http://www.zerohedge.com/news/2014-05-08/austerity-strikes-fed-boston-reserve-bank-slashes-160-jobs-due-us-treasury-cost-cutt
Submitted by Tyler Durden on 05/08/2014 08:07 -0400
Austerity Strikes The Fed: Boston Reserve Bank Slashes 160 Jobs Due To US Treasury Cost-Cutting
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!)
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?
Boston Fed to cut 160 jobs
The Federal Reserve Bank of Boston will cut nearly 15 percent of its workforce in the next three to four years — the largest layoff at the institution in more than a decade.
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 job cuts were first reported by the Boston Business Journal.
“It’s obviously a tough decision for us and the folks who are here,” Lavelle said. “It’s really about cost and efficiency.”
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 Boston Fed employs 1,075 people. While its work regulating banks and guiding policy on issues such as foreclosures, distressed communities, and unemployment, garners the spotlight, it also provides traditional bank services to the Treasury.
Those services, including cash management, invoice processing, and stored value cards, a type of debit card used by the military and on bases, will be phased out in Boston, 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.
Boston Fed President Eric S. Rosengren was out of town last week at a Federal Reserve policy meeting when the job cuts were announced and has been traveling since, Lavelle said. He will speak to employees after he returns to Boston.
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,” he said.
i saw this mentioned on your previous post, Debka also has it posted in detail.
ReplyDeleteJust when you think you've seen it all,, UN working with Iranian Revolutionary Guards escorting Syrian rebels out of Homs :
http://www.debka.com/article/23896/Homs-falls-to-Assad-UN-Iranian-officers-secure-Syrian-rebels’-exit-after-Iranian-hostages-freed-in-Aleppo
Que the twilight zone theme song,,, ;-)
NW
Frenemies !
DeleteGood morning,
ReplyDeleteI have to admit, I wouldn't have trusted the UN :)
Hot and sunny down here, got up to 90. TGIF
So where are they transfering these so called rebels from around Syria ,and why now ?
ReplyDeleteNW
Good evening Kev and NW - Nice and warm up here today !
ReplyDeleteAs to the jihadist / Al Qaeda Rebels , I don't think they are transferring NW. My take is that the Al Qaeda forces that may have come from Jordan ( US / Western trained perhaps ) see that they momentum on the battlefield has swung significantly toward the Syrian Government and they are retreating / escaping with their lives. What those rebels now face is a Jordan Government that also sees the War swinging toward Assad and that seems to have decided they don't want heavily armed and bitter Al Qaeda fighters wandering around in their neck of the woods . So the jihadists are fighting not just Syria's military , but facing unfriendly fire when attempting to enter Jordan ( or Lebanon for that matter ) , plus they are face inter -rebel battles to boot ! The fall of Homs symbolically can be seen as the unofficial end of the War ( even if the fighting continues for awhile. Periodically you read articles where rebel forces have retreated from various former rebel strongholds , deals between moderate rebel forces and Assad's forces to fight against Al Qaeda aligned fighters and stories of fighters just quitting the War and returning to their homes or homelands. Strategically , I think Assad's plan is to clear Southern and Central Syria , push Rebels fighters North and pin the fighters between the coastline and Aleppo ( Aleppo will be the next major city siege. ) After that , you will see an effort to pin any remaining rebels in the area between the Euphrates River , Turkey and Iraq - only supply line would be Turkey ( also pulling back support ) , Iraq is Assad's ally and Kurds may join to clear out Al Qaeda if they see the writing on the wall for the jihadists !