CHANGES IN BOARD STAFF.

The Board of Governors approved on December 20, 2000, a restructuring of the Division of Banking Supervision and Regulation. The principal objectives of the reorganization are the following:

* Focus more effectively on major supervisory risks and to provide additional emphasis on enhanced accounting, public disclosure, and market discipline as important supplements to safety and soundness supervision

* Develop a more coordinated approach to Systemwide supervisory activities, including large, complex banking organizations (LCBOs) and resource allocation

* Support implementation of financial holding company umbrella supervision and other aspects of the Gramm-Leach-Bliley Act

* Address strategic organizational considerations.

As part of the reorganization, the Board is pleased to announce the following official staff promotions and appointments:

* The promotion of Herbert A. Biern, Roger T. Cole, and William A. Ryback to Senior Associate Directors

* The promotion of Gerald A. Edwards to Associate Director and Chief Supervisory Accountant

* The promotion of James V. Houpt, Stephen M. Hoffman, Jack P. Jennings, Michael G. Martinson, and Molly S. Wassom to Associate Directors

* The promotion of Sidney M. Sussan to Adviser

* The promotion of Howard A. Amer, Mary Cross Jacowski, Norah M. Barger, and Richard A. Small to Deputy Associate Directors

* The appointment of Deborah P. Bailey, Barbara J. Bouchard, Angela Desmond, James A. Embersit, Charles H. Holm, Heidi W. Richards, William G. Spaniel, and David M. Wright to the official staff as Assistant Directors.

Ms. Bailey was appointed Assistant Director responsible for LCBO supervision after having been the manager of the Global Organizations Section. She joined the Board's staff in 1997 after seventeen years with the Office of the Comptroller of the Currency as a supervisory financial analyst. She was awarded a B.B.A. from the University of Georgia and has received her commission as a National Bank Examiner.

Ms. Bouchard was appointed Assistant Director of the Supervisory and Risk Policy Function after having been the manager of the Policy Development Section. She began her career at the Board in 1992 as a senior financial analyst. She received her law degree from George Washington University's National Law Center and her B.S. from the University of Virginia.

Ms. Desmond was appointed Assistant Director for the LCBO Secretariat. She joined the Board's staff in 1993 and most recently performed the secretariat function for the LCBO Subcommittee of the System's Strategic Plan Steering Committee. She earned her B.S. from Boston State College and her J.D. from The American University Law School.

Mr. Embersit was appointed Assistant Director of the Market and Liquidity Risks Function. He began his career at the Board in 1991 as a supervisory financial analyst and was promoted to manager of the Capital Markets Program. Mr. Embersit earned his B.A. from The American University and holds master's degrees from Boston College and George Washington University.

Mr. Holm was appointed Assistant Director of the Accounting Function. He joined the Board's staff in 1988 as an accountant analyst in the Policy Development Section and became the manager of the Accounting Policy and Disclosure Section in 1998. He earned a B.S. from Villanova University, an M.B.A. from the University of Maryland, and is a certified public accountant.

Ms. Richards was appointed Assistant Director of the Operational Risk and Emerging Activities Function after having been manager of Specialized Activities. She joined the Board's staff in 1993 in the Division of Federal Reserve Bank Operations and Payment Systems as an assistant financial services analyst. She holds an A.B. from Radcliffe College and an M.P.A. from the John F. Kennedy School of Government at Harvard.

Mr. Spaniel was appointed Assistant Director of the System Planning Evaluation and Staff Development Function. He joined the Board's staff in 1990 as a senior financial analyst and in 1998 was promoted to manager, Supervisory Reviews and Evaluations. Mr. Spaniel holds a B.A. from The College of William and Mary.

Mr. Wright was appointed Assistant Director of the Credit Risk Function after having been manager of the Financial Analysis and Special Studies Function since 1998. He joined the division in 1991. He holds a B.A. from Wake Forest University and an M.B.A. from The College of William and Mary.