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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (1523)	3/13/2001 12:22:40 AM
From: ahhaha	Read Replies (1) of 24758

So you thought the Board and AG were in command. Don't remember my warnings about the NY Fed and how they are pretty much on their own interpreting policy. New York Fed names Dino Kos acting head of markets NEW YORK, March 12 (Reuters) - The Federal Reserve Bank of New York has named Dino Kos as acting head of its markets group which oversees the implementation of U.S. interest rate and foreign exchange policies, a bank spokesman said on Monday. Kos, senior vice president and head of fixed income and foreign exchange in the bank's markets group, temporarily replaces Peter Fisher who the Bush administration tapped last week as undersecretary of the Treasury Department for domestic finance. Fisher was also manager of the Fed's System Open Market Account (SOMA) which supervises the huge portfolio of Treasury securities. Although there is no provision for an acting head of SOMA -- the Federal Open Market Committee (FOMC) must approve a permanent successor -- Kos is likely to succeed Fisher in both of his former roles. Fisher is now acting as a consultant to Treasury while awaiting Senate confirmation of his nomination. As head of the the New York Fed's open market desk, Kos will oversee the buying or selling of U.S. debt securities almost daily to fine tune the money supply and keep the interest rate on overnight bank lending close to the target set Fed policy makers on the FOMC in Washington. He will also manage the practical aspects of the government's debt reduction efforts which entail buying back bonds and cutting down on new debt issuance. As the Fed's point man on Wall Street he will have his finger on the pulse of financial markets and large money center banks in New York, monitoring for any signs of distress that could lead to a major financial crisis domestically or globally. Fisher was closely involved in the New York's Fed's engineering of a $3.6 billion bailout by private creditors of hedge fund Long Term Capital Management in 1998. The Fed twisted the creditors' arms to come up with a private-sector rescue because the crisis threatened the global economy. Was the global economy so tenuous that this bailout was needed? No. The FED was merely putting on a bandaid because they were scared because they believe that no one has any confidence in anything. Thet were reacting to their own fears. As head of the open market desk, Kos will also manage foreign exchange trading operations at the direction of Treasury. He will oversee occasional U.S. interventions in currency markets to buy or sell dollars, either on the Treasury's own account or on behalf of foreign central banks. Kos has been at the New York Fed since July 1985 when he joined as analyst in the domestic banking operation. As head of the foreign exchange in the markets group since 1995, he worked closely with Fisher. He took a two-year leave from the Fed in 1989-1991 to work in the Secretariat of the Basel Committee on Banking Supervision at the Bank for International Settlements (BIS), a project close to the heart of New York Fed President William McDonough who currently chairs the Basel Committee. That international experience at the BIS and his expertise in running foreign exchange operations at the Fed were considered excellent preparation for a job that has often been a springboard to more senior positions within the Fed or government. Both Fisher and Kos are Keynesian East Coast trained left leaning pumpers. I have no idea what the Bush Administration is doing by moving Fisher to Treasury. You ought to see how fast Kos moves when he senses the people are starving for just a little more money.

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