Announcements.FEDERAL OPEN MARKET COMMITTEE DIRECTIVE
The Federal Open Market Committee decided on March 18, 2003, to keep its target for the federal funds rate Federal Funds Rate
The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. unchanged at 1 1/4 percent.
While incoming economic data since the January meeting have been mixed, recent labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience indicators have proven disappointing. However, the hesitancy hes·i·tan·cy
An involuntary delay or inability in starting the urinary stream. of the economic expansion appears to owe importantly to oil price premiums and other aspects of geopolitical ge·o·pol·i·tics
n. (used with a sing. verb)
1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation.
a. uncertainties. The Committee believes that as those uncertainties lift, as most analysts expect, the accommodative stance of monetary policy, coupled with ongoing growth in productivity, will provide support to economic activity sufficient to engender an improving economic climate over time.
In light of the unusually large uncertainties clouding the geopolitical situation in the short run and their apparent effects on economic decisionmaking, the Committee does not believe it can usefully characterize the current balance of risks with respect to the prospects for its long-run goals of price stability and sustainable economic growth. Rather, the Committee decided to refrain from making that determination until some of those uncertainties abate abate v. to do away with a problem, such as a public or private nuisance or some structure built contrary to public policy. This can include dikes which illegally direct water onto a neighbors property, high volume noise from a rock band or a factory, an improvement . In the current circumstances, heightened surveillance is particularly informative.
Voting for the FOMC See Federal Open Market Committee.
See Federal Open Market Committee (FOMC). monetary policy action were Alan Greenspan Alan Greenspan
Dr. Greenspan is Chairman of the Board of Governors of the Federal Reserve System. Dr. Greenspan also serves as Chairman of the Federal Open Market Committee (FOMC), the Fed's principal monetary policymaking body. , Chairman; William J. McDonough
William J. McDonough, vice chairman and special advisor to the chairman at Merrill Lynch & Co. Inc. , Vice Chairman; Ben S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr., Roger W. Ferguson, Jr., Edward M. Gramlich; Jack Guynn Jack Guynn was the President and CEO of the Federal Reserve Bank of Atlanta from 1996 to 2006. He has retired from that position and been appointed to Oxford Industries, Inc.'s Board of Directors. , Donald L. Kohn, Michael H. Moskow Michael H. Moskow took office on September 1, 1994, as the eighth president and chief executive officer of the Federal Reserve Bank of Chicago. In 2007, he serves as a voting member of the Federal Open Market Committee, bringing his District's perspective to policy discussions in , Mark W. Olson This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , and Robert T. Parry.
REVISIONS TO OFFICIAL STAFF COMMENTARY ON REGULATION Z
The Federal Reserve Board on March 28, 2003, issued revisions to the official staff commentary that applies and interprets the requirements of Regulation Z, which implements the Truth in Lending Act The Truth in Lending Act is contained in Title I of the Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq.). The CCPA is designed to assure that every customer who needs Consumer Credit is given meaningful information concerning the cost of such credit. .
The commentary revisions discuss the status of certain credit-card-related fees and the rules for replacing an accepted credit card with one or more cards.
In addition, the commentary revisions discuss the disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by provisions in Regulation Z that implement the Home Ownership and Equity Protection Act.
At the time the proposed commentary revisions were published in December 2002, the Board also requested comment and information from the public about the design and operation of overdraft or "bounced check Ask a Lawyer
Country: United States of America
I have recently found out that a check I wrote over a year ago bounced and never got paid and that I have a warrant out for my arrest. " protection services. Board staff is continuing to gather information on these services and will determine at a later date whether additional guidance for financial institutions is warranted under Regulation Z or other laws.
The revisions are effective April 1, 2003. The date for mandatory compliance is October 1, 2003.
JOINT FEDERAL RESERVE AND TREASURY REPORT ON GLOBAL COUNTERFEITING
The Federal Reserve Board and the Treasury Department on March 14, 2003, issued a joint report to Congress stating that procedures to combat international counterfeiting of U.S. currency are becoming more effective.
U.S. dollars are held and widely used around the world, and the popularity and ubiquity of the dollar make it a potential target for counterfeiters. The incidence of counterfeiting has declined markedly with the introduction of the 1996-series currency. An upcoming new series currency, to be introduced later this year, will further enhance the security of U.S. banknotes.
The report, The Use and Counterfeiting of United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Currency Abroad, Part II, mandated by the Congress as part of the Anti-Terrorism and Effective Death Penalty Act of 1996, represents a comprehensive review of the international use and counterfeiting of U.S. currency. The report details how the combined efforts of the Treasury, United States Secret Service, and Federal Reserve have held the incidence of counterfeiting at relatively low nominal levels.
"We continue to improve our currency and resist efforts by counterfeiters the world over to produce and pass counterfeit U.S. notes," said Treasury Secretary John W. Snow. "Only by such efforts can we guarantee that our currency will continue to remain a symbol of American strength and stability."
"U.S. currency continues to hold an important place in the payment system at home and abroad and maintaining its integrity is of utmost concern to the Federal Reserve," said Roger Ferguson, Vice Chairman of the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System
The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. . "A secure currency precludes the need for businesses, merchants and the public to expend significant resources and time validating the genuineness of currency. When payment systems work well, the economy functions more efficiently."
This second report to the Congress on the use and counterfeiting of U.S. currency abroad provides further evidence that improved note designs have been more difficult for counterfeiters to copy. The result has been much smaller proportions of counterfeits of new design notes among notes processed at Federal Reserve Banks.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the report, efforts to protect U.S. currency continue to be effective. The incidence of counterfeiting is low, with approximately one counterfeit note per 10,000 notes worldwide. The U.S. Secret Service is working closely with overseas banks and law enforcement agencies A law enforcement agency (LEA) is a term used to describe any agency which enforces the law. This may be a local or state police, federal agencies such as the Federal Bureau of Investigation (FBI) or the Drug Enforcement Administration (DEA). to help suppress counterfeiting activities.
The report highlights important steps the U.S. government is currently taking to combat global counterfeiting:
* The Secret Service web site allows law enforcement agencies and currency handlers worldwide to report instances of counterfeiting and to learn more about the characteristics of a suspect note.
* The Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007. The bank now continues under the new name of The Bank of New York Mellon Corporation. has established overseas cash depots at foreign commercial banks. These facilities allow overseas dollar users to obtain new U.S. currency more efficiently and increase the repatriation Repatriation
The process of converting a foreign currency into the currency of one's own country.
If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. rate of worn and old-design U.S. currency.
* U.S. enforcement agencies are working with their overseas counterparts to target cities and countries that first receive counterfeit notes in the wholesale distribution chain.
The study concludes that overseas holdings of U.S currency ranged between $340 billion and $370 billion out of the roughly $620 billion in U.S. currency held outside U.S. depository institutions in the last quarter of 2002.
According to the report, advances in reprographic and computer technology will continue to necessitate new and innovative responses to maintain the overall security of U.S. currency. These efforts will include further security enhancements to the currency design, enhanced cooperation with international law enforcement agencies and additional training of foreign law enforcement, and financial officials in counterfeit detection.
The report is available online at http:// www.federalreserve.gov/boarddocs/rptcongress/ counterfeit2003.pdf.
UPDATE OF INTERAGENCY POLICY STATEMENT ON INTERNAL AUDITING
The federal banking and thrift regulatory agencies on March 17, 2003, revised their guidance on the independence of accountants who provide institutions with both external and internal audit services to reflect the provisions of the Sarbanes-Oxley Act See SOX. of 2002.
The updated Interagency Policy Statement on the Internal Audit Function and Its Outsourcing, which replaces a policy issued in 1997, also reflects the agencies' experience with the 1997 policy and incorporates recent developments in internal auditing. It was issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. , the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. , and the Office of Thrift Supervision The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in August 1989 as part of a major Reorganization Plan of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. .
The Sarbanes-Oxley Act and recently adopted Securities and Exchange Commission (SEC) rules prohibit an accounting firm from acting as the external auditor The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. of a public company during the same period that the firm provides internal audit services to the company. The revised policy statement separately discusses the applicability of this prohibition to institutions that are public companies; insured depository institutions with $500 million or more in assets that are subject to the annual audit and reporting requirements of section 36 of the Federal Deposit Insurance Act; and nonpublic institutions that are not subject to section 36.
The existing guidelines for institutions subject to section 36 provide for their external auditors to meet the SEC's independence requirements. Auditors for these institutions, whether or not they are public companies, should comply with the prohibition on internal audit outsourcing in the SEC's rules.
The policy statement encourages nonpublic institutions not subject to section 36, which includes nonpublic depository institutions with less than $500 million in assets, to refrain from outsourcing internal audit activities to their external auditor. If such an institution decides to use the same firm for both internal and external audit work, however, the audit committee should document its consideration of the independence issues associated with this arrangement.
In addition to changes related to the Sarbanes-Oxley Act, the agencies enhanced the 1997 policy statement's discussion of the responsibilities of the board of directors and senior management with respect to the internal audit function and its placement within an organization, its management and staffing, and the communication of concerns and weaknesses in accounting and internal control. The policy also reiterates the need for institutions to maintain strong systems of internal control, including internal controls over financial and regulatory reporting, and high-quality internal audit programs. Expanded guidance has been provided on the use of independent reviews of significant internal controls by small institutions that do not have a formal internal audit manager or staff. The policy statement also includes guidance for examiners on addressing concerns they may have about the adequacy of the internal audit function or related outsourcing arrangements.
INTERAGENCY PAPER ON SOUND PRACTICES TO STRENGTHEN THE RESILIENCE OF THE U.S. FINANCIAL SYSTEM
Three federal regulatory agencies on April 8, 2003, issued an "Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System." Among other things, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission identified sound practices to strengthen the resilience of critical U.S. financial markets and minimize the immediate systemic effects of a wide-scale disruption.
On September 5, 2002, the agencies published for comment a draft of the paper in the Federal Register. The agencies have incorporated many of the suggestions that were made. The final paper, which applies most directly to the clearing and settlement activities of a limited number of financial institutions, provides more flexibility to firms in managing geographic dispersion of backup facilities and staffing arrangements, and takes into account other considerations relevant to cost-effective implementation of sound practices.
ONLINE RESOURCE ON PERSONAL FINANCIAL EDUCATION
The Federal Reserve Board on March 28, 2003, announced the launch of an online resource for researchers, educators, program directors, and others interested in advancing financial education programs.
The Financial Education Research Center was developed by the Federal Reserve Bank of Chicago
The Federal Reserve Bank of Chicago is one of twelve regional Reserve Banks that, along with the Board of Governors in Washington, D.C. to promote excellence in financial education by encouraging research and disseminating information through its repository of research studies and listings of major financial education programs throughout the country. The Center is housed on the Chicago Reserve Bank's web site (www.chicagofed.org/ cedric/index.cfm).
The Federal Reserve Board and the twelve Federal Reserve Banks undertake a variety of educational programs and partnerships with financial education providers. The Financial Education Research Center is one aspect of the Federal Reserve's efforts to increase awareness and further the implementation of effective financial education programs and initiatives. To date, little broad-based empirical data have been gathered regarding the most effective means for improving individuals' personal financial practices. The online center is an additional tool for those interested in supporting financial education.
Inquiries regarding the submission of material for inclusion on the site should be directed to email@example.com.
MINUTES OF DISCOUNT RATE MEETINGS
The Federal Reserve Board on March 28, 2003, released the minutes of its discount rate meetings from January 6 to January 27, 2003.
The Federal Reserve Board on March 17, 2003, announced the execution of a written agreement by and between Midstate Bancorp, Inc., Hinton, Oklahoma Hinton is a town in Caddo County, Oklahoma, United States. The population was 2,175 at the 2000 census. Geography
Hinton is located at (35.479004, -98.353748)GR1, elevation 1,676 feet (511 meters). and the Federal Reserve Bank of Kansas City The Federal Reserve Bank of Kansas City covers the 10th District of the Federal Reserve, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico. The Bank has branches in Denver, Oklahoma City, and Omaha. . The Federal Reserve Board also announced the execution of a written agreement by and among the Legacy Bank, Hinton, Oklahoma, the Federal Reserve Bank of Kansas City, and the Oklahoma State Banking Department. The Legacy Bank is a subsidiary of Midstate Bancorp, Inc.
The Federal Reserve Board on March 21, 2003, announced the execution of a written agreement by and between Barnes Banking Company, Kaysville, Utah Kaysville is a city in Davis County, Utah, USA. The Kaysville area was originally settled by Hector Haight shortly after Mormon pioneers arrived in 1847. He had been sent north to find feed for the stock and soon thereafter constructed a cabin and brought his family to settle the , and the Federal Reserve Bank of San Francisco The Federal Reserve Bank of San Francisco is the federal bank for the twelfth district in the United States. The twelfth district is made up of nine western states—Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington—plus American Samoa, .
The Federal Reserve Board on March 27, 2003, announced the execution of a written agreement by and among Fifth Third Bancorp, Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation).
Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. ; the Fifth Third Bank, Cincinnati, Ohio; the Federal Reserve Bank of Cleveland The Federal Reserve Bank of Cleveland is the Cleveland-based headquarters of the U.S. Federal Reserve System's Fourth District. The district is composed of Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia. ; and the State of Ohio Department of Commerce, Division of Financial Institutions.
Maureen P. English, Associate Director in the Division of Consumer and Community Affairs, retired from the Board on April 3, 2003, after nearly twenty-seven years of service.
The Board of Governors has also approved the following officer promotions and appointment:
* The promotions of Marianne Emerson to Director and Maureen Hannan to Deputy Director in the Division of Information Technology;
* The appointment of H. Fay Peters as Deputy Director in the Management Division.
Marianne Emerson was appointed to the official staff as an Assistant Director in 1990 and has since managed all of the division's critical operations through a series of progressively more responsible assignments. Ms. Emerson has served as Deputy Director of the Division of Information Technology since 1999 and as Acting Director since 2002.
Maureen Hannan was appointed to the official staff in 1998 and had oversight responsibility for the collection and editing of the Board's micro economic and financial statistical data. Ms. Hannan has represented the Board on many Federal Reserve, interagency, and private-sector forums addressing information technology issues.
H. Fay Peters will have oversight responsibility for the day-to-day operations of the Management Division, including Human Resources, Finance and Accounting, Facilities, and the security program for the Board's premises and personnel. Ms. Peters joined the Federal Reserve System in 1982 as an attorney at the Federal Reserve Bank of Boston The Federal Reserve Bank of Boston is responsible for the First District of the Federal Reserve, which covers Connecticut (excluding Fairfield County), Massachusetts, Maine, New Hampshire, Rhode Island and Vermont. It is headquartered in Boston, Massachusetts. and was Assistant Counsel and Assistant Corporate Secretary when she left the Boston Bank in 1988 for a Senior Counsel position at the Federal Reserve Bank of Minneapolis The Federal Reserve Bank of Minneapolis covers the 9th District of the Federal Reserve, including Minnesota, Montana, North and South Dakota, northwestern Wisconsin, and the Upper Peninsula of Michigan. . She was promoted in 1999 to Vice President and Equal Employment Opportunity (EEO EEO Equal Employment Opportunity
EEO Equal Employment Office
EEO Eastern European Outreach (Murrieta, CA)
EEO Extremely Elliptical Orbit
EEO Exotic Electro-Optics, Inc. ) Officer. Ms. Peters has a B.S. degree in business administration from Northeastern University and a J.D. degree from the Boston University School of Law . Boston University School of Law (BU Law) is the law school affiliated with Boston University.