Regional President Speech

f !JOG-6- 1987 Accomplishments December 2, 1987 I. Response to stock market situation A. Many of the changes and events affecting the Bank in 1987 were quite subtle. However, one was quite the opposite--the rapid deceleration of the stock market on "Black Monday." The Bank performed a particularly valuable role in the urgent situation that developed as the market dropped. The Bank, and the Federal Reserve System as a whole, responded quickly and effectively and helped prevent the situation from becoming even worse. By maintaining smooth operations and monitoring conditions, the Bank acted as a stabilizing force in a shaky economy. An event like this is simultaneously unsettling and reassuring. A precipitous drop in the market is always a shock to the economy. At the same time, the Federal Reserve's timely response and the resiliency shown by the economy are a comforting sign for the future. Overall, the performance of the Bank, and the Federal Reserve as a whole, is one we can be proud of. ~ ~ ~ ct'),...)'_s ~JUL-y II. Economic Research and Information Services A. A total of 19 research papers on monetary policy, the regional economy, and regulatory issues were completed. Topics include: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -the effects of public expenditure on private capital accumulation; -the effects of tariff policy on employment, output and the trade deficit; -standby letters of credit; -the effects of the Tax Overhaul Bill of 1986 on the economy; -regional concentration of high-tech occupations; -why commercial banks sell loans; -economic development efforts in the Seventh District. B. Also completed "The Iowa Economy: Dimensions of Change," a study of the Iowa economy. Study designed to provide a foundation of economic data for the Iowa Business Council as it develops recommendations for the revitalization of the states' economy. C. Support for Detroit Financial Planning Committee continued. D. Published 1986 Annual Report focusing on accomplishments of Bank employees and the building renovation. E. Held a total of 13 economic forums in which Bank officials discussed monetary policy and the regional economy with business leaders in cities throughout the District. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F. Held the 23rd annual Conference on Bank Structure and Competition. G. Selected new members of the Advisory Councils on Agriculture and Small Business. The new members of the Councils met twice in 1987. H. The Chicago Office and the Detroit Branch successfully converted to the STAT computer software system. The STAT software is used to collect, edit, report, and transmit the statistical data collected by the Bank. Thus far, the deposit-reports data series and 12 additional series have been converted to STAT. The Bank served as the test site for the installation of the software. STAT will eventually be used by other Reserve Banks. 111. Supervision and Regulation and Loans A. As of September, the Bank had processed 347 domestic applications and notifications in a timely manner. B. The Bank has also completed 634 inspections and examinations. As of September, the Bank completed: -118 consumer affair exams, 5 Community Reinvestment Act visitations and 2 Regulation G inspections; -336 bank holding company inspections; Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -106 commercial bank exams; -44 Bank Secrecy Act exams; and -23 special exams. C. Operating circular No. 9, which explains how institutions may borrow from the discount window, was revised and distributed. IV. Operations and Check Services A. Government check operations were transferred to the Milwaukee Office. B. The Chicago Office installed the computer hardware, software, and network designed to automate the check adjustment area. C. At the Detroit Branch, the return-item processing system was automated resulting in increased efficiency and better service. D. Bank implemented Reject Repair Reentry. E. Following the recommendation of the District Payor Information Services Task Force, the Bank: -changed the high dollar group sort deadlines at Chicago and Milwaukee from 8:30 a.m. to 8:00 a.m. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -implemented account verification at each office for the key account totals service. V. Automation and Electronic Services A. Automated payroll system for Bank employees was implemented. B. Bank installed 137 dial-up personal computer systems at District institutions. The new dial-up computer replaces the LV T system which will be phased out in December 1988. C. New software was installed that enables the Bank to edit and distribute ACH files simultaneously and fully automates holiday float processing. D. Security awareness program continued. Included Security Awareness Conference held on September 10th and 11th. Conference attended by 269 financial institution excecutives and trade association representatives. Covered topics such as encryption, microcomputer security, and the Bank's information security program. E. Product enhancements studied in the past year include possibility of processing off-line ACH database returns through a voice response system, and further automating the off-line wire transfer service. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F. Implemented third phase of installation of terminals for Treasury Direct, the new book-entry system for government securities. The Treasury is now able to access applications through FRCS-80. VI. Support Services A. The Integrated Accounting System (IAS) was implemented in early 1987. The new system helped integrate the Bank's operations and accounting system into a unified whole. B. Bank initiated a pilot program for the Electronic Management Information system. Designed to deliver data electronically to senior management. C. The most visible changes in the past year have been those associated with the Bank's rennovation. So far in 1987, these changes have included: -Rennovating the 13th through the 16th floors, and relocating departments to these areas; -Installing new limestone facing over the concourse area, and on the 5th floor and the 9th through the 16th floors on the 1957 section of the building; -Installing and converting the entire building to new mechanical, heating, ventilation, and air conditioning systems. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -Building a new employee cafeteria on the 5th floor. -Building a new conference center, also on the 5th floor. -Moving the research library from the 5th floor to the 11th floor. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Silas Keehn (1987, December 1). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19871202_silas_keehn

@misc{wtfs_regional_speeche_19871202_silas_keehn,
  author = {Silas Keehn},
  title = {Regional President Speech},
  year = {1987},
  month = {Dec},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19871202_silas_keehn},
  note = {Retrieved via When the Fed Speaks corpus}
}