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7/25/2019 Insiders Power December 2015
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Ge AetfrGeglyst ^udlaigtame
@fifodfr 4>
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Pbf Cf`frgl Tfsfrvf Git mc 7179 wgs irgctf` dy Zgll Ytrfft dgehfrs ge` g cfw
sfegtmrs ae g sfirft offtaej.
Me tbf Jfmrjage rfsmrt ba`fgwgy mc Kfhyll Aslge` (wbaib bgs smof fxifllfet jmlc imursfs, dy tbf
wgy), tbfrf meif oft g imglatame mc Zgll Ytrfft dgehfrs ge` V.Y. sfegtmrs. Pbas sfirft 717>
offtaej bg` g saeastfr purpmsf, tbf imespargiy tbfmrasts sgy. Pbf dgehfrs wgetf` tm fstgdlasb g
efw ifetrgl dgeh ue`fr tbf `arfit imetrml mc Efw Qmrh's caegeiagl flatf. Yuib g plge wmul` javf tbf
Zgll Ytrfft dgehfrs efgr tmtgl imetrml mc tbf caegeiagl systfo ge` gllmw tbfo tm ogeapulgtf at cmr
tbfar pfrsmegl jgae.
J. F`wgr` Jraccae lgys mut tbas imespargtmragl vfrsame mc bastmry ae bas dmmh Pbf Irfgturf crmo KfhyllAslge`. Bas gogtfurasb tghf me bastmry as bajbly suspfit, bmwfvfr. Jfrry Tmujb, ae g sfrafs mc wfll-
rfsfgribf` fssgys me V.Y. dgehaej bastmry, rfvfgls ogey bastmraigl aegiiurgiafs, aeimesastfeiafs,
ge` fvfe imetrg`aitames ae Jraccae's dmmh ge` mtbfrs mc ats jferf. Aestfg` mc rfprm`uiaej Tmujb's
wmrh bfrf, A mccfr tbf rfg`fr g sudstgetaglly omrf giiurgtf vafw mc tbf fvfets lfg`aej up tm tbf
irfgtame mc tbf Cf`frgl Tfsfrvf Yystfo ae 7179. Pm jft g prmpfr bastmraigl pfrspfitavf, tbf stmry
mc dfjaes kust pramr tm tbf Iaval Zgr...
Pbf Egtamegl Dgehaej Gits mc 7239 & 7230
^ramr tm tbf Iaval wgr tbfrf wfrf tbmusge`s mc dgehs ae mpfrgtame tbrmujbmut tbf Veame, gll mc
tbfo ibgrtfrf`, tbgt as, laifesf` dy tbf stgtf jmvfreofets. Dgehaej rfjulgtames wfrf vartugllyemefxastfet. Pbf cf`frgl jmvfreofet bg` em ofgeaejcul imetrmls me dgehaej prgitaifs, ge` stgtf
rfjulgtames wfrf spmtty ge` pmmrly fecmrif` gt dfst. Fimemoai bastmrages igll tbf frg lfg`aej up
tm tbf Iaval Zgr gs tbf 'stgtf dgehaej frg' mr tbf 'crff dgehaej frg.'
Pbf prmdlfos watb stgtf dgehaej wfrf euofrmus, dut tbrff wfrf imespaiumus. Carst, tbf egtame
bg` em ueacaf` iurrfeiy. Ytgtf dgehs assuf` tbfar mwe dgeh emtfs gs iurrfeiy, g systfo wbaib gt
wmrst aevatf` sfvfrf dmuts mc imuetfrcfataej ge` gt dfst aetrm`uif` g``atamegl ueifrtgaety ae tbf
tgsh mc `ftfroaeaej tbf rflgtavf vgluf mc fgib dgeh emtf. Yfime`, watb em oatajgtaej aeclufeif me
tbf assugeif mc dgeh emtfs, tbf omefy supply ge` tbf praif lfvfl wfrf bajbly uestgdlf, aetrm`uiaej
ge` pfrbgps igusaej g``atamegl vmlgtalaty ae tbf dusaefss iyilf. Pbas wgs `uf ae pgrt tm tbf cgit tbgt
dgeh emtf assugeif wgs crfqufetly taf` tm tbf ogrhft vgluf mc tbf dgeh's dme` pmrtcmlam wbaib
tbfy wfrf rfquarf` tm bgvf dy lgw. Pbar`, crfqufet dgeh rues rfsultf` ae sudstgetagl `fpmsatmr
lmssfs ge` sfvfrf irasfs mc imeca`feif ae tbf pgyofets systfo.
Pbf Egtamegl Dgehaej Gits mc 7239 ge` 7230 wfrf gttfopts tm gssfrt smof `fjrff mc cf`frgl
imetrml mvfr tbf dgehaej systfo watbmut tbf cmrogtame mc gemtbfr ifetrgl dgeh. Pbf Git bg` tbrff
praogry purpmsfs; (7) irfgtf g systfo mc egtamegl dgehs, (4) tm irfgtf g ueacmro egtamegl iurrfeiy,
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ge` (9) tm irfgtf ge gitavf sfime`gry ogrhft cmr Prfgsury sfiuratafs tm bflp caegeif tbf Iaval Zgr
(cmr tbf Veames sa`f).
Pbf carst prmvasame mc tbf Gits wgs tm gllmw cmr tbf aeimrpmrgtame mc egtamegl dgehs. Pbfsf dgehs
wfrf fssfetaglly tbf sgof gs stgtf dgehs, fxifpt egtamegl dgehs rfifavf` tbfar ibgrtfr crmo tbf
cf`frgl jmvfreofet ge` emt g stgtf jmvfreofet. Pbas grrgejfofet jgvf tbf cf`frgl jmvfreofet
rfjulgtmry kuras`aitame mvfr tbf egtamegl dgehs at irfgtf`, wbfrfgs at gssfrtf` em imetrml mvfr
stgtf-ibgrtfrf` dgehs. Egtamegl dgehs bg` bajbfr igpatgl rfquarfofets ge` bajbfr rfsfrvf
rfquarfofets tbge tbfar stgtf dgeh imuetfrpgrts. Pm aoprmvf laqua`aty ge` sgcfty tbfy wfrf
rfstraitf` crmo oghaej rfgl fstgtf lmges ge` imul` emt lfe` tm gey saejlf pfrsme ge gomuet
fxiff`aej tfe pfrifet mc tbf dgeh's igpatgl. Pbf Egtamegl Dgehaej Gits glsm irfgtf` ue`fr tbf
Prfgsury @fpgrtofet tbf mccaif mc Imoptrmllfr mc tbf Iurrfeiy. Pbf `utafs mc tbf mccaif wfrf tm
aespfit tbf dmmhs mc tbf egtamegl dgehs tm aesurf imoplageif watb tbf gdmvf rfjulgtames, tm bml`
Prfgsury sfiuratafs `fpmsatf` tbfrf dy egtamegl dgehs, ge`, vag tbf Durfgu mc Fejrgvaej, tm `fsaje
ge` praet gll egtamegl dgehemtfs.
Pbf sfime` jmgl mc tbf Egtamegl Dgehaej Gits wgs tm irfgtf g ueacmro egtamegl iurrfeiy. Tgtbfr
tbge bgvf sfvfrgl bue`rf`, mr sfvfrgl tbmusge`, cmros mc iurrfeiy iariulgtaej ae tbf stgtfs,
ime`uitaej trgesgitames imul` df jrfgtly saoplacaf` ac tbfrf wfrf g ueacmro iurrfeiy. Pm gibafvf
tbas gll egtamegl dgehs wfrf rfquarf` tm giifpt gt pgr tbf dgeh emtfs mc mtbfr egtamegl dgehs. Pbas
aesurf` tbgt egtamegl dgeh emtfs wmul` emt succfr crmo tbf sgof `asimuetaej prmdlfo watb wbaib
stgtf dgeh emtfs wfrf gcclaitf . Ae g``atame, gll egtamegl dgeh emtfs wfrf praetf` dy tbf
Imoptrmllfr mc tbf Iurrfeiy me dfbglc mc tbf egtamegl dgehs tm jugrgetff stge`gr`azgtame ae
gppfgrgeif ge` quglaty. Pbas rf`uif` tbf pmssadalaty mc imuetfrcfataej, ge ue`frstge`gdlf wgrtaof
imeifre.
Pbf tbar` jmgl mc tbf Gits wgs tm bflp caegeif tbf Iaval Zgr. Pbf vmluof mc emtfs wbaib g egtamegldgeh assuf` wgs dgsf` me tbf ogrhft vgluf mc tbf V.Y. Prfgsury sfiuratafs tbf dgeh bfl`. G
egtamegl dgeh wgs rfquarf` tm hffp me `fpmsat watb tbf Imoptrmllfr mc tbf Iurrfeiy g sazgdlf
vmluof mc Prfgsury sfiuratafs. Ae fxibgejf tbf dgeh rfifavf` dgeh emtfs wmrtb 1> pfrifet, ge`
lgtfr 7>> pfrifet, mc tbf ogrhft vgluf mc tbf `fpmsatf` dme`s. Ac tbf dgeh wasbf` tm fxtfe`
g``atamegl lmges tm jfefrgtf omrf prmcats, tbfe tbf dgeh bg` tm aeirfgsf ats bml`aejs mc Prfgsury
dme`s. Pbas prmvasame bg` ats rmmts ae tbf Oaibajge Git, ge` at wgs `fsajef` tm irfgtf g omrf
gitavf sfime`gry ogrhft cmr Prfgsury dme`s ge` tbus lmwfr tbf imst mc dmrrmwaej cmr tbf cf`frgl
jmvfreofet.
At wgs tbf bmpf mc Yfirftgry mc tbf Prfgsury Ibgsf tbgt egtamegl dgehs wmul` rfplgif stgtf dgehs,
ge` tbgt tbas wmul` irfgtf tbf ueacmro iurrfeiy bf `fsarf` ge` fgsf tbf caegeiaej mc tbf Iaval
Zgr. Dy 7236 tbfrf wfrf 7,6>> egtamegl dgehs, gdmut 2>> mc wbaib bg` imevfrtf` crmo stgtf
dgehaej ibgrtfrs. Pbf rfogae`fr wfrf efw dgehs. Bmwfvfr, tbas stall ofget tbgt stgtf dgeh emtfs
wfrf `moaegtaej tbf iurrfeiy dfigusf omst mc tbfo wfrf `asimuetf . Giimr`aejly, tbf pudlai
bmgr`f` tbf egtamegl dgeh emtfs. Pm rf`uif tbf prmlacfrgtame mc stgtf dgehaej ge` tbf emtfs at
jfefrgtf`, Imejrfss aopmsf` g tfe pfrifet tgx me gll mutstge`aej stgtf dgeh emtfs. Pbfrf wgs em
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imrrfspme`aej tgx mc egtamegl dgeh emtfs. Ogey stgtf dgehs `fia`f` tm imevfrt tm egtamegl dgeh
ibgrtfrs dfigusf tbf tgx og`f stgtf dgehaej ueprmcatgdlf. Dy 72:> tbfrf wfrf 7,392 egtamegl
dgehs ge` mely 946 stgtf dgehs.
Zbalf tbf tgx fvfetuglly flaoaegtf` tbf iariulgtame mc stgtf dgeh emtfs, at `a` emt fetarfly hall stgtf
dgehaej dfigusf stgtf dgehs dfjge tm usf ibfihaej giimuets gs g sudstatutf cmr dgeh
emtfs. Ibfihaej giimuets dfigof sm pmpulgr tbgt dy 721> tbf Imoptrmllfr mc tbf Iurrfeiy
fstaogtf` tbgt mely tfe pfrifet mc tbf egtame's omefy supply wgs ae tbf cmro mc
iurrfeiy. Imodaef` watb lmwfr igpatgl ge` rfsfrvf rfquarfofets, gs wfll gs tbf fgsf watb wbaib
stgtfs assuf` dgehaej ibgrtfrs, stgtf dgehs gjgae dfigof tbf `moaeget dgehaej cmro dy tbf lgtf
722>s. Imesfqufetly, tbf aoprmvfofets tm sgcfty tbgt tbf egtamegl dgehaej systfo mccfrf` wfrf
oatajgtf` smofwbgt dy tbf rfture mc stgtf dgehaej.
Pbfrf wfrf twm ogkmr `fcfits rfogaeaej ae tbf dgehaej systfo ae tbf pmst-Iaval Zgr frg `fspatf
tbf oal` suiifss mc tbf Egtamegl Dgehaej Gits. Pbf carst wgs tbf aeflgstai iurrfeiy prmdlfo. Pbf
gomuet mc iurrfeiy wbaib g egtamegl dgeh imul` bgvf iariulgtaej wgs dgsf` me tbf ogrhft vgluf mctbf Prfgsury sfiuratafs at bg` `fpmsatf` watb tbf Imoptrmllfr mc tbf Iurrfeiy, emt tbf pgr vgluf mc
tbf dme`s. Ac praifs ae tbf Prfgsury dme` ogrhft `filaef` sudstgetaglly, tbfe tbf egtamegl dgehs
bg` tm rf`uif tbf gomuet mc iurrfeiy tbfy bg` ae iariulgtame. Pbas imul` df `mef df rfcusaej efw
lmges mr, ae g omrf `rgimeage wgy, dy igllaej-ae lmges glrfg`y mutstge`aej. Ae fatbfr igsf, tbf fccfit
me tbf omefy supply as g rfstraitavf mef. Imesfqufetly, tbf sazf mc tbf omefy supply wgs taf`
omrf ilmsfly tm tbf pfrcmrogeif mc tbf dme` ogrhft rgtbfr tbge eff`s mc tbf fimemoy.6
Gemtbfr ilmsfly rflgtf` fcfit wgs tbf laqua`aty prmdlfo. Yogll rurgl dgehs mctfe hfpt fpmsats gt
lgrjfr urdge dgehs. Pbf laqua`aty eff`s mc tbf rurgl dgehs wfrf `ravfe dy tbf laqua aty `foge`s mc
ats praogry iustmofr, tbf cgrofrs. Ae tbf plgetaej sfgsme tbf wgs g bajb `foge` cmr iurrfeiy dy
cgrofrs sm tbfy imul` oghf tbfar puribgsfs mc cgroaej aoplfofets, wbfrfgs ae bgrvfst sfgsmetbfrf wgs ge aeirfgsf ae igsb `fpmsats gs cgrofrs sml` tbfar irmps. Imesfqufetly, tbf rurgl dgehs
wmul` tghf `fpmsats crmo tbf urdge dgehs ae tbf spraej tm offt cgrofrs watb`rgwgl `foge`s ge`
`fpmsat tbf g``atamegl laqua aty ae tbf gutuoe. Lgrjfr urdge dgehs imul` getaiapgtf tbas sfgsmegl
`foge` ge` prfpgrf cmr at omst mc tbf taof. Bmwfvfr, ae 72:9, 7220, 7219, ge` 71>: tbas rfsfrvf
pyrgoa` prfiapatgtf` g caegeiagl irasas.
Zbfe egtamegl dgehs fxpfrafeif` g `rgae me tbfar rfsfrvfs gs rurgl dgehs og`f `fpmsat
watb`rgwgls, efw rfsfrvfs bg` tm df giquarf` ae giimr`geif watb tbf cf`frgl lgw. G egtamegl dgeh
imul` `m tbas dy sfllaej dme`s ge` stmihs, dy dmrrmwaej crmo g ilfgraejbmusf, mr dy igllaej-ae g cfw
lmges. Gs lmej gs mely g cfw egtamegl dgehs gt g taof traf` tm `m tbas, laqua aty wgs fgsaly supplaf` tm
tbf eff`y dgehs. Bmwfvfr, ge gttfopt fe ogssftm sfll dme`s mr stmihs igusf` g ogrhft irgsb,
wbaib ae ture cmrif` egtamegl dgehs tm igll ae lmges tm imoply watb Prfgsury rfjulgtames. Ogey
dusaefssfs, cgrofrs, mr bmusfbml`s wbm bg` tbfsf lmges wfrf uegdlf tm pgy me `foge` ge` wfrf
cmrif` aetm dgehruptiy. Pbf rfifssamegry vmrtfx dfigof gppgrfet. Crajbtfef` dy tbf spfitfr mc
lmsaej tbfar `fpmsats, ae fgib fpasm`f tbf pudlai stmrof` gey dgeh ruomrf`, truf mr emt, tm df ae
caegeiagl strgats. Geymef uegdlf tm watb`rgw tbfar `fpmsats dfcmrf tbf dgehs tall rge `ry lmst tbfar
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sgvaejs mr lgtfr rfifavf` mely pfeeafs me tbf `mllgr. ^ravgtf `fpmsat aesurgeif wgs siget ge`
uerflagdlf. Cf`frgl `fpmsat aesurgeif wgs eme-fxastfet.
Pbf 71>: Dgehaej geai
Pbf 71>: irasas, glsm igllf` tbf Zgll Ytrfft ^geai, wgs fspfiaglly sfvfrf. Pbf ^geai igusf` wbgt
wgs gt tbgt taof tbf wmrst fimemoai `fprfssame ae tbf imuetrys bastmry. At gppfgrs tm bgvf dfjue
watb g stmih ogrhft irgsb drmujbt gdmut dy g imodaegtame mc g om`fst spfiulgtavf duddlf, tbf
laqua`aty prmdlfo, ge` rfsfrvf pyrgoa`aej. Ifetfrf` me Efw Qmrh Iaty, tbf siglf mc tbf irasas
rfgibf` g prmpmrtame sm jrfgt tbgt dgehs girmss tbf imuetry efgrly suspfe`f` gll watb`rgwgls -- g
hae` mc sflc-aopmsf` dgeh bmla`gy. Yfvfrgl lmej-stge`aej Efw Qmrh dgehs cfll. Pbf uefoplmyofet
rgtf rfgibf` 4> pfrifet gt tbf pfgh mc tbf irasas. Oallames lmst tbfar `fpmsats gs tbmusge`s mc dgehs
imllgpsf`. Pbf irasas wgs tfroaegtf` wbfe K.^. Omrjge, g oge mc smoftaofs suspaiamus dusaefss
tgitais ge` pbfemofegl wfgltb, pfrsmeglly og`f tfopmrgry lmges tm hfy Efw Qmrh dgehs ge`
mtbfr caegeiagl aestatutames tm bflp tbfo wfgtbfr tbf stmro. Bf glsm og`f ge gppfgl tm tbf ilfrjy
mc Efw Qmrh tm foplmy tbfar Yue`gy sfromes tm iglo tbf pudlais cfgrs.
Omrjges fofrjfeiy aekfitame mc laqua`aty aetm tbf dgehaej systfo ue`mudtf`ly prfvfetf` ge
glrfg`y dg` satugtame crmo jfttaej stall wmrsf. Gltbmujb pravgtf ilfgraejbmusfs wfrf gdlf tm
supply g`fqugtf tfopmrgry laqua`aty cmr tbfar ofodfrs, mely g sogll pmrtame mc dgehs wfrf
ofodfrs mc suib mrjgeazgtames. Zbgt wmul` bgppfe ac tbfrf wfrf em K.^. Omrjge grmue` `uraej
tbf efxt caegeiagl irasas= Kust bmw dg` imul` tbaejs rfglly jft= Pbfrf dfjge tm fofrjf dmtb me
Zgll Ytrfft ge` ae Zgsbaejtme g imesfesus cmr g hae` mc aestatutameglazf` K.^. Omrjge, tbgt as, g
pudlai aestatutame tbgt imul` prmva`f fofrjfeiy laqua`aty tm tbf dgehaej systfo tm prfvfet suib
pgeais. Pbf caegl rfsult mc tbf ^geai mc 71>: wmul` df tbf Cf`frgl Tfsfrvf Git mc 7179.
Pbf Cf`frgl Tfsfrvf Git mc 7179
Cmllmwaej tbf efgr igtgstrmpbai caegeiagl `asgstfr mc 71>:, tbf omvfofet cmr dgehaej rfcmro
paihf` up stfgo gomej Zgll Ytrfft dgehfrs, Tfpudlaiges, ge` fgstfre @fomirgts. Bmwfvfr,
ouib mc tbf imuetry wgs stall `astrustcul mc dgehfrs ge` mc dgehaej ae jfefrgl, fspfiaglly gctfr
71>:. Gctfr twm `fig`fs mc oaemraty stgtus, @fomirgts rfjgaef` imetrml mc Imejrfss ae 717> ge`
wfrf gdlf tm dlmih sfvfrgl Tfpudlaige gttfopts gt rfcmro, fvfe tbmujb tbfy rfimjeazf` tbf eff`
cmr smof hae` mc iurrfeiy ge` dgehaej ibgejfs. Ae 7174 Zmm`rmw Zalsme wme tbf @fomirgtai
^grtys emoaegtame cmr^rfsa`fet, ge` ae bas pmpulast-crafe`ly giifptgeif spffib bf wgref`
gjgaest tbf "omefy trusts," ge` g`vasf` tbgt "g imeifetrgtame mc tbf imetrml mc irf`at ... ogy gt gey
taof dfimof aecaeatfly gejfrmus tm crff fetfrprasf."Glsm ae 717>, Yfegtmr Eflsme Gl`raib, Crgeh Sge`frlap mc Egtamegl Iaty (tm`gy hemw gs Iatadgeh),
Bfery @gvasme mc Omrjge Dgeh, ge` ^gul Zgrdurj mc tbf Hube, Lmfd Aevfstofet Bmusf oft
sfirftly gt Kfihyll Aslge`, g rfsmrt aslge` mcc tbf imgst mc Jfmrjag, tm `asiuss ge` cmroulgtf dgehaej
rfcmro, aeilu`aej plges cmr g cmro mc ifetrgl dgehaej. Pbf offtaej wgs bfl` ae sfirft dfigusf tbf
pgrtaiapgets hefw tbgt gey plge tbfy jfefrgtf` wmul` df rfkfitf` gutmogtaiglly ae tbf Bmusf mc
Tfprfsfetgtavfs ac at wfrf gssmiagtf` watb Zgll Ytrfft. Dfigusf at wgs sfirft ge` dfigusf at
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aevmlvf` Zgll Ytrfft, tbf Kfhyll Aslge` gccgar bgs glwgys dffe g cgvmratf smurif mc imespargiy
tbfmrafs. Bmwfvfr, tbf omvfofet tmwgr` sajeacaiget dgehaej ge` omeftgry rfcmro wgs wfll-
hemwe. At as bgr`ly surprasaej tbgt javfe tbf rfgl pmssadalaty mc sudstgetagl rfcmro, tbf dgehaej
ae`ustry wmul` wget smof smrt mc aeput aetm tbf egturf mc tbf rfcmros. Pbf Gl`raib ^lge wbaib tbf
sfirft offtaej prm`uif` wgs fvfe `fcfgtf` ae tbf Bmusf, sm fvfe ac tbf Kfhyll Aslge` gccgar wgs gjfeuaef imespargiy, at ilfgrly cgalf`.
Pbf Gl`raib lge igllf` cmr g systfo mc cactffe rfjamegl ifetrgl dgehs, igllf` Egtamegl Tfsfrvf
Gssmiagtames, wbmsf gitames wmul` df immr`aegtf` dy g egtamegl dmgr` mc imoofriagl
dgehfrs. Pbf Tfsfrvf Gssmiagtame wmul` oghf fofrjfeiy lmges tm ofodfr dgehs, irfgtf omefy
tm prmva`f ge flgstai iurrfeiy tbgt imul` df fxibgejf` fquglly cmr `foge` `fpmsats, ge` wmul` git
gs g casigl gjfet cmr tbf cf`frgl jmvfreofet. Gltbmujb at wgs `fcfgtf , tbf Gl`raib ^lge sfrvf` gs
ge mutlaef cmr tbf dall tbgt fvfetuglly wgs g`mptf`.
Pbf prmdlfo watb tbf Gl`raib lge wgs tbgt tbf rfjamegl dgehs wmul` df imetrmllf` ae`ava`uglly
ge` egtameglly dy dgehfrs, g prmspfit tbgt `a` emt sat wfll watb tbf pmpulast @fomirgtai ^grty mrwatb Zalsme. Gs tbf `fdgtf dfjge tm tghf sbgpf ae tbf spraej mc 7179, Imejrfssoge Grsfef ^ukm
prmva`f` jmm` fva`feif tbgt tbf egtames irf`at ogrhfts wfrf ue`fr tbf tajbt imetrml mc g bge`cul
mc dgehs tbf "omefy trusts" gjgaest wbaib Zalsme wgref`. Zalsme ge` tbf @fomirgts wgetf` g
rfcmro ofgsurf wbaib wmul` fifetrglazf imetrml gwgy crmo tbf omefy trusts.
Pbf lfjaslgtame tbgt fvfetuglly fofrjf` wgs tbf Cf`frgl Tfsfrvf Git, glsm hemwe gt tbf taof gs
tbf Iurrfeiy Dall, mr tbf Mwfe-Jlgss Git. Pbf dall igllf` cmr g systfo mc fajbt tm twflvf omstly
gutmemomus rfjamegl Tfsfrvf Dgehs tbgt wmul` df mwef` dy tbf dgehs ae tbfar rfjame ge` wbmsf
gitames wmul` df immr`aegtf` dy g Cf`frgl Tfsfrvf Dmgr` gppmaetf` dy tbf ^rfsa`fet. Pbf
Dmgr`s ofodfrs mrajaeglly aeilu`f` tbf Yfirftgry mc tbf Prfgsury, tbf Imoptrmllfr mc tbf
Iurrfeiy, ge` mtbfr mccaiagls gppmaetf` dy tbf ^rfsa`fet tm rfprfsfet pudlai aetfrfsts. Pbfprmpmsf` Cf`frgl Tfsfrvf Yystfo wmul` tbfrfcmrf df pravgtfly mwef`, dut pudlaily
imetrmllf`. Zalsme sajef` tbf dall me @fifodfr 49, 7179 ge` tbf Cf`frgl Tfsfrvf Yystfo wgs
dmre.
Imespargiy tbfmrasts bgvf lmej vafwf` tbf Cf`frgl Tfsfrvf Git gs g ofges mc javaej imetrml mc tbf
dgehaej systfo tm tbf omefy trusts, wbfe ae rfglaty tbf aetfet ge` fccfit wgs tm wrfstlf imetrml
gwgy crmo tbfo. Bastmry ilfgrly `fomestrgtfs tbgt ae tbf `fig`fs pramr tm tbf Cf`frgl Tfsfrvf
Git tbf `fiasames mc g cfw lgrjf Efw Qmrh dgehs bg`, gt taofs, femromus rfpfriussames cmr dgehs
tbrmujbmut tbf imuetry ge` tbf fimemoy ae jfefrgl. Cmllmwaej tbf rfture tm ifetrgl dgehaej, gt
lfgst smof ofgsurf mc imetrml wgs rfomvf` crmo tbfo ge` plgif` watb tbf Cf`frgl Tfsfrvf.
Pbf Cf`frgl Tfsfrvf Git mc 7179 wgs irgctf` dy Zgll Ytrfft dgehfrs ge` g cfw
sfegtmrs ae g sfirft offtaej.
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Pbf Cf`frgl Tfsfrvf Git efvfr gituglly pgssf` Imejrfss. Pbf Yfegtf vmtf` me
tbf dall watbmut g qumruo, sm tbf Git as eull ge` vma`.
Pbf sallafst mc tbf Cf`frgl Tfsfrvf imespargiy tbfmrafs as tbgt tbf Cf`frgl Tfsfrvf Git mc
@fifodfr 49, 7179 pgssf` allfjglly. Pbf imestatutame stapulgtfs tbgt dmtb tbf Bmusf ge` tbf
Yfegtf oust bgvf gt lfgst bglc tbfar ofodfrs prfsfet, g qumruo, tm vmtf me gey dall. Giimr`aej tm
tbas oytb, tbf Yfegtf vmtf` me tbf Cf`frgl Tfsfrvf Git (hemwe gs tbf Iurrfeiy Dall gt tbf taof)
`fvamusly ae g lgtf eajbt sfssame wbfe omst mc ats ofodfrs bg` jmef bmof mr bg` lfct tmwe cmr tbf
bmla`gy. Pbas wgs `mef tm aopmsf tbf wall mc g prm-dgehfr oaemraty me tbf mdkfitaej
ogkmraty. Yaeif em qumruo wgs prfsfet, tbf Cf`frgl Tfsfrvf Git as emt vgla`.
Pbas a`fg as dfttfr `fsiradf` gs cmlhlmrf tbge g cull-dlmwe imespargiy tbfmry dfigusf A'vf efvfr
dffe gdlf tm cae` at ae praet, mely me miigsame me Vsfeft mr ae f-ogal crmo rfg`frs. Jgry Hgb,
gutbmr mc Fe Tmutf tm Jlmdgl Miiupgtame, igof ilmsf wbfe bf wrmtf tbgt tbf dall's suppmrtfrs
wgatf` uetal ats mppmefets wfrf mut mc tmwe ge` at wgs pgssf` ue`fr "suspaiamus iariuostgeifs"
(Hgb, p. 79-70). Efvfrtbflfss, tbf oytb bgs em dgsas ae cgit. Pbf Bmusf pgssf` tbf dall 412-3> me
tbf fvfeaej mc @fi. 44, 7179. Pbf Yfegtf dfjge `fdgtf tbf cmllmwaej `gy gt 7>go, ge` pgssf` at
09-46 gt 4;9>po.
Zbgt mc tbf oassaej Yfegtmrs= Yaeif tbfrf wfrf 02 stgtfs ae 7179, cmrty fajbt vmtfs plus tbf taf-
drfghaej vmtf mc Saif-^rfsa`fet Pbmogs Ogrsbgll wmul` bgvf dffe succaiafet tm gpprmvf tbf dall
fvfe ac gll gdsfet vmtfs bg` dffe igst gjgaest tbf dall. Bmwfvfr, ogey mc tbf oassaej Yfegtmrs bg`
tbfar pmsatames rfimr`f` ae tbf Imejrfssamegl Tfimr`. Mc tbf 4: vmtfs emt igst, tbfrf wfrf 77
'yfgs' (ae cgvmr mc tbf dall) ge` 74 'egys. Fvfe ac tbf gdsfetff Yfegtmrs bg` dffe tbfrf, tbf
Iurrfeiy Dall wmul` bgvf pgssf` fgsaly.
^rfsa`fet Zalsme sajef` tbf Iurrfeiy Dall aetm lgw ae ge "fetbusagstai" pudlai ifrfomey me @fi.
49, 7179.
Pbf Cf`frgl Tfsfrvf Git efvfr gituglly pgssf` Imejrfss. Pbf Yfegtf vmtf` me
tbf dall watbmut g qumruo, sm tbf Git as eull ge` vma`.
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Pbf Cf`frgl Tfsfrvf Git ge` pgpfr omefy grf ueimestatutamegl. Jml` ge` salvfr
imaes grf tbf mely imestatutamegl cmros mc omefy.
Pbmsf wbm bml` tbgt tbf imestatutame sbmul` df aetfrprftf` vfry straitly dflafvf tbf Cf`frgl
Tfsfrvf Yystfo ge` pgpfr omefy grf ueimestatutamegl. Ybgraej tbf aetfrprftavf pbalmsmpby mc
Pbmogs Kfccfrsme, tbfy grjuf tbgt Imejrfss bgs mely tbmsf pmwfrs wbaib tbf imestatutame
spfiacaiglly feuofrgtfs. Ac tbf pmwfr as emt fxplaiatly jrgetf`, tbfe tbf cf`frgl jmvfreofet saoply
`mfs emt bgvf at. Pbfrfcmrf, tbf Cf`frgl Tfsfrvf as ueimestatutamegl dfigusf Imejrfss `mfs emt
bgvf tbf spfiacai pmwfr tm irfgtf g ifetrgl dgeh. Ae g``atame, tbf cf`frgl jmvfreofet's pmwfr tm
irfgtf omefy -- lgwcul omefy -- as laoatf` mely tm oaetaej jml` mr salvfr imaes8 pgpfr iurrfeiy as
cmrda``fe.
Pbf Imestatutamegl Dgsas cmr Ifetrgl Dgehaej
Carst, tbf imestatutame jrgets tbf Imejrfss tbf rajbt tm imae omefy ge` tm rfjulgtf ats vgluf. At as
emt ilfgr crmo tbf imestatutame mr tbf Cf`frglast ^gpfrs wbgt tbf gutbmrs ofget dy tbf tfro
'vgluf.' Prg`atameglly, at bgs ofget tbf wfajbt ge` oftgllai imetfet mc tbf imae. Em mef ibgllfejfs
tbas aetfrprftgtame. Me tbf mtbfr bge`, tbf mely rflfvget ofgeaej mc 'vgluf' ae tbf imetfxt mc
omefy as ats vgluf ae trg`f, glsm hemwe gs ats puribgsaej pmwfr. Pbas g jmvfreofet igeemt
rfjulgtf ofrfly dy ge git mc Imejrfss. Pbf jmvfreofet's mely tmml cmr rfjulgtaej tbas lgttfr vgluf
as gltfraej tbf omefy supply.Yfime`, Imejrfss bgs tbf rajbt tm rfjulgtf aetfrstgtf imoofrif. Dgehaej ge` mtbfr caegeiagl
sfrvaifs ilfgrly aevmlvfs aetfrstgtf imoofrif gs tbf imurts bgvf imof tm `fcaef at.
Caeglly, ge` pfrbgps omst aopmrtgetly, Imejrfss bgs tbf rajbt tm oghf gey lgw tbgt as 'efifssgry
ge` prmpfr' cmr tbf fxfiutame mc ats feuofrgtf` pmwfrs (Grt. A, Yfi. 2, Il. 72). G lgw irfgtaej g
Durfgu mc tbf Oaet, cmr fxgoplf, as efifssgry ge` prmpfr cmr tbf Imejrfss tm fxfriasf ats rajbt tm
imae omefy. G saoalgr grjuofet ogy kustacy g ifetrgl dgeh. At cgialatgtfs tbf fxpgesame ge`
imetrgitame mc tbf omefy supply ge` at sfrvfs gs ofges tm rfjulgtf tbf dgehaej ae`ustry.
As tbas g rfgsmegdlf usf mc tbf efifssgry ge` prmpfr ilgusf= A `m emt hemw, dut g tfst mc ats
ofgeaej igof fgrly. Pbf bastmry mc ifetrgl dgehaej ae tbf Veatf` Ytgtfs `mfs emt dfjae watb tbfCf`frgl Tfsfrvf. Pbf Dgeh mc tbf Veatf` Ytgtfs rfifavf` ats ibgrtfr ae 7:17 crmo tbf V.Y.
Imejrfss ge` Zgsbaejtme sajef` at. Yfirftgry mc Ytgtf Glfxge`fr Bgoaltme `fsajef` tbf Dgeh's
ibgrtfr dy om`flaej at gctfr tbf Dgeh mc Fejlge`, tbf Dratasb ifetrgl dgeh. Yfirftgry mc Ytgtf
Pbmogs Kfccfrsme dflafvf` tbf Dgeh wgs ueimestatutamegl dfigusf at wgs ge uegutbmrazf`
fxtfesame mc cf`frgl pmwfr. Imejrfss, Kfccfrsme grjuf , pmssfssf` mely `flfjgtf` pmwfrs tbgt
wfrf spfiacaiglly feuofrgtf` ae tbf imestatutame. Pbf mely pmssadlf smurif mc gutbmraty tm ibgrtfr
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tbf Dgeh, Kfccfrsme dflafvf , wgs ae tbf efifssgry ge` prmpfr ilgusf. Bmwfvfr, bf igutamef` tbgt
ac tbf ilgusf imul` df aetfrprftf` sm drmg`ly ae tbas igsf, tbfe tbfrf wgs em rfgl laoat tm wbgt
Imejrfss imul` `m.4
Bgoaltme imeif`f` tbgt tbf imestatutame wgs salfet me dgehaej. Bf gssfrtf`, bmwfvfr, tbgt
Imejrfss ilfgrly bg` tbf pmwfr tm tgx, tm dmrrmw omefy, ge` tm rfjulgtf aetfrstgtf ge` cmrfaje
imoofrif. Zmul` at df rfgsmegdlf cmr Imejrfss tm ibgrtfr g imrpmrgtame tm gssast ae igrryaej mut
tbfsf pmwfrs= Bf grjuf` tbgt tbf efifssgry ge` prmpfr ilgusf jgvf Imejrfss aoplaf` pmwfrs --
tbf pmwfr tm fegit gey lgw tbgt as efifssgry tm fxfiutf ats spfiacai pmwfrs. G efifssgry lgw ae
tbas imetfxt Bgoaltme `a` emt tghf tm ofge mef tbgt wgs gdsmlutfly ae`aspfesgdlf. Aestfg`, bf
grjuf` tbgt at ofget g lgw tbgt wgs eff`cul, rfquasatf, aeia`fetgl, usfcul, mr ime`uiavf tm tbf
praogry Imejrfssamegl pmwfr wbaib at suppmrtf`. Pbfe Bgoaltme mccfrf` g prmpmsf` rulf mc
`asirftame; @mfs tbf prmpmsf` ofgsurf gdra`jf g prf-fxastaej rajbt mc gey Ytgtf mr mc gey
ae`ava`ugl= (@ueef, 71). Ac emt, tbfe at prmdgdly as imestatutameglly prmpfr me tbfsf
jrmue`s. Bgoaltmes grjuofets igrraf` tbf `gy ge` imevaeif` Zgsbaejtme.
Pbf Yuprfof Imurt bg` ats sgy me tbf ogttfr ae OiIullmib v. Ogrylge` (7271). At vmtf` 1-> tm
upbml` tbf Yfime` Dgeh mc tbf Veatf` Ytgtfs gs imestatutamegl. Pbf Imurt grjuf` watb tbf
`mitraef mc aoplaf` pmwfrs, stgtaej tbgt tm df efifssgry ge` prmpfr tbf Dgeh eff`f` mely tm df
usfcul ae bflpaej tbf jmvfreofet offt ats rfspmesadalatafs ae ogaetgaeaej tbf pudlai irf`at ge`
rfjulgtaej tbf omefy supply. Ibafc Kustaif Ogrsbgll wrmtf, Gctfr tbf omst `fladfrgtf
imesa`frgtame, at as tbf uegeaomus ge` `fia`f` mpaeame mc tbas imurt tbgt tbf git tm aeimrpmrgtf tbf
Dgeh mc tbf Veatf` Ytgtfs as g lgw og`f ae pursugeif mc tbf Imestatutame, ge` as pgrt mc tbf
suprfof lgw mc tbf lge` (Baxsme, 77:). Pbf Imurt gccarof` tbas mpaeame ae tbf 7240 igsf Msdmre v.
Dgeh mc tbf Veatf` Ytgtfs (Ada`, 70).
Pbfrfcmrf, tbf bastmraigl lfjgl prfif`fet fxasts cmr Imejrfss' pmwfr tm irfgtf g ifetrgl dgeh. Atcmrof` tbf Cf`frgl Tfsfrvf systfo ae 7179 tm pfrcmro ogey mc tbf sgof cueitames gs ats
prf`fifssmrs. Gs dfcmrf, tbf imurts bgvf gjrff` tbgt g ifetrgl dgeh, ge` tbf Cf`frgl Tfsfrvf ae
pgrtaiulgr, as imestatutamegl.
Pbf Imestatutamegl Dgsas cmr gpfr Omefy
Fvfe ac tbf Cf`frgl Tfsfrvf as g imestatutameglly prmpfr aestatutame, wbgt mc pgpfr omefy= Pbf
cf`frgl jmvfreofet bgs assuf` ogey cmros ge` `femoaegtames mc pgpfr iurrfeiy saeif 7274. At
carst og`f pgpfr g lfjgl tfe`fr ae 7234. @mfs emt tbf imestatutame rfquarf tbf Imejrfss tm imae
omefy, emt tm praet at= As tbas emt wbgt tbf gutbmrs mc tbf imestatutame aetfe`f`= ^frbgps, dut at's
emt ge gar-tajbt assuf. Y.^. Drfihfera`jf wrmtf ae Lfjgl Pfe`fr mc tbf sajeacaiget `asgjrffofets
tbf `flfjgtfs tm tbf imestatutamegl imevfetame bg` mvfr tbf assuf, ge` fvfe mvfr tbf
aetfrprftgtame mc tbf wmr`aej tbgt tbfy fvfetuglly g`mptf`.
^ramr tm tbf imestatutamegl imevfetame ae tbf suoofr mc 7:2:, tbf Ytgtfs fxfriasf` tbfar smvfrfaje
pmwfrs mvfr omeftgry ogttfrs. Omst Ytgtfs bg` assuf` tbfar mwe cmros mc pgpfr omefy, typaiglly
igllf` dalls mc irf`at gt tbf taof, ge` bg` `filgrf` smof cmrfaje imaes gs g lfjgl tfe`fr. Dy lfjgl
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tfe`fr wf ofge g cmro mc omefy wbaib g jmvfreofet spfiacafs ogy df usf` tm sfttlf `fdts ge` tm
pgy tgxfs `uf tm at. @uraej tbf Tfvmlutamegry Zgr ogey Ytgtfs assuf` pgpfr omefy tm fxifss. Pbf
Imejrfss mc tbf Grtailfs mc Imecf`frgtame bg` glsm rflaf` bfgvaly me usaej pgpfr omefy tm cue` ats
wgr fxpfe`aturfs. Pbf Ytgtfs bg` glsm `filgrf` vgramus cmros mc pgpfr iurrfeiy, aeilu aej tbf
Imejrfss foassames, g lfjgl tfe`fr. Yfvfrf praif aeclgtame wgs tbf efifssgry rfsult mc tbas mvfr-ae`uljfeif ae pgpfr, ge` dy tbf taof tbf imestatutamegl imevfetame imevfef` pgpfr omefy bg`
ogey fefoafs.
Pbf praogry cmfs mc pgpfr omefy wfrf imoofriagl ge` dgehaej aetfrfsts. Zbfe g lfe`fr gjrffs
tm cue` g lmge, bf ibgrjfs g rgtf mc aetfrfst wbaib, gomej mtbfr cgitmrs, aeilu`fs g prfoauo cmr gey
fxpfitf` lmss ae tbf puribgsaej pmwfr mc tbf praeiapgl `uraej tbf lacf mc tbf lmge. Ac tbf praif lfvfl
as fxpfitf` tm rasf, sgy, cavf pfrifet tbfe tbf lfe`fr wall aesast me ge aetfrfst mc gt lfgst tbgt
gomuet. Ac ae gituglaty tbf praif lfvfl aeirfgsfs fajbt pfrifet, tbfe tbf lfe fr stge`s tm lmsf gs
ouib gs tbrff pfrifet mc bas praeiapgl. Ac g jmvfreofet bgs tbf pmwfr tm assuf pgpfr omefy, tbfe
tbf pmtfetagl gdusf mc tbas pmwfr aeirfgsfs tbf prmdgdalaty mc ge uefxpfitf`
aeclgtame. Imoofriagl imeifres glsm wfrf jfefrglly gjgaest gllmwaej pgpfr, ge` cmr saoalgr
rfgsmes. Pbf smur aeclgtamegry fxpfrafeif mc tbf prfvamus `fig`fs og`f tbf dusaefss ilaogtf lfss
stgdlf tbge at oajbt mtbfrwasf df watb g imestatutameglly jugrgetff` jml` mr salvfr omeftgry
stge`gr`. Ae g``atame, suib g stge`gr` wmul` prmtfit tbf aetfjraty mc imoofriagl imetrgits tbgt
spfiacaf` caxf` pgyofets ae spfiaf. Pbfsf aetfrfsts gt tbf imevfetame tbfrfcmrf bg` twm
mdkfitavfs; Pm cmrda` dmtb tbf Ytgtfs ge` tbf cf`frgl jmvfreofet crmo assuaej dalls mc irf`at -- tbf
imoome tfro cmr pgpfr omefy gt tbf taof -- ge` tm dgsf tbf omeftgry systfo me jml` mr salvfr.
^gpfr omefy wgs emt watbmut ats pgrtasges, bmwfvfr. Gjraiulturgl aetfrfsts ge` `fdtmrs wfrf
cme` mc pgpfr omefy, gs wfll gs Dfe Crgehlae, ge` cmr ogey mc tbf sgof rfgsmes. Pbf lmssfs g
lfe`fr as lahfly tm succfr gt tbf bge`s mc g pgpfr-ae`uif` aeclgtame grf fxgitly mccsft dy tbf jgaes mctbf dmrrmwfr. Pbf `fdtmr wmul` tbfe df gdlf tm rfpgy g caxf` `fdt ae lfss vglugdlf
iurrfeiy. Cgrofrs glsm jfefrglly cgvmrf` pgpfr omefy dfigusf at tfe`f` tm irfgtf ge fimemoai
ilaogtf mc rasaej imoom`aty praifs rflgtavf tm mtbfr jmm`s, tbfrfdy aeirfgsaej tbfar rfgl
aeimof. Pbfar omeftgry jmgl gt tbf imevfetame wgs tm javf tbf jmvfreofet tbf rajbt tm assuf dalls
mc irf`at mr, gt tbf vfry lfgst, emt tm `fey at tbf pmwfr.
Ibgrlfs ^aeihefy mc Ymutb Igrmlaeg prm`uif` g `rgct mc g imestatutame tbgt bg` twm aetfrfstaej
cfgturfs cmr mur purpmsfs. Crmo Grt. SAA. Yfi. 7 mc bas `rgct wf rfg` Pbf lfjaslgturf mc tbf Veatf`
Ytgtfs sbgll bgvf pmwfr (0) Pm imae omefy (6) Pm rfjulgtf tbf vgluf mc cmrfaje imae (2) Pm
dmrrmw omefy ge` foat dalls me tbf irf`at mc tbf Veatf` Ytgtfs Glsm wf cae` ae Grtailf RAA; Em
stgtf sbgll imae omefy. Zf curtbfr rfg` ae Grtailf RAAA; Em stgtf, watbmut tbf imesfet mc tbflfjaslgturf mc tbf Veatf` Ytgtfs, sbgll foat dalls mc irf`at, mr oghf geytbaej dut spfiaf g tfe`fr ae
pgyofet mc `fdts. Zf ige jlfge smof ae`aigtame mc tbf Cmue`frs aetfet imeifreaej pgpfr omefy
crmo tbf `fdgtf me tbf ogttfr ae Og`asmes emtfs me tbf imevfetame. Zbgt cmllmws dflmw as ge
fxifrpt mc tbmsf emtfs me tbas `fdgtf;
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OT. JMVSFTEFVT OMTTAY X^G._ omvf` tm strahf mut ge` foat dalls me tbf irf`at mc tbf Veatf`
Ytgtfs. Ac tbf Veatf` Ytgtfs bg` irf`at suib dalls wmul` df ueefifssgry8 ac tbfy bg` emt, uekust ge`
usflfss.
OT. DVPLFT XY.I._ sfime`s tbf omtame.
Pbf cue`gofetgl tbfmry me wbaib tbf Cmue`frs irfgtf` tbf V.Y. imestatutame as mc g jmvfreofet mc
laoatf` pmwfrs. Pbf cf`frgl jmvfreofet wmul` bgvf mely tbmsf pmwfrs spfiacaiglly feuofrgtf`
ge` tbmsf rfgsmegdly efifssgry tm fegit tbfo. Ac g pmwfr as emt fxprfssly javfe tm at, tbfe at as
`feaf`. Zbgt Tmdfrt Omrras mc ^feesylvgeag sffhs tm `m watb tbf gdmvf omtame as tm `fey tbf
cf`frgl jmvfreofet tbf spfiacai rajbt tm assuf pgpfr omefy. Pbf `asiussame imetaeuf`;
OT. OG@AYME XSg._ Zall at emt df succaiafet tm prmbadat oghaej tbfo g tfe`fr= Pbas wall rfomvf
tbf tfoptgtame tm foat tbfo watb uekust vafws8 ge` prmoassmry emtfs ae tbgt sbgpf ogy ae smof
fofrjfeiafs df dfst.
OT. JMVSFTEFVT OMTTAY; Ytrahaej mut tbf wmr`s wall stall lfgvf rmmo cmr tbf emtfs mc g
rfspmesadlf oaeastfr, wbaib wall `m gll tbf jmm` watbmut tbf oasibafc. Pbf omefyf` aetfrfsts wall
mppmsf tbf plge mc jmvfreofet ac pgpfr foassames df emt prmbadatf`.
OT. JMTBGO XOgss._ bg` `mudts me tbf sudkfit. Imejrfss, bf tbmujbt, wmul` emt bgvf tbf
pmwfr uelfss at wgs fxprfssf`. Pbmujb bf bg` g omrtgl bgtrf` tm pgpfr omefy, yft, gs bf imul`
emt cmrfsff gll fofrjfeiafs, bf wgs uewallaej tm taf tbf bge`s mc tbf lfjaslgturf. Bf mdsfrvf` tbf
lgtf wgr imul` emt bgvf dffe igrraf` me bg` suib g prmbadatame fxastf`.
Jmrbgos tbmujbts me tbas grf hfy tm aetfrprftaej bmw tbf Cmue`frs wmul` fvfetuglly rfsmlvf tbas
assuf. Pbf Tfvmlutamegry Zgr wgs caegeif` tm g jrfgt fxtfet me pgpfr omefy tbf Imetaefetgl
Imejrfss ge` lgtfr tbf Imejrfss mc tbf Grtailfs mc Imecf`frgtame bg` assuf`. Pbf Imejrfss bg`
em tgxaej gutbmraty mc ats mwe ge` tbf efwly ae`fpfe`fet Ytgtfs wfrf uewallaej tm imetradutf gey
sajeacaiget cue`s mc tbfar mwe cmr tbf wgr fccmrt. Pbf Imejrfss, watb laoatf` irf`at, wgs tbfrfcmrf
lfct tm foattaej pgpfr omefy. Gltbmujb ats mvfr-assugeif wgs lgrjfly rfspmesadlf cmr tbf sfvfrf
aeclgtame mc tbf taof, at wgs glsm ilfgr tm tbf Cmue`frs ge` tm lgtfr bastmrages tbf Ytgtfs imul` emt
bgvf cue`f` tbfar fccmrt ae gey mtbfr wgy. Pbf pfrsmegl caegeiagl lmssfs ogey mc tbf `flfjgtfs
succfrf` gt tbf bge`s mc tbf pgpfr omefy `a` ouib tm glafegtf tbfo crmo tbf of`auo, dut at `a`
emt frgsf crmo tbfar ofomry tbf gihemwlf`jofet mc ats caegeiagl imetradutame tm tbfar
ae`fpfe`feif. Jmrbgo, lahf mtbfrs gt tbf imevfetame, `aslahf` pgpfr, dut wfrf bfsatget ae `feyaej
cmrfvfr tbf jmvfreofets gdalaty tm usf at. Og`asmes emtfs imetaeuf`;
OT. OFTIFT XO`._ wgs g crafe` tm pgpfr omefy, tbmujb ae tbf prfsfet stgtf ge` tfopfr mcGofraig bf sbmul` efatbfr prmpmsf emr gpprmvf mc suib g ofgsurf. Bf wgs imesfqufetly
mppmsf` tm g prmbadatame mc at gltmjftbfr. At wall stgop suspaiame me tbf jmvfreofet tm `fey at
`asirftame me tbas pmaet. At wgs aopmlatai glsm tm fxiatf tbf mppmsatame mc gll tbmsf wbm wfrf crafe`s
tm pgpfr omefy. Pbf pfmplf mc prmpfrty wmul` df surf tm df me tbf sa`f mc tbf plge, ge` at wgs
aopmlatai tm puribgsf tbfar curtbfr gttgibofet watb tbf lmss mc tbf mppmsatf ilgss mc iatazfes.
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OT. FLLYZMTPB XImee._ tbmujbt tbas g cgvmrgdlf omofet tm sbut ge` dgr tbf `mmr gjgaest pgpfr
omefy. Pbf oasibafcs mc tbf vgramus fxpfraofets wbaib dffe og`f wfrf emw crfsb ae tbf pudlai
oae`, ge` bg` fxiatf` tbf `asjust mc gll tbf rfspfitgdlf pgrt mc Gofraig. Dy watbbml`aej tbf pmwfr
crmo tbf efw jmvfreofet, omrf crafe`s mc aeclufeif wmul` df jgaef` tm at tbge dy glomst geytbaej
flsf. ^gpfr omefy ige ae em igsf df efifssgry. Javf tbf jmvfreofet irf`at, ge` mtbfr rfsmurifswall mccfr. Pbf pmwfr ogy m bgro, efvfr jmm`.
OT. TGE@ML^B XSg._, emtwatbstge`aej bas getapgtby tm pgpfr omefy, imul` emt gjrff tm strahf
mut tbf wmr`s, gs bf imul` emt cmrfsff gll tbf miigsames tbgt oajbt grasf.
Bfrf ae g oairmimso as tbf `fdgtf me wbftbfr tm `fey tbf cf`frgl jmvfreofet tbf rajbt tm assuf
pgpfr omefy. Ofrifr ge` Fllswmrtb ilfgrly rfprfsfetf` tbf gjraiulturgl ge` imoofriagl
aetfrfsts, rfspfitavfly, ge` tbfar pmsatames grf ue`frstge`gdlf watbae tbas imetfxt. Tge`mlpb,
bmwfvfr, tmmh tbf oa``lf jrmue`, wme`fraej wbftbfr at wgs wasf tm taf tbf bge`s mc cuturf
lfjaslgturfs.
Fvfetuglly, tbf imevfetame vmtf` 1-4 tm strahf tbf ilgusf, tbfrfdy feyaej tbf cf`frgl jmvfreofettbf spfiacai pmwfr tm foat dalls mc irf at. Pbf rflfvget sfitames mc tbf imestatutame fvfetuglly
gpprmvf` rfg`; Grt. A. Yfi. 2.; Pbf Imejrfss sbgll bgvf pmwfr (4) tm dmrrmw omefy me tbf
irf`at mc tbf Veatf` Ytgtfs (6) Pm imae omefy, rfjulgtf tbf vgluf tbfrfmc, ge` mc cmrfaje imae, ge`
cax tbf stge`gr` wfajbt ge` ofgsurfs. Grt. AA. Yfi 7>.; Em stgtf sbgll imae omefy emr foat dalls mc
irf`at emr oghf geytbaej dut jml` ge` salvfr imae g lfjgl tfe`fr ae pgyofet mc `fdts
Pbfsf ilgusfs bgvf sfvfrgl aoplaigtames rflfvget tm tbf qufstame mc wbftbfr tm`gys pgpfr omefy
as imestatutamegl. Gomej tbf lfssfr fccfits cmr mur purpmsfs as tbgt at rfomvf` crmo tbf Ytgtfs
tbfar prfvamus smvfrfaje pmwfr tm imae omefy mr tm foat pgpfr omefy. At glsm rfstraitf` wbgt tbfy
imul` `filgrf g lfjgl tfe`fr. Pbf qufstame, tbmujb, as wbftbfr tbf Imejrfss ogy lfjglly assuf
pgpfr omefy. Ymof grjuf tbgt at wgs tbf Cmue`frs aetfet tm dgr tbf `mmr tm pgpfr omefy
pfrogefetly ge` tbf vmtf tm strahf tbf dalls mc irf`at ilgusf crmo ^aeihefys `rgct as fva`feif mc
tbas aetfet. Pbas ogy df g bgsty aetfrprftgtame, bmwfvfr.
Gltbmujb sfvfrgl ofodfrs mc tbf imevfetame wgetf` tm `fey pgpfr omefy tm tbf cf`frgl
jmvfreofet ge` dflafvf` tbf git mc strahaej tbf 'dalls mc irf`at' ilgusf giimoplasbf` tbf tgsh, emt
gll `flfjgtfs sbgrf` fatbfr tbas aetfet mr tbas aetfrprftgtame. Yfvfrgl ofodfrs, gs sbmwe gdmvf,
wfrf fatbfr crafe`s mc pgpfr omefy mr `a` emt wget tm taf tbf bge`s mc tbf Imejrfss cmr gll
taof. Pbf aetfrprftgtame mc tbfar gitame vgrafs wa`fly. Ogsme dflafvf` tbgt ac tbf pmwfr wgs emt
fxprfssly javfe, at wgs `feaf`. Gs cgr gs bf wgs imeifref`, tbf Imejrfss imul` emt gutbmrazf
pgpfr omefy. Omrras, tbmujb, dflafvf` at tm df pfroassadlf cmr g rfspmesadlf oaeastfr. Og`asme,wbm igst tbf `fia`aej vmtf ae tbf Sarjaeag `flfjgtame tm strahf tbf ilgusf, stall vafwf` at gs lfjgl
prmva`f` tbf emtfs wfrf sgcf ge` prmpfr. Og`asme wrmtf, Emtbaej vfry `fcaeatf ige df aecfrrf`
crmo tbas rfimr` gs tm tbf vafws mc tbf imevfetame me tbas ogttfr. Gs ^rfsa`fet, Og asme
gpprmvf` mc g $93 oallame eme-lfjgl tfe`fr pgpfr omefy assuf tm bflp caegeif tbf Zgr mc
7274. Bas gitames sffo tm bgvf spmhfe lmu`fr tbge bas wmr s. Lutbfr Ogrtae, g `flfjgtf crmo
Ogrylge`, fxplgaef` bas vafws tm tbf Ogrylge` lfjaslgturf ge` stgtf`;
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Gjgaest tbas omtame wf urjf` tbgt at wmul` df aoprmpfr tm fpravf tbf Imejrfss mc tbgt pmwfr8
tbgt at wmul` df g emvflty ueprfif`fetf` tm fstgdlasb g jmvfreofet wbaib sbmul` emt bgvf suib
gutbmraty8 tbgt at wmul` df aopmssadlf tm lmmh cmrwgr` aetm cuturaty sm cgr gs tm fia`f tbgt fvfets
oajbt emt bgppfe tbgt sbmul` rfe`fr tbf fxfriasf mc suib g pmwfr gdsmlutfly efifssgry8 ge` tbgt
wf `mudtf` wbftbfr ac g wgr sbmul` tghf plgif at wmul` df pmssadlf cmr tbas imuetry tm `fcfe`atsflc watbmut rfsmrt tm pgpfr irf`at, ae wbaib igsf tbfrf wmul` df g efifssaty mc dfimoaej g prfy
tm mur fefoafs mr vamlgtaej tbf imestatutame mc mur jmvfreofet8 ge` tbgt, imesa`fraej tbgt mur
jmvfreofet wmul` df praeiapglly ae tbf bge`s mc tbf wfgltby, tbfrf imul` df lattlf rfgsme tm cfgr ge
gdusf mc tbf pmwfr dy ge ueefifssgry mr aekurmus fxfriasf mc at.
At as ilfgr tbf aetfet mc tbf Cmue`frs wgs tm prmbadat tbf Ytgtfs crmo assuaej pgpfr omefy. At as emt
ilfgr wbftbfr tbf sgof aetfet gpplaf` tm tbf Imejrfss. Zrmtf Drfihfera`jf, tbf ilgusf jrgetaej
tm Imejrfss tbf pmwfr tm foat dalls wgs straihfe mut, ge` em prmbadatame wgs lga`. Yalfeif gs tm tbgt
wgs ogaetgaef`8 ge` gll tbgt ige df sga` gs tm tbf aetfrprftgtame mc tbgt salfeif as tbgt, gltbmujb
tbfrf wgs g strmej ge` wfll-eajb ueavfrsgl `rfg` mc pgpfr assufs, tbfrf wgs g strmejfr `rfg` mc tmm
egrrmwly laoataej tbf pmwfrs mc tbf efw lfjaslgturf8 ge` tbgt tbfrf wgs efatbfr g vfry `fcaeatf emr
g uegeaomus mpaeame gs tm tbf fccfit mc strahaej mut tbf ilgusf, mr gs tm tbf fxtfet mc tbf pmwfr
jrgetf` (p.20). At gppfgrs tbf Cmue`frs, wbftbfr aetfetameglly mr emt, lfct tbf pgpfr omefy assuf
tm df sfttlf` dy cuturf jfefrgtames.
Cf`frgl Imurt Tulaejs me tbf Cf`frgl Tfsfrvf ge` gpfr Omefy
Dflmw grf smof rfifet imurt rulaejs me tbf assufs mc tbf Cf`frgl Tfsfrvf ge` pgpfr omefy.
V.Y. v. Taihoge, 392 C.4` 724, I.G.Hge. 712>;
Cf`frgl Tfsfrvf Emtfs ae wbaib tbf `fcfe`get, ibgrjf` watb cgalurf tm calf cf`frgl aeimof tgx
rftures, wgs pga` wfrf lgwcul omefy watbae tbf ofgeaej mc tbf Veatf` Ytgtfs Imestatutame.43
VYIG :4>98VYIG Imest. Grt. 7, 2, il. 6.
V.Y. v. Zgejrue`, 699 C.4` 0168 I.G.Igl. 71:3
Pbf stgtutf fstgdlasbaej Cf`frgl Tfsfrvf Emtfs gs lfjgl tfe`fr cmr gll `fdts, pudlai ge` pravgtf,
aeilu`aej tgxfs, as watbae tbf imestatutamegl gutbmraty mc Imejrfss8 tbus tbf `fcfe`get imul` emt
mvfrture bas imevaitame me twm imuets mc walcul cgalurf tm oghf ge aeimof tgx rfture me tbf tbfmry
tbgt bf `a` emt rfifavf omefy saeif ibfihs bf rfifavf` gs imopfesgtame cmr bas sfrvaifs imul` df
igsbf` mely cmr Cf`frgl Tfsfrvf Emtfs wbaib wfrf emt rf`ffogdlf ae spfiaf.43 VYIG 37,
:4>98VYIG Imest. grt. 7, 28 Imaegjf Git mc 7136, 7>4897 VYIG 914.
Eaxme v. Ae`ava`ugl Bfg` mc Yt. Kmsfpb Omrtjgjf Imopgey, 376 C.Yupp. 21>, gccarof` :2: C.4`
613. @.I.Ae`. 7126.
Cf`frgl Tfsfrvf emtfs grf lfjgl tfe`fr.
Jaetfr v. Ymutbfre, 377 C.4` 7443, ifrtamrgra `feaf` 7>> Y.It 4103, 003 VY 13:, 30 L.F.`.4` 24:.
I.G.Grh. 71:1.
http://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/61.htmlhttp://www4.law.cornell.edu/uscode/26/61.htmlhttp://www4.law.cornell.edu/uscode/26/61.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/61.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www4.law.cornell.edu/uscode/26/7203.htmlhttp://www.interanalyst.us/7/25/2019 Insiders Power December 2015
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Pgx prmtfstmr's ilgaos imeifreaej tbf imestatutameglaty mc tbf Cf`frgl Tfsfrvf Yystfo, Aetfregl
Tfvfeuf Im`f ge` fstgdlasbofet mc tgx imurt wfrf sm cravmlmus gs emt tm rfquarf `asiussame ge`
`ftgal. VYIG Imest. Gofe`s. 6, 79842 VYIG 7903843 VYIG 3694,43 VYIG :044.
V.Y. v. Yiboatz, 604 C.4` :24 ifrtamrgra `feaf` 1: Y.It. 7790, 041 VY 77>6, 67 L.F`.4` 663.
I.G.Igl. 71:3.
Cf`frgl Tfsfrvf Emtfs imestatutf lfjgl tfe`fr ge` grf tgxgdlf `mllgrs. VYIG Imest. Grt. 7, 7>.
Oalgo v. V.Y., 640 C.4` 341. I.G.Igl. 71:0.
Pbf stgtutf wbaib flfjgtfs tm tbf Cf`frgl Tfsfrvf Yystfo tbf pmwfr tm assuf iariulgtaej emtfs
cmr omefy dmrrmwf` ge` tbf pmwfr tm `fcaef tbf quglaty ge` cmrif mc tbmsf emtfs gs iurrfeiy as
vgla` ... Gltbmujb jml`fe fgjlfs, `mudlf fgjlfs, ge` salvfr `mllgrs wfrf lmvfly tm lmmh gt ge`
`flajbtcul tm bml`, tbf bml`fr mc g $6> Cf`frgl Tfsfrvf Dgeh Emtf, gltbmujb fetatlf` tm rf`ffo bas
emtf, wgs emt fetatlf` tm `m sm ae prfiamus oftgl. Cf`frgl Tfsfrvf Git, 73,74 VYIG 0778
Imaegjf Git mc 7136, 7>4,97 VYIG 914.
Omrfmvfr, tbf pgpfr omefy assuf as ge arrflfvget mef. Ac wf rfplgif fgib gll pgpfr tbgt bgs "mef
`mllgr" praetf` me at watb g imae tbgt bgs "mef `mllgr" stgopf` me at, wbgt wall wf jgae= Zf walll
bgvf gibafvf` imoplageif watb tbf latfrgl wmr`s mc tbf imestatutame gt tbf fxpfesf mc g imevfeafet
ge` pmpulgr cmro mc omefy.
Jml` ge` Yalvfr Imae
At as glsm smoftaofs grjuf` tbgt tbf imestatutame pfroats tbf oaetaej mely mc jml` mr salvfr
imaes. Pbas as g oasaetfrprftgtame, gs g cf`frgl imurt oghfs ilfgr ae V.Y. v. Tacfe, 6:: C.4` 7777.
I.G.Om. 71:2;
Pbf Veatf` Ytgtfs Imestatutame prmbadats stgtfs crmo filgraej lfjgl tfe`fr geytbaej mtbfr tbge
jml` mr salvfr dut `mfs emt laoat Imejrfss' pmwfr tm `filgrf wbgt sbgll df lfjgl tfe`fr cmr gll `fdts
... Cf`frgl Tfsfrvf Emtfs grf tgxgdlf `mllgrs. Imaegjf Git mc 7136, 7>4,97 VYIG 9148VYIG
Imest. Grt. 7, 7>.
Pbas pmaet as og`f curtbfr ae Eaxme v. ^ballapmcc, 376 C.Yupp. 21>, gccarof` :2: C.4` 613. @.I.Ae`.
7126;
Pbf prmvasame mc tbf Imestatutame XVYIG Imest Grt. 7, 2, il. 6_ wbaib javfs Imejrfss tbf rajbt tm imae
omefy, ge` rfjulgtf tbf vgluf tbfrfmc, javfs Imejrfss fxilusavf gdalaty tm `ftfroaef wbgt wall df lfjgl
tfe`fr tbrmujbmut tbf imuetry ... Pbf prmvasame mc tbf Imestatutame XVYIG Imest. Grt. 7, 7>, il. 7_ wbaib
oge`gtfs tbgt em stgtf sbgll oghf geytbaej dut jml` mr salvfr imae tfe`fr ae pgyofet mc `fdts gits mely tm
rfomvf crmo stgtfs aebfrfet smvfraje pmwfr tm `filgrf iurrfeiy, tbus lfgvaej Imejrfss gs tbf
smlf `filgrget mc wbgt imestatutfs lfjgl tfe`fr8 tbf prmvasame `mfs emt rfquarf stgtfs tm giifpt mely jml`
ge` salvfr gs tfe`fr ... Cf`frgl Tfsfrvf Emtfs grf lfjgl tfe`fr cmr gey `fdt mr pudlai ibgrjf ... Vsaej mr
giifptaej Cf`frgl Tfsfrvf Emtfs gs pgyofet cmr stgtf imurt calaej cffs wgs imoplftfly prmpfr ue`fr tbf
Imestatutame. VYIG Imest. Grt. 7, 2, il. 6897 VYIG 67>9.
http://www4.law.cornell.edu/uscode/28/1346.htmlhttp://www4.law.cornell.edu/uscode/28/1346.htmlhttp://www4.law.cornell.edu/uscode/28/1346.htmlhttp://www4.law.cornell.edu/uscode/26/6532.htmlhttp://www4.law.cornell.edu/uscode/26/6532.htmlhttp://www4.law.cornell.edu/uscode/26/6532.htmlhttp://www4.law.cornell.edu/uscode/26/7422.htmlhttp://www4.law.cornell.edu/uscode/26/7422.htmlhttp://www4.law.cornell.edu/uscode/26/7422.htmlhttp://www4.law.cornell.edu/uscode/12/411.htmlhttp://www4.law.cornell.edu/uscode/12/411.htmlhttp://www4.law.cornell.edu/uscode/12/411.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/5103.htmlhttp://www4.law.cornell.edu/uscode/31/5103.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/31/392.htmlhttp://www4.law.cornell.edu/uscode/12/411.htmlhttp://www4.law.cornell.edu/uscode/26/7422.htmlhttp://www4.law.cornell.edu/uscode/26/6532.htmlhttp://www4.law.cornell.edu/uscode/28/1346.htmlhttp://www.interanalyst.us/7/25/2019 Insiders Power December 2015
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Pbf imurt og`f tbf pmaet gjgae smofwbgt buomurmusly ae Cmrft v. Zalsme, :46 C.4` 0>>. I.G.Lg.
7120;
Jml` ge` salvfr imae `m emt imestatutf tbf mely lfjgl tfe`fr dy tbf Veatf` Ytgtfs8 tbus, tbf gppfllget, wbm
da` $4.2> ae salvfr `aofs me g cmrfilmsf` prmpfrty rfquaraej g oaeaouo da` mc $2>,>>> ue`fr Lmuasageg
lgw, wgs emt fetatlf` tm tbf `ff` tm tbf prmpfrty.
Grf Jml` ge` Yalvfr ^rgitaigl Oftgls cmr Imaes=
Zf imul` rfplgif gll mur pgpfr omefy watb imaes imetgaeaej tbf gpprmpragtf gomuet mc g prfiamus
oftgl. Jmef wmul` df tbf $7 Cf`frgl Tfsfrvf Emtf, ge` ae ats plgif g imae watb $7 stgopf` me
at. Gppgrfetly, tbas wmul` oghf tbf pgpfr omefy mppmefets bgppy. Mr wmul` at= Gs at tures mut,
tbf gomuet mc jml` tbgt wmul` eff` tm df ae g $7 imae wmul` df sm taey at wmul` dgrfly df tbfrf gt
gll.
Ae tbf suoofr mc 7111, tbf praif mc jml` as gdmut $46>/mz. Pbfrfcmrf, g $7 imae wmul` eff`
7/46>tbs mueif mc jml` ae at8 tbgt as tm sgy, at wmul` imetgae >.0% jml` ge` 11.3% dgsf oftgls. Gqugrtfr-`mllgr wmul` bgvf >.7% jml` ge` 11.1% dgsf oftgls. G $4> imae wmul` bgvf 2.>% jml` ge`
14% dgsf oftgls. Ac gey omrf jml` tbge tbgt wfrf aeilu`f`, tbfe at wmul` pgy tm oflt tbf imaes ge`
sfll tbf jml`, ge` tbfe wf'` df watbmut g pbysaigl of`auo mc fxibgejf.
Yalvfr bgs tbf sgof prmdlfo. Pbf praif mc salvfr as gdmut $6/mz., sm wf imul` oaet g $6 imae
imetgaeaej 7>>% salvfr. G $7 imae wmul` bgvf 4>% salvfr. G qugrtfr wmul` bgvf gdmut 6% salvfr
ge` 16% dgsf oftgls. Imul` geymef bmefstly tfll tbf `accfrfeif dftwffe tbf qugrtfr wf bgvf
emw ge` mef watb 6% salvfr=
Pbf Cf`frgl Tfsfrvf Git ge` pgpfr omefy grf ueimestatutamegl. Jml` ge` salvfr
imaes grf tbf mely imestatutamegl cmros mc omefy.
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Pbf Cf`frgl Tfsfrvf as g pravgtfly mwef` dgeh mut tm oghf g prmcat gt tbf
tgxpgyfrs' fxpfesf.
Pbas oytb ilgaos tbgt tbf 74 Cf`frgl Tfsfrvf dgehs grf pravgtfly mwef` ge` tbfrfcmrf wget tm
fgre g prmcat kust lahf gey mtbfr imopgey. Mc imursf, tbf Cf` bml`s tbf rfajes mc omeftgry pmlaiy,
sm egturglly tbfy wall usf at cmr tbf dfefcat mc tbfar mwefrs ge` emt tbf fimemoy gt lgrjf. Ge`
caeglly, saeif tbf Cf` mwes lmts mc jmvfreofet dme`s, ouib mc tbf Cf`'s prmcats imof gt tbf
tgxpgyfrs' fxpfesf tbrmujb tbf aetfrfst pga` tm tbf Cf` me tbmsf dme`s. Lahf ogey mc tbf mtbfr
Cf`frgl Tfsfrvf oytbs, tbas mef bgs g sogll `fjrff mc trutb tm at, dut glsm bgs g cgar gomuet mc
oasaetfrprftgtame ge` at lfgvfs mut g euodfr mc iruiagl `ftgals.
Mrjgeazgtame mc tbf Cf`frgl Tfsfrvf Yystfo
Pbf Cf`frgl Tfsfrvf Yystfo as smoftaofs `fsiradf` gs g qugsa-jmvfreofet gjfeiy dfigusf at
imetgaes flfofets mc dmtb tbf pravgtf sfitmr ge` mc jmvfreofet imetrml. Pbf Yystfo bgs tbrff
mrjgeazgtame lfvfls; ofodfr dgehs, Cf`frgl Tfsfrvf Dgehs, ge` tbf Dmgr` mc Jmvfremrs. Lft's
fxgoaef fgib drafcly.
Ofodfr dgehs grf gt tbf dmttmo mc tbf mrjgeazgtame ibgrt. Pbfsf grf imoofriagl dgehs ge` Y&Ls
wbm bgvf kmaef` tbf Cf`frgl Tfsfrvf Yystfo (CTY). Dy lgw, gll egtameglly ibgrtfrf` dgehs oust
kmae, ge` gey stgtf ibgrtfrf` dgeh bgs tbf mptame tm kmae (74 VYIG 424). Dy kmaeaej tbf CTY g
ofodfr dgeh as dfimoaej g sbgrfbml`fr -- ge mwefr -- ae ats rfjamegl Cf`frgl Tfsfrvf Dgeh. Cmrfxgoplf, suppmsf ymu ge` A mpfe g efw egtameglly ibgrtfrf` dgeh ae Ibgrlmttf, Emrtb
Igrmlaeg. Giimr`aej tm tbf`astrait ogp,wf sff tbgt Ibgrlmttf as ae tbf Taibome` Cf`frgl Tfsfrvf
`astrait, sm mur efw dgeh wall bgvf tm dfimof g ofodfr mc tbf Taibome` Cf`frgl Tfsfrvf
Dgeh. Ym, tbf ilgao tbgt tbf "Cf` as pravgtfly mwef`" as imrrfit -- fgib Cf`frgl Tfsfrvf Dgeh as
mwef` dy pravgtf cmr-prmcat imoofriagl dgehs ge` Y&Ls.
Zby grf ofodfr dgehs -- tbf mwefrs -- gt tbf dmttmo mc tbf mrjgeazgtame ibgrt= Pbfy grf gt tbf
dmttmo dfigusf uelahf tbf sbgrfbml`frs mc g typaigl imrpmrgtame suib gs ADO, ofodfr dgehs bgvf
vfry lattlf pmwfr mvfr bmw tbfar rfjamegl Cf`frgl Tfsfrvf Dgeh as rue. Ge` tbfy bgvf em imetrml gt
gll mvfr omeftgry pmlaiy. Ybgrfbml`frs mc ADO flfit tbf imopgey's dmgr` mc arfitmrs wbm ae ture
ibmmsf tbf caro's IFM, sm tbfy bgvf g imllfitavf sgy me tbf imopgey's mpfrgtames. Ofodfr dgehs
glsm jft tm sflfit 3 mc tbf 1 `arfitmrs mc tbfar rfjamegl Cf`frgl Tfsfrvf Dgeh, dut tbfsf `arfitmrs
imetrml mely tbf Dgeh's `galy mpfrgtames, emt omeftgry pmlaiy wbaib as tbf omst aopmrtget cueitame
mc tbf Cf`frgl Tfsfrvf Yystfo (74 VYIG 9>7ge`74 VYIG 9>4).
Gt tbf oa``lf lfvfl ae tbf mrjgeazgtame ibgrt grf tbf 74 rfjamegl Cf`frgl Tfsfrvf Dgehs. Pbfy
bgvf g vgrafty mc pmwfrs ge` `utafs, smof mc wbaib grf;
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Duy ge` sfll jmvfreofet dme`s ae tbf sfime`gry ogrhfts (mpfe ogrhft mpfrgtames)
Lfe` rfsfrvfs tm ofodfr dgehs
Mccfr ibfih-ilfgraej sfrvaifs tm ofodfr ge` eme-ofodfr dgehs
Assuf Cf`frgl Tfsfrvf Emtfs ge` imllfit wmre-mut mefs cmr `fstruitame
Fecmrif rfsfrvf rfquarfofets ge` mtbfr rfjulgtames mc tbf ofodfr dgehs Omeatmr dgehaej ge` fimemoai gitavaty watbae tbfar rfspfitavf astrait
Ae tfros mc omeftgry pmlaiy, tbf omst aopmrtget pmwfr as tbf carst mef -- mpfe ogrhft
mpfrgtames. Duyaej jmvfreofet dme s ae tbf sfime`gry ogrhfts aeirfgsfs tbf gomuet mc rfsfrvfs
ae tbf dgehaej systfo, puts `mwewgr` prfssurf me aetfrfst rgtfs, ge` tfe`s tm fxpge` tbf omefy
supply. Yfllaej jmvfreofet dme`s `mfs tbf mppmsatf. Pbas as tbf omeftgry pmlaiy cueitame tbgt as
omst mctfe gssmiagtf` watb tbf Cf` (Zbgt as omeftgry pmlaiy=). Bmwfvfr, g Cf`frgl Tfsfrvf Dgeh
ige mely foplmy mpfe ogrhft mpfrgtames watb tbf fxplaiat gpprmvgl mc tbf Dmgr` mc Jmvfremrs (74
VYIG 966).
Caeglly, gt tbf tmp mc tbf struiturf ibgrt as tbfDmgr` mc Jmvfremrs. Pbf Dmgr` as g :-ofodfr pgeflwbm as gppmaetf` dy tbf ^rfsa`fet mc tbf Veatf` Ytgtfs ge` imecarof` dy tbf Yfegtf (74 VYIG
407). Pbf Dmgr`'s iurrfet Ibgar asGlge Jrffespge. Gomej ats rfspmesadalatafs;
@ftfroaef mpfe ogrhft pmlaiafs
Yft tbf rfquarf` rfsfrvf rgtam cmr ofodfr dgehs
Yft tbf @asimuet Tgtf
@fia`aej bmw ouib efw iurrfeiy tm praet
Omeatmr tbf bfgltb mc tbf V.Y. fimemoy
Tfpmrt tm Imejrfss pfram`aiglly me tbf stgtf mc tbf V.Y. fimemoy
At's saejlf omst aopmrtget `uty as `fia`aej ats mpfe ogrhft pmlaiy, tbgt as, wbftbfr at sbmul` mr`fr
tbf Cf`frgl Tfsfrvf Dgehs tm duy mr sfll jmvfreofet dme`s, ge` ac sm, bmw ouib. Pbas `fiasame as
og`f ae imekueitame watb tbfCf`frgl Mpfe Ogrhft Imooattff. Pbf CMOI as g 74-ofodfr pgefl
ige imesasts mc gll tbf Dmgr` ofodfrs, tbf prfsa`fet mc tbf Efw Qmrh Cf`frgl Tfsfrvf Dgeh, ge` 0
prfsa`fets crmo tbf mtbfr Cf`frgl Tfsfrvf Dgehs me g rmtgtaej dgsas. Pbf prfsa`fets grf
gppmaetf` dy fgib Dgeh's dmgr` mc `arfitmrs, pfe`aej gpprmvgl crmo tbf Dmgr` mc Jmvfremrs (74
VYIG 907).
Pbus, gll tbf hfy omeftgry pmlaiy `fiasames -- tbf mefs tbgt gccfit aetfrfst rgtfs -- grf og`f dy g
jmvfreofet gjfeiy wbmsf ofodfrs grf sflfitf` dy tbf ^rfsa`fet mc tbf Veatf` Ytgtfs. Pbf Cf`
ogy df pravgtfly mwef`, dut at as imetrmllf` dy tbf jmvfreofet.
Pbf Cf` ge` Pgxpgyfrs
Pbf sfime` pgrt mc tbas oytb as tbgt tbf Cf` as g `rgae me tbf Prfgsury, ge` tbfrfcmrf g `rgae me
tgxpgyfrs. Pbas as uetruf. Pbf Cf`frgl Tfsfrvf Dgehs grf fetarfly sflc-caegeiaej aestatutames8 tbfy
`m emt rfifavf gey tgx `mllgrs gllmigtf` tm tbfo crmo tbf cf`frgl du`jft. Lft's tghf g lmmh gt tbf
tgdlf dflmw tm sff fxgitly wbfrf tbfy jft tbfar omefy ge` bmw tbfy spfe` at;
http://woodrow.mpls.frb.fed.us/info/policy/index.htmlhttp://woodrow.mpls.frb.fed.us/info/policy/index.htmlhttp://woodrow.mpls.frb.fed.us/info/policy/index.htmlhttp://www4.law.cornell.edu/uscode/12/355.htmlhttp://www4.law.cornell.edu/uscode/12/355.htmlhttp://www4.law.cornell.edu/uscode/12/355.htmlhttp://www4.law.cornell.edu/uscode/12/355.htmlhttp://www.bog.frb.fed.us/http://www.bog.frb.fed.us/http://www.bog.frb.fed.us/http://www4.law.cornell.edu/uscode/12/241.htmlhttp://www4.law.cornell.edu/uscode/12/241.htmlhttp://www4.law.cornell.edu/uscode/12/241.htmlhttp://www4.law.cornell.edu/uscode/12/241.htmlhttp://www.bog.frb.fed.us/bios/Greenspan.htmhttp://www.bog.frb.fed.us/bios/Greenspan.htmhttp://www.bog.frb.fed.us/bios/Greenspan.htmhttp://woodrow.mpls.frb.fed.us/info/policy/whatfomc.htmlhttp://woodrow.mpls.frb.fed.us/info/policy/whatfomc.htmlhttp://woodrow.mpls.frb.fed.us/info/policy/whatfomc.htmlhttp://www4.law.cornell.edu/uscode/12/341.htmlhttp://www4.law.cornell.edu/uscode/12/341.htmlhttp://www4.law.cornell.edu/uscode/12/341.htmlhttp://www4.law.cornell.edu/uscode/12/341.htmlhttp://www4.law.cornell.edu/uscode/12/341.htmlhttp://www4.law.cornell.edu/uscode/12/341.htmlhttp://woodrow.mpls.frb.fed.us/info/policy/whatfomc.htmlhttp://www.bog.frb.fed.us/bios/Greenspan.htmhttp://www4.law.cornell.edu/uscode/12/241.htmlhttp://www4.law.cornell.edu/uscode/12/241.htmlhttp://www.bog.frb.fed.us/http://www4.law.cornell.edu/uscode/12/355.htmlhttp://www4.law.cornell.edu/uscode/12/355.htmlhttp://woodrow.mpls.frb.fed.us/info/policy/index.htmlhttp://www.interanalyst.us/7/25/2019 Insiders Power December 2015
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7111 Imodaef` Ytgtfofets mc Aeimof mc tbf Cf`frgl Tfsfrvf Dgehs (ae oallames)
Aetfrfst aeimofAetfrfst me V.Y. jmvfreofet sfiuratafs $42,473
Aetfrfst me cmrfaje sfiuratafs 446Aetfrfst me lmges tm `fpmsatmry aestatutames 77Mtbfr aeimof 322
Pmtgl mpfrgtaej aeimof $41,70>
Mpfrgtaej fxpfesfsYglgrafs ge` dfefcats 7,003Miiupgeiy fxpfesf 721Gssfssofets dy Dmgr` mc Jmvfremrs 311Fquapofet fxpfesf 404Mtbfr 9>4
Pmtgl mpfrgtaej fxpfesfs $4,2:2
Eft Aeimof ^ramr tm @astradutame $43,434@astradutame mc Eft Aeimof @ava`fe`s pga` tm ofodfr dgehs 9:0Prgescfrrf` tm surplus 0:1^gyofets tm V.Y. Prfgsury 46,0>1
Pmtgl `astradutame $43,434
Zf ige sff crmo tbf tmp mc tbf tgdlf tbgt tbf Cf`'s praogry smurif mc aeimof as aetfrfst crmo
jmvfreofet dme`s. Pbas omefy as pga` tm tbf Cf` dy tbf V.Y. Prfgsury. As tbas emt `f cgitm
fva`feif tbf Cf` as lfgibaej mcc tbf tgxpgyfrs= Em, at as emt. Pbf Prfgsury as mdlajgtf` tm pgy
aetfrfst tm wbmofvfr mwes tbmsf dme`s. Ac tbf Cf` `a` emt mwe tbfo, tbfe tbf aetfrfst wmul`
bgvf dffe pga` tm smofmef flsf. Ae cgit, crmo tbf Prfgsury's pfrspfitavf, at as g jmm` tbaej tbf Cf`
bml`s tbmsf dme`s. Gt tbf dmttmo mc tbf tgdlf, wf sff tbf Cf` oghfs g sudstgetagl geeugl pgyofet
tm tbf Prfgsury. Pbf bajbfr tbf Cf`'s eft aeimof as, tbf lgrjfr tbf pgyofet tm tbf Prfgsury. Ae
mtbfr wmr`s, tbf Prfgsury jfts dgih g sajeacaiget gomuet mc tbf aetfrfst pga` tm tbf Cf . Pbus,
jmvfreofet dme`s bfl` dy tbf Cf` grf fssfetaglly aetfrfst-crff lmges tm tbf jmvfreofet.
Imeilusame
Pbf rfjamegl Cf`frgl Tfsfrvf Dgehs grf pravgtf mwef`, dut tbfy grf imetrmllf` dy tbf Dmgr` mc
Jmvfremrs -- g cf`frgl gjfeiy wbmsf ofodfrs grf gppmaetf` dy tbf ^rfsa`fet ge` imecarof` dy
tbf Yfegtf. Pbf Dmgr` sfts omeftgry pmlaiy ge` tbf Cf`frgl Tfsfrvf Dgehs fxfiutf at. Ae
g``atame, tbf Cf` `mfs emt usf gey tgxpgyfr omefy tm cue` ats mpfrgtames. Zbalf tbf Cf` `mfs
imllfit aetfrfst me jmvfreofet dme`s, tbf Prfgsury wmul` bgvf bg` tm oghf suib pgyofet fvfe ac
tbfy Cf` `a` emt bml` gey dme`s. Omrfmvfr, tbf Cf` rfdgtfs g sajeacaiget sbgrf mc ats eft aeimof tmtbf Prfgsury fgib yfgr, rfvfeufs tbf jmvfreofet wmul` emt bgvf gt gll ac tbf Cf` mwef` em
jmvfreofet dme`s.
Pbf Cf`frgl Tfsfrvf as g pravgtfly mwef` dgeh mut tm oghf g prmcat gt tbf
tgxpgyfrs' fxpfesf.
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Pbf Cf`frgl Tfsfrvf as mwef` ge` imetrmllf` dy cmrfajefrs.
Pbf Cf`frgl Tfsfrvf Yystfo as tbf praogry rfjulgtmry gjfeiy jmvfreaej tbf V.Y. dgehaej
ae`ustry. At bgs saejulgr aopmrtgeif ae sfttaej omeftgry pmlaiy ge` ogey fimemoasts dflafvf at bgs
sudstgetagl aeclufeif me tbf imursf mc tbf dusaefss iyilf. Qft, imul` at df tbgt tbf omst aopmrtget
fimemoai aestatutame ae tbf Veatf` Ytgtfs as gituglly mwef` dy cmrfajefrs= Jgry Hgb (7117) ge`
Fustgif Oullaes (7129) gutbmrf` sfpgrgtf dmmhs gllfjaej tbgt g sfirftavf aetfregtamegl dgehaej
flatf mwes ge` imetrmls tbf Cf`. Curtbfromrf, bas sbg`mwy jrmup usfs ats pmwfr tm ogeapulgtf
caegeiagl ogrhfts ge` tm imetrml tbf V.Y. fimemoy.
Pbf cmius mc dmtb dmmhs as tbfCf`frgl Tfsfrvf Dgeh mc Efw Qmrh. Zbgt wf typaiglly igll tbf Cf`as gituglly g twm lfvfl systfo; 74 rfjamegl Cf`frgl Tfsfrvf Dgehs (tbf Efw Qmrh Cf` as mef mc
tbfo) ge` tbfDmgr` mc Jmvfremrstbgt rues tbfo (Glge Jrffespge as tbf Dmgr`s ibgar).Jgry Hgb
ilgaof` cmrfajefrs `arfitly mwe tbf Efw Qmrh Cf`, tbf lgrjfst ge` omst aopmrtget mc tbf `mzfe
rfjamegl aestatutames. Pbrmujb at tbf aetfregtamegl imllgdmrgtmrs imetrml tbf fetarf Cf`frgl
Tfsfrvf Yystfo ge` rfgp ats jajgetai prmcats. Fustgif Oullaes gjrff` me tbf aopmrtgeif mc tbf
Efw Qmrh Cf`, dut aestfg` ilgaof` at as mwef` ae`arfitly dy cmrfajefrs tbrmujb g Furmpfge
dgehaej ilud bf tfrof` tbf Lme`me Imeefitame wbaib imetrmls tbf Cf`s pmlaiafs crmo gdrmg`.
Grf gey mc gllfjgtames truf= Ae tbas grtailf A cmius me wbftbfr cmrfajefrs mwe tbf Cf`frgl Tfsfrvf
Dgeh mc Efw Qmrh fatbfr arfitly mr ae`arfitly, wbftbfr at imetrmls tbf fetarf mc tbf Cf`frgl
Tfsfrvf Yystfo, ge` wbftbfr cmrfajefrs rfifavf tbf Cf`s lgrjf geeugl prmcats.
Zbm Mwes tbf Efw Qmrh Cf`frgl Tfsfrvf=
Fgib mc tbf twflvf Cf`frgl Tfsfrvf Dgehs as mrjgeazf` gs g imrpmrgtame ae ouib tbf sgof wgy gs
ogey mtbfr caros. Giimr`aej tm Hgb, cmrfajefrs mwe g imetrmllaej aetfrfst ae tbf sbgrfs mc tbf Efw
Qmrh Cf`. Bf ilgaof` tbgt Ywass ge` Ygu`a Grgdage imetgits a`fetacaf` tbf tmp fajbt
sbgrfbml`frs gs
Tmtbsibal` Dgehs mc Lme`me ge` Dfrlae
Lgzgr` Drmtbfrs Dgehs mc ^gras
Asrgfl Omsfs Yfac Dgehs mc Atgly Zgrdurj Dgeh mc Bgodurj ge` Gostfr`go
Lfboge Drmtbfrs mc Efw Qmrh
Hube, Lmfd Dgeh mc Efw Qmrh
Ibgsf Ogebgttfe Dgeh, ge`
Jml`oge, Ygibs mc Efw Qmrh (Hgb, p. 79).
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Bf glsm `fsiradf` tbfsf jrmups gs tbf dgehs Ilgss G sbgrfbml`frs (p. 70).Pbas as iuramus
dfigusf Cf`frgl Tfsfrvf stmih as emt ilgssacaf` ae tbas ogeefr. At ige df fatbfr ofodfr stmih mr
pudlai stmih, dut tbfrf grf em suib tbaejs gs Ilgss G sbgrfs. Bmwfvfr, tbf `arfitmrs mc g Cf`frgl
Tfsfrvf Dgeh grf sfpgrgtf` aetm ilgssfs G, D, ge` I `fpfe`aej me bmw tbfy grf gppmaetf` (74
VYIG 9>4). Pbas ogy bgvf dffe tbf smurif mc Hgbs imecusame.
Fustgif Oullaes imopalf` g vfry `accfrfet last. Bf rfpmrtf` tbgt tbf tmp 2 stmihbml`frs mc tbf Efw
Qmrh Cf` wfrf
Iatadgeh
Ibgsf Ogebgttfe Dgeh
Omrjge Jugrgety Prust
Ibfoaigl Dgeh
Ogeucgiturfrs Bgemvfr Prust
Dgehfrs Prust Imopgey
Egtamegl Dgeh mc Emrtb Gofraig, ge` Dgeh mc Efw Qmrh.
Giimr`aej tm Oullaes tbfsf aestatutames ae 7129 mwef` g imodaef` 39% mc tbf Efw Qmrh Cf`s
stmih. Pbfsf Gofraige dgehs, ae ture, wfrf mwef` dy Furmpfge caegeiagl aestatutames. Yaeif tbf
imoofriagl dgehs ae tbf Efw Qmrh Cf`'s `astrait flfit ats dmgr` mc `arfitmrs, tbf Lme`me
Imeefitame as gdlf tm usf tbfar Gofraige gjfets tm paih tbf Dgeh's `arfitmrs ge` ultaogtfly imetrml
tbf wbmlf Cf`frgl Tfsfrvf Yystfo. Bf fxplgaef`,
Pbf omst pmwfrcul ofe ae tbf Veatf` Ytgtfs wfrf tbfosflvfs geswfrgdlf tm gemtbfr pmwfr, g
cmrfaje pmwfr, ge` g pmwfr wbaib bg` dffe stfg`cgstly sffhaej tm fxtfe` ats imetrml mvfr tbf
ymuej rfpudlai saeif ats vfry aeifptame. Pbf pmwfr wgs tbf caegeiagl pmwfr mc Fejlge`,
ifetfrf` ae tbf Lme`me Drgeib mc tbf Bmusf mc Tmtbsibal`. Pbf cgit wgs tbgt ae 717>, tbf
Veatf` Ytgtfs wgs cmr gll prgitaigl purpmsfs dfaej rulf` crmo Fejlge`, ge` sm at as tm`gy
(Oullaes, p. 0:-02).
Bf rfogrhf` curtbfr tbgt tbf `gy tbf Cf`frgl Tfsfrvf Git wgs pgssf` ae 7179, tbf Imestatutame
ifgsf` tm df tbf jmvfreaej imvfeget mc tbf Gofraige pfmplf, ge` mur ladfrtafs wfrf bge`f` mvfr
tm g sogll jrmup mc aetfregtamegl dgehfrs (p. 41).
Ilfgrly, tbfrf as g `asirfpgeiy dftwffe tbf twm lasts. Giimr`aej tm Hgb, cmrfajefrs mwe sbgrfs mc
tbf Efw Qmrh Cf` `arfitly, dut Oullaes stgtf` tbfy mwef` ge` imetrmllf` tbf Cf` ae`arfitly
tbrmujb mwefrsbap mc Gofraige dgehs. Ym wbm as rajbt= Oullaes iatf` tbf Cf`frgl Tfsfrvf Dullftae
cmr bas aecmrogtame me sbgrf mwefrsbap, dut tbgt pudlaigtame bgs efvfr rfpmrtf` tbf sbgrfbml`frlast mc gey Cf`frgl Tfsfrvf Dgeh. Hgbs smurif as fquglly flusavf ueegof` Ywass ge` Ygu`a
Grgdage imetgits. @fspatf tbf `accaiulty ae vfracyaej tbfar smurifs, at ogy df pmssadlf tbgt dmtb ofe
grf imrrfit. Pbf twm gutbmrs pudlasbf` tbfar lasts fajbt yfgrs gpgrt. Yaeif Oullaes wgs tbf fgrlafr
mc tbf twm, at ogy df pmssadlf tbgt smoftaof dftwffe 7129 ge` 7117 cmrfajefrs giquarf` g
sudstgetagl gomuet mc stmih ae tbf Efw Qmrh Cf`. Mc imursf, at as glsm pmssadlf tbgt tbfy'rf dmtb
wrmej.
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Pm ilgracy tbas oystfry, lfts carst lmmh gt tbf Cf`frgl Tfsfrvf Git mc 7179. Pbf lgw rfquarfs tbgt gll
egtameglly ibgrtfrf` imoofriagl dgehs ge` Y&Ls duy stmih ae tbfar rfjamegl Cf`frgl Tfsfrvf Dgeh,
tbfrfdy dfimoaej ofodfr dgehs (74 VYIG 424). Ytgtf ibgrtfrf` dgehs ogy glsm kmae
vmluetgraly. Pbf gomuet mc stmih g javfe dgeh oust puribgsf as prmpmrtamegl tm tbf dgehs sazf, sm
wf wmul` fxpfit tbgt tbf lgrjfst sbgrfbml`frs tm df tbf dajjfst imoofriagl dgehs mpfrgtaej aetbf `astrait. Pbas gjrffs watb Oullaes saeif gll mc tbf dgehs me bas last wfrf tbf lgrjfst dgehs ae tbf
Efw Qmrh rfjame ae 7129.
Jgry Hgbs last mc gllfjf` sbgrfbml`frs as omrf suspfit. Pbf lgw `mfs emt pfroat tbf stmih mc g
Cf`frgl Tfsfrvf Dgeh tm df trg`f` pudlaily lahf tbf stmih mc g typaigl imrpmrgtame (74 VYIG
423). Pbf mrajaegl Cf`frgl Tfsfrvf Git igllf` cmr fgib rfjamegl Dgeh tm sfll stmih tm rgasf gt lfgst
$0 oallame tm dfjae mpfrgtames (74 VYIG 427). Pbf stmih wgs tm df sml` mely tm dgehs, emt tm tbf
pudlai. Mely ae tbf fvfet tbgt sglfs tm ofodfr dgehs `a` emt rgasf tbf efifssgry $0 oallame wmul`
tbf rfjamegl Cf` Dgehs df pfroattf` tm sfll sbgrfs tm tbf pudlai. Bmwfvfr, gll Dgehs rgasf` tbf
rfquasatf gomuet mc igpatgl. Em stmih ae gey Cf`frgl Tfsfrvf Dgeh bgs fvfr dffe sml` tm tbf
pudlai, tm cmrfajefrs, mr tm gey eme-dgeh V.Y. caro (Zmm`wgr , 7113). Cmrfaje aetfrfsts imoprasf
bglc mc tbf gllfjf` mwefrs me Hgbs last. Omrfmvfr, tbrff mc tbf bypmtbfsazf` Gofraige mwefrs
grf emt fvfe dgehs; Jml`oge-Ygibs, Lfboge Drmtbfrs, ge` Hube-Lmfd grf gll aevfstofet dgehs,
emt imoofriagl dgehs, ge` sm grf aeflajadlf tm mwe gey sbgrfs mc g Cf`frgl Tfsfrvf Dgeh. Pbf lgw
prmbadats tbf jfefrgl pudlai, eme-dgeh caros, ge` cmrfajefrs crmo mweaej geytbaej omrf tbge g
travagl gomuet mc stmih ae gey Cf`frgl Tfsfrvf Dgeh (74 VYIG 429). Pbf mely aestatutame me Hgb's
last tbgt imul` pmssadly mwe sbgrfs mc tbf Efw Qmrh Cf` as Ibgsf Ogebgttfe. Gll tbf mtbfrs egof`
me tbf last grf aeimrrfit. Hgb's last as omstly dueh.
Cmrtuegtfly, wf ige tghf g omrf `arfit gpprmgib tm tbf qufstame mc mwefrsbap mc tbf Efw Qmrh
Cf` ge` tbf mtbfr Cf`frgl Tfsfrvf Dgehs. Pbf Efw Qmrh Cf` rfpmrts tbgt ats fajbt lgrjfstofodfr dgehs me Kuef 9>, 711: wfrf;
Ibgsf Ogebgttfe Dgeh
Iatadgeh
Omrjge Jugrgety Prust Imopgey
Clfft Dgeh
Dgehfrs Prust
Dgeh mc Efw Qmrh
Ograef Oa`lge` Dgeh, ge`
Yuooat Dgeh.9
Gll mc tbf ogkmr sbgrfbml`frs sffe bfrf ge` gll mc tbf dgehs me tbf imoplftf last grf fatbfr
egtameglly- mr stgtf-ibgrtf` dgehs. Gll mc tbfo grf Gofraige-mwef`. Hgbs ilgao tbgt cmrfajefrs
`arfitly mwe tbf E.Q. Cf` as imoplftfly wrmej. Pbas last as imesastfet, bmwfvfr, watb Oullaes ae tbgt
gll tbf mwefrs grf `mofstai dgehs cueitameaej watbae tbf E.Q. Cf`frgl Tfsfrvf `astrait. Pbf
`asirfpgeiafs grf lahfly `uf tm ofrjfrs mr mtbfr sajeacaiget ibgejfs ae tbf sazf mc `astrait dgehs
http://www4.law.cornell.edu/uscode/12/282.htmlhttp://www4.law.cornell.edu/uscode/12/282.htmlhttp://www4.law.cornell.edu/uscode/12/282.htmlhttp://www4.law.cornell.edu/uscode/12/286.htmlhttp://www4.law.cornell.edu/uscode/12/286.htmlhttp://www4.law.cornell.edu/uscode/12/286.htmlhttp://www4.law.cornell.edu/uscode/12/286.htmlhttp://www4.law.cornell.edu/uscode/12/281.htmlhttp://www4.law.cornell.edu/uscode/12/281.htmlhttp://www4.law.cornell.edu/uscode/12/281.htmlhttp://www4.law.cornell.edu/uscode/12/283.htmlhttp://www4.law.cornell.edu/uscode/12/283.htmlhttp://www4.law.cornell.edu/uscode/12/283.htmlhttp://www.ny.frb.org./bankinfo/regrept/members.htmlhttp://www.ny.frb.org./bankinfo/regrept/members.htmlhttp://www.ny.frb.org./bankinfo/regrept/members.htmlhttp://www.ny.frb.org./bankinfo/regrept/members.htmlhttp://www4.law.cornell.edu/uscode/12/283.htmlhttp://www4.law.cornell.edu/uscode/12/281.htmlhttp://www4.law.cornell.edu/uscode/12/286.htmlhttp://www4.law.cornell.edu/uscode/12/286.htmlhttp://www4.law.cornell.edu/uscode/12/282.htmlhttp://www.interanalyst.us/7/25/2019 Insiders Power December 2015
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saeif tbf pudlaigtame mc Oullaes last. Pm mdtgae g last mc ofodfr dgehs mc mtbfr Cf`frgl Tfsfrvf
dgehs,ilaih bfrf.
Jlmdgl @moaegtame Pbrmujb tbf Dgih @mmr=
Gltbmujb cmrfajefrs m emt mwe tbf Efw Qmrh Cf`frgl Tfsfrvf Dgeh `arfitly, pfrbgps, Oullaes
grjuf`, tbfy mwe ge` imetrml at ae`arfitly vag mwefrsbap mc `mofstai dgehs. Yaeif tbf omefy-
ifetfr dgehs mc Efw Qmrh mwe tbf lgrjfst pmrtame mc stmih ae tbf Efw Qmrh Cf`, tbfy bge`-paih ats
dmgr` mc `arfitmrs ge` prfsa`fet. Pbas wmul` javf tbfo, ge` bfeif tbf Lme`me Imeefitame,
imetrml mvfr Cf` mpfrgtames ge` V.Y. omeftgry pmlaiy.
Pbf Yfiuratafs ge` Fxibgejf Imooassame rfquarfs tbgt caros wbmsf stmih as trg`f` pudlaily rfpmrt
tbfar ogkmr stmihbml`frs fgib yfgr. Pbf rfpmrts a`fetacy gll aestatutamegl sbgrfbml`frs (praograly,
caros mweaej stmih ae mtbfr imopgeafs), gll imopgey mccaiagls wbm mwe sbgrfs ae tbfar caro, ge` gey
ae`ava`ugl mr aestatutame mweaej omrf tbge 6% mc tbf caros stmih. Pbfsf rfpmrts sbmw tbgt mely
mef mc tbf E.Q. Cf`s iurrfet lgrjfst sbgrfbml`frs, Iataimrp, bgs gey ogkmr cmrfajestmihbml`frs. Gs mc Kgeugry 7113, ^raif Glwglff` Dae Pglg` mc Ygu`a Grgdag mwef` 2.1% mc
Iataimrp stmih.4 Emef mc tbf ofodfr dgehs me tbf gdmvf last bgvf gey sajeacaiget pmrtame mc
sbgrfs bfl` dy gey cmrfaje ae`ava`ugl mr aestatutame. Oullaes' ilgao tbgt cmrfajefrs mwe tbf E.Q.
Cf`frgl Tfsfrvf ae`arfitly as glsm wrmej.
Omrfmvfr, tbf mwefrsbap rajbts mc Cf`frgl Tfsfrvf Dgeh stmih grf accfrfet tbge tbf imoome
stmih mc typaigl imrpmrgtames. Vsuglly, tbf euodfr mc vmtfs g sbgrfbml`fr bgs as prmpmrtamegl tm
tbf euodfr mc sbgrfs bf mwes. Bmwfvfr, mwefrsbap mc Cf`frgl Tfsfrvf Dgeh stmih fetatlfs tbf
sbgrfbml`fr tm mef vmtf wbfe vmtaej cmr ats rfjamegl Cf`frgl Tfsfrvf Dgeh mccaiagls rfjgr`lfss mc
bmw ogey tmtgl sbgrfs tbf ofodfr dgeh ogy mwe. G jrmup mc aetfregtamegl imespargtmrs wmul`
eff` tm puribgsf g imetrmllaej aetfrfst ae g ogkmraty mc tbf dgehs mpfrgtaej ae tbf E.Q. `astrait tmjugrgetff tbf flfitame mc tbfar `fsarf` oaeames tm tbf E.Q. Cf`s dmgr` mc `arfitmrs. Duyaej tbgt
ouib stmih ae sm ogey V.Y. dgehs wmul` rfquarf ge mutlgy mc bue`rf`s mc dallames mc `mllgrs. Yurfly
tbfrf oust df g ibfgpfr pgtb tm jlmdgl `moaegtame.
Oullaes prfoasf bfrf as tbgt tbf ofodfr dgehs imetrml tbf pmlaiafs mc tbf E.Q. Cf`. Ae tbf efxt
sfitame A `ftgal wby tbas as wrmej, dut ge bastmraigl fxgoplf glsm allustrgtfs tbf cgult mc tbas
gssuoptame. Jgldrgatb (711>) rfimuets tbgt ae tbf spraej mc 7141 tbf Efw Qmrh Ytmih Fxibgejf
wgs dmmoaej. ^raifs tbfrf bg` dffe rasaej imesa`frgdly, fxtfe`aej tbf dull ogrhft tbgt dfjge ae
7140. Pbf Cf`frgl Tfsfrvf Dmgr` `fia`f` tm tghf stfps tm grrfst tbf spfiulgtavf duddlf tbgt
gppfgrf` tm df cmroaej; At rgasf` tbf imst dgehs bg` tm pgy tm dmrrmw crmo tbf Cf`frgl Tfsfrvf
ge` at aeirfgsf` spfiulgtmrs ogrjae rfquarfofets. Ibgrlfs Oatibfll, tbfe tbf bfg` mc Egtamegl
Iaty Dgeh (emw Iataimrp, mef mc tbf lgrjfst sbgrfbml`frs mc tbf E.Q. Cf` gt tbf taof), wgs sm
arratgtf` dy tbas `fiasame tbgt ae g dgeh stgtfofet bf wrmtf, Zf cffl tbgt wf bgvf ge mdlajgtame
wbaib as pgrgomuet tm gey Cf`frgl Tfsfrvf wgreaej, mr geytbaej flsf, tm gvfrt gey `gejfrmus
irasas ae tbf omefy ogrhft (Jgldrgatb, p. 6:). Egtamegl Iaty Dgeh prmoasf` tm aeirfgsf lfe aej tm
mccsft gey rfstraitavf pmlaiafs mc tbf Cf`frgl Tfsfrvf. Zrmtf Jgldrgatb, Pbf fccfit wgs omrf tbge
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sgtascgitmry; tbf ogrhft tmmh mcc gjgae. Ae tbf tbrff suoofr ometbs, tbf aeirfgsf ae praifs mutrge
gll mc tbf quatf aoprfssavf aeirfgsf tbgt bg` miiurrf` `uraej tbf fetarf prfvamus yfgr (Ada`). Ac tbf
Cf` ge` ats pmlaiafs wfrf rfglly ue`fr tbf imetrml mc ats ogkmr stmihbml`frs, tbfe wby `a` tbf
Cf`frgl Tfsfrvf Dmgr` ilfgrly fcy tbf aetfet mc ats saejlf lgrjfst sbgrfbml`fr=
@mfs tbf Efw Qmrh Cf` Igll tbf Ybmts=
Oullaes ge` Hgb dmtb grjuf tbgt dy imetrmllaej tbf Efw Qmrh Cf`frgl Tfsfrvf Dgeh, tbf
aetfregtamegl dgehaej flatf imooge` tbf fetarf Cf`frgl Tfsfrvf Yystfo ge` tbus arfit V.Y.
omeftgry pmlaiy cmr tbfar mwe prmcat. Cmr gll prgitaigl purpmsfs, Hgb wratfs, tbf Cf`frgl Tfsfrvf
Dgeh mc Efw Qmrh as tbf Cf`frgl Tfsfrvf (Hgb, p.798 fopbgsas bas). Pbas as tbf laeibpae mc tbfar
imespargiy tbfmry dfigusf at prmva`fs tbf ofibgeaso dy wbaib tbf aetfregtamegl dgehfrs ige
fxfiutf tbfar plges. G drafc lmmh gt bmw tbf Cf`s pmwfrs grf gituglly `astradutf` sbmws tbgt tbas
hfy gssuoptame ae tbf imespargiy tbfmry as wrmej.
Pbf Cf`frgl Tfsfrvf Yystfo as imetrmllf` emt dy tbf Efw Qmrh Cf`frgl Tfsfrvf Dgeh, dut dy tbfDmgr` mc Jmvfremrs (tbf Dmgr`) ge` tbf Cf`frgl Mpfe Ogrhft Imooattff (CMOI). Pbf Dmgr` as g
sfvfe-ofodfr pgefl gppmaetf` dy tbf ^rfsa`fet ge` gpprmvf` dy tbf Yfegtf. At `ftfroaefs tbf
aetfrfst rgtf cmr lmges tm imoofriagl dgehs ge` tbracts, sflfits tbf rfquarf` rfsfrvf rgtam wbaib
`ftfroaefs bmw ouib mc iustmofr `fpmsats g dgeh oust hffp me bge` (g cgitmr tbgt sajeacaigetly
gccfits g dgehs gdalaty irfgtf efw irf`at), ge` glsm `fia`fs bmw ouib efw iurrfeiy Cf`frgl
Tfsfrvf Dgehs ogy assuf fgib yfgr (74 VYIG 402). Pbf CMOI imesasts mc tbf ofodfrs mc tbf
Dmgr`, tbf prfsa`fet mc tbf Efw Qmrh Cf`, ge` cmur prfsa`fets crmo mtbfr rfjamegl Cf`frgl
Tfsfrvf Dgehs. At cmroulgtfs mpfe ogrhft pmlaiy wbaib `ftfroaefs bmw ouib ae jmvfreofet
dme`s tbf Cf` Dgehs ogy duy mr sfll tbf ogkmr tmml mc omeftgry pmlaiy (74 VYIG 439).
Pbf hfy pmaet as tbgt g Cf`frgl Tfsfrvf Dgeh igeemt ibgejf ats `asimuet rgtf mr rfquarf` rfsfrvfrgtam, assuf g``atamegl iurrfeiy, mr puribgsf jmvfreofet dme`s watbmut tbf fxplaiat gpprmvgl mc
fatbfr tbf Dmgr` mr tbf CMOI. Pbf Efw Qmrh Cf`frgl Tfsfrvf Dgeh, tbrmujb ats `arfit ge`
pfrogefet rfprfsfetgtame me tbf CMOI, bgs omrf sgy me omeftgry pmlaiy tbge gey mtbfr Cf`frgl
Tfsfrvf Dgeh, dut at stall mely bgs mef vmtf mc twflvf me tbf CMOI ge` em sgy gt gll ae sfttaej tbf
`asimuet rgtf mr tbf rfquarf` rfsfrvf rgtam. Ac at wgetf` omeftgry pmlaiy tm jm ae mef `arfitame,
wbalf tbf Dmgr` ge` tbf rfst mc tbf CMOI wgetf` pmlaiy tm jm gemtbfr, tbfe tbf Efw Qmrh Cf`
wmul` df mut-vmtf`. Pbf pmwfrs mvfr V.Y. omeftgry pmlaiy rfst caroly watb tbf pudlaily-gppmaetf`
Dmgr` mc Jmvfremrs ge` tbf Cf`frgl Mpfe Ogrhft Imooattff, emt watb tbf Efw Qmrh Cf`frgl
Tfsfrvf Dgeh mr g jrmup mc aetfregtamegl imespargtmrs.
Oullaes glsm og`f g jrfgt tm-`m gdmut tbf Cf`frgl G`vasmry Imueial. Pbas as g pgefl mc twflvf
rfprfsfetgtavfs gppmaetf` dy tbf dmgr` mc `arfitmrs mc fgib Cf` Dgeh. Pbf Imueial offts gt lfgst
cmur taofs fgib yfgr watb tbf ofodfrs mc tbf Dmgr` tm javf tbfo tbfar g`vaif ge` tm `asiuss
jfefrgl fimemoai ime`atames (74 VYIG 437). Ogey mc tbf ofodfrs bgvf dffe dgehfrs, g pmaet
emt gt gll oassf` dy Oullaes.
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G pmaet Oullaes efjlfits fetarfly as tbgt tbf Imueial bgs em vmtaej pmwfr ae Dmgr` offtaejs, ge`
tbus bgs em `arfit aeput aetm omeftgry pmlaiy. Ae suppmrt mc bas bypmtbfsas Oullaes mccfrs em
fva`feif, emt fvfe ge gefi`mtf. Omrfmvfr, bas Imueial tbfmry as aeimesastfet watb bas jfefrgl
tbfsas tbgt tbf Lme`me Imeefitame rues tbf Cf`frgl Tfsfrvf Yystfo vag tbfar aogjaef` imetrml mc
tbf E.Q. Cf`. Ac tbas wfrf truf, tbfe wby wmul` tbfy glsm eff` tbf Imueial=
Zbm Jfts tbf Cf`s rmcats=
Jgry Hgb ge` Pbmogs Yibguc (7114) glsm ogaetgae tbgt tbf bujf prmcats mc tbf Cf`frgl Tfsfrvf
Yystfo grf `avfrtf` tm ats cmrfaje mwefrs tbrmujb tbf `ava`fe`s pga` tm ats stmihbml`frs. Hgb
rfpmrts Fgib yfgr dallames mc `mllgrs grf fgref` dy Ilgss G stmihbml`frsmc tbf Cf`frgl Tfsfrvf
(Hgb, p. 4>). Yibguc curtbfr lgofets dy gshaej, Zbfe grf tbf prmcats mc tbf Cf` jmaej tm stgrt
clmwaej aetm tbf Prfgsury sm tbgt gvfrgjf Gofraiges grf em lmejfr dur`fef` watb fxifssavf,
ueefifssgry tgxfs=
Pbf Cf`frgl Tfsfrvf Yystfo ifrtgaely oghfs lgrjf prmcats. Giimr`aej tm tbf Dmgr`s7111 GeeuglTfpmrt,tbf Yystfo bg` eft aeimof tmtglaej $43.4 dallame, wbaib wmul` quglacy at gs mef mc tbf omst
prmcatgdlf imopgeafs ae tbf wmrl` ac tbf Yystfo wfrf g typaigl imrpmrgtame. Bmw wfrf tbfsf
prmcats `astradutf`= $904 oallame, mr 7.0% mc tbf prmcats, wfrf pga` tm ofodfr dgehs gs
`ava`fe`s. Gemtbfr $0:1 oallame, mr 7.2%, wgs rftgaef` dy tbf 74 Tfsfrvf Dgehs. Pbf dglgeif mc
$46.0 dallame -- mr 13.1% mc tbf prmcats -- wgs pga` tm tbf Prfgsury. Mdvamusly, Yibguc's stgtfofet
tbgt tbf ofodfr dgehs grf jfttaej "dallames" ae `ava`fe`s fvfry yfgr as gdsur`. Ae g``atame, tbf Cf`
bgs dffe rfdgtaej ats prmcats tm tbf Prfgsury saeif 710:.
Imeilusame
Pbf gllfjgtame tbgt ge aetfregtamegl dgehaej igrtfl imetrmls tbf Cf`frgl Tfsfrvf aswrmej. Imetrgry tm Hgbs ilgao, cmrfajefrs `m emt mwe gey stmih ae tbf Efw Qmrh Cf`frgl Tfsfrvf
Dgeh. Efatbfr `m tbfy iurrfetly mwe gey sajeacaiget sbgrfs mc tbf `mofstai dgehs tbgt gituglly `m
mwe sbgrfs ae tbf E.Q. Cf`. Omrfmvfr, tbf ifetrgl gssuoptame tbgt imetrml mc tbf Efw Qmrh
Cf`frgl Tfsfrvf as tbf sgof gs imetrml mc tbf wbmlf Yystfo as dg`ly oastghfe. Glsm, tbf prmcats mc
tbf Cf`frgl Tfsfrvf Yystfo, gjgae imetrgry tm tbf imespargiy tbfmrasts, grf cueeflf` glomst
fetarfly dgih tm tbf cf`frgl jmvfreofet, emt tm ge aetfregtamegl dgehaej flatf. Ac tbf V.Y. ifetrgl
dgeh as ae tbf jrap mc ge aetfregtamegl imespargiy, tbfe Oullaes, Hgb, ft gl bgvf ifrtgaely emt
ueimvfrf` at.
Pbf Cf`frgl Tfsfrvf as mwef` ge` imetrmllf` dy cmrfajefrs.
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Pbf Cf`frgl Tfsfrvf bgs efvfr dffe gu`atf`.
Ge mctfe rfpfgtf` Cf`frgl Tfsfrvf imespargiy tbfmry as tbgt tbf Cf` bgs efvfr dffe
gu`atf`. "Fvfry yfgr Imejrfss aetrm`uifs lfjaslgtame tm gu`at tbf CF@," wrmtf Pbmogs Yibguc,
"ge` fvfry yfgr at as fcfgtf`.": Zby= Imespargiy tbfmrasts suib gs Yibguc, Jgry Hgb (7117), ge`
^gt Tmdfrtsme (7110) sgy tbf rfgsme as tbgt tbf Cf` as aevmlvf` ae ge aetfregtamegl plmt tm sudvfrt
V.Y. smvfrfajety ge` irfgtf g mef-wmrl` jmvfreofet. Egturglly, tbf Cf` wall emt pfroat Imejrfss
tm gu`at ats gitavatafs, lfst at `asimvfr tbas trfgsmemus plge ge` sbut at `mwe.
Bmw ouib trutb as tbfrf tm tbas ilgao= Bgs tbf Cf` fvfr dffe gu`atf` dy Imejrfss mr geymef
flsf= Pbf Cf` imetrmls V.Y. omeftgry pmlaiy ge` ige git watb g jrfgt `fgl mc ae`fpfe`feif crmoImejrfss ge` tbf fxfiutavf drgeib. Ilfgrly, suib gwfsmof pmwfr rfquarfs smof smrt mc rfjulgr
pudlai mvfrsajbt gt tbf vfry lfgst tm aesurf tbgt tbf Cf` as `maej ats kmd fccaiafetly ge` fccfitavfly,
ge` tm `ftfit gey gdusfs mc pmwfr mr crgu`. Pbas fssgy fxplmrfs tbf ilgao tbgt tbf Cf` bgs efvfr
dffe gu`atf` ge` cae`s tbgt at as imoplftfly cglsf.
G Drafc Bastmry mc Cf`frgl Tfsfrvf Gu`ats
Yaeif ats aeifptame ae 7179 tbf Cf`frgl Tfsfrvf Yystfo bgs dffe sudkfitf` tm g vgrafty mc caegeiagl
ge` pfrcmrogeif gu`ats dy Imejrfss, tbf fxfiutavf drgeib, ge` pravgtf giimuetaej caros, gltbmujb
rfspmesadalaty cmr tbas tgsh bgs sbactf` crmo taof tm taof. Crmo 7179 tm 7147 tbf Dmgr` mc
Jmvfremrs, tbfe hemwe gs tbf Cf`frgl Tfsfrvf Dmgr` wbaib sfts omeftgry pmlaiy ge` rfjulgtfstbf gitavatafs mc tbf Cf`frgl Tfsfrvf Dgehs, wgs gu`atf` geeuglly dy tbf V.Y. Prfgsury
@fpgrtofet. Ae 7147 Imejrfss irfgtf` tbf Jmvfreofet Giimuetaej Mccaif (JGM) ge` gssajef` at
tm gu`at tbf Dmgr` uetal 7199. Ae tbf Dgehaej Git mc 7199, Imejrfss vmtf` spfiacaiglly tm rfomvf
tbf Dmgr` crmo tbf JGM's kuras`aitame. Crmo 7199 tm 7164 gu`at tfgos crmo tbf twflvf Cf`frgl
Tfsfrvf Dgehs pfrcmrof` tbf geeugl fxgoaegtame mc tbf DMJ's dmmhs. Crmo 7164 tm 71:2, tbf
Dmgr`, ue`fr gutbmrazgtame crmo Imejrfss, `fia`f` tm foplmy egtameglly rfimjeazf giimuetaej
caros tm ime`uit tbf gu`ats mc atsflc tm aesurf ae`fpfe`fet mvfrsajbt. Pbas prmva`f` ge fxtfregl
fvglugtame mc tbf g`fqugiy ge` fccfitavfefss mc tbf fxgoaegtame prmif`urfs.
Ae 71:2 Imejrfss pgssf` tbf Cf`frgl Dgehaej Gjfeiy Gu`at Git (97 VYIG :70). At plgif` tbf
Cf`frgl Tfsfrvf Yystfo dgih ue`fr tbf gu`ataej gutbmraty mc tbf JGM. Pbf Git sajeacaigetlyaeirfgsf` tbf giifss mc tbf JGM tm tbf Cf`frgl Tfsfrvf Dgehs, tbf Dmgr`, ge` tbf Cf`frgl Mpfe
Ogrhft Imooattff (tbf CMOI). Yaeif tbfe, tbf JGM bgs ime`uitf` mvfr 7>> caegeiagl gu`ats ge`
pfrcmrogeif gu`ats mc tbf tbrff Cf`frgl Tfsfrvf dm`afs.
http://www.publiceye.org/conspire/flaherty/flaherty6.html#7http://www.publiceye.org/conspire/flaherty/flaherty6.html#7http://www.publiceye.org/conspire/flaherty/flaherty6.html#7http://www4.law.cornell.edu/uscode/31/714.htmlhttp://www4.law.cornell.edu/uscode/31/714.htmlhttp://www4.law.cornell.edu/uscode/31/714.htmlhttp://www4.law.cornell.edu/uscode/31/714.htmlhttp://www.publiceye.org/conspire/flaherty/flaherty6.html#7http://www.interanalyst.us/7/25/2019 Insiders Power December 2015
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Yimpf mc JGM Gu`ats
Ymof mc tbf omrf aopmrtget JGM pfrcmrogeif gu`ats mc tbf Cf` bgvf dffe ae tbf grfgs mc dgeh
supfrvasame, pgyofet systfos gitavatafs, ge` jmvfreofet sfiuratafs gitavatafs. Ae tbf carst grfg, tbf
JGM fxgoaef` bmw wfll tbf Cf` wgs fecmriaej ats rfjulgtmry pmwfrs mvfr ats ofodfr dgehs. Ae
7114 at rfw gttfetame tm tbf Cf`'s slujjasb imoplageif watb rfjulgtmry rfcmros oge`gtf` dy tbf
Cmrfaje Dgeh Yupfrvasame Git mc 7117. Ae fxgoaeaej tbf Cf`'s pgyofet systfo gitavatafs, tbf JGM
og`f tbf Cf` gwgrf mc bmw ats praiaej pmlaiafs cmr suib sfrvaifs gs ibfih-ilfgraej gccfitf` pravgtf
supplafrs mc ibfih-ilfgraej sfrvaifs, ge` glsm sujjfstf` wgys tm spff` up tbf prmifss mc ibfih
imllfitames. Yfiuraty ogrhfts cmr jmvfreofet `fdt as g iruiagl ogrhft, ge` JGM pfrcmrogeif
gu`ats mc tbf Cf` bgvf lfg` tm omrf mpfeefss ae tbf praogry `fglfr systfo, pgrtaiulgrly
imeifreaej tbf `asilmsurf mc praif aecmrogtame. Pbf JGM as glsm aevmlvf` ae sfvfrgl mejmaej
pfrcmrogeif gu`ats mc tbf Cf` suib gs geglysas mc rashs ge` dfefcats mc aetfrstgtf dgehaej,
rfjulgtame mc fravgtavfs, ge` tbf du`jft mc tbf Cf`frgl Tfsfrvf systfo.4
Gu`ats Dy ravgtf Giimuetaej Caros
Caegeiagl gu`ats mc tbf Cf` grf glsm ime`uitf` rfjulgrly. Fgib Tfsfrvf Dgeh as gu`atf` fvfry yfgr
dy ae`fpfe`fet Jfefrgl Gu`atmrs wbm rfpmrt `arfitly tm tbf Dmgr` mc Jmvfremrs. Pbfsf
fxgoaegtames aevmlvf caegeiagl stgtfofet gu`ats ge` rfvafws me tbf fccfitavfefss mc caegeiagl
imetrmls. Fgib Tfsfrvf Dgeh glsm bgs ats mwe aetfregl gu`at ofibgeasos. Pbf Dmgr` imetrgits
fgib yfgr watb ge mutsa`f giimuetaej caro tm fvglugtf tbf gu`at prmjrgo's fccfitavfefss. ^raif
Zgtfrbmusf ime`uitf` ge gu`at mc tbf Dmgr`'s 7110, 7116, 7113, 711:, ge` 7112 caegeiagl
stgtfofets ge` calf` tbas rfpmrt ae tbf Dmgr`'s7113 Geeugl Tfpmrt(efgrly a`fetaigl mefs gppfgr
ae mtbfr Geeugl Tfpmrts);
Zf bgvf gu`atf` tbf giimopgeyaej dglgeif sbffts mc tbf Dmgr` mc Jmvfremrs mc tbf Cf`frglTfsfrvf Yystfo (tbf Dmgr`) gs mc @fifodfr 97, 7116 ge` 7110, ge` tbf rflgtf` stgtfofets mc
rfvfeufs ge` fxpfesfs cmr tbf yfgrs tbfe fe`f . Pbfsf caegeiagl stgtfofets grf tbf
rfspmesadalaty mc tbf Dmgr`'s ogegjfofet. Mur rfspmesadalaty as tm fxprfss ge mpaeame me tbfsf
caegeiagl stgtfofets dgsf` me mur gu`ats.
Zf ime`uitf` mur gu`ats ae giimr`geif watb jfefrglly giifptf` giimuetaej stge`gr`s ge`
Jmvfreofet Giimuetaej Ytge`gr`s assuf` dy tbf Imoptrmllfr Jfefrgl mc tbf Veatf`
Ytgtfs. Pbmsf stge`gr`s rfquarf tbgt wf plge ge` pfrcmro tbf gu`ats tm mdtgae rfgsmegdlf
gssurgeif gdmut wbftbfr tbf caegeiagl stgtfofets grf crff mc ogtfragl oasstgtfofet. Ge gu`at
aeilu`fs fxgoaeaej, me g tfst dgsas, fva`feif suppmrtaej tbf gomuets ge` `asilmsurfs ae tbf
caegeiagl stgtfofets. Ge gu`at glsm aeilu`fs gssfssaej tbf giimuetaej praeiaplfs usf` ge`
sajeacaiget fstaogtfs og`f dy ogegjfofet, gs wfll gs fvglugtaej tbf mvfrgll caegeiagl stgtfofet
prfsfetgtame. Zf dflafvf tbgt mur gu`ats prmva`f g rfgsmegdlf dgsas cmr mur mpaeame.
Ae mur mpaeame tbf caegeiagl stgtfofets rfcfrrf` tm gdmvf prfsfet cgarly, ae gll ogtfragl rfspfits,
tbf caegeiagl pmsatame mc tbf Dmgr` gs mc @fifodfr 97, 7116 ge` 7110, ge` tbf rfsults mc ats
http://www.publiceye.org/conspire/flaherty/flaherty6.html#2http://www.publiceye.org/conspire/flaherty/flaherty6.html#2http://www.publiceye.org/conspire/flaherty/flaherty6.html#2http://www.bog.frb.fed.us/boarddocs/RptCongress/Annual96/annual.pdfhttp://www.bog.frb.fed.us/boarddocs/RptCongress/Annual96/annual.pdfhttp://www.bog.frb.fed.us/boarddocs/RptCongress/Annual96/annual.pdfhttp://www.bog.frb.fed.us/boarddocs/RptCongress/Annual96/annual.pdfhttp://www.publiceye.org/conspire/flaherty/flaherty6.html#2http://www.interanalyst.us/7/25/2019 Insiders Power December 2015
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mpfrgtames ge` ats igsb clmws cmr tbf yfgrs tbfe fe`f` ae imecmroaty watb jfefrglly giifptf`
giimuetaej praeiaplfs.
Gs `asiussf` ae Emtfs 7 ge` 9 tm tbf caegeiagl stgtfofets, tbf Dmgr` aoplfofetf` Ytgtfofet mc
Caegeiagl Giimuetaej Ytge`gr`s Em. 774, FoplmyfrsGiimuetaej cmr ^mstfoplmyofet Dfefcats,
fccfitavf Kgeugry 7, 7110. Ae giimr`geif watb Jmvfreofet Giimuetaej Ytge`gr`s, wf bgvf glsm
assuf` g rfpmrt `gtf` Ogrib 46, 7113 me mur imesa`frgtame mc tbf Dmgr`'s aetfregl imetrml
struiturf ge` g rfpmrt `gtf` Ogrib 46, 7113 me ats imoplageif watb lgws ge` rfjulgtames.
Pbf Dmgr` bgs glsm imetrgitf` watb Immpfrs & Lydrge` tm ime`uit geeugl caegeiagl gu`ats mc tbf
Dmgr` ge` tbf ae`ava`ugl Cf`frgl Tfsfrvf Dgehs.
Fxfoptames tm tbf Yimpf mc JGM Gu`ats
Pbf Jmvfreofet Giimuetaej Mccaif `mfs emt bgvf imoplft