Federal Reserve Bank of Chicago Essay Example Pdf

The Chicago Federal Reserve Bank is established as a Reserves Banks out of 12 Federal Reserve Banks in United State. Chicago Fed is established to serve a specific region of United State, to build up a sound banking system and a health economy of the country. It is being established to serve the Seventh Federal Reserve District which includes Iowa, Illinois, Indiana, Michigan and Wisconsin. The head office of the Chicago Fed is located at Chicago, Illinois while the branch bank is located at Detroit, Michigan.

Besides that, the Seventh District served many important economic sectors in the country. All of the state of Iowa, 68 countries of northern Indiana, 50 countries of northern Illinois, 68 countries of southern Michigan and another 46 countries of southern Wisconsin are being covered by the Seventh District. It has shown that the Chicago Fed hold a very important role in maintaining and creating a health economy of United State. The Chicago Fed is executed by Charles L. Evans who is currently holding the position as the president the Chicago Fed. He is a white European and has married and has two children. He has been appointed as the president of the Chicago Bank in September of 2007. Besides that, in the same year, he is also become the chief executive officer of the Chicago Fed. He is the ninth president for the Chicago Fed. Besides that, he also serves on the Federal Open Market Committee (FOMC), which is the branch under the Federal Reserve Board that determines the direction of the monetary policy and manages the inflation in the economy. As an important role in the Chicago Fed, Charles L. Evans understands his responsibility to the country’s economy growth. He has to overview the work carrying out by about 1400 employees in the Chicago and Detroit who are appointed to do the economic research, provide payment services to commercial banks and the Government and to outlook the performance of financial institution. Furthermore, he is a director of research and senior vice president who is responsible in supervising the Bank’s processes on monetary policy which can influence the economic situation indirectly before he is appointed to become the president. Lastly, he is a good representative of the Chicago Fed as he is very active in the civic community. Then, the building of the Chicago Fed is located at the corner of LaSalle Street and West Jackson Boulevard in the center of Chicago’s financial district. It is being built up in 1922 by the architects who are responsible in developing many of the city’s architectural landmarks- Graham, Anderson, Probst and White. The designed the Federal Reserve Bank of Chicago’s landmark building by following the traditional style of other reserve banks.

Besides that, a renovation of the Visitor’s Center is undergoing in order to create a mysterious image of the Chicago Fed and to improve service provided to the customers. Furthermore, the design of the building will give customers confidences in keeping money with them because it has been designate to insure a sound monetary system. In 2001, a Money Museum is introduced to the public by the Chicago Fed. The Money Museum provides the information on how the Federal Reserve does in order to maintain a healthy and growing economy.

The Money Museum is designed in a 5600-square-foot space in order to create a space that can attract more visitors to explore the role of the Federal Reserve. The Chicago Fed is being set up with the vision as to focus on the citizen’s welfare by providing a good economy situation and financial stability. Besides that, the Federal Reserve Bank needs to provide a efficiency monetary policy which can bring an outcome of stability and integrity of the nation’s economy situation in order to boost the macroeconomic performance. Besides that, the supervision of the Chicago Fed is conducted through a risk assessment process that is built up by three important components which are risk identification, risk analysis, and risk resolution. The purpose that the Fed used this risk assessment process is to make sure that every institution or nation’s payment system which attached with a higher risk can be given a more attention so that it can prevent any unwanted consequences. Nevertheless, the Seventh District consists of a reasonable section of the nation’s manufacturing base which is capital goods, consumer durable and production agriculture. It is also recognized as the most populous Bank among all the Federal Reserve Districts because it has comprising one-eighth of the nation’s population.

Besides that, the total asset being hold by the Chicago Fed is ranks at four among the twelve Federal Reserve Banks, which is just followed after the New York, Richmond and San Francisco District. Apart from that, because of its outstanding management, there are more individual banks are operated under the Chicago Fed if compare with other Federal Reserve District. Then, the Seventh District economy has focus in manufacturing industry for more than 50% when compare with the overall manufacturing of the nation. It has produced 30% of the nation’s light vehicles and also actively participated in construction and farm machinery, medical equipment and steel products. For example, it has produced more than 40% of the nation’s corn, soybeans and hogs in a particular year. It is also the major dairy and egg producer. There is no doubt that the Chicago Fed has contributed lots to the economy and the community. Last but not least, the Chicago Fed has contributed to the community not only through the economy but also through education. It has organized a lot of events in helping the people around their district such as the event of “Illinois Jump$tart Conference”. This event will be launching from 8:00 a.m. to 3:30 p.m. on November 15, 2010. The venue for this event will be located at the Federal Reserve Bank of Chicago.

The purpose of this event is to give out a great chance for citizen to meet with other high school and community college educators. They can obtain tips and training on teaching financial literacy. It is a great opportunity for the people that participate in this event. Lastly, according to the article, the president of the Chicago Fed- Charles L. Evans expects that the economic situation to warrant substantial monetary accommodation in the future. He expects that the unemployment rate will continue to be high for a period of time. However, the Federal Reserve Banks will strive to bring a healthy economy to the United State by implementing a suitable policy. He even estimated that maximum sustainable growth in the United States would entail unemployment of about 5 percent, compared with 9.7 percent in February, and core inflation of about 2 percent, compared with 1.3 percent in the year to February. (Subler, 2010 ) 2.5.8 St. Louis

Building of Federal Reserve Bank of St. Louis

The St. Louis Fed is one of the Federal Reserve Banks which is made up from 12 Federal Reserve Banks. It is also known as St Louis Fed which was established in 1914, just right after the introduction of the Federal Reserve System in 1913. It has been recognized as the Eighth Federal Reserve District and it is being headquartered in St. Louis and has branches in Little rock, Ark., Louisville, Ky., and Memphis, Tenn. Besides that, it is being established to serve all of the Arkansas and portion of six other states which the eastern Missouri, western Kentucky, western Tennessee, , southern Indiana, northern Mississippi and southern Illinois. The Board of Directors of the St. Louis Fed consists of nine members in which six of them are elected by the St. Louis Fed member banks.

However, the other three members are being selected by the Board of Governors which formed the Federal Reserve System. Out of the nine members, three directors are bankers while another six are selected to bear for other responsibilities on their own. Some of them are being required to represent business, labor or consumer interests in the District. Furthermore, the three branches of the Eighth district- Little Rock, Louisville and Memphis have their own board consisting of seven members. The job of the director is mainly focus on directing members in the general operations and then give the comments or actions which are useful for the development of the economic conditions with their areas. The president of the St. Louis Fed is James Bullard. He enjoys exercise such as bicycling or playing tennis when he is free. He is married and his wife is Jane Callahan. they have already owned two daughters. He holds a Bachelor of Science degree in quantitative methods and information systems and economics from St. Cloud State University in St. Cloud, Minn., and a doctorate in economics from Indiana University in Bloomington. (FEDERAL RESERVE BANK of ST. LOUIS, n.d) He joined the St. Louis Fed as a position of an economist in the Research division in 1990 and holding a nice position of increasing responsibility. He gets involved in the Federal Open Market Committee (FOMC) which can be considered as the Federal Reserve’s principal monetary policymaking body. He was just a deputy director in conducting and carrying out the monetary analysis before he was appointed as a president. He was being appointed to be the president and also, he is also being appointed as a chief executive officer of St. Louis Fed in April, 2008. His responsibility is to direct the activities of the Bank’s head office in St. Louis and also the three branches under the St. Louis Fed which is located at Little Rock, Ark., Ky., Memphis, Tenn. and Louisville.

There are a total amount of 1129 employees in the Eighth District that are under control of him which is a sum of 951 employees from St. Louis, 6 employees from Little Rock, 9 employees from Louisville and 163 employees from Memphis. Thereby, he holds a great responsibility in controlling its management team as a president. The building of the St. Louis Fed is named as The Robert A. Young Federal Building, which can also be called as the “RAY” building. It is located at Spruce Street, St. Louis. It was being set up in year 1931. Besides that, it has a tall which can be compared as 20 stories tall which can provides a wide area of spaces for the federal agencies.

The building is actually a warehouse for the Terminal Railroad Association of St. Louis before the federal government acquired it in 1941. It is eligible for listing on the National Register of Historic Places. (Robert A. Young Federal Building, n.d) As the eighth among all the Federal Reserve banks in the Fed System, the St. Louis Fed has focus more on how to boost up the America’s economy. There is a division in the Federal Reserve System which is used to supervising the banking institution in US. The division is named as the St. Louis Fed’s Banking Supervision and Regulation Division. Besides that, there are a lot of financial institution are under supervising of it such as bank holding companies, state member banks and financial holding companies. The St. Louis Fed emphasize five most-critical functions which are promote stable prices and economic growth, foster a sound financial system, provide payment services to financial institutions, support the U.S Treasury’s financial operations and well economic knowledge, community enhancement and ease access to borrowing. In order to achieve their functions, they has tried their best to provide a better off environment for sustainable economic growth which is comes along with a reasonable inflation. At 1960s, it has been denominated as the center of the nation’s inflation controller.

Besides that, St. Louis Fed is responsible to make sure that the currency circulated within its District is high-quality and authentic. Furthermore, nine lines of business in the District were operated under St. Louis Fed in order to help to sustain the demands of U.S citizen and Government which is making the payment transaction and managing their cash or debt in an efficient way.. Lastly, the Eighth District is being viewed as the nation’s central in the process of making the transaction for checks such as Treasury checks. All of these have pointed out how important the St. Louis Fed is toward the U.S. Government and America people. In year 2000, the Federal Reserve Bank of St. Louis and the Federal Reserve Bank of Minneapolis have been brought together and agreed with the way to consolidate their automated clearinghouse (ACH) transactions. Electronic paycheck deposits are one of the examples of automated clearinghouse activities that is carrying out by the Federal Bank. Besides that, electronic payments of bills can also be considered as one of the example of ACH. The example for the electronic payment of bills is consumer insurance premiums.

Moreover, In year 2001, the rewarded that got by the St. Louis Fed which is the Treasury Relations and Support Office has assisted the bank to become a more powerful coordinator in the whole Federal Reserve System’s financial services. Besides that, the St. Louis Fed has also gained the benefit through the reward which is enabling it to provide the services to largest user. Those services that carried out by the Fed have helped the U.S. Treasury to achieve its goals in a more effective way. So, what are the services that provided by the St. Louis Fed? The example of the services are helping the Government to manage their fund, supporting federal debt collections by creating new software, and supporting the transaction of U.S. Treasury securities. According to the article, James Bullard, who is the present president of St. Louis Fed has expressed that unemployment is expanding rapidly, with a condition that the inflation rate has attach with more risk than original. He also showed concern to the idea that the recession implies that the output gap is currently quite large, minimizing the risk of inflation. He also proposed a different framework for how U.S. monetary policy could be implemented in the future using interest on reserves held at the Fed in helping to maintain the health of the economy. (Frommherz, 2009)A Lastly, the journal written by the Laurence J. Kotlikoff stated how the U.S fiscal institution contributed to secure the nation’s economic situation in the future. It shows the importance of the fiscal institution in implementing any policies to eliminate the nation’s enormous fiscal gap and avert bankruptcy. (KotliKoff, 2006) Either the article or the journal has strongly prove that it’s important to have a strong financial institution such as the Federal Reserve Bank in maintaining the wealth of the country. 2.5.9 Minneapolis

Federal Reserve Bank of Minneapolis

TheA Minneapolis Federal Reserve Bank which is categorized as Ninth Federal Reserve District among all the Federal Reserve Banks which was incorporated on May 18, 1914. It is also known as Minneapolis Fed which has one branch in Helena, Montana. There have six states that are fallen under the executive of Minneapolis Fed. The six states include of Minnesota, Montana, North and South Dakota, 26 counties in northwestern Wisconsin and the Upper Peninsula of Michigan. There are about 8.8 million people are staying in the Ninth District and it stretches 1800 miles in that area. It covers 409291 square miles and is considered as home for those 8.8 million of people.

However, although there is about 12 percent of the nation’s land is within this area, but there are only consist of 3 percent of the nation’s population stays in this region. Federal Reserve Bank of Minneapolis holds a great responsibility to its people who stay in the Ninth District. Therefore, it has participated in monetary policymaking in order to supervise numerous banking organizations, and provides a bundle of services such as payment services or consultation to the financial institutions and the U.S. government. . On October 1, 1914, the Federal Reserve Board appointed John H. Rich to be Minneapolis’ Federal Reserve Agent. He is a banker as known as businessman who has received a lot of rewards. Theodore Wold has been selected to become the chief administrative officer after tge first meeting carried out by the executive committee on October 14-15, 1914. Since he has hold the position as a Governor, he has tried his best to coordinate the work such as controlling and directing the Fed’s staff especially during the period of World War I. John H. Rich, Theodore Wold , Roy Young , John R. Mitchell , William B. Geery , John N. Peyton , John N. Peyton and Oliver S. Powell were the former president of Minneapolis Fed during year 1914-1957. Frederick L. Deming is the president during year 1957-1965; Hugh D. Galusha, Jr. took the place as a president during year 1965-1971; Bruce K. MacLaury became the president during year 1971-1976; Mark H. Willes was appointed to become the president during year 1977-1980; E. Gerald Corrigan during year 1980-1984 and Gary H. Stern was the last president during year 1985-2009 before the current president Narayana Kocherlakota was appointed to become the president for the Minneapolis Fed on Oct. 8, 2009. He is the12th president of the Minneapolis Fed. Besides that, he was born on Oct. 12, 1963 and originated from Baltimore, Maryland. He also serves on the FOMC which represent the policymaking representative of the Federal Reserve System. This FOMC is formulated under the members of the Board of Governors and the 12 presidents from each of the Federal Reserve banks.

Apart from that, he holds a position as a professor at the University of Minnesota before becoming as the president o the Federal Reserve Bank of Minneapolis. He was a Research staff member at Minneapolis Fed during year 1996 to year 1998. From the article, it shows the joining of the new president, Narayana Kocherlakota into the Minneapolis Fed. (HILSENRATH & WHITEHOUSE, 2009) The building of the Minneapolis Fed is located at the heart of the Minneapolis CBD, which is just right opposite to the historic City Hall Building. This building was designed and built by Ton Regan who formed and led the development team which won the GSA design/build competition to develop the Minneapolis Federal Building-US courthouse.

The whole building was 41000 square foot in its size. The complex includes a fifteen-story central tower housing the Federal District, Bankruptcy and Magistrate Courts, a six-story wing with office space, and a two-story wing with a cafeteria and public plaza.A  ( Minneapolis Federal Building – US Courthouse, n.d) It also includes a 225-space, below-grade secured garage and a 300-space public garage.A  The project involved extensive coordination among the development team, the Judiciary, GSA and local officials and agencies. The cost to build up the Minneapolis Fed is about $ 100,000,000 and this building is owned by US General Services Administration Washington, D.C. The Minneapolis Fed has a diverse economy which is starting from mining to tourism and then change to agriculture and lastly, involve in technology. The economy is diverse based on each of the part around the district such as western part, center, southeast and eastern part. At the area which is located at the western end of the region, the crucial industries are mainly focus on tourism, timber and metal mining.

However, wheat farming and energy mining can be considered as a very crucial industry in the center of that region. It has produced about 31 % of the nation’s wheat. Then, the district’s southeast corner which is part of the Northern Corn Belt is dominated by the corn and soybean farming and light manufacturing activities. Last but not least, the Minneapolis/St. Paul which is located at the eastern end of the region has been categorized as the 16th largest area among the nation. It is a center which is highly depends and focuses on the education and high technology manufacturing. Besides that, it can also be considered as the most popular trade and service center within that region. Lastly, the Upper Great Lakes which are located at the far eastern end of the district are dominated by the tourism, timber, dairy farming and metal mining industries.

This region produces more than 90% of the nation’s iron ore. (The Ninth District, n.d) The financial services that are provided by the Minneapolis Fed to those financial institutions are more likely to the services that the banks provided to its customers. For example, the Minneapolis Fed will provide savings or loans, checks collection, funds transferred electronically and cash or coins distribution. It supervises and regulates all the financial institution such as banks in the region of Ninth District. During 2007, there were 18 commercial banks in the Ninth District were consolidated with each other under the well supervision of the Minneapolis Fed. Then, nine new bank charters were issued and no banks failed in the Ninth District. At the end of 2007, there were about 760 commercial banks are operated and under the supervision of the Fed in the Ninth Federal Reserve District. Nevertheless, the banks in the Ninth Federal Reserve District was being distributed as 418 banks in Minnesota (55%), 76 banks in Montana (10%), 96 banks in North Dakota (13%), 85 banks in South Dakota (11%), 63 banks in northwestern Wisconsin (8%), and 22 banks in the Upper Peninsula of Michigan (3%). At year end, Ninth District regulated the bank holding companies, with roughly 602 companies being involved in this new regulation.

Furthermore, 10% of the banks which are located at Ninth District’s have a total asset which is less than $25 million. 64% have between $25 and $150 million, and a roughly amount of 26% of the district’s banks own a total asset of about $150 million. Apart from that, the Minneapolis Federal Reserve Bank expanded rapidly during World War 1 which owning about 500 employees in 1918. This expansion was due to the Fed’s responsibility, as an agent for the Treasury Department to issue war bonds. World War I also resulted in a shift in the predominately male work force. By 1918, women comprised about half of the Bank’s staff. (The Ninth District, n.d) 2.5.10 Kansas City

Federal Reserve Bank of Kansas City

The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District which was is also known as Kansas City Fed. The Kansas City Fed was incorporated on November 16, 1914 at the R.A. Long Building at 10th and Grand. The Tenth Federal Reserve District covers a large portion of the United States which consists of Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico, and the western third of Missouri. Besides that, it has branches in Kansas City, Denver, Oklahoma and Omaha.

Firstly, the Kansas City Fed is located in the heart of the Kansas City; at 1 Memorial Drive which is on the west side of Main Street in Kansas City, Missouri. Then, the Denver Branch officially started to provide services on January 14, 1918. It is now under control of Mark C. Snead and it has been categorized as the second largest branch in the District which consists of 170 employees and is located at downtown “16th Street Mall”. The Oklahoma branch which is incorporated on August 2, 1920 is now under execution of Chad Wilkerson. This branch is currently located on the corner of Harvey and Third Street. Before the branch was moved to this new building, it is located on the second floor of the Continental Building at the corner of Second and Broadway. The branch was officially moved into the new building in 1923. The objective of the branch in Oklahoma City is to help or supervise all the Oklahoma bank holding companies and their non-bank subsidiaries, and state-chartered banks that are members of the Federal Reserve System.

Lastly, the branch office in Omaha is executed by Jason R. Henderson, who is the vice president of the Bank. Furthermore, the Omaha Branch is the oldest branch among all of the three branches under the Tenth District. It was officially opened for providing services on September 4, 1917. The Omaha Branch was first located in the old First national Bank building at 1219 Farnam and being moved to 17th and Dodge Streets in 1925. However, it has officially moved to 2201 Farnam Street, the current branch office in February 1986. Nowadays, the staffs in the Omaha Branch has to hold a several roles which is regional affairs,A public affairs, community affairs, supervision and risk management and support functions.A It is to ensure that the branch office can provide a better service to the bank’s customers. The Kansas City Fed is currently executed by Thomas M. Hoenig, who is the president and the chief executive officer for the Tenth Federal Reserve District.

Besides that, he is also being served as one of the member of the Federal Open Market Committee (FOMC) which is the key body with authority over national monetary policy in the United States. Mr. Hoenig holds a very heavy responsibility towards all the activities happened in Tenth Federal Reserve District because everything happened at there is directing by him. Besides that, he is a native of Fort Madison, Iowa and currently staying in Kansas City. Before becoming as a president, he served the Federal Reserve Bank as an economist in 1973 and was a senior officer in banking supervision during 1980s. He was appointed to be the president on October1, 1991. He is now appointed as the chairman of the Federal Reserve Conference of Presidents; Committee on Regulation, Bank Supervision and Legislation. Lastly, he has been outspoken about the regulation of the financial industry and the role of monetary policy during the recent crisis. (Thomas M. Hoenig, n.d) Nevertheless, the Federal Reserve Bank of Kansas City involved in a lot of researches on the economics and had published it on their website in order for people to have a view on it. The publication of their research includes of economic review, main street economist, research working paper, payment system research briefing, and financial industry perspective.

From the Payment Research Department’s publication, we can find out that it has covered a wide range of topic including types of payments methods, developments in payments networks, and various participants’ roles in the payments system. Furthermore, according to the journal, it stated the Federal Reserve’s role in fostering a payment system that is safe, efficient and accessible. That journal has reexamined the role that hold by the Federal Reserve in retail payment in light of the evolving payment system. (Weiner, 2008) However, the principal message that the author wants to express in the article is about that the Federal Reserve will continue to play a crucial role in fostering the payment system but they have to change in order to fight with the changing environment. 2.5.11 Dallas

Federal Reserve Bank of Dallas

The Federal Reserve Bank of Dallas has another name of Eleventh Federal Reserve District which consists of 3 branches which are located at Texas, northern Louisiana and southern New Mexico. It is also known as Dallas Fed which is incorporated in November 16, 1914. Dallas Fed plays an important role in maintaining the sustainable economic growth and financial stability of this region. Besides that, it consists of three branches which are El Paso Branch, Houston Branch and the San Antonio Branch. The El Paso Branch is currently in charged by its vice president, Robert W. Gilmer while the Houston Branch is currently in charged by its senior vice president, Robert Smith III and lastly, the San Antonio Branch is under supervised by its vice president, Blake Hastings. Dallas Fed is located at Pearl Street on the northeast corner of Woodall Rodgers Freeway and Pearl Street in downtown Dallas.

The Dallas Fed started to use its new building in September 1992. It was structured in a 17-storey which has an Indiana limestone exterior. All of the Bank’s financial operations can be found at the ground floor of the building which can be estimated as six acres, or converted into 250,000 square feet. The area of the ground floor is estimated as equal to a 12-story office building. Besides that, it was designed by three architectural firms which are Kohn Pedersen Fox Associates which comes from New York; Sikes Jennings Kelly & Brewer which comes from Houston; and John S. Furthermore, the Dallas Fed’s art collection comprises contemporary works, including sculpture, oil and acrylic paintings, photographs, lithographs, collages, pen and ink drawings and a sound sculpture. (The Dallas Fed, n.d) These collections can be used in the purpose to represent the expressions of a group of artists from different parts of the world which are Texas, Louisiana and New Mexico. It is designed in the purpose to reflect the region’s historical and cultural diversity. The Federal Reserve Bank Organization committee stated that it will choose 12 cities depends on the resources, location, communication method and transportation utilities. Dallas has been selected as the headquarters of the Fed’s Eleventh District in April, 1914 with its outstanding quality that fits the requirement of the Reserve Bank Organization.

Then, on October 16, 1914, an official meeting of the Dallas Fed was being held for the first time. It is being held in the Directors’ Room which is located at City National Bank of Dallas. After that, it was opened to start its business on November 16, 1914. At that point of time, Oscar Wells is appointed as the first governor, which is also known as the president of the Dallas Fed and he served the Dallas Fed until 1915. In 1975, the bank introduces its first R.E.I March II which can be considered as a high-speed currency sorting machine. It can be used by sorting the currency automatically through denomination and identify any bad notes.

The introduction of this machine is to replace the manual process in sorting and shredding the currency. After the introduction of this machine in Dallas, it has been accepted at Federal Reserve Banks nationwide. Furthermore, the Dallas Fed places its first automated clearinghouse (ACH) payment into the operation in its region during year 1976. Then, in 1980, the Congress passes the Monetary Control Act which allowed the Federal Reserve to set their own prices for the financial services provided by them and enable the non-member institutions to enjoy those services. Therefore, the number of institutions with reserves at the Bank increase aggressively which is from 705 to 3,475 as a result.

There are more than 500 financial institutions fail to operating in a well situation in the Eleventh District during 1980 to 1992. However, there is a signal showing that it’s the beginning of economic recovery in 1990 after the bank failure in that region has bottom out. Nevertheless, the Dallas Fed has moved into a new headquarter building at 2200 N. Pearl St. Besides that, it has developed a function which named National Examination Database (NED) which is able to provide all Reserve Banks with sufficient information on financial institutions in 1997. Apart from that, in year 1997, it also processes a risk-based approach which enables every bank to be under supervision by them and then try to decrease the total amount of bank examinations within that region. Furthermore, in 1999, the Dallas Fed has been selected by the US treasury in order to provide three new services to the public which is to operate a consolidated service center for Treasury Direct with the Reserve Banks in Boston and Minneapolis. So, what is a Treasury Direct? It is a program which is launched by the Treasury’s Bureau. Then the Treasury’s Bureau is originating from the Public Debt. The purpose that this program is being set up is to allow the function of eliminating the brokers or banks when investors intended to buy securities. It means that they can buy the securities directly from the Treasury. Secondly, it has been chosen to be the nation’s central processor for Treasury coupons.

Lastly, it was also appointed to control the national Electronic Transfer Account (ETA) program which is created to focus on the customers who are enjoying receiving the payment through check. Apart from that, the Federal Reserve Bank of Dallas ensures that during year 1999 to 2000, it must achieve a high level of agreement that pay off in an orderly transition. It is all because of the extensive Y2K preparations and good working relationships with financial industry customers. Lastly, in 2005, Richard W. Fisher begins and takes over his responsibility as the Bank’s 12th president and also being appointed as the chief executive officer of the bank. Then, check processing operations which are launched in the Houston Branch are successfully consolidated to Dallas.

Also, the Federal Reserve System stated that the Oklahoma City Branch will transition its cash services into a cash depot arrangement. Besides that, the Dallas Fed has established a Community Affairs Office that primarily focus on the Federal Reserve’s goal which is to maintain the sustainable output. It has took a great responsibility in encouraging community and developing the economic somewhere help to boost up the economy at the same time. Besides that, It also promotes a fair access to credit among all the citizen.A  They can actually facilitate partnerships and coalitions, organizing and hosting conferences and workshops, writing publications, and conducting research, training and other related activities by doing so.A  The Dallas Fed has focused in many areas which include of Affordable housing, CDC nonprofit capacity-building, Community development investment and financing, Community Reinvestment Act (CRA), fair lending, Personal financial education Small business/microenterprise development. (About Community Affair, n.d) According to the article, the Dallas Fed reminds the public that there is no way to understand how badly the economy would have performed without a proper fiscal stimulus and there’s no way to show that how many jobs would available without stimulus. The Dallas Fed is always showing its great concern on the citizen by giving out some warning or advice to the citizen among its region. (Durden, 2010) 2.5.12 San Francisco

Federal Reserve Bank of San Francisco

The Federal Reserve Bank of San Francisco which represent the Twelfth Federal Reserve District is also known as San Francisco Fed. The Twelfth Federal Reserve District covers nine western states which includes of Alaska, Arizona, California, Hawaii, Nevada, Idaho, Oregon, Utah, and Washington-Guam, American Samoa, and the Northern Mariana Islands. Besides that, San Francisco Fed can be considered as the largest District out of the Twelve Federal Reserve District. So, it has six branch offices in order to well manage this expansive region. Therefore, it has been categorized as the headquarter of all of the Federal Reserve Banks while another five branches are being located at Los Angeles, Phoenix, Portland, Salt Lake City and Seattle.

The Twelfth Federal Reserve District consists of a total amount of 1562 employees working under its bank. The 1562 employees are separated among the six branches that are owned by the San Francisco Fed. There are a total amount of 1023 employees are working in the San Francisco branch which representing the headquarter of the District; 306 employees in the Los Angeles branch; 14 employees in Portland branch; 72 employees in Salt Lake City branch; 97 employees in Seattle branch and lastly, 50 employees in Phoenix Processing Center. The branch in Phoenix is named as Cash Processing Center instead of Phoenix branch like others branches under the Twelfth Federal Reserve District. The Twelfth District is considered as the largest region among all the Twelve Federal Reserve Districts due to its coverage of the nation’s area. It covered nearly 1.3 million square miles, which can also be calculated as 35 percent of the nation’s area. Besides that, the total population in this District is about 62.4 million of people which is the 20 percent of the total U.S population, employment and personal income in year 2008. Furthermore, the Twelfth District also been ranked first based on the size of its economy. Firstly, the citizen around this region earned around 21 percent of the nation’s total personal income in 2008 due to its large amount of population.

Moreover, the export of manufactured goods in this region in 2008 has covered about 21 percent of the total nation’s exports. Then, in another term, an industry mix mirror that’s carrying out by the Twelfth District’s has representing the whole nation.

However, apart from that primary industry, the District also used the workers who are holding a large num of shares in order to enhance the economic system. Then, another kind of major sectors such as construction, information, professional and business services, leisure and hospitality, and government. It shows that the District has a diversified economy which can help to maintain and enhance the economy situation in its region. Apart from that, most of the nation’s leading information technology centers are being located in this District due to its well development. As compare with another district, Twelfth District has adopted a considerably large share of IT worker as a percentage of total nonfarm workers. Moreover, all of the IT workers in this District have earned an average annual wages more than others workers who performed their skill and knowledge in another area of the nation. The Federal Reserve Bank of San Francisco is currently executed by Janet L. Yellen, who is being selected to hold the position of the President and Chief Executive Officer in the Bank.

She has been selected to represent the San Francisco Fed on June 14, 2004. Besides that, she is also representing as members of the Federal Open Market Committee who fully participate in every meeting and she always bring her perspective toward the Distriction that are fallen under her execution to the policy discussion which is hold at Washington. She showed her responsibility toward the District in a very good manner with her attitude. She has been working in many different areas before she become the president of the Twelfth District. Dr. Yellen decided to take a long leave from Berkeley which is a period of five years from August in year 1994. After that, in 1999, she decided to left the Fed and become the Chair of the Council of Economic Advisers. Nevertheless, she also took the position in the Economic Cooperation and Development who is responsible to conduct activities based on a position of the Committee of the Organization for from 1997 to 1999. Formally, she started to join The Group of 30 in September 2009 and becoming a member of it. She also serves on the executive committee of the Bay Area Council and is a member of the Council on Foreign Relations and the American Academy of Arts and Sciences. (Federal Reserve Bank of San Francisco, 2009) She has also taken position in both Western Economic Association and American Economic Association, which is a president for the previous association and as a vice president for the following association. According to the article, it is all about the announcement of the new president for the Twelfth district, who is Janet L. Yellen. (SUPERVILLE, 2010) Nevertheless, there is a special thing that representing the Twelfth District which is the Murals which are designed by Walter Thomason. He is the artist who is also representing the San Francisco architect and illustrator.

There are six murals being created by him where one is specially designed for the District as a whole and another five murals are designed for the separate regional branches. Each of the murals portraying the historical development of each District branch office and been highlighting the special person, events, drawings of the Bank building, other landmarks and economic resources which is significant to that particular area. Besides that, the artist, Walter Thomason also capture the special character of each branches and then melt the murals together to form the Twelfth Federal Reserve District. The original illustration of the murals were originally drawn in pencil and then has been enlarged to 3 feet by 6 feet by a photographic process which added the sepia tone to enhance the view of the murals.

Then, all of the murals which is commissioned by the San Francisco Fed in 1978 has been hang in a non public area of the headquarter building in San Francisco. (Federal Reserve Bank of Bank Francisco, n.d) Lastly, there are some key facts about the Federal Reserve System which is that the Twelfth District has share a total amount of $3.7 billion of the Federal Reserve System’s earning of $38.7 billion. Besides that, about the currency, The Fed’s Cash Services department processes currency using high speed computer controlled machines which can identify about 1,616 notes in just 1 minute. This well designed machine can well interpreted potential destroys old, worn out notes. (Federal Reserve Bank of San Francisco, 2010)

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