Historical review of “umbrella supervision” by the Board of Governors of the Federal Reserve System

The article reviews legislative history and supervisory practices related to bank holding companies with a view toward understanding what Congress meant by referring to the Board of Governors of the Federal Reserve System as the “umbrella supervisor” in the Gramm-Leach-Bliley Act. The first part of the article looks at the historical development of bank holding company law and regulation, which laid the foundation for the current practice of umbrella supervision. The second part of the article provides answers to questions related to the Board’s current role as umbrella supervisor: What does “umbrella supervision” mean, and is it different from “consolidated supervision”? How does the GLB Act limit the Board's authority and practice and when did the Board obtain all of the legal authority to allow it to practice umbrella supervision?Bank holding companies ; Bank supervision ; Gramm-Leach-Bliley Act ; Banking law

The functional role of contrast adaptation

Prolonged inspection of high contrast sinewave gratings increases the contrast required to detect gratings having a similar spatial frequency and orientation. The functional role of such adaptation has, however, in the past, eluded disclosure. We here show that 5 min adaptation to a 2 c/deg sinewave grating of 0.8 contrast changes the observer's ability to discriminate the contrast level of a subsequently presented grating of the same spatial frequency and orientation. Similar to the threshold elevation effect, the observers required more incremental contrast for background contrast levels between 0.1 and 0.4 following adaptation. However, for contrast levels above 0.5, the observers required less delta contrast, following adaptation, to correctly discriminate which of two gratings was incremented in contrast. A simple model for adaptation is proposed to account for the findings which is based on a shift in the semi-saturation constant of the detector's contrast-response function. According to this model, adaptation acts to linearize the underlying mechanism's response in the region near the prevailing contrast level

Higher-harmonic adaptation and the detection of squarewave gratings

Adaptation to a high contrast sinewave grating of 1 c/deg spatial frequency causes a large increase in the contrast threshold for a 1 c/deg test grating, but fails to raise the threshold for a squarewave grating of 0.33 c/deg, although the sensitivity of the “channel” tuned to both the third and fifth harmonic components of the squarewave test grating should be thoroughly suppressed. Following sequential adaptation to sinewave gratings of 1 and 3 c/deg spatial frequency, detection of squarewave gratings at 0.33 c/deg likewise remains unaffected. In contrast, after adaptation to a 0.33 c/deg squarewave grating with missing fundamental the contrast threshold for a squarewave test grating of the same frequency is increased by 0.25 log unit, although the higher harmonic component frequencies are less affected than by sequential sinewave adaptation. The results suggest that independent spatial frequency channels detecting harmonic components are not alone sufficient to account for the visibility of low frequency squarewaves

Effects of crowding and attention on high-levels of motion processing and motion adaptation

The motion after-effect (MAE) persists in crowding conditions, i.e., when the adaptation direction cannot be reliably perceived. The MAE originating from complex moving patterns spreads into non-adapted sectors of a multi-sector adapting display (i.e., phantom MAE). In the present study we used global rotating patterns to measure the strength of the conventional and phantom MAEs in crowded and non-crowded conditions, and when attention was directed to the adapting stimulus and when it was diverted away from the adapting stimulus. The results show that: (i) the phantom MAE is weaker than the conventional MAE, for both non-crowded and crowded conditions, and when attention was focused on the adapting stimulus and when it was diverted from it, (ii) conventional and phantom MAEs in the crowded condition are weaker than in the non-crowded condition. Analysis conducted to assess the effect of crowding on high-level of motion adaptation suggests that crowding is likely to affect the awareness of the adapting stimulus rather than degrading its sensory representation, (iii) for high-level of motion processing the attentional manipulation does not affect the strength of either conventional or phantom MAEs, neither in the non-crowded nor in the crowded conditions. These results suggest that high-level MAEs do not depend on attention and that at high-level of motion adaptation the effects of crowding are not modulated by attention

Sensory Competition in the Face Processing Areas of the Human Brain

The concurrent presentation of multiple stimuli in the visual field may trigger mutually suppressive interactions throughout the ventral visual stream. While several studies have been performed on sensory competition effects among non-face stimuli relatively little is known about the interactions in the human brain for multiple face stimuli. In the present study we analyzed the neuronal basis of sensory competition in an event-related functional magnetic resonance imaging (fMRI) study using multiple face stimuli. We varied the ratio of faces and phase-noise images within a composite display with a constant number of peripheral stimuli, thereby manipulating the competitive interactions between faces. For contralaterally presented stimuli we observed strong competition effects in the fusiform face area (FFA) bilaterally and in the right lateral occipital area (LOC), but not in the occipital face area (OFA), suggesting their different roles in sensory competition. When we increased the spatial distance among pairs of faces the magnitude of suppressive interactions was reduced in the FFA. Surprisingly, the magnitude of competition depended on the visual hemifield of the stimuli: ipsilateral stimulation reduced the competition effects somewhat in the right LOC while it increased them in the left LOC. This suggests a left hemifield dominance of sensory competition. Our results support the sensory competition theory in the processing of multiple faces and suggests that sensory competition occurs in several cortical areas in both cerebral hemispheres

Reconsidering the application of the holder in due course rule to home mortgage notes

In this paper we investigate the history of negotiable instruments and the holder in due course rule and contrast their function and consequences in the 1700s with their function and consequences today. We explain how the holder in due course rule works and identify ways in which the rule’s application is limited in some consumer transactions. In particular, we focus on laws limiting application of the rule to some home mortgage loans. We investigate Lord Mansfield’s original justification for the rule as a money substitute, the lack of explicit justification of the rule by the drafters of the Uniform Commercial Code in the 1950s, the contemporary justification of the rule as a means of increasing the availability and decreasing the cost of credit, and the concerns of legislators and regulators about lack of consumer knowledge, bargaining power, and financial resources which caused them to limit the application of the holder in due course rule to some consumer transactions. We conclude that changes in policy justification, parties to negotiable instruments and the structure of the home mortgage market call for a reconsideration of the continuing appropriateness of holder in due course protection for assignees of home mortgage notes. We suggest further analysis based on economic theory and review of empirical research in order to formulate policy recommendations.Mortgage loans ; Holder in due course

Stimulus-specific mechanisms of visual short-term memory

The retention of spatial information in visual short-term memory was assessed by measuring spatial frequency discrimination thresholds with a two-interval forced-choice task varying the time interval between the two gratings to be compared. The memory of spatial frequency information was perfect across 10-sec interstimulus intervals. Presentation of a “memory masker” grating during the interstimulus interval may interfere with short-term memory. This interference depends on the relative spatial frequency of the test and masker gratings, with maximum interference at spatial frequency differences of 1–1.5 octaves and beyond. This range of interference with short-term memory is comparable to the bandwidth of sensory masking or adaptation. A change of the relative orientation of test and masker gratings does not produce interference with spatial frequency discrimination thresholds. These results suggest stimulus-specific interactions at higher-level representations of visual form

Effects of Attention to Auditory Motion on Cortical Activations during Smooth Pursuit Eye Tracking

Background: In contrast to traditional views that consider smooth pursuit as a relatively automatic process, evidence has been reported for the importance of attention for accurate pursuit performance. However, the exact role that attention might play in the maintenance of pursuit remains unclear