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. It is responsible for the Second District of the Federal Reserve System, which encompasses New York state, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico, and the U. S. Virgin Islands. Working within the Federal Reserve System, the New York Federal Reserve Bank implements monetary policy, supervises and regulates financial institutions[1] and helps maintain the nation's payment systems.[2]
Among the other regional banks, New York Federal Reserve Bank and its president are considered first among equals.[3][4] It's current president is William C. Dudley. It is by far the largest (by assets), most active (by volume) and most influential of the 12 regional Federal Reserve Banks.
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Since the founding of the Federal Reserve banking system, the Federal Reserve Bank of New York in Manhattan's Financial District has been the place where monetary policy in the United States is implemented, although policy is decided in Washington, D.C. by the Board of Governors of the Federal Reserve System. The New York Fed is the largest in terms of assets of the twelve regional banks. Operating in the financial capital of the U.S., the New York Fed is responsible for conducting open market operations, the buying and selling of outstanding U.S. Treasury securities. The Trading Desk is the office at the Federal Reserve Bank of New York that manages the FOMC Directive to sell or buy bonds.[5] Note that the responsibility for issuing new U.S. Treasury securities lies with the Bureau of the Public Debt. In 2003, Fedwire, the Federal Reserve's system for transferring balances between it and other banks, transferred $1.8 trillion a day in funds, of which about $1.1 trillion originated in the Second District. It transferred an additional $1.3 trillion a day in securities, of which $1.2 trillion originated in the Second District. 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 only regional bank with a permanent vote on the Federal Open Market Committee and its president is traditionally selected as the Committee's vice chairman. The current president is William C. Dudley. The New York Fed opened for business on November 16, 1914, under the leadership of Benjamin Strong Jr., who was previously president of the Bankers Trust Company. He led the Bank until his death in 1928. The Bank grew rapidly during the early years, bringing about the need for a new home.[6] The New York Fed's three-class Board of Directors, bank membership, and organization and legal status are the same in structure, for the New York region, as those of the other eleven Fed districts, which collectively cover the rest of the country.
A public competition for design of the building was held and the architectural firm of York and Sawyer submitted the winning design. The bank moved to its current location in 1924.[6] The Federal Reserve Bank of New York maintains a vault that lies 80 feet (24 m) below street level and 50 feet (15 m) below sea level,[7] resting on Manhattan bedrock. By 1927, the vault contained 10% of the world's official gold reserves.[6] Currently, it is reputedly the largest gold repository in the world (though this cannot be confirmed as Swiss banks do not report their gold stocks) and holds approximately 7,000 tonnes (7,700 short tons) of gold bullion ($415 billion as of October 2011), more than Fort Knox. Nearly 98% of the gold at the Federal Reserve Bank of New York is owned by the central banks of foreign nations.[8] The rest is owned by the United States and international organizations such as the IMF. The Federal Reserve Bank does not own the gold but serves as guardian of the precious metal, which it stores at no charge to the owners, but charging a $1.75 fee (in 2008) per bar to move the gold. Moving the bars requires special footwear for the staff, to protect their feet in the case that they drop a 28 pound bar on their feet. The vault is open to tourists.[9]
The following people serve on the board of directors as of 2011:[10] All terms expire December 31.[10]
| Name | Title | Term Expires |
|---|---|---|
| Charles V. Wait | President, Chief Executive Officer, and Chairman The Adirondack Trust Company Saratoga Springs, New York |
2011 |
| Jamie Dimon | Chairman and Chief Executive Officer JPMorgan Chase & Co. New York City |
2012 |
| Richard Carrión | Chairman, President and Chief Executive Officer Popular, Inc. San Juan, Puerto Rico |
2013 |
| Name | Title | Term Expires |
|---|---|---|
| Glenn H. Hutchins | Co-Founder and Co-Chief Executive Silver Lake | 2012 |
| Terry J. Lundgren | Chairman, President and Chief Executive Officer Macy's, Inc. | 2011 |
| James S. Tisch | President and Chief Executive Officer Loews Corporation New York, New York |
2013 |
| Name | Title | Term Expires |
|---|---|---|
| Emily K. Rafferty | President Metropolitan Museum of Art New York, New York |
2011 |
| Lee C. Bollinger
(Chair) |
President Columbia University New York, New York |
2012 |
| Kathryn S. Wylde
(Deputy Chair) |
President and Chief Executive Officer Partnership for New York City New York, New York |
2013 |
Indra K. Nooyi, Chairman and Chief Executive Officer, PepsiCo. Inc., left the Board when her term expired in 2009, and Kindler now fills the seat. Bollinger's and Dimon's three-year terms were renewed in 2009. Tisch and Wylde filled partial-term vacancies, the latter for Stephen Friedman's seat, in the year.[11][12]
Stephen Friedman resigned as Chair of the Federal Reserve Bank of New York on May 7, 2009, effective immediately.[13] Friedman, former CEO of Goldman Sachs and then-chairman of Stone Point Capital, LLC, Greenwich, Conn., was criticized for seemingly benefiting from his role as Chair of the New York Fed branch due to the US Government's aid to Goldman Sachs in recent months. He had "remain[ed] on the board of Goldman even as he was supposedly regulating [Goldman]; in order to rectify the problem, he applied for, and got, a conflict of interest waiver from the government. Friedman was also supposed to divest himself of his Goldman stock after Goldman became a bankholding company, but thanks to the waiver, he was allowed to go out and buy 52,000 additional shares in his old bank, leaving him $3 million richer," as one report put it.[1] Friedman's resignation announcement came within an hour of the government's release of the stress tests for 19 US banks. Denis Hughes, formerly Deputy Chair, was designated as Interim Chair following Friedman's resignation.
The Federal Reserve Bank of New York Buffalo Branch used to be the only branch of the Federal Reserve Bank of New York, but it was closed on October 31, 2008.[14]
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