in Fishkill, a Hudson Valley village in New York and his fathers family were primarily merchants and bankers descended from a British immigrant who had arrived in Massachusetts in 1630. Thus, Strong opted to go to work and became a clerk at a Wall Street investment, in 1900, Strong joined a trust company to work as an assistant to a corporate officer, eventually succeeding his boss. A trust company is one that administers the financial matters of legal trusts where the trust company acts on behalf of others. Trusts can be set up for reasons, including historic. For large corporations, trust companies can act for the bondholders, including accepting the corporations payments on the bonds. Trust companies can also do most commercial bank activities. At the time, many banks were forbidden by law to administer trusts. However, trust companies could do most commercial bank activities, commercial banks thus saw trust companies as luring away their customers with the attraction of being able to accomplish both the commercial and trust activities at one company. In 1904, Strong moved to Bankers Trust and it had been founded the year before by a consortium of commercial banks on the premise that it would not lure commercial bank customers away. Bankers Trust quickly grew to be the second largest U. S. trust company, despite technically having numerous stockholders, the voting power was held by three associates of J. P. Morgan. Thus, it was viewed as a Morgan company. During the Panic of 1907, Bankers Trust, including Strong, Strong became a vice-president of Bankers Trust in 1909, then president in January 1914. He was not the only one great public debate ensued after the panic about banking. Even sound banks had had problems because their depositors demanded their money, causing the banks to run low on cash, the U. S. public had been previously opposed to the establishment of a central bank. However, many leading bankers urged the U. S. Congress to create a bank that could help sound banks meet the demands of their depositors during a bank run by temporarily loaning them money. In 1908, Congress established the National Monetary Commission to evaluate alternatives for a long-term solution to the cycles of financial boom
32.
Bankers Trust
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Bankers Trust was a historic American banking organization. The bank merged with Alex. Brown & Sons before being acquired by Deutsche Bank in 1998, Bankers Trust Company was incorporated on March 24,1903, with an initial capital of $1.5 million. Despite technically having numerous stockholders, the power was held by three associates of J. P. Morgan. Thus, it was viewed as a Morgan company. J. P. Morgan himself held a controlling interest, Converse, a steel manufacturer turned financier and then president of Liberty National Bank, was chosen to serve as Bankers Trusts first president. Bankers Trust quickly grew to be the second largest U. S. trust company, during the Panic of 1907, Bankers Trust worked closely with J. P. Morgan to help avoid a general financial collapse by lending money to sound banks. In 1911 it acquired the Mercantile Company and a year later the Manhattan Trust Company, in 1914 Converse resigned to become president of Astor Trust Company, another Morgan company. He was succeeded by his son-in-law Benjamin Strong Jr, Strong served as president for less than a year, leaving Bankers Trust to become the first governor of the Federal Reserve Bank of New York after helping to establish the Federal Reserve System. In October 1917 the company became a member of the Federal Reserve system, in 1980, Bankers Trust exited retail banking under the direction of its CEO, Alfred Brittain III. The bank attempted to sell its portfolio and branches to Bank of Montreal, however. Bank of Montreal wanted to include BankAmercard in the terms of sale, eventually, Bankers Trust sold 89 branches to five banks including Republic National Bank of New York. Bankers Trust became a leader in the nascent derivatives business under the management of Charlie Sanford, having de-emphasized traditional loans in favor of trading, the bank became an acknowledged leader in risk management. Lacking the boardroom contacts of its rivals, notably J. P. Morgan, BT attempted to make a virtue of necessity by specializing in trading. The company shied away from using market data products from companies such as Reuters. A small development team based in London created BIDDS which included the Montage front-end package that traders used to obtain data from data feeds and broker screens. Two of these - Gibson Greetings and Procter & Gamble - successfully sued BT, asserting that they had not been informed of, or, had been unable to understand the risks involved. In 1997, Bankers Trust acquired Alex. Brown & Sons, founded in 1800, the bank suffered major losses in the summer of 1998. Certain of his subordinates were thereafter barred forever by the SEC from working in the securities markets, consequently, the acquisition by Deutsche Bank was a godsend to the banks shareholders, who avoided losing their entire investments
33.
Corporation
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A corporation is a company or group of people authorized to act as a single entity and recognized as such in law. Early incorporated entities were established by charter, most jurisdictions now allow the creation of new corporations through registration. Corporations chartered in regions where they are distinguished by whether they are allowed to be for profit or not are referred to as for profit and not-for-profit corporations, there is some overlap between stock/non-stock and for profit/not-for-profit in that not-for-profit corporations are always non-stock as well. A for profit corporation is almost always a stock corporation, registered corporations have legal personality and are owned by shareholders whose liability is limited to their investment. Shareholders do not typically actively manage a corporation, shareholders instead elect or appoint a board of directors to control the corporation in a fiduciary capacity, in American English, the word corporation is most often used to describe large business corporations. In British English and in the Commonwealth countries, the company is more widely used to describe the same sort of entity while the word corporation encompasses all incorporated entities. In American English, the company can include entities such as partnerships that would not be referred to as companies in British English as they are not a separate legal entity. Despite not being human beings, corporations, as far as the law is concerned, are legal persons. Corporations can exercise human rights against real individuals and the state, Corporations can be dissolved either by statutory operation, order of court, or voluntary action on the part of shareholders. Corporations can even be convicted of offenses, such as fraud. However, corporations are not considered living entities in the way humans are. While not a corporation, this new type of entity became very attractive as an alternative for corporations not needing to issue stock, in Germany, the organization was referred to as Gesellschaft mit beschränkter Haftung or GmbH. In the last quarter of the 20th Century this new form of organization became available in the United States and other countries. Since the GmbH and LLC forms of organization are technically not corporations they will not be discussed in this article, the word corporation derives from corpus, the Latin word for body, or a body of people. By the time of Justinian, Roman law recognized a range of corporate entities under the names universitas and these included the state itself, municipalities, and such private associations as sponsors of a religious cult, burial clubs, political groups, and guilds of craftsmen or traders. Such bodies commonly had the right to own property and make contracts, to receive gifts and legacies, to sue and be sued, private associations were granted designated privileges and liberties by the emperor. Entities which carried on business and were the subjects of rights were found in ancient Rome. In medieval Europe, churches became incorporated, as did local governments, such as the Pope, the point was that the incorporation would survive longer than the lives of any particular member, existing in perpetuity
34.
Stock
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The stock of a corporation is constituted of the equity stock of its owners. A single share of the stock represents fractional ownership of the corporation in proportion to the number of shares. In liquidation, the stock represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt. Stockholders equity cannot be withdrawn from the company in a way that is intended to be detrimental to the companys creditors, the stock of a corporation is partitioned into shares, the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value, in other jurisdictions, however, shares of stock may be issued without associated par value. Shares represent a fraction of ownership in a business, a business may declare different types of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a document that specifies the amount of shares owned by the shareholder. Stock typically takes the form of shares of common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions, shares of such stock are called convertible preferred shares. New equity issue may have specific legal clauses attached that differentiate them from previous issues of the issuer. Some shares of stock may be issued without the typical voting rights, for instance, or some shares may have special rights unique to them. Often, new issues that have not been registered with a governing body may be restricted from resale for certain periods of time. Preferred stock may be hybrid by having the qualities of bonds of fixed returns and they also have preference in the payment of dividends over common stock and also have been given preference at the time of liquidation over common stock. They have other features of accumulation in dividend, Rule 144 Stock is an American term given to shares of stock subject to SEC Rule 144, Selling Restricted and Control Securities. Under Rule 144, restricted and controlled securities are acquired in unregistered form, investors either purchase or take ownership of these securities through private sales from the issuing company or from an affiliate of the issuer. Investors wishing to sell these securities are subject to different rules than those selling traditional common or preferred stock and these individuals will only be allowed to liquidate their securities after meeting the specific conditions set forth by SEC Rule 144
35.
Loan
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In finance, a loan is the lending of money from one individual, organization or entity to another individual, organization or entity. A loan entails the reallocation of the asset for a period of time. The loan is provided at a cost, referred to as interest on the debt. In a legal loan, each of these obligations and restrictions is enforced by contract, although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the tasks for financial institutions such as banks. For other institutions, issuing of debt such as bonds is a typical source of funding. A secured loan is a loan in which the borrower pledges some asset as collateral, a mortgage loan is a very common type of loan, used by many individuals to purchase things. In this arrangement, the money is used to purchase the property, the financial institution, however, is given security – a lien on the title to the house – until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the right to repossess the house and sell it. In some instances, a loan out to purchase a new or used car may be secured by the car. The duration of the period is considerably shorter – often corresponding to the useful life of the car. There are two types of loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer, an indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. Unsecured loans are loans that are not secured against the borrowers assets. These may or may not be regulated by law, in the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974. Interest rates on unsecured loans are nearly always higher than for secured loans, an unsecured lender must sue the borrower, obtain a money judgment for breach of contract, and then pursue execution of the judgment against the borrowers unencumbered assets. In insolvency proceedings, secured lenders traditionally have priority over unsecured lenders when a court divides up the borrowers assets, thus, a higher interest rate reflects the additional risk that in the event of insolvency, the debt may be uncollectible. Demand loans are short term loans that are typically in that they do not have fixed dates for repayment and they can be called for repayment by the lending institution at any time
36.
Emergency Economic Stabilization Act of 2008
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The Emergency Economic Stabilization Act of 2008, commonly referred to as a bailout of the U. S. Both foreign and domestic banks are included in the program, the Act was proposed by Treasury Secretary Henry Paulson during the global financial crisis of 2008 and signed into law by President George W. Bush on October 3,2008. The plan, which was presented to Federal Reserve Chairman Ben Bernanke. The bill was then expanded and put forth as an amendment to H. R.3997, the amendment was rejected via a vote of the House of Representatives on September 29,2008, voting 205–228. The Senate accepted the amendment and passed the amended bill. Additional unrelated provisions added an estimated $150 billion to the cost of the package, the amended version of H. R.1424 was sent to the House for consideration, and on October 3, the House voted 263–171 to enact the bill into law. President George W. Bush signed the bill into law within hours of its congressional enactment, on Monday, October 6, the Dow Jones Industrial Average dropped more than 700 points and fell below 10,000 for the first time in four years. Iceland halted trading in six bank stocks while the government drafted a crisis plan, U. S. Treasury Secretary Henry Paulson proposed a plan under which the U. S. Treasury would acquire up to $700 billion worth of mortgage-backed securities. The plan was backed by President George W. Bush. The draft proposal was received favorably by investors in the market, but caused the U. S. dollar to fall against gold, the Euro. The plan was not immediately approved by Congress, debate and amendments were seen as likely before the plan was to receive legislative enactment, the U. S. administration pressured other countries to set up similar bailout plans. On September 23, the plan was presented by Paulson and Bernanke to the Senate Banking Committee, on September 24, President Bush addressed the nation on prime time television, describing how serious the financial crisis could become if action was not taken promptly by Congress. The plan was introduced on September 20, by Paulson, the proposal was only three pages long, intentionally short on details to facilitate quick passage by Congress. The draft proposal of the plan was received favorably by investors in the stock market and this plan can be described as a risky investment, as opposed to an expense. The MBS within the scope of the program have rights to the cash flows from the underlying mortgages. As such, the outflow of government funds to purchase the MBS would be offset by ongoing cash inflows represented by the monthly mortgage payments. Further, the government eventually may be able to sell the assets, the ability of the government to offset the purchase price depends on the valuation assigned to the MBS at the time of purchase. For example, Merrill Lynch wrote down the value of its MBS to approximately 22 cents on the dollar in Q22008, whether the government is ultimately able to resell the assets above the purchase price or will continue to merely collect the mortgage payments is an open item
37.
Financial audit
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A financial audit is conducted to provide an opinion whether financial statements are stated in accordance with specified criteria. In accordance with the US GAAP, auditors must release an opinion of the financial statements in the auditors report. Auditors can release three types of other than an unqualified/unmodified opinion. The unqualified auditors opinion is the opinion that the statements are presented fairly. A qualified opinion can also be issued for a limitation that is of limited significance. Further the auditor can instead issue a disclaimer, because there is insufficient, in a disclaimer the auditor explains the reasons for withholding an opinion and explicitly indicates that no opinion is expressed. Finally, an audit opinion is issued when the financial statements do not present fairly due to departure from US GAAP. Financial audits are performed by firms of practicing accountants who are experts in financial reporting. The financial audit is one of many assurance functions provided by accounting firms, many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors, Auditing promotes transparency and accuracy in the financial disclosures made by an organization, therefore would likely reduce such corporations concealmeant of unscrupulous dealings. Internationally, the International Standards on Auditing issued by the International Auditing, almost all jurisdictions require auditors to follow the ISA or a local variation of the ISA. A misstatement is defined in ISA450 as an error, omitted disclosure or inappropriate accounting policy, material is an error or omission that would affect the users decision. Audits exist because they add value through easing the cost of asymmetry and reducing information risk. They handle the vast majority of audits for publicly traded companies as well as private companies. It is reported that the Big Four audit 99% of the companies in the FTSE100, and 96% of the companies in the FTSE250 Index, the Big Four firms are shown below, with their latest publicly available data. None of the Big Four firms is a firm, rather. Each is a network of firms, owned and managed independently, each network has established an entity to co-ordinate the activities of the network. In one case, the entity is Swiss, and in three cases the co-ordinating entity is a UK limited company
38.
Government Accountability Office
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The Government Accountability Office is a government agency that provides auditing, evaluation, and investigative services for the United States Congress. It is the audit institution of the federal government of the United States. The GAO was established as the General Accounting Office by the Budget and Accounting Act of 1921. reports recommendations looking to greater economy or efficiency in public expenditures. The name was changed in 2004 to Government Accountability Office by the GAO Human Capital Reform Act to better reflect the mission of the office, while most other countries have government entities similar to the GAO, their focus is primarily on conducting financial audits. The GAOs auditors conduct not only financial audits, but also engage in an assortment of performance audits. News media often draw attention to the GAOs work by publishing stories on the findings, members of Congress also frequently cite the GAOs work in statements to the press, congressional hearings, and floor debates on proposed legislation. The GAO is headed by the general of the U. S. a professional. The comptroller general is appointed by the president, by and with the advice and consent of the Senate, for a 15-year, the president selects a nominee from a list of at least three individuals recommended by an eight-member bipartisan, bicameral commission of congressional leaders. During such term, the general has standing to pursue litigation to compel access to federal agency information. The comptroller general may not be removed by the president, since 1921, there have been only seven comptrollers general, and no formal attempt has ever been made to remove a comptroller general. Labor-management relations became fractious during the 9-year tenure of the 7th comptroller general, on September 19,2007, GAO analysts voted by a margin of two to one, in a 75% turnout, to establish the first union in the GAOs 86-year history. The analysts voted to affiliate with the International Federation of Professional and Technical Engineers, there are more than 1,800 analysts in the GAO analysts bargaining unit, the local voted to name itself IFPTE Local 1921, in honor of the date of the GAOs establishment. On February 14,2008, the GAO analysts union approved its first-ever negotiated pay contract with management and these standards pertain to auditors professional qualifications, the quality of audit effort, and the characteristics of professional and meaningful audit reports. In 1992 the GAO hosted XIV INCOSAI, the triennial convention of the International Organization of Supreme Audit Institutions. Due to its nature of a specific meta-study, the Ig Nobel Prize motivation described it as a report about the report about reports about reports, GAO often produces highlights of its reports that serve as a statement for the record for various subcommittees of the United States Congress. Many reports are issued periodically and take a view of U. S. agencies operations. GAO also produces annual reports on key issues such as Duplication and Cost savings, the GAO prepares some 900 reports annually. GAO publishes reports and information relating to, inter alia, Each year the GAO issues a report on the financial statements of the United States Government
39.
Cincinnati
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Cincinnati is a city in the U. S. state of Ohio that serves as county seat of Hamilton County. Settled in 1788, the city is located on the side of the confluence of the Licking with the Ohio River. With a population of 298,550, Cincinnati is the third-largest city in Ohio and its metropolitan statistical area is the 28th-largest in the United States and the largest centered in Ohio. The city is part of the larger Cincinnati–Middletown–Wilmington combined statistical area. In the 19th century, Cincinnati was an American boomtown in the heart of the country, it rivaled the larger cities in size. Throughout much of the 19th century, it was listed among the top 10 U. S and it was by far the largest city in the west. By the end of the 19th century, with the shift from steamboats to railroads drawing off freight shipping, trade patterns had altered and Cincinnatis growth slowed considerably. Cincinnati is home to two sports teams, the Cincinnati Reds, the oldest franchise in Major League Baseball. The University of Cincinnati, founded in 1819, is one of the 50 largest in the United States, Cincinnati is known for its historic architecture. In the late 1800s, Cincinnati was commonly referred to as Paris of America, due mainly to such ambitious projects as the Music Hall, Cincinnatian Hotel. The original surveyor, John Filson, named it Losantiville, in 1790, Arthur St. Ethnic Germans were among the early settlers, migrating from Pennsylvania and the backcountry of Virginia and Tennessee. General David Ziegler succeeded General St. Clair in command at Fort Washington, after the conclusion of the Northwest Indian Wars and removal of Native Americans to the west, he was elected as the mayor of Cincinnati in 1802. Cincinnati was incorporated as a city in 1819, exporting pork products and hay, it became a center of pork processing in the region. From 1810 to 1830 its population tripled, from 9,642 to 24,831. Completion of the Miami and Erie Canal in 1827 to Middletown, Ohio further stimulated businesses, the city had a labor shortage until large waves of immigration by Irish and Germans in the late 1840s. The city grew rapidly over the two decades, reaching 115,000 persons by 1850. Construction on the Miami and Erie Canal began on July 21,1825, the first section of the canal was opened for business in 1827. In 1827, the canal connected Cincinnati to nearby Middletown, by 1840, during this period of rapid expansion and prominence, residents of Cincinnati began referring to the city as the Queen City
40.
Pittsburgh
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Pittsburgh is a city in the Commonwealth of Pennsylvania in the United States, and is the county seat of Allegheny County. The city proper has a population of 304,391. The metropolitan population of 2,353,045 is the largest in both the Ohio Valley and Appalachia, the second-largest in Pennsylvania, and the 26th-largest in the U. S. The city features 30 skyscrapers, two inclines, a fortification and the Point State Park at the confluence of the rivers. Aside from steel, Pittsburgh has led in manufacturing of aluminum, glass, shipbuilding, petroleum, foods, sports, transportation, computing, autos, and electronics. For part of the 20th century, Pittsburgh was behind only New York and Chicago in corporate headquarters employment, Americas 1980s deindustrialization laid off area blue-collar workers and thousands of downtown white-collar workers when the longtime Pittsburgh-based world headquarters moved out. The area has served also as the federal agency headquarters for cyber defense, software engineering, robotics, energy research. The area is home to 68 colleges and universities, including research and development leaders Carnegie Mellon University, the region is a hub for Leadership in Energy and Environmental Design, sustainable energy, and energy extraction. Pittsburgh was named in 1758 by General John Forbes, in honor of British statesman William Pitt, 1st Earl of Chatham. The current pronunciation, which is unusual in English speaking countries, is almost certainly a result of a printing error in some copies of the City Charter of March 18,1816. The error was repeated commonly enough throughout the rest of the 19th century that the pronunciation was lost. After a public campaign the original spelling was restored by the United States Board on Geographic Names in 1911. The area of the Ohio headwaters was long inhabited by the Shawnee, the first known European to enter the region was the French explorer/trader Robert de La Salle from Quebec during his 1669 expedition down the Ohio River. European pioneers, primarily Dutch, followed in the early 18th century, Michael Bezallion was the first to describe the forks of the Ohio in a 1717 manuscript, and later that year European fur traders established area posts and settlements. In 1749, French soldiers from Quebec launched an expedition to the forks to unite Canada with French Louisiana via the rivers, during 1753–54, the British hastily built Fort Prince George before a larger French force drove them off. The French built Fort Duquesne based on LaSalles 1669 claims, the French and Indian War, the North American front of the Seven Years War, began with the future Pittsburgh as its center. British General Edward Braddock was dispatched with Major George Washington as his aide to take Fort Duquesne, the British and colonial force were defeated at Braddocks Field. General John Forbes finally took the forks in 1758, Forbes began construction on Fort Pitt, named after William Pitt the Elder while the settlement was named Pittsborough
41.
Baltimore
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Baltimore is the largest city in the U. S. state of Maryland, and the 29th-most populous city in the country. It was established by the Constitution of Maryland and is not part of any county, thus, it is the largest independent city in the United States, with a population of 621,849 as of 2015. As of 2010, the population of the Baltimore Metropolitan Area was 2.7 million, founded in 1729, Baltimore is the second largest seaport in the Mid-Atlantic. Baltimores Inner Harbor was once the leading port of entry for immigrants to the United States. With hundreds of identified districts, Baltimore has been dubbed a city of neighborhoods, in the War of 1812, Francis Scott Key wrote The Star-Spangled Banner, later the American national anthem, in Baltimore. More than 65,000 properties, or roughly one in three buildings in the city, are listed on the National Register, more than any city in the nation. The city has 289 properties listed on the National Register of Historic Places, the historical records of the government of Baltimore are located at the Baltimore City Archives. The city is named after Cecil Calvert, second Lord Baltimore, of the Irish House of Lords, Baltimore Manor was the name of the estate in County Longford on which the Calvert family lived in Ireland. Baltimore is an anglicization of the Irish name Baile an Tí Mhóir, in 1608, Captain John Smith traveled 210 miles from Jamestown to the uppermost Chesapeake Bay, leading the first European expedition to the Patapsco River. The name Patapsco is derived from pota-psk-ut, which translates to backwater or tide covered with froth in Algonquian dialect, a quarter century after John Smiths voyage, English colonists began to settle in Maryland. The area constituting the modern City of Baltimore and its area was first settled by David Jones in 1661. He claimed the area today as Harbor East on the east bank of the Jones Falls stream. In the early 1600s, the immediate Baltimore vicinity was populated, if at all. The Baltimore area had been inhabited by Native Americans since at least the 10th millennium BC, one Paleo-Indian site and several Archaic period and Woodland period archaeological sites have been identified in Baltimore, including four from the Late Woodland period. During the Late Woodland period, the culture that is called the Potomac Creek complex resided in the area from Baltimore to the Rappahannock River in Virginia. It was located on the Bush River on land that in 1773 became part of Harford County, in 1674, the General Assembly passed An Act for erecting a Court-house and Prison in each County within this Province. The site of the house and jail for Baltimore County was evidently Old Baltimore near the Bush River. In 1683, the General Assembly passed An Act for Advancement of Trade to establish towns, ports, one of the towns established by the act in Baltimore County was on Bush River, on Town Land, near the Court-House
42.
Charlotte, North Carolina
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Charlotte /ˈʃɑːrlət/ is the largest city in the state of North Carolina. It is the county seat of Mecklenburg County and the second-largest city in the southeastern United States, just behind Jacksonville, Charlotte is the third-fastest growing major city in the United States. In 2014 the estimated population of Charlotte according to the U. S. Census Bureau was 809,958, the Charlotte metropolitan area ranks 22nd-largest in the U. S. and had a 2014 population of 2,380,314. The Charlotte metropolitan area is part of a sixteen-county market region or combined statistical area with a 2014 U. S. Census population estimate of 2,537,990, residents of Charlotte are referred to as Charlotteans. It is listed as a global city by the Globalization. Charlotte Douglas International Airport is an international hub, and was ranked the 23rd-busiest airport in the world by passenger traffic in 2013. Charlotte has a subtropical climate. The city is located several miles east of the Catawba River and southeast of Lake Norman, Lake Wylie and Mountain Island Lake are two smaller man-made lakes located near the city. The Catawba Native Americans were the first to settle Mecklenburg County and were first recorded in European records around 1567, by 1759 half the Catawba tribe had been killed by smallpox. At the time of their largest population, Catawba people numbered 10,000, Mecklenburg County was initially part of Bath County of New Hanover Precinct, which became New Hanover County in 1729. The western portion of New Hanover split into Bladen County in 1734, Mecklenburg County formed from Anson County in 1762. Further apportionment was made in 1792, with Cabarrus County formed from Mecklenburg and these areas were all part of one of the original six judicial/military districts of North Carolina known as the Salisbury District. The area that is now Charlotte was settled by people of European descent around 1755, Thomas Polk, who later married Thomas Spratts daughter, built his house by the intersection of two Native American trading paths between the Yadkin and Catawba rivers. One path ran north–south and was part of the Great Wagon Road, within decades of Polks settling, the area grew to become Charlotte Town, incorporating in 1768. The crossroads, perched atop the Piedmont landscape, became the heart of Uptown Charlotte, in 1770, surveyors marked the streets in a grid pattern for future development. The east–west trading path became Trade Street, and the Great Wagon Road became Tryon Street, in honor of William Tryon, the intersection of Trade and Tryon—commonly known today as Trade & Tryon, or simply The Square—is more properly called Independence Square. While surveying the boundary between the Carolinas in 1772, William Moultrie stopped in Charlotte Town, whose five or six houses were very ordinary built of logs, local leaders came together in 1775 and signed the Mecklenburg Resolves, more popularly known as the Mecklenburg Declaration of Independence. While not a declaration of independence from British rule, it is among the first such declarations that eventually led to the American Revolution
43.
Birmingham, Alabama
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Birmingham is the most populous city in the U. S. state of Alabama and the county seat of Jefferson County. The citys population was 212,237 in the 2010 United States Census, the Birmingham-Hoover Metropolitan Statistical Area had a population of about 1,128,047 according to the 2010 Census, which is approximately one quarter of Alabamas population. Birmingham was founded in 1871, during the post-Civil War Reconstruction period and it was named for Birmingham, England, one of the UKs major industrial cities. The Alabama city annexed smaller neighbors and developed as an industrial and railroad center, based on mining, the new iron and steel industry. Most of the settlers who founded Birmingham were of English ancestry. From its founding through the end of the 1960s, Birmingham was an industrial center of the southern United States. Its growth from 1881 through 1920 earned its nicknames as The Magic City and its major industries were iron and steel production, plus a major component of the railroading industry. Rails and railroad cars were manufactured in Birmingham. The two primary hubs of railroading in the Deep South have been nearby Atlanta and Birmingham, since the 1860s, the economy has diversified since industrial restructuring in the latter half of the 20th century. Banking, telecommunications, transportation, electrical transmission, medical care, college education. Except for coal mining, the industry has declined in the Birmingham area, Birmingham ranks as one of the most important business centers in the Southeastern United States and as one of the largest banking centers in the nation. In higher education, Birmingham has been the location of the University of Alabama School of Medicine, since that time it has also gained the University of Alabama at Birmingham, one of three main campuses of the University of Alabama System. It is also home to three institutions, Samford University, Birmingham-Southern College, and Miles College. In total, the Birmingham area has major colleges of medicine, dentistry, optometry, physical therapy, pharmacy, law, engineering, the city has three of the states five law schools, Cumberland School of Law, Birmingham School of Law, and Miles Law School. Birmingham is also the headquarters of the Southwestern Athletic Conference, and Southeastern Conference, Birmingham was founded on June 1,1871, by the Elyton Land Company, whose investors included cotton planters, bankers and railroad entrepreneurs. It sold lots near the crossing of the Alabama & Chattanooga and South & North Alabama railroads. The first business at that crossroads was the trading post and country store operated by Marre, the site of the railroad crossing was notable for its proximity to nearby deposits of iron ore, coal, and limestone – the three main raw materials used in making steel. Birmingham is the only place worldwide where significant amounts of all three minerals can be found in close proximity, from the start the new city was planned as a center of industry
44.
Jacksonville, Florida
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Jacksonville is a seaport city and the seat of Duval County, Florida, United States. With an estimated 868,031 residents as of 2015, Jacksonville is the most populous city in both the state of Florida and the southeastern United States. It is estimated to be the 12th most populous city in the United States and is the largest city by area in the contiguous United States. The Jacksonville metropolitan area has a population of 1,603,497 and is the 34th largest in the United States and fourth largest in the state of Florida. The city is situated on the banks of the St. Johns River, in the First Coast region of North Florida, prior to European settlement, the Jacksonville area was inhabited by Native American people known as the Timucua. In 1564, the French established the colony of Fort Caroline at the mouth of the St. Johns River. In 1822, a year after the United States gained Florida from Spain, Jacksonville is the cultural, commercial and financial center of North Florida. A major military and civilian deep-water port, the citys riverine location supports two United States Navy bases and the Port of Jacksonville, Floridas third largest seaport. The two US Navy bases, Blount Island Command and the nearby Naval Submarine Base Kings Bay, Jacksonville is also home to several colleges and universities, including University of North Florida, Jacksonville University and Florida State College at Jacksonville. The area of the city of Jacksonville has been inhabited for thousands of years. In the 16th century, the beginning of the era, the region was inhabited by the Mocama. At the time of contact with Europeans, all Mocama villages in present-day Jacksonville were part of the powerful chiefdom known as the Saturiwa, centered around the mouth of the St. Johns River. One early map shows a village called Ossachite at the site of what is now downtown Jacksonville, French Huguenot explorer Jean Ribault charted the St. Johns River in 1562 calling it the River of May because he discovered it in May. Ribault erected a column near present-day Jacksonville claiming the newly discovered land for France. In 1564, René Goulaine de Laudonnière established the first European settlement, Fort Caroline, philip II of Spain ordered Pedro Menéndez de Avilés to protect the interest of Spain by attacking the French presence at Fort Caroline. On September 20,1565, a Spanish force from the nearby Spanish settlement of St. Augustine attacked Fort Caroline, the Spanish renamed the fort San Mateo, and following the ejection of the French, St. Augustines position as the most important settlement in Florida was solidified. The location of Fort Caroline is subject to debate but a reconstruction of the fort was established on the St. Johns River in 1964. Spain ceded Florida to the British in 1763 after the French and Indian War, the British introduced the cultivation of sugar cane, indigo and fruits as well the export of lumber
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Miami
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Miami is a seaport city at the southeastern corner of the U. S. state of Florida and its Atlantic coast. According to the U. S. Census Bureau, Miamis metro area is the eighth-most populous, Miami is a major center, and a leader in finance, commerce, culture, media, entertainment, the arts, and international trade. In 2012, Miami was classified as an Alpha−World City in the World Cities Study Groups inventory, in 2010, Miami ranked seventh in the United States in terms of finance, commerce, culture, entertainment, fashion, education, and other sectors. It ranked 33rd among global cities, in 2008, Forbes magazine ranked Miami Americas Cleanest City, for its year-round good air quality, vast green spaces, clean drinking water, clean streets, and citywide recycling programs. According to a 2009 UBS study of 73 world cities, Miami was ranked as the richest city in the United States, Miami is nicknamed the Capital of Latin America and is the largest city with a Cuban-American plurality. Miami has the third tallest skyline in the U. S. with over 300 high-rises, Downtown Miami is home to the largest concentration of international banks in the United States, and many large national and international companies. The Civic Center is a center for hospitals, research institutes, medical centers. For more than two decades, the Port of Miami, known as the Cruise Capital of the World, has been the number one cruise port in the world. It accommodates some of the worlds largest cruise ships and operations, Metropolitan Miami is the major tourism hub in the American South, number two in the U. S. after New York City and number 13 in the world, including the popular destination of Miami Beach. The Miami area was inhabited for thousands of years by indigenous Native American tribes, the Tequestas occupied the area for a thousand years before encountering Europeans. An Indian village of hundreds of people dating to 500–600 B. C. was located at the mouth of the Miami River, in 1566 the explorer, Pedro Menéndez de Avilés, claimed it for Spain. A Spanish mission was constructed one year later in 1567, Spain and Great Britain successively controlled Florida, and Spain ceded it to the United States in 1821. In 1836, the US built Fort Dallas as part of its development of the Florida Territory and attempt to suppress, the Miami area subsequently became a site of fighting during the Second Seminole War. Miami is noted as the major city in the United States conceived by a woman, Julia Tuttle, a local citrus grower. The Miami area was known as Biscayne Bay Country in the early years of its growth. In the late 19th century, reports described the area as a promising wilderness, the area was also characterized as one of the finest building sites in Florida. The Great Freeze of 1894–95 hastened Miamis growth, as the crops of the Miami area were the ones in Florida that survived. Julia Tuttle subsequently convinced Henry Flagler, a tycoon, to expand his Florida East Coast Railway to the region
