navigation search coordinates 40 42 30 n 74 0 31 w 40.70833 n 74.00861 w 40.70833 ; 74.00861 federal reserve bank of new york building 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 its 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 . contents 1 responsibilities 2 largest regional federal reserve bank 3 move to 33 liberty street 3.1 terrorism attempt 4 branches 5 history 5.1 benjamin strong 1914 1928 6 criticisms 7 current board of directors 8 presidents 9 in popular culture 10 see also 11 references 12 external links responsibilities edit the new york fed publishes a monthly recession probability prediction derived from the yield curve and based on the work by dr. arturo estrella & dr. tobias adrian . their models show that when the difference between short term interest rates using three month t bills and long term interest rates using ten year treasury bonds at the end of a federal reserve tightening cycle is negative or less than 93 basis points positive that a rise in unemployment usually occurs . 5 largest regional federal reserve bank edit map of the second district map of federal reserve districts 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 federal reserve board of governors . 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 . 6 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 . move to 33 liberty street edit further information 33 liberty street a public competition for the 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 . 7 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 8 resting on manhattan bedrock . by 1927 the vault contained 10 % of the world s official gold reserves . 7 currently it is reputedly the largest gold repository in the world though this can not 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 . 9 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 case they drop one of the gold bars weighing 28 pounds 13 kg . the vault is open to tourists . 10 terrorism attempt edit on october 17 2012 quazi mohammad rezwanul ahsan nafis 21 was arrested while attempting to detonate what he believed to be an 800 pound bomb . a joint fbi nypd operation flagged the suspect on the internet and set up the sting with fake explosives . in 2013 nafis pleaded guilty and was sentenced to 30 years in federal prison . 11 branches edit 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 . 12 history edit benjamin strong 1914 1928 edit the new york fed opened for business on november 16 1914 under the leadership of benjamin strong jr. who had previously been president of the bankers trust company . he led the bank until his death in 1928 . strong became the executive officer then called the governor today the term would be president . as the leader of the federal reserve s largest and most powerful district bank strong became a dominant force in u.s. monetary and banking affairs . one biographer has termed him the de facto leader of the entire federal reserve system . 13 this was not only because of strong s abilities but also because the central board s powers were ambiguous and for the most part limited to supervisory and regulatory functions under the 1913 federal reserve act because many americans were antagonistic to centralized control . when the united states entered world war i strong was a major force behind the campaigns to fund the war effort via bonds owned primarily by u.s. citizens . this enabled the united states to avoid many of the post war financial problems of the european belligerents . strong gradually recognized the importance of open market operation or purchases and sales of government securities as a means of managing the quantity of money in the u.s. economy and thus affecting interest rates . this was particularly important at the time because gold had flooded into the united states during and after world war i. thus its gold backed currency was well protected but prices had been pushed up substantially by the currency expansion due to the gold standard imposed expansion of currency . in 1922 strong unofficially scrapped the gold standard and instead began aggressively pursuing open market operations as a means of stabilizing domestic prices and thus internal economic stability . thus he began the federal reserve s practice of buying and selling government securities as monetary policy . john maynard keynes a prominent british economist who had previously not questioned the gold standard used strong s activities as an example of how a central bank could manage a nation s economy without the gold standard in his book a tract on monetary reform 1923 . to quote one authority it was strong more than anyone else who invented the modern central banker . when we watch ... central bankers of today describe how they are seeking to strike the right balance between economic growth and price stability it is the ghost of benjamin strong who hovers above him . it all sounds quite prosaically obvious now but in 1922 it was a radical departure from more than two hundred years of central banking history . 14 strong s policy of maintaining price levels during the 1920s through open market operation and his willingness to maintain the liquidity of banks during panics have been praised by monetarists and harshly criticized by austrian economists 15 with the european economic turmoil of the 1920s strong s influence became worldwide . he was a strong supporter of european efforts to return to the gold standard and economic stability . strong s new monetary policies not only stabilized u.s. prices they encouraged both u.s. and world trade by helping to stabilize european currencies and finances . however with virtually no inflation interest rates were low and the u.s. economy and corporate profits surged fueling the stock market increases of the late 1920s . this worried him but he also felt he had no choice because the low interest rates were helping europeans particularly great britain in their effort to return to the gold standard . economic historian charles p. kindleberger states that strong was one of the few u.s. policymakers interested in the troubled financial affairs of europe in the 1920s and that had he not died in 1928 just a year before the great depression he might have been able to maintain stability in the international financial system ; 16 after strong died in 1928 the new york bank lost its energetic leadership . in the 1930s some of its power was transferred to the federal reserve system headquarters in washington . criticisms edit in 2009 the new york federal reserve bank commissioned a probe into its own practices . david beim finance professor at columbia business school submitted a report in 2009 released by the financial crisis inquiry commission in 2011 saying that a number of people he interviewed at the reserve bank believe that supervisors paid excessive deference to banks and as a result they were less aggressive in finding issues or in following up on them in a forceful way . 17 following stephen friedman s resignation on 7 may 2009 denis hughes formerly deputy chair was designated as interim chair . the current chair for 2013 is emily rafferty president of the metropolitan museum of art . in 2012 carmen segarra then new york fed bank examiner told her superiors that goldman sachs had no policy governing conflicts of interest . she was fired in may 2012 after refusing to change her findings on the conflict of interest policy and sued the new york fed october 2013 . in april 2014 the u.s. district court in manhattan dismissed the case ruling that segarra failed to make a legally sufficient claim under the whistle blower protections of the federal deposit insurance act . 17 in september 2014 segarra s secretly recorded conversations were aired by this american life and the new york fed was accused of political corruption by being a captured agency i.e. subject to regulatory capture of the banks which it supervises . 18 19 current board of directors edit the following people serve on the board of directors as of february 2013 . 20 all terms expire december 31 . class a name title term expires richard carri n chief executive officer and chairman popular inc. san juan puerto rico 2015 paul p. mello president and chief executive officer solvay bank syracuse new york 2014 gerald lipkin chairman president and chief executive officer valley national bank wayne new jersey 2013 class b name title term expires alphonso o neil white president and chief executive officer healthnow new york 2013 terry j. lundgren chairman president and chief executive officer macy s 2014 glenn h. hutchins co