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Austerity Strikes The Fed: Boston Reserve Bank Slashes 160 Jobs Due To US Treasury Cost-Cutting

Tyler Durden's picture




 

As The Fed tapers and shifts its decision-making process away from rules-based, model-backed strategies in favor of "we'll know when to tighten when we see it" qualitative hand-waving, it seems the need to maintain teams of PhDs - to mutually masturbate over the historical back-fitted effectiveness of their models - is lacking. As The Boston Globe reports, The Federal Reserve Bank of Boston will cut nearly 15% of its workforce - around 160 jobs - in the largest layoff in over a decade... “It’s obviously a tough decision for us and the folks who are here,” Lavelle said. “It’s really about cost and efficiency.” Austerity strikes... (as it turns out the job cuts are due to losing a key customer - The US Treasury!)

 

As The Boston Globe reports,

Last week bank officials informed 160 employees — an entire division — that their jobs would be eliminated because a key customer, the US Treasury Department, was cutting costs.

 

In an attempt to save taxpayers $117 million over the next decade, the Treasury is consolidating certain banking services that it currently spreads among 10 regional Federal Reserve banks, including Boston. In the coming years, those services will be provided by just four regional banks: Kansas City, St. Louis, Cleveland, and New York, said Thomas Lavelle, a spokesman for the Boston Fed. There are 12 regional banks in the Federal Reserve system.

 

...

 

The last time the Boston Fed shrunk in such a significant way was at the start of this century, when the central bank cut the number of offices that handled paper checks from 54 to one nationwide, Lavelle said.

 

...

 

The cuts are the result of a study completed by the Treasury on how to save money.

 

“The work done by the Federal Reserve on behalf of the US Treasury is critical to our nation’s economy, and we will work together to ensure a smooth transition,” a Treasury spokesman said.

 

...

 

Lavelle said the Boston Fed will try to find affected employees other positions at the Boston bank or other regional banks. “We’re going to treat our employees as humanely as possible."

Peak Central Banker?

 

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Thu, 05/08/2014 - 08:10 | 4739152 williambanzai7
williambanzai7's picture

Green shoots...

Thu, 05/08/2014 - 08:13 | 4739164 negative rates
negative rates's picture

And old news.

Thu, 05/08/2014 - 08:15 | 4739172 GetZeeGold
GetZeeGold's picture

 

 

Obamacare strikes again.

Thu, 05/08/2014 - 08:20 | 4739187 TeamDepends
TeamDepends's picture

Couldn't they shuffle at least some of these employees into 29.5 hour/week positions?

Thu, 05/08/2014 - 08:23 | 4739194 Theosebes Goodfellow
Theosebes Goodfellow's picture

Can I just point out that the Federal Reserve is neither federal nor a reserve?

Thu, 05/08/2014 - 08:28 | 4739208 GetZeeGold
GetZeeGold's picture

 

 

I just refer to them as the fellas.

Thu, 05/08/2014 - 08:47 | 4739266 cowdiddly
cowdiddly's picture

I just refer to them as the felons. Fixed

Thu, 05/08/2014 - 08:55 | 4739289 Manthong
Manthong's picture

It not so easy making money nowadays if you are not at the top.

Thu, 05/08/2014 - 09:01 | 4739307 TeamDepends
TeamDepends's picture

Almost as if they planned it that way.

Thu, 05/08/2014 - 09:43 | 4739464 Pure Evil
Pure Evil's picture

So......how do they plan on laying them off?

 

I sure hope the Bank of Boston is no taller than two stories.

 

Sometimes those hard landings make a sound similar to splat.

Thu, 05/08/2014 - 08:29 | 4739214 Cognitive Dissonance
Cognitive Dissonance's picture

Won't do you any good. But go ahead if it makes you feel better.  :)

I can't tell you how many times I have told people that. It just doesn't compute, so the mind quickly rejects it. You see it happening in real time by the expressions on their face. Like they just ate bad Chinese food and it's about to be violently upchucked.

Thu, 05/08/2014 - 08:37 | 4739235 LawsofPhysics
LawsofPhysics's picture

Yes, it really is baffling considering the level of critical thinking that some people actually do.  I know a very esteemed cancer biologist.  Super sharp guy, but can't wrap his head around one simple concept --> "full faith and credit"

Thu, 05/08/2014 - 08:47 | 4739262 Cognitive Dissonance
Cognitive Dissonance's picture

As I say all the time, the biggest impediment to learning something new is letting go of a whole bunch of old stuff first.

The super sharp guy you reference has a static world view and a non Federal 'Federal Reserve' with no reserves requires a whole bunch of stuff to be rethought and much to be kicked to the curb for the trash collectors.

Soooo much easier to reject that nasty little cognitive dissonance than to reconstruct their entire personal universe.

<Whew, that was close. Back to happy land we go.>

Thu, 05/08/2014 - 08:14 | 4739167 Headbanger
Headbanger's picture

Fucking hilarious the day after Yellen's tawk to Congress.

Thu, 05/08/2014 - 08:15 | 4739173 Al Gorerhythm
Al Gorerhythm's picture

What? Their printing press is on the blink? 

Thu, 05/08/2014 - 08:11 | 4739155 Shizzmoney
Shizzmoney's picture

RE

"We’re going to treat our employees as humanely as possible"

They are SO fucked

Thu, 05/08/2014 - 08:19 | 4739184 Al Gorerhythm
Al Gorerhythm's picture

"Jump, you fuckers!"

See, we were nice. We didn't push them.

Thu, 05/08/2014 - 08:24 | 4739200 SoilMyselfRotten
SoilMyselfRotten's picture

Does the Fed also carry life insurance policies on its employees???

Thu, 05/08/2014 - 09:44 | 4739474 Pure Evil
Pure Evil's picture

I sure hope so, I'd hate to think the taxpayers were on the hook once again.

Thu, 05/08/2014 - 08:27 | 4739207 Fred Hayek
Fred Hayek's picture

Yeah, we expect that they'll only commit suicide with 6 shots from a nail gun.

Thu, 05/08/2014 - 08:11 | 4739158 Dumpster Fire
Dumpster Fire's picture

“We’re going to treat our employees as humanely as possible."

 

Fletcher: Damn you, Senator. You promised me those men would be decently treated.
Senator Lane: They were decently treated. They were decently fed and then they were decently shot.

Thu, 05/08/2014 - 08:15 | 4739169 negative rates
negative rates's picture

Don't forget the decent burial, at sea is my perfered choice.

Thu, 05/08/2014 - 08:13 | 4739165 NoDebt
NoDebt's picture

Welcome back to reality, low-level banker-bots!  Watch that first step out the door.  It's a doosey.

Thu, 05/08/2014 - 08:21 | 4739191 negative rates
negative rates's picture

It'll bust your brain box.

Thu, 05/08/2014 - 08:14 | 4739166 JustObserving
JustObserving's picture

Sorry, employees, we need billions for Ukraine.

Thu, 05/08/2014 - 08:23 | 4739195 shovelhead
shovelhead's picture

Can Boston adsorb 160 unemployed vampires in one go?

Thu, 05/08/2014 - 08:25 | 4739206 Cognitive Dissonance
Cognitive Dissonance's picture

There is always work available on the third shift. :-)

Thu, 05/08/2014 - 09:12 | 4739355 insanelysane
insanelysane's picture

There are plenty of places for the connected govmint types; Convention Authority which holds very few conventions, Turnpike Toll Takers that were supposed to be extinct once the turnpike was paid off (and has been paid off multiple times over) so now they collect tolls to pay the toll takers, Criminal Analysis Lab (which is currently shut down due to their "best" employee, that was doing 4x more cases than any other employee, completely fabricating results, the entire Court System that is currently being investigated as the workplace of choice for the relatives of elected officials.  One party rule is wonderful.

Thu, 05/08/2014 - 09:46 | 4739481 Pure Evil
Pure Evil's picture

Maybe they can be hired to patch the leaks in the Boston Central Tunner, or more affectionaltely known as the Big Dig.

Thu, 05/08/2014 - 08:36 | 4739211 Pee Wee
Pee Wee's picture

Anything about the US treasury saving dimes is laughable.   The only thing that can be said about the fed losing jobs is "GOOD RIDDANCE!"  No sympathy for Fascists, regardless if they were "just following orders."

Those now unemployeed for taxpayer dimes could incorporate and become a bank holding company.  Legal immunity for collusion, corruption and theft is always an option, or...

END THE FEDERAL RESERVE!

Thu, 05/08/2014 - 08:39 | 4739240 orez65
orez65's picture

President Andrew Jackson must be resuscitated!!!

Thu, 05/08/2014 - 10:13 | 4739583 Cthonic
Cthonic's picture

Your guidebook:  Cranioklepty: grave robbing and the search for genius ...

Thu, 05/08/2014 - 08:38 | 4739241 LawsofPhysics
LawsofPhysics's picture

Audit first, then end.

Thu, 05/08/2014 - 08:30 | 4739217 Seasmoke
Seasmoke's picture

Wicked. 

Thu, 05/08/2014 - 08:34 | 4739226 wmbz
wmbz's picture

Just means more money for the punks at the top.

Thu, 05/08/2014 - 08:34 | 4739231 LawsofPhysics
LawsofPhysics's picture

Good,it's about time bankers did some actual fucking work for a change.

Thu, 05/08/2014 - 09:09 | 4739347 Matt
Matt's picture

if 160 is 15% , that means there are around 1000 Federal Reserve employees, just in Boston. There are 24 regional branches, so approximately 24,000 employees total. WTF do all those people DO?

Thu, 05/08/2014 - 09:12 | 4739356 Yes_Questions
Yes_Questions's picture

 

 

Theft on this grand a scale takes minions.

 

many minions

Thu, 05/08/2014 - 09:44 | 4739465 RealityCheque
RealityCheque's picture

.

Thu, 05/08/2014 - 09:43 | 4739467 RealityCheque
RealityCheque's picture

"Many hands make light work"...of stealing. 

Thu, 05/08/2014 - 10:10 | 4739554 Cthonic
Cthonic's picture

20,544 minions in 2012, skimming $4.7B in economic crème, spending $747M of that at Kinko's, or rather, the Bureau of Engraving and Printing.

Thu, 05/08/2014 - 08:37 | 4739236 Offthebeach
Offthebeach's picture

Boston Fed was where "Red lining" mortgages report started, that poor, not working, no to attrochish credit risks weren't getting mortgages that they couldn't afford and wouldn't likely pay back because private mortgage lenders weren't greedy enough for new customers but were racist. ( of course there was never a issuse with shiftless, drunk whites not getting that which they couldn't affordn)

So you would have to go to, be near Harvard or a Fed Gov official or a Bush family member to belive such crap. Hence the "Ownership Socitety", massive mal investments ..

I forgot the Boston Fed head who pushed the red line study/issue but he went on to head Freddy or Fannie and pulled in 10-13 million. Hes mentioned regrets over his part.

Nice.

FORWAR!

Thu, 05/08/2014 - 08:42 | 4739248 ptoemmes
ptoemmes's picture

PhDs musing over statitical models....I see quants writing algos in their future.

Thu, 05/08/2014 - 08:59 | 4739298 Hobbleknee
Hobbleknee's picture

"In an attempt to save taxpayers $117 million over the next decade"

Only government propagandists make such statements and fake calculations because they have to make it sound like it's a big deal. Imagine if your boss said, "I'm planning on being in business for 38 more years, so if I fire you now, I'll save $1.5 million."  Absurd!

In reality, the cuts are meaningless, and they won't continue over the next 10 years.  All of their plans involve spending cuts spread out over decades, and yet somehow, the debt never goes down.

Thu, 05/08/2014 - 09:09 | 4739341 MFL8240
MFL8240's picture

Yellen is a dishonest woman and the Federal Reserve should not be trusted anymore than Obama should!

Thu, 05/08/2014 - 09:11 | 4739350 d edwards
d edwards's picture

Welcome to the real world bitchez!

Thu, 05/08/2014 - 09:12 | 4739353 Atlantis Consigliore
Atlantis Consigliore's picture

Shut down CFTC, theres $ 100 Million a year savings,  merge non regulatory job,  with SEC,  issue M.F. (ing) Videos, to watch at home. Lol.  

Thu, 05/08/2014 - 09:28 | 4739410 Max Cynical
Max Cynical's picture

Woman With Printer Shows the Digital Ease of Bogus Cash

This is my favorite line...

"Though counterfeit bills make up only a tiny fraction of the $1.27 trillion in circulation, law enforcement officials and federal prosecutors say they aggressively target money forgers to protect consumers and business owners and the larger U.S. economy."

http://www.bloomberg.com/news/2014-05-07/mom-with-hp-printer-shows-the-d...

Thu, 05/08/2014 - 11:39 | 4739948 kchrisc
kchrisc's picture

Is not the pursuit of counterfeiters the most blatant evidence that all gun and badge thugs really work for the banksters?!

Thu, 05/08/2014 - 09:34 | 4739432 Cacete de Ouro
Cacete de Ouro's picture

The FRB gold vault in NY is hiring.

 

Must have experience stacking bricks to 8 feet high, just one level deep is fine.

Must be able to keep a straight face.

Thu, 05/08/2014 - 09:42 | 4739462 RealityCheque
RealityCheque's picture

"We're going to treat them as humanely as possible":

If this means "take them out back and put a bullet in their head" then I am in full support. 

Thu, 05/08/2014 - 09:43 | 4739470 Hail Spode
Hail Spode's picture

Zoom out and see what is really happening here.  It is like the immortal "There can be only one in the end".   When the fed was formed it was a cartel of 12 large banks that would prey on the populace.   Now that the parasites have drained the host of so much essence that our economy is ill, the parasites must start cutting each other out.   The biggest banks have gotten bigger, and now run more of the government.   The votes for the fed are weighted by deposits.   The big parasites are cutting out the little ones so that they can have the same amount of a shrinking pie.

Thu, 05/08/2014 - 09:48 | 4739485 Ban KKiller
Ban KKiller's picture

Gold plated nail guns for everyone! Or shitgums. 

Thu, 05/08/2014 - 09:50 | 4739488 buzzsaw99
buzzsaw99's picture

fuck the brb [/nuland bitchez]

Thu, 05/08/2014 - 10:19 | 4739622 WTFUD
WTFUD's picture

If they keep this job cut momentum going just maybe we shall see a proportionate/commensurate rise in whistleblower dissidents, er terrorists.

Thu, 05/08/2014 - 11:27 | 4739899 Cthonic
Cthonic's picture

hell hath no fury like a spurned phd economist

Thu, 05/08/2014 - 10:33 | 4739679 WTFUD
WTFUD's picture

Send those fuckers along with the other 85% redundant paper shufflers to the front line in east Ukraine.

Thu, 05/08/2014 - 10:38 | 4739698 junction
junction's picture

Left out is the fact that some of those job losses come from unfilled jobs.  The Fed will probably offer retirement incentives to some of those losing their jobs.  And Boston is not that far from New York, so any employees nearing retirement may take a job at the New York Fed, with a telecommuting option.  Most of the RIFed Boston Fed employees will probably find a temporary position elsewhere at the Boston Fed, except if thay are a clerical employee. 

Thu, 05/08/2014 - 12:39 | 4740140 Lugnut
Lugnut's picture

My Grandfather worked at the Fed Reserve Bank in NYC during the Great Depression. My Mom told me at the 'height' of it he had a 6 day work week, and every 4th week they basically didnt get paid (I think that was the interval). They didnt get new shoes, Grandpop bought shoe repair kits to replace the soles and heels on their shoes.

You'd never see that today, different times.

Thu, 05/08/2014 - 13:42 | 4740371 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

my abacus is worn out and since losing two finger tips in a tractor accident my chisanbop calculations are off, that being the case,

i calculate 55B/mo (ctrl+p) offset by

117m/10year/12mos=975k/mo= .0001773%

road map to success.

 

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