* WASHINGTON (11/7/08)--The Federal Reserve Banks announced Thursday
that the Federal Reserve Bank of Cleveland will serve as the single paper check processing and adjustments site and that the Federal Reserve Bank of Atlanta will serve as the single paper check processing site for the Federal Reserve System. The banks also announced they will use a restructuring schedule that scales back or shifts operations at other sites when paper check volumes do not justify the existing operation. Paper check volumes have steadily declined and do not support the need for four full-service sites. The transition from four to one full-service paper processing site is likely by the end of next year, the Fed said ... * WASHINGTON (11/7/08)--President-elect Barack Obama selected two bankers Wednesday to work on the Obama-Biden Transition Project, which aims to ease the new administration’s transition into the White House (American Banker
Nov. 6). The individuals are: Michael Froman, former managing director, Citigroup; and William Daley, JPMorgan Chase and Co. Midwest chairman. Daley is the brother of Mayor Richard Daley of Chicago. Froman previously worked as chief of staff to former Treasury Secretary Robert Rubin ... * WASHINGTON (11/7/08)--The Federal Reserve Board Wednesday asked for more cash from the banking industry so that it can pay more interest on reserves that financial institutions hold at the Fed. The current interest rate is 1%. The plan aims to encourage bankers to send their money to the central bank instead of other institutions. Some smaller banks have been borrowing in the interbank market at lower rates than the Fed funds rate (American Banker
Nov. 6). The Fed’s interest hike could cost small banks more, but it would add to the Fed’s balance sheet to support liquidity programs the central bank is using to ease the credit crisis ... *
ALEXANDRIA, Va. (11/7/08)--National Credit Union Administration Chairman Michael Fryzel (far right) toured Regional FCU’s student branch at Morton High School in Hammond, Ind., Tuesday. “This kind of outreach sets the foundation for America’s youth to become financially responsible adults, and is one that will pay significant dividends in the future,” he said. Regional FCU operates nine school branches run by students. The student branch program was designed by the credit union to teach students money management skills. (Photo provided by the National Credit Union Administration) ...