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Fed Vice Chairman Donald Kohn Resigns
The Fed's second in command is leaving in June. WSJ's take on rats leaving the sinking ship.
Donald L. Kohn, the 67-year-old vice chairman of the Federal Reserve Board who has been a close adviser to Fed chairmen Ben Bernanke and Alan Greenspan, said he will step down from the post when his term ends in June.
The retirement gives President Barack Obama a third seat to fill on the seven-member Fed board. Daniel Tarullo, a former Georgetown University law professor whom Mr. Obama named to the Fed board last year, is a potential successor to Mr. Kohn as a vice chairman.
But the prestige of the title may be used by the White House to lure someone from outside the Fed to fill one of the vacancies.
"At no time since the Great Depression have this ability and dedication been tested as they have been over the past several years," Kohn said in a letter to Mr. Obama. "I am confident that history will judge the Federal Reserve, under the leadership of Chairman Ben Bernanke, to have met these challenges with great speed, imagination, and effectiveness."
Mr. Kohn was at Mr. Bernanke's side for nearly every critical decision during the financial crisis, serving as the institutional memory of the organization where he has worked for 40 years. And Mr. Bernanke asked him to solve some of the thorniest challenges during the crisis -- from finding a way to melt frozen commercial-paper markets to keeping peace among occasionally warring factions inside the Fed because he was trusted by almost all of them.
"The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn for his invaluable contributions over 40 years of public service," Mr. Bernanke said. "Most recently, he brought his deep knowledge, experience, and wisdom to bear in helping to coordinate the Federal Reserve's response to the economic and financial crisis. In addition, Don helped lead the stress tests of major financial institutions; he directed the Board's ongoing efforts to increase the transparency of the Federal Reserve; and he has been leading an international effort within the Bank for International Settlements to help central banks focus on key issues and responses to the crisis. On a personal note, I would like to express my deep appreciation for Don's friendship and counsel during some very difficult times. He will be greatly missed."
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Yes!!!! That is fantastic news!!
Yes! now Darth Summers can take a crack at destroying the economy.
He doesn't need to try. He already has. Read his Gibson's Paradox paper.
Ya. Or just ask Lithuania.
Go make some big bucks before the apocalypse hits.
OK, I'll go first:
Rats leaving the sinking ship!
Is it rats leaving the ship or rats playing musical chairs? Remember that there is a circle jerk that is followed in the corridors of power. A rotation from politics to academia to think tank to corporate to (sometimes) legislative, in any and all combinations imaginable.
Around and around they go. Where they stop, nobody knows.
lol. abandon ship?
Let me guess - He's going to the IMF.
If you think this guy is going anywhere except under the radar to steal more of your stuff you are an idiot.
+100
White collar plunder is harder addiction to kick than booze, drugs, or sex.
These guys never have "enough".
Go blue collar labor unions.....
Timmy needs some assistance?
Lloyd needs more blood?
The smoke machines are stuck?
.....still thinking
Lol! Enjoyed your quips.
NewsFlash: The Euro is under tremendous pressure in 2010, and the ECB needs to do more currency market rigging; they also need more "smoke screens".
My Guess: Kohn goes to ECB as a "Consultant" (big pay increase here!). Who better to call on, since he is an expert at market rigging, currency manipulations, and such. Then the manipulations of the ECB and the FED will be better coordinated.
Still thinking.
And he can have timmy do his taxes, since he's such a whiz at turbotax.
This is my first post here guys so please bear with me.
Speaking of the FED...
I'd like to know what you all make of this:
http://www.federalreserve.gov/releases/h6/Current/
I have been following this site's Thursday 4:30pm weekly postings religiously for over a year.
Take a look at Table 3 - M1 Currency - we are close to a record (seasonally adjusted) at 866.4 Billion and also close to a record (non-seasonally adjusted from Table 5) at 869.8 billion.
Couple of questions:
1. How much really does it say here that the currency in circulation is increasing? The FED "prints" money in other ways with purchasing their own bonds, etc. but is this still a key indicator?
2. If this page or statistic means a lot, might Goldman Sachs get their "insider" hands on these reports before the 4:30pm after market posting?
You always have to factor M1 with the velocity of money (how often money changes hands.) M1 alone doesn't tell you much in today's economy.
M3 makes M1 look like child's play. FED doesn't want us to know what M3 is.
Are the main owners/members of the Federal Reserve (Rothschilds, Morgans, Warburgs, Rockefellers, etc) shipping him to Europe to help manipulate their market, or is it Easy Street for him at the Vampire Squid?
Buy physical gold.
Right now @ all-time highs in the Euro and British Sterling
www.kitconet.com/charts/metals/gold/2a-euro-us-30d-Large.gif
www.kitconet.com/charts/metals/gold/2a-gbp-us-30d-Large.gif
PS: THREE seats will be empty at the Fed? That in and of itself is very telling.
Finally, Bernanke wrote something on his own.
40 years of inflation.
First they inflate, then they deflate but only after they have properly re-positioned their personal portfolios.
he directed the Board's ongoing efforts to increase the transparency of the Federal Reserve
hmmm....wonder if the real story is in there.
i wouldnt piss on that cocksucker if he was on fire
even on his face?
Don helped lead the stress tests of major financial institutions; he directed the Board's ongoing efforts to increase the transparency of the Federal Reserve
Seriously?
There was an ongoing effort?
Where can someone with this kind of epic track record of success go next?
I smell cephalopod.
He just received an offer from Bernard Madoff to manage the Madoff secret stash. Bernie wants to show off to Lloyd Bankfein (The eye of the Vampire Squid) that he can make billions from prison without needing his approval.
That's Bennie new catch-word, practiced in Congress and
Senate last week: transparency, wonder who spells it out for him in the Treserve team, probably Timmie, he is now
fully-licenced..
"The History Of The Income Tax
Many Americans do not realize that the income tax is actually relatively new. A distantly similar measure was taken during the Civil War by the Federal Government, levying a 3% tax on incomes above $800 a year (a decent sum in those days). However, the tax was abolished in 1872. For over a century, the U.S. government operated without any permanent tax on citizen income. Most American business was conducted privately with little to no interference from government. Wages remained intact and the average American’s yearly income was his business and his alone. The states had their own taxes on goods which allowed them to operate, while the Federal Government used excise taxes and tariffs. Attempts to reissue an income tax in 1894 were ruled Unconstitutional by the Supreme Court. The Constitution specifically denies the issuance of a flat rate tax that is not proportioned to state population. The US Treasury website (which is otherwise filled with disinformation) even admits this:
http://www.ustreas.gov/education/fact-sheets/taxes/ustax.shtml
However, this protection was lost (at least in the public eye) in the period between 1913 and 1916, with the institution of the Federal Reserve; a central banking system controlled privately by interests outside of our government. As we will show, the existence of the income tax is intimately linked with the existence of the Federal Reserve.
Americans consistently fought against schemes to adapt Central Banks, primarily because of their infamous track record for subverting government and dominating societies. The early builders of this country were well aware of the folly in allowing private banks to control the finances of an entire nation:"
http://neithercorp.us/npress/?p=259
All tax payments go directly to the shareholders of the Federal Reserve's stock, which was sold in 1914. The rest are digital entries in a phoney-baloney Federal reserve account. The actual tax receipts go to the accounts of the Federal Reserve shareholders.
I would like to recommend a poll -
So far the Fed is A)Over estimating it's ability of B)Under estimating it's incompetence.
"I am confident that history will judge the Federal Reserve, under the leadership of Chairman Bernanke, to have met these challenges with great speed, imagination and effectiveness."
What a bunch of self-serving horse sh**! Always nice when your "performance review" is just a de facto self-assessment.
At 67 years old, Donald Kohn is certainly getting up there-- but he is nowhere near "Paul Volcker old".
Which leads me to believe he is either aiming for another career move (i.e., Goldman, IMF)-- or he has bought his patch of land in Paraguay and will use freshly printed cash to build his private bunker getaway.
The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn - TREMENDOUS DEBT is very true. Smart kid that Donny .. quitting while the going's good.
"rats leaving the sinking ship"....YES!!!!!
I think zero hedge is pointing out (through bold) that the guy in the fed who was probably pushing for more transperency the most, is leaving.
Meaning, we're about to get a fed hidden further behind the curtains. (unless we congress does it's job)
Without Kohn, that is 3 unfilled seats on the Fed board. That means they no longer hav ethe 5 votes required to conduct any future emergency operations or bailouts. The next crisis, the Fed just knocks the table.
"The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn for his invaluable contributions over 40 years of public service"
was that supposed to read as... The Federal Reserve and the country owe a tremendous debt [due] to Don Kohn for his invaluable contributions over 40 years of public service?
"he will certainly be missed" - of course he will be now that BB has to take all the blame.
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