http://www.reuters.com/article/2011/12/14/us-mfglobal-nyfed-idUSTRE7BD2B920111214
When MF Global failed in October 2011, I wrote about it at the time that it was a Primary Dealer with the NY Federal Reserve (the only branch that matters) – and went down the list of who else are Primary Dealers.
What I didn’t know is that MF Global only this year was added to the list. Being a Primary Dealer in US Government securities is reserved for the only the best of the best – the entities with really deep pockets – not a cmpany that loans $1.2 billion in segregrated customer accounts to its foreign subsidiary and then declares bankuptcy.
Tim Geithner ran the NY Fed during the 2008 financial “crisis” before he moved into the job as US Treasury Secretary after Barack Obama took office.
So the Federal Reserve System is supposedly not actually part of the United States government in order to insulate it from political pressure from Congress and President. Who actually runs the NY Fed today?
Like each branch of the Federal Reserve, there is a Board of 9 members – 3 are “Bank People”, 3 are “Business People” and 3 are “Citizens”. They have a chairman, and then a President who actually runs the day to day operations under the direction of the Board. (Herman Cain was on the Kansas City Fed Board as one of the Business People)
http://www.newyorkfed.org/aboutthefed/org_nydirectors.html
The chairman of the Board is Lee C. Bollinger – he’s the President of Columbia University, which is where he got his law degree. He’s obviously one of the “Citizen” members.
The other two Citizen members are 
Kathryn S. Wylde – she runs a non-profit group founded by David Rockefeller [I’ve heard that name somewhere] to strengthen New York City, and Emily K. Rafferty , the President of the Metropolitan Museum of Art in New York City. You can clearly see those 3 are well suited to decide global financial monetary policies.
The “Public Interest” people at the NY Fed are appointed by the Board of Governors of the entire Fed
The three “bankers” are
- Richard L. Carrión – the CEO of a bank in Puerto Rico
- Charles V. Wai – chairman and CEO of The Adirondack Trust Company, a bank, insurance and trust company in Sarasota Springs, New York
- Jamie Dimon – Chairman and CEO of JP Morgan Chase
The three “Business People” (selected by the banks in New York) are
- James S. Tisch, president and CEO of Loews (the movie theater people)
- Terry J. Lundgren – president and CEO of Macy’s department store
- Glenn H. Hutchins – co-CEO of Silver Lake, a global private equity investment management firm
The President – the guy who probably made the final decision to allow MF Global the use keys to the castle is a man named William C Dudley.
Mr Dudley is a economist who holds a Doctorate from UC Berkeley, one of the finest schools at which to learn about Marxism. He then spent about 4 years at Morgan Guaranty Trust before moving on to work at Goldman Sachs for 21 years (I’m shocked, I tell you!). He joined the New York Fed in 2007 and took over the job to replace Tim Geithner in 2009.
The GAO just recently released an audit of potential conflicts of interest within the Federal Reserve, especially during the unpredecented actions in 2008 to “bail out” companies like GE Capital
http://www.gao.gov/assets/590/585807.pdf
However, this document that could have spent some effort getting details abou the direct conflict of interest with Jeffrey Immelt’s helping set up a bailout program of GE Capital….. is instead mostly a document with tons of graphs and statistics talking about needing to increase so-called “diversity” by loading up the boards with more ethnic minorities and women who run Art museums and non-profit civic groups – now that will solve our problems!