    [United States Government Manual]
    [June 01, 2006]
    [Pages 417-422]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 417]]

    FEDERAL RESERVE SYSTEM

    Board of Governors of the Federal Reserve System

    Twentieth Street and Constitution Avenue NW., Washington, DC 20551
    Phone, 202-452-3000. Internet, www.federalreserve.gov.
    Board of Governors

    Chairman                                          Ben S. Bernanke
    Vice Chair                                        (vacancy)
    Members                                           Susan Schmidt Bies,
                                                              Donald L.
                                                              Kohn, Randall
                                                              S. Kroszner,
                                                              Mark W. Olson,
                                                              Kevin M. Warsh

    Staff:

    Director, Division of Board Members               Michelle A. Smith
    Congressional Liaison                             Winthrop P. Hambley
    General Counsel                                   Scott G. Alvarez
    Secretary                                         Jennifer J. Johnson
    Director, Division of Banking Supervision and     Richard Spillenkothen
            Regulation
    Director, Division of Consumer and Community      Sandra F. Braunstein
            Affairs
    Director, Division of Federal Reserve Bank        Louise L. Roseman
            Operations and Payment Systems
    Director, Division of Information Technology      Marianne M. Emerson
    Director, Division of International Finance       Karen H. Johnson
    Director, Management Division                     H. Fay Peters
    Director, Division of Monetary Affairs            Vincent R. Reinhart
    Director, Division of Research and Statistics     David J. Stockton
    Staff Director, Office of Staff Director for      Stephen R. Malphrus
            Management
    Inspector General                                 Barry R. Snyder

    Officers of the Federal Reserve Banks

    Federal Reserve Bank Chairmen:
        Boston, MA                                    Blenda J. Wilson
        New York, NY                                  John E. Sexton
        Philadelphia, PA                              Doris M. Damm
        Cleveland, OH                                 Charles E. Bunch
        Richmond, VA                                  Thomas J. Mackell, Jr.
        Atlanta, GA                                   David M. Ratcliffe
        Chicago, IL                                   Miles D. White
        St. Louis, MO                                 Walter L. Metcalfe,
                                                              Jr.
        Minneapolis, MN                               Frank L. Sims
        Kansas City, MO                               Robert A. Funk
        Dallas, TX                                    Ray L. Hunt
        San Francisco, CA                             David K. Tang
    Presidents:
        Atlanta, GA                                   Jack Guynn
        Boston, MA                                    Cathy E. Minehan
        Chicago, IL                                   Michael H. Moskow
        Cleveland, OH                                 Sandra Pianalto
        Dallas, TX                                    Richard Fisher

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        Kansas City, MO                               Thomas M. Hoenig
        Minneapolis, MN                               Gary H. Stern
        New York, NY                                  Timothy F. Geithner
        Philadelphia, PA                              Anthony M. Santomero
        Richmond, VA                                  Jeffery M. Lacker
        St. Louis, MO                                 William Poole
        San Francisco, CA                             Janet L. Yellen

    Federal Open Market Committee

        Chairman                                      Ben S. Bernanke
        Vice Chairman                                 Timothy F. Geithner
        Members                                       Susan Schmidt Bies,
                                                              Jack Guynn,
                                                              Donald L.
                                                              Kohn, Randall
                                                              S. Kroszner,
                                                              Jeffrey M.
                                                              Lacker, Mark
                                                              W. Olson,
                                                              Sandra
                                                              Pianalto,
                                                              Kevin M.
                                                              Warsh, Janet
                                                              L. Yellen

        Staff:

        Secretary and Economist                       Vincent R. Reinhart
        Deputy Secretary                              Deborah Danker
        Assistant Secretary                           David Skidmore
        General Counsel                               Scott G. Alvarez
        Economists                                    Karen H. Johnson,
                                                              David J.
                                                              Stockton

        Federal Advisory Councils:

        Secretary, Federal Advisory Council           Thomas A. Renyi
        Chairman, Consumer Advisory Council           Lori R. Swanson
        President, Thrift Institutions                Roy M. Whitehead
                Advisory Council

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    The Federal Reserve System, the central bank of the United States, is
    charged with administering and formulating the Nation's credit and
    monetary policy. Through its supervisory and regulatory banking
    functions, the Federal Reserve maintains the safety and soundness of the
    Nation's economy, responding to the Nation's domestic and international
    financial needs and objectives.

    The Federal Reserve System was established by the Federal Reserve Act
    (12 U.S.C. 221), approved December 23, 1913. The System serves as the
    Nation's central bank. As such, its major responsibility is in the
    execution of monetary policy. It also performs other functions, such as
    the transfer of funds, handling Government deposits and debt issues,
    supervising and regulating banks, and acting as lender of last resort.
        It is the responsibility of the Federal Reserve System to contribute
    to the strength and vitality of the U.S. economy. By influencing the
    lending and investing activities of depository institutions and the cost
    and availability of money and credit, the Federal Reserve System helps
    promote the full use of human and capital resources, the growth of
    productivity, relatively stable prices, and equilibrium in the Nation's
    international balance of payments. Through its supervisory and
    regulatory banking functions, the Federal Reserve System helps maintain
    a commercial banking system that is responsive to the Nation's financial
    needs and objectives.
        The System consists of the Board of Governors in Washington, DC; the
    12 Federal Reserve Banks and their 25 branches and other facilities
    situated throughout the country; the Federal Open Market Committee; the
    Federal Advisory Council; the Consumer Advisory Council; the Thrift
    Institutions Advisory Council; and the Nation's financial institutions,
    including

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    commercial banks, savings and loan associations, mutual savings banks,
    and credit unions.

    Board of Governors

    The Board is composed of seven members appointed by the President with
    the advice and consent of the Senate. The Chairman of the Board of
    Governors is a member of the National Advisory Council on International
    Monetary and Financial Policies. The Board determines general monetary,
    credit, and operating policies for the System as a whole and formulates
    the rules and regulations necessary to carry out the purposes of the
    Federal Reserve Act. The Board's principal duties consist of monitoring
    credit conditions; supervising the Federal Reserve Banks, member banks,
    and bank holding companies; and regulating the implementation of certain
    consumer credit protection laws.
    Power To Influence Credit Conditions  The Board has the power, within
    statutory limitations, to fix the requirements concerning reserves to be
    maintained by depository institutions on transaction accounts or
    nonpersonal time deposits. The Board of Governors reviews and determines
    the discount rate charged by the Federal Reserve Banks. For the purpose
    of preventing excessive use of credit for the purchase or carrying of
    securities, the Board is authorized to regulate the amount of credit
    that may be initially extended and subsequently maintained on any
    security (with certain exceptions).
    Supervision of Federal Reserve Banks  The Board is authorized to make
    examinations of the Federal Reserve Banks, to require statements and
    reports from such Banks, to supervise the issue and retirement of
    Federal Reserve notes, to require the establishment or discontinuance of
    branches of Reserve Banks, and to exercise supervision over all
    relationships and transactions of those Banks with foreign branches.
    Supervision of Bank Holding Companies  The Federal Reserve has primary
    responsibility for supervising and regulating the activities of bank
    holding companies. The main objectives of this activity are to control
    the expansion of bank holding companies by avoiding the creation of
    monopoly or restraining trade in banking, and to limit the expansion of
    bank holding companies to those nonbanking activities that are closely
    related to banking, thus maintaining a separation between banking and
    commerce. A company that seeks to become a bank holding company must
    obtain the prior approval of the Federal Reserve. Any company that
    qualifies as a bank holding company must register with the Federal
    Reserve System and file reports with the System.
    Supervision of Banking Organizations  The Federal Reserve is responsible
    for the supervision and regulation of domestic and international
    activities of U.S. banking organizations. It supervises State-chartered
    banks that are members of the System, all bank holding companies, and
    Edge Act and agreement corporations (corporations chartered to engage in
    international banking).
        The Board has jurisdiction over the admission of State banks and
    trust companies to membership in the Federal Reserve System, the
    termination of membership of such banks, the establishment of branches
    by such banks, and the approval of bank mergers and consolidations where
    the resulting institution will be a State member bank. It receives
    copies of condition reports submitted to the Federal Reserve Banks. It
    has power to examine all member banks and the affiliates of member banks
    and to require condition reports from them. It has authority to require
    periodic and other public disclosure of information with respect to an
    equity security of a State member bank that is held by 500 or more
    persons. It establishes minimum standards with respect to installation,
    maintenance, and operation of security devices and procedures by State
    member banks. Also, it has authority to issue cease-and-desist orders in
    connection with violations of law or unsafe or unsound banking practices
    by State member banks and to remove directors or officers of such banks
    in certain circumstances, and it may suspend member banks from

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    the use of the credit facilities of the Federal Reserve System for
    making undue use of bank credit for speculative purposes or for any
    other purpose inconsistent with the maintenance of sound credit
    conditions.
        The Board may grant authority to member banks to establish branches
    in foreign countries or dependencies or insular possessions of the
    United States, to invest in the stocks of banks or corporations engaged
    in international or foreign banking, or to invest in foreign banks. It
    also charters, regulates, and supervises certain corporations that
    engage in foreign or international banking and financial activities.
        The Board is authorized to issue general regulations permitting
    interlocking relationships in certain circumstances between member banks
    and organizations dealing in securities or between member banks and
    other banks.
    Other Activities  The Board reviews other bank stock acquisitions, as
    listed below.
        The Board prescribes regulations to ensure a meaningful disclosure
    by lenders of credit terms so that consumers will be able to compare
    more readily the various credit terms available and will be informed
    about rules governing credit cards, including their potential liability
    for unauthorized use.
        The Board has authority to impose reserve requirements and interest
    rate ceilings on branches and agencies of foreign banks in the United
    States, to grant loans to them, to provide them access to Federal
    Reserve services, and to limit their interstate banking activities.

    Federal Open Market Committee

    The Federal Open Market Committee is comprised of the Board of Governors
    and five of the presidents of the Reserve Banks. The Chairman of the
    Board of Governors is traditionally the Chairman of the Committee. The
    president of the Federal Reserve Bank of New York serves as a permanent
    member of the Committee. Four of the twelve Reserve Bank presidents
    rotate annually as members of the Committee.
        Open market operations of the Reserve Banks are conducted under
    regulations adopted by the Committee and pursuant to specific policy
    directives issued by the Committee, which meets in Washington at
    frequent intervals. Purchases and sales of securities in the open market
    are undertaken to supply bank reserves to support the credit and money
    needed for long-term economic growth, to offset cyclical economic
    swings, and to accommodate seasonal demands of businesses and consumers
    for money and credit. These operations are carried out principally in
    U.S. Government obligations, but they also include purchases and sales
    of Federal agency obligations. All operations are conducted in New York,
    where the primary markets for these securities are located; the Federal
    Reserve Bank of New York executes transactions for the Federal Reserve
    System Open Market Account in carrying out these operations.
        Under the Committee's direction, the Federal Reserve Bank of New
    York also undertakes transactions in foreign currencies for the Federal
    Reserve System Open Market Account. The purposes of these operations
    include helping to safeguard the value of the dollar in international
    exchange markets and facilitating growth in international liquidity in
    accordance with the needs of an expanding world economy.

    Federal Reserve Banks

    The 12 Federal Reserve Banks are located in Atlanta, GA; Boston, MA;
    Chicago, IL; Cleveland, OH; Dallas, TX; Kansas City, MO; Minneapolis,
    MN; New York, NY; Philadelphia, PA; Richmond, VA; San Francisco, CA; and
    St. Louis, MO. Branch banks are located in Baltimore, MD; Birmingham,
    AL; Buffalo, NY; Charlotte, NC; Cincinnati, OH; Denver, CO; Detroit, MI;
    El Paso, TX; Helena, MT; Houston, TX; Jacksonville, FL; Little Rock, AR;
    Los Angeles, CA; Louisville, KY; Memphis, TN; Miami, FL; Nashville, TN;
    New Orleans, LA; Oklahoma City, OK; Omaha, NE; Pittsburgh, PA; Portland,
    OR; Salt Lake City, UT; San Antonio, TX; and Seattle, WA.
    Reserves on Deposit  The Reserve Banks receive and hold on deposit the

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    reserve or clearing account deposits of depository institutions. These
    banks are permitted to count their vault cash as part of their required
    reserve.
    Extensions of Credit  The Federal Reserve is required to open its
    discount window to any depository institution that is subject to Federal
    Reserve reserve requirements on transaction accounts or nonpersonal time
    deposits. Discount window credit provides for Federal Reserve lending to
    eligible depository institutions under two basic programs. One is the
    adjustment credit program; the other supplies more extended credit for
    certain limited purposes.
        Short-term adjustment credit is the primary type of Federal Reserve
    credit. It is available to help borrowers meet temporary requirements
    for funds. Borrowers are not permitted to use adjustment credit to take
    advantage of any spread between the discount rate and market rates.
        Extended credit is provided through three programs designed to
    assist depository institutions in meeting longer term needs for funds.
    One provides seasonal credit--for periods running up to 9 months--to
    smaller depository institutions that lack access to market funds. A
    second program assists institutions that experience special difficulties
    arising from exceptional circumstances or practices involving only that
    institution. Finally, in cases where more general liquidity strains are
    affecting a broad range of depository institutions--such as those whose
    portfolios consist primarily of longer term assets--credit may be
    provided to address the problems of particular institutions being
    affected by the general situation.
    Currency Issue  The Reserve Banks issue Federal Reserve notes, which
    constitute the bulk of money in circulation. These notes are obligations
    of the United States and are a prior lien upon the assets of the issuing
    Federal Reserve Bank. They are issued against a pledge by the Reserve
    Bank with the Federal Reserve agent of collateral security including
    gold certificates, paper discounted or purchased by the Bank, and direct
    obligations of the United States.
    Other Powers  The Reserve Banks are empowered to act as clearinghouses
    and as collecting agents for depository institutions in the collection
    of checks and other instruments. They are also authorized to act as
    depositories and fiscal agents of the United States and to exercise
    other banking functions specified in the Federal Reserve Act. They
    perform a number of important functions in connection with the issue and
    redemption of United States Government securities.

    Sources of Information

    Employment  Written inquiries regarding employment should be addressed
    to the Director, Division of Personnel, Board of Governors of the
    Federal Reserve System, Washington, DC 20551.
    Procurement  Firms seeking business with the Board should address their
    inquiries to the Director, Division of Support Services, Board of
    Governors of the Federal Reserve System, Washington, DC 20551.
    Publications  Among the publications issued by the Board are The Federal
    Reserve System--Purposes and Functions, and a series of pamphlets
    including Guide to Business Credit and the Equal Credit Opportunity Act;
    Consumer Handbook; Making Deposits: When Will Your Money Be Available;
    and When Your Home Is On the Line: What You Should Know About Home
    Equity Lines of Credit. Copies of these pamphlets are available free of
    charge. Information regarding publications may be obtained in Room MP-
    510 (Martin Building) of the Board's headquarters. Phone, 202-452-3244.
    Reading Room  A reading room where persons may inspect records that are
    available to the public is located in Room B-1122 at the Board's
    headquarters, Twentieth Street and Constitution Avenue NW., Washington,
    DC. Information regarding the availability of records may be obtained by
    calling 202-452-3684.

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    For further information, contact the Office of Public Affairs, Board of
    Governors, Federal Reserve System, Washington, DC 20551. Phone, 202-452-
    3204 or 202-452-3215. Internet, www.federalreserve.gov.

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