The NYT reports that the White House and the NY Fed are pressuring NYS Attorney General Eric T. Schneiderman.

Given the sadly misguided history of both the Obama administration and the NY Fed (led by the President Tim Geithneir, now Treasury Secretary) when it comes to Bailouts, this is not a huge surprise.

But what is surprising is the utterly inappropriate behavior of Kathryn S. Wylde. She is not only a member of the board of the Federal Reserve Bank of New York, but occupies the seat supposedly reserved for the representing the public.

If the Times report is accurate, and the quote below represents Ms. Wylde’s comments, than that position is a laughable mockery, and Ms. Wylde should resign effective immediately.

The quote in question, which was reported to have occurred at Governor Hugh Carey’s funeral (!?!)  was as follows:

“It is of concern to the industry that instead of trying to facilitate resolving these issues, you seem to be throwing a wrench into it. Wall Street is our Main Street — love ’em or hate ’em. They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.”

I do not know if Ms. Wylde understands what her proper role should be, but clearly she is somewhat confused. She appears to be far more interested in representing the banks than the public.

Note that the Federal Reserve (and indirectly, the NY Fed) are conflicted players in this. On the one hand, they are supposed to be bank regulators (a task they have performed poorly). But they are also substantial investors in the banks, and their  regulatory oversight role is obviously conflicted.

There have been all manner of criminal and civil trespasses committed, and we should find out who ordered them, who committed them and why. AG Schneiderman should continue investigating the robo-signing, bring civil and criminal charges where necessary.

Recall that the original problems came about in large part due to Alan Greenspan’s Nonfeasance — the failure to perform his professional obligations of oversight and regulation. That any member of the Federal Reserve or NY Fed wants this closed before any investigation has been undertaken is a scandal of the highest magnitude.

Kathryn S. Wylde, and any other Fed member shirking their duties and committing nonfeasance should step down immediately.

>

Source:
Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal
GRETCHEN MORGENSON
NYT, August 21, 2011   
http://www.nytimes.com/2011/08/22/business/schneiderman-is-said-to-face-pressure-to-back-bank-deal.html

Category: Bailouts, Federal Reserve, Politics, Really, really bad calls

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

40 Responses to “Call for Resignation: Kathryn S. Wylde, NY Fed”

  1. miker says:

    Oh, She understands her role all too well, even perfectly, some would say…

  2. AHodge says:

    the fix is in
    uniformly and massively
    but getting caught at it may still be illegal or at least obvious malfeasance

  3. Moss says:

    Putting words to the actions and priorities should not be considered as misspoken. The charade is now completely exposed anyway by Bloomberg and the ‘Secrets of the Fed’.

  4. b_thunder says:

    This
    http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending/#/overview/?sort=nomPeakValue&group=none&view=peak&position=0&comparelist=&search=

    is the one and only purpose of the Fed.

    Speaking of NY Fed Board, let’s not forget that none other than The “Gorilla” Dick Fuld was on the NY FED Board, also representing *the public*… and remained on the Board for months after Lehman filed chapter-11

  5. Petey Wheatstraw says:

    “They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.”
    ___________________

    What about our banking system/scam IS defensible?

    Pull any thread and it will lead to a criminal act that will unravel the entire enterprise. So, we’re not going to pull any threads.

  6. ToNYC says:

    Remarks by Chairman Alan Greenspan
    At the Annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research, Washington, D.C.
    December 5, 1996

    http://www.federalreserve.gov/boarddocs/speeches/1996/19961205.htm

    For, at root, money–serving as a store of value and medium of exchange–is the lubricant that enables a society to organize itself to achieve economic progress. The ability to store the fruits of one’s labor for future consumption is necessary for the accumulation of capital, the spread of technological advances and, as a consequence, rising standards of living.

    “ability to store the fruits of one’s labor for future consumption is necessary for the accumulation of capital”

    Greenspan and Bernanke post-”irrational exuberance” speech decree ZIRP and Permanent Zero.

    Epic fail.

    Please help to pull the plug on this Million Dollar Baby.

    When Fed ignored the only triage solution of Good Bank , Bad Bank and Carry On;
    they went for Carry Off.

  7. Roger Bigod says:

    Excellent rhetoric. No one will ever mistake you for a fanboy of BAU.

  8. xatta says:

    Here’s an op-ed penned by Ms. Wylde. Turns out she’s all about creating jobs.

    http://www.huffingtonpost.com/kathryn-wylde/good-bad-ugly-in-financia_b_525565.html

  9. Sechel says:

    Do we have any examples of Fed members representing the public actually doing such?
    Ron Paul is right, End the Fed or at least recognize that it needs to be restructured.

  10. Mike in Nola says:

    Time for pikes and guillotines.

  11. The Fed was created to maitain the stabi8lity of the banking system. Not the American public. Why can’t you understand that? If you look at the history of the creation of the Fed it was created to keep the banking system solvent. When the needs of the banking system conflict with the needs of the general public it is the American pubnlic that is to be thrown under the bus, not the banks.

    Read The Creature from Jekyll Island. I believe they talk about this

  12. Francois says:

    @xatta;
    I only had to read up to the 3rd paragraph to realize how deep of a phony she is:

    But the Dodd bill also contains proposals that could seriously damage New York’s finance-based economy without making the American financial system better or safer. For example, the “Volcker rule,” named for a venerable New Yorker, would seek to turn the clock back to an era when the financial industry was less integrated and less global. Breaking up big banks or limiting their lines of business would not prevent another crisis, but simply make U.S. institutions less competitive with their foreign counterparts.

    Excuse me but who the hell cares about the competitivity of these asshats?? Society isn’t there to serve the banks, even if some cretins in CONgress believe that.

    No wonder they chose her; she’s a Fed Res/big banks drone.

  13. Note to self: Next time SPELL CHECK. I didn’t even proof read that. Pardon the mess ;)

    …..You see how much control the Fed has? :)

  14. foosion says:

    I’d encourage NY voters to call Schneiderman’s office to voice support, although it’s impossible to get through at the moment.

    You’d think $1.2 trillion in below market loans would be enough to keep the banking system happy, but apparently not.

  15. Petey Wheatstraw says:

    How the Common Man Sees It Says:

    “The Fed was created to maitain the stabi8lity of the banking system. Not the American public.”
    ___________

    And, ostensibly, the banking system is there to support the American public, not individual banks or bankers.

  16. Bill in SF says:

    “Wall Street is people.” Kathryn S. Wylde

  17. Bill Wilson says:

    The greatest conspiracies happen in broad daylight.

    This is why the FED’s regulatory authority should be given to a separate agency. The FED is part of the banking system and can’t be counted on to regulate itself.

  18. And, ostensibly, the banking system is there to support the American public, not individual banks or bankers.

    I agree with you Petey but from their perspective the smug reply would probably be something like:

    Only if the public is credit worthy.

    Remember, these are the people that would loan you enough money to make you broke. They don’t care about the public, only their ability to service debt

  19. JohnnyVee says:

    It takes courage to speak the truth. We need a lot more of that these days.

  20. DeDude says:

    Most of this seem to be about legal strategy and the obvious conflicting interests between the Obama administration wanting to get homeowners some relief right away vs. the NY AG wanting to get convictions or the best possible plea (even if it delay things a year of two).

    However, Kathy Wylde clearly does not know what her job is and needs to be replaced. She of all people should not be buying into the BS about Main street and Wall street having the same interests.

  21. VennData says:

    I sit indefensible to cu tmilitary pensions…

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/08/19/MN5E1KPHC7.DTL

    …while Donald Trump…

    http://www.people.com/people/article/0,,20521288,00.html

    … and Mitt Romney…

    http://www.nbcsandiego.com/news/local/Romney-to-Expand-La-Jolla-Home-128185848.html

    Spend their Daddy’s money. You GOP voters want cuts to military pensions while the sons and daughters of the old money makes zero sacrifice. You people are nuts.

  22. xnycpdx says:

    this man – and others like him – best be ceasar’s wife; the elites have made it clear that the gloves are off, and are quite bold about enforcing their will. witness police collusion in the uk murdoch scandal and the SEC destroying criminal evidence for extreme examples, but one need go no further than spitzer, weiner and now strauss-kahn to see that if you have a part of your life that you CAN be used against you, it WILL. especially if it involves the naughty bits, which seems to be a popular obsession of the right side of the elite coin.

    so much for the moderators – the informers are in worse shape; the obama administration has been much more aggressive on whistleblowers than bush and reagan; and even here in portland, a parking bureau scandal has shown that those who tried to alert higher-ups to the problem were punished, demoted, or ‘encouraged’ to resign. cui bono, tho i find it interesting that those apparently NOT on the take enforced a mind set that permitted it to go on…

    your money is flowing uphill, and those who try and alert you to it, or try to stop it, are systematically being cowed, marginalized or destroyed professionally. and when it is so egregious that even the marching morons pause and take umbrage, the elites are asking: “what are YOU going to do about it?”

    sadly, what the morons usually do is mob, and march on the wrong target.

    we live in interesting times. as a non-investor, i ask you investors: how do you play in a casino where not only is the house rigged, but the cops are in on it? are the drinks that cheap?

    i’m not being facetious; i really do wonder how these people expect one to invest when they make it so clear that
    heads they win, tails you lose……

  23. Robespierre says:

    @Mike in Nola Says:
    August 22nd, 2011 at 11:29 am

    “Time for pikes and guillotines.”

    Sorry but I’m the only one allowed to make that call. ;)

  24. machinehead says:

    ‘Kathryn S. Wylde … occupies the seat supposedly reserved for the representing the public.’

    That would be analogous to the token ‘chicken representative’ on the board of foxes who run the henhouse.

    Except that she’s a fox wearing a chicken suit, not even trying to make convincing clucking noises.

  25. Sechel says:

    B.R.
    I’ve often wondered what assurances were given by the administration when BAC was put together with Countrywide. I have to believe these are playing out now….

  26. Francois says:

    Barry wrote:

    Given the sadly misguided history of both the Obama administration and the NY Fed (led by the President Tim Geithneir, now Treasury Secretary) when it comes to Bailouts

    What’s that you say? Misguided

    Au contraire, Master Barry! The guiding was as accurate as a laser beam; focused on currying the favors of those who own the means of production of great political campaigns, namely, the moolah, dough, dinero, plata etc.

  27. Molesworth says:

    Mr Ritholtz,
    I emailed the White House and asked them to stop to pestering Mr Schneiderman.
    I emailed the Federal Reserve and asked them to fire Ms Wylde.
    I expect one email will not change their behavior, but it made me feel better.
    And if they get enough emails, maybe it’ll give them pause and re-think their positions.
    TBP has become a main source of news for me.
    Thank you.

  28. Molesworth says:

    And these to the NYFed did not bounce back, at least not yet:
    Michael.Schetzel@ny.frb.org
    William.Dudley@ny.frb.org
    Christine.Cumming@ny.frb.org

  29. milkman says:

    So I’m curious…what exactly did the obama administration have to do with the bailouts…understanding that the “bailouts” mean the TARP program…

  30. jonhendry says:

    Her day job: “Kathryn S. Wylde, 64, president of the Partnership for New York City, the city’s premier business association”

    And if you go to http://www.pfnyc.org/president.html, check who’s in the header photo.

  31. Daniel says:

    I read this and think I am in an alternate universe. What are these people thinking?

  32. patfla says:

    The article is not as spectacular as the title but perhaps Nouriel Roubini is right (again):

    NYU’s Nouriel ‘Dr. Doom’ Roubini: Social Unrest Will Spread

    http://www.ibtimes.com/articles/201154/20110820/roubini-nouriel-roubini-dr-doom-financial-crisis-economy-jobs-gdp-earnings-debt-europe.htm

    I can feel the collective temperature rising.

    Today’s closing prices of the Big 4:

    BAC 6.42
    Citigroup 26.06
    Wells 22.89
    JPM 33.41

    BAC is in deep shit.

  33. [...] Barry Ritholtz has called for her resignation from the New York Fed (as a class C director, she purports to represent the public, when it’s clear she represents only the corporate funders of her not for profit). Call her office and say the New York Times editorial proves she is not standing up for what is best for the city and the country. Demand that she resign from the New York Fed. [...]

  34. budhak0n says:

    Wow. I need to keep up. I didn’t realize that the resentment towards the bailed out brethren was so deeply held.
    I would’ve thought by now people would be moving on. Then again I have no clue what the Tea party is speaking about on most days.

    At a certain point, don’t you just let them go for what they really are? Deadbeats.

    The market sooner or later gets around to them anyway. Just takes a year or two.

  35. [...] A spokesman for Schneiderman declined to comment on Wylde's remarks. In response to the Times report, Ritholtz, who is chief executive of the quantitative research firm Fusion IQ, wrote a blog post calling for Wylde to resign. [...]

  36. [...] role of a Class C Director is to represent the interests of the public on the New York Fed board.  Barry Ritholtz provided this reaction to Ms. Wylde’s encounter with Mr. Schneiderman: If the Times report is [...]

  37. TapeReader says:

    The Man is killing the man….

    One friggin politician is standing up for everyone else and they shoot him in the balls.

    Romney – Pooey! Perry – Whacko! Obama – Sell Out!

    How about a grassroots uprising for the one guy who isn’t bought and paid for with a Black Corporate American Express card?

    http://www.schneidermanforpresident.com/

  38. [...] Barry Ritholtz adds his voice: Given the sadly misguided history of both the Obama administration and the NY Fed (led by the President Tim Geithneir, now Treasury Secretary) when it comes to Bailouts, this is not a huge surprise. [...]

  39. jonc says:

    Why can’t we find a way to bury Ms Vile Wild under a deluge of email condemning her outrageous behavior?

    A phone number or an email address would be enough to start a movement…. IT is about time for us to stand up and take our gloves off..

    Regards,

    PS Is someone sends me a valid email and/or phone number for her I will gladly take the heat for publishing it or them…