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O F C H IC A G O
1987Annual Report

The Federal Reserve Bank of
Chicago, as part of the nation’s
central banking system, serves
the Seventh District which
includes major portions of
Illinois, Indiana, Michigan, and
Wisconsin plus all of Iowa. Its
role is to foster a healthy
financial system and economy
through its monetary policy
responsibilities, by examining
and regulating banks and bank
holding companies, and by
providing banking services to
depository institutions and the
U.S. government.

President's Message

1

The District Economy

4

Economic Research and
Monetary Policy

8

Supervision and Regulation

10

Financial Services

12

Support Activities

14

Directors and Officers

16

Financial Statements

22

I am pleased to present the 1987 Annual
Report of the Federal Reserve Bank of
Chicago. As the report indicates, 1987 was a
year of outstanding accomplishment for our
Bank, due in large part to the efforts of our
directors, officers and staff. I am proud of
their achievements and I am grateful for their
continued support and dedication.
Nationally, 1987 was a year of remarkable
economic progress. The economy entered its
sixth year of uninterrupted growth, making
this the longest peacetime expansion in the
nation’s history. Buoyed by strong business
investment and renewed growth in
manufacturing exports, annual output grew
by nearly 3 percent. By the end of 1987,
unemployment had dropped to 5.7 percent,
its lowest level since 1980. Happily, this
growth was achieved while containing
inflation to 4 percent—well above our longrun target but lower than might be expected
at this phase of the economic cycle.
The performance of the Midwest’s economy
was the best of this decade. For the first time
since 1983, manufacturing output in the
Midwest grew more rapidly than for the
nation as a whole, and for the first time since
1980, overall economic activity in the Midwest
outpaced the rest of the nation.
It is ironic that a year of healthy growth also
should have witnessed the most notable
financial disturbance of the last 50 years—the
stock market correction of October 1987. The
week of October 19 tested the capacity of our
financial system to cope with destabilizing,
shocks. The nation’s financial markets were
subjected to dramatic price swings, massive
trading volume, intermittent trading halts, and
large flows of funds. The performance of
these markets in the face of such shocks is
testimony to their fundamental resilience.
This resilience was made possible, in part, by
excellent communication between all
members of the financial community. This
permitted regulators and market participants
to deal with emerging problems in a timely
and effective fashion. During this period the

Federal Reserve sought to improve the
economy’s ability to cope with the turmoil in
the nation’s financial markets. The Federal
Reserve accomplished this goal by providing
additional liquidity to the financial markets
through open market operations, by
emphasizing its willingness to lend to banks
through the discount window, and by
extending the hours of operation on Fedwire,
the Federal Reserve’s large-dollar payments
system.
With this vital support, the financial system
proved equal to the week’s challenges. But
while the financial system weathered the
storm, it has become clear that institutional
arrangements have not completely adjusted to
the increasing importance of the options and
futures markets. As the Report of the
President's Task Force on Market Mechanisms
makes clear, financial market regulation
cannot ignore the fact that the stock, futures,
and options markets are inextricably
intertwined. Over the coming months
regulators are going to be examining several
ways of improving the performance of these
markets including coordinated trading halts,
unified clearing of financial contracts, and a
strengthening of the specialist system on the
nation's stock markets.
As significant as these events are, I would like
to devote the remainder of this letter to
another financial event that has perhaps even
greater implications for the future of the
financial services industry. By the end of 1987,
the chief federal bank regulators had each
endorsed the relaxation of the Glass-Steagall
and Bank Holding Company Acts—key laws
restricting the types of financial services that
can be offered by banking organizations. This
consensus for change is the result of a
number of factors including the growing
importance of investment banking activities,
the growth of broad-based financial services
firms, an increase in competition for the
traditional blue chip customers of money
center banks, and a general recognition of the
benefits that increased competition can bring
to any industry.
The primary goal of banking regulation
should be to maintain an efficient financial
system while assuring that the banking system

does not become a source of overall
economic instability. There is general
agreement that the relaxation of the GlassSteagall and Bank Holding Company Acts is
consistent with this goal. However, there
remains considerable disagreement on how
the components of a broad-based bank
holding company should be regulated. The
key challenge is to reconcile banking’s twin
roles—competitor in the market for financial
services and keystone of the nation’s
monetary system.
As part of its commitment to assure a stable
monetary system, the Federal Reserve stands
ready to provide liquidity to the entire
financial system through open market
operations. However, banks are beneficiaries
of a “ safety net” that extends beyond the
simple promise of a liquid financial system.
Banks are permitted to borrow on a
collateralized basis from the discount window
and offer insured deposits. In addition, banks
whose solvency is in question sometimes
receive government assistance in restructuring
their balance sheets.
The design of a regulatory system that would
permit banks to become a part of a diversified
financial services firm while preserving those
protections necessary for their special role in
the monetary system is a difficult task.
However, there are four principles that should
be observed in constructing such a system.
1) The components of a broad-based financial
services firm should be regulated in a
consistent fashion.
Today, each subsidiary of a financial services
organization is regulated by its own industry
regulator. Organizations operating in many
different states may have to deal with a
different regulator in each state. This
fragmentation has made it difficult to
effectively deal with problems that affect the
entire organization. Such a system is
particularly cumbersome when a major
subsidiary of the organization faces doubts
about its liquidity or solvency.

2

As bank holding companies make the
transition to broad-based financial services
holding companies, these problems will
become more frequent and more complex.
Prompt resolution of such problems will
require, at a minimum, that regulators have
free and easy access to information on the
condition and operation of the various
components of the holding company.
2) Any competitive advantage enjoyed by a
financial institution should arise from
greater efficiency or innovativeness, not
from more favorable governmental
treatment.
As long as the safety net exists and banks have
privileged access to the nation’s payments
system, banks will retain certain unique
advantages. At the same time, because of their
key role in the monetary system, banks should
always be subject to greater prudential
regulation than other types of financial firms.
This supervision will sometimes seem
burdensome. However, the pursuit of an
efficient financial system requires us to reduce
the disparities between banks and nonbanks
to the minimum level that is consistent with a
safe and sound banking system.
For the last decade, regulators have been
successfully seeking to improve the
capitalization of the U.S. banking system.
These efforts have improved the safety and
soundness of the banking system, reducing
the ability of banks and their parents to gain
an advantage from access to the safety net.
The Basle Committee’s new agreement on
bank capital regulation is an important step in
the decade-long effort to improve bank
capitalization. A result of discussions between
the leading central banks, the agreement sets
minimum capital requirements for banks in all
signatory countries. By 1992, the agreement
requires banks in these countries to have
common equity equal to 4 percent of risk
assets and total capital equal to 8 percent of
risk assets. This will allow a further
improvement in the capitalization of the U.S.
banking system, while preventing U.S. banks
from being disadvantaged relative to foreign
competitors.

However, higher capital requirements are
only a partial solution. There is a limited but
significant risk associated with off-balance
sheet activities of the nation’s leading
commercial banks. While these activities need
to be recognized in assessing a bank’s capital
adequacy, banks engaging in low-risk
activities, on or off the balance sheet, should
not be subjected to an unfair burden. The
Basle agreement addresses this problem by
introducing a system of risk-based minimum
capital requirements that recognizes bank risk
both on and off the balance sheet and weights
different types of activities according to their
risk.
The implementation of this important
proposal will be one of this year’s major
challenges. The resulting improvements in
bank capitalization will reduce the ability of
banks and their holding companies to gain a
competitive advantage as a result of their
access to the safety net. This will ensure that
banking organizations do not dominate other
areas of the financial services industry simply
as a result of this access.
3) Expanded powers for banking
organizations should not automatically lead
to an extension of the safety net beyond
the banking system.
Under the current system of regulation, this
extension is prevented by limitations on bank
ownership, bank services, and eligibility to
borrow at the discount window. The
relaxation of the Glass-Steagall and Bank
Holding Company Acts will blur this clean
demarcation.
Many reform proposals attempt to limit the
extension of the safety net by placing new
activities in subsidiaries of the bank or of the
holding company. By forcing this separation,
proponents hope to erect so-called firewalls
between the bank and the nonbank portions
of the holding company. Restrictions on
transactions between bank and nonbank
components of the company would be used
to reinforce this separation. If this approach is
adopted, the holding company must have
sufficient funding capability to support a
troubled subsidiary without recourse to the
bank. It also seems clear that if banks are
going to be subject to limits on lending to

nonbank affiliates and subsidiaries, most new
activities should occur in subsidiaries of the
holding company rather than in subsidiaries
of the bank.
While firewalls can be helpful, it is unlikely
that they will, in all cases, prevent the rest of
the organization from shifting losses to the
bank and ultimately to the FDIC. The chances
can be reduced by granting bank regulators
access to information on the entire holding
company, and by maintaining well-capitalized
subsidiaries, particularly bank subsidiaries.
4) The expansion of powers for banking
organizations should proceed in a cautious
and deliberate fashion.
While the preceding proposals will be useful
in dealing with the problems that confront us,
many issues have yet to be resolved and a few
will only be identified the hard way, with
experience. Until we have that experience,
prudence dictates that the activities of
companies owning banks should be confined
to the financial sphere. The benefits derived
from the formation of a diversified financial
services firm are clear. On the other hand, the
benefits from commingling banking and
commerce are less clear.
The relaxation of the Glass-Steagall and Bank
Holding Company Acts would raise several
new regulatory problems to which there does
not appear to be any perfect solution.
However, the best solution is offered by a
regulatory system that gives regulators easy
access to information, requires adequate bank
capital, clearly defines the limits of the safety
net, and expands the powers of banking
organizations in a cautious and considered
manner. With such a system in place,
regulators can permit banking organizations
to take advantage of opportunities previously
foreclosed to them. The end result will be a
less restrictive, more competitive, and more
efficient financial services industry.

Silas Keehn
President

-

The Seventh District’s economy
turned in strong performances
across all its sectors in 1987, with
signs of an even brighter future.

iiiSSS

4

The 1980s have been a time for constructive
change for the District’s economy—
modernizing its manufacturing sector to meet
global competition, expanding its service
sector to absorb the spin-off of service
activities from the manufacturing sector, and
restructuring its farm sector to weather the far
reaching problems in agriculture. Evidence is
mounting that the economic changes that
have taken place, while difficult for some, are
leading to a healthier, more competitive
District economy.
With its most impressive economic
performance of the decade in 1987, the
District once again shows signs of becoming
the engine of economic growth for the
nation. Growth of manufacturing activity in
the District outpaced the nation in 1987 for
the first time in the decade other than the
recovery year of 1983. The question is whether
1987 was an aberration or the beginning of an
economic resurgence in the District. The
performance of the major components of the
District’s economy offers some insights.
Manufacturing sector: building on
trade-driven gains
A major impetus to the growth of outputrelated activity in the District was the long
awaited turnaround in foreign trade that
began in 1987. The industrial structure of the
District has a high concentration of tradesensitive industries that was bound to benefit
eventually from the dollar’s steady decline
since 1985. Once the lower dollar stimulated
export activity and import competition eased,
the region was well positioned to capture
some of the growth in foreign and domestic
demand for U.S. produced goods.
A growth in trade-related activity was only
part of the District’s story. Equally important
was the fact that manufacturing activity in the
District outperformed the nation in every
major sector of manufacturing as shown by
the Midwest Manufacturing Index (MMI).

Constructed by the Chicago Reserve Bank’s
Research Department, the MMI combines
monthly labor and capital usage into a single
comprehensive indicator of manufacturing
activity.

Growth in manufacturing
activity: 1987
percent change (4Q/4Q)
+10

Simply put, the region was not only
expanding its manufacturing sector, but also
increasing its share of the domestic and world
markets in most sectors. Even the District’s
machinery sector did better than its growth
rate suggests, because the fourth quarter of
1986 on which its growth is based was
exceptionally strong relative to the sector
nationally.
For some sectors, last year was the first time in
many years that the District’s growth
exceeded the national average. But for two
sectors—metalworking and machinery—
growth of manufacturing activity in the
District has been outpacing the nation since as
early as 1983 (i.e., the beginning of the current
economic expansion). Moreover, these two
sectors account for half of the region’s
manufacturing activity.
Of the District’s manufacturing sectors, only
transportation declined throughout the 1980s
(with the one exception of 1983, which was a
recovery year led by that industry). Last year,
an estimated 17,000 jobs were lost in Michigan
as a direct and indirect result of auto plant
closings and other cutbacks, and 38,000 more
job losses are expected in 1988, according to
an analysis by the University of Michigan. Nor
will Michigan likely be alone; Chrysler’s plant
in Kenosha, Wisconsin is also scheduled to be
closed in 1988.
Even in the transportation sector, however,
there are positive signs for the future. It must
be remembered that the auto industry
currently has some of its most efficient auto
plants located in the District (e.g., Ford Motor
Company’s Torrence Avenue assembly
operation in Chicago, General Motors’ truck
plant in Fort Wayne, Indiana, and Chrysler's
Belvidere, Illinois plant) and will have new
state-of-the-art plants fully operating in 1988
(e.g., the new Diamond-Star Motors facility in
Bloomington-Normal, Illinois and the Mazda

5

plant at Flat Rock, Michigan). Once
restructuring is completed, the auto industry
should join the District's other manufacturing
industries in outperforming the nation.

Index of manufacturing wages
in the Seventh District
percent of U.S.

Rebuilding competitiveness: patience and
commitment

1980

1982

1984

1986

Industrial research and
development spending in
the Seventh District
billions of 1982 dollars

Improvements in factor-cost differentials—the
“cost of doing business” in the District as
compared to elsewhere—have been
important in achieving a stronger competitive
position for the District. In a study undertaken
by the Bank’s Research Department on
determinants of metropolitan growth, costs
associated with labor, taxes, and even access
to technological resources, have been
identified as important to growth.

12

9
6

3
1979

1981

1983

While the dollar’s decline was important in
stimulating demand for manufactured goods,
what underlies the sector’s strong
performance in the District relative to the
nation is a long-term process of rebuilding
competitiveness. Inefficient plants and
equipment are being modernized and
replaced by new technologies to reduce
production costs.

1985

Progress toward reducing costs in the District
can be readily demonstrated. Manufacturing
wages in the District relative to the nation
have edged downward roughly 1 percent
since the late 1970s. While such wage
adjustments and their impact typically require
decades to have their full effect on the region,
the movement is in the right direction.
Moreover, it should be noted that these wage
declines have been standardized for
differences in industrial structure so that the
adjustments have not been realized solely
because employment in the Distirct’s highwage industries has declined. Relative wage
declines have, however, been concentrated in
three states— Indiana, Wisconsin, and Iowa.
The District's performance in 1987 was also
based in part on its access to technology.
Developing new technologies has been one
aspect of the revival process. For example, the
region has steadily increased its annual
investment in research and development
during the 1980s. Increased R&D spending in
the 1980s has been particularly notable in the
auto, electrical equipment, and chemical
industries.

6

Applying new technologies is another aspect
of the process. District manufacturers have
been leaders in adapting new technologies to
traditional industries. The fledgling robotics
industry, for example, remains centered in the
District where its primary market—the auto
industry—is heavily concentrated.
Service sector: steady, reliable growth
The need to improve competitiveness in the
manufacturing sector has often meant that,
rather than expanding employment,
manufacturers substituted capital for labor
and purchased business services instead of
supplying them internally. The service sector,
therefore, becomes critical to the District’s
long-run economic performance, as the
primary source of new jobs. To be sure, the
sector—defined here to include all serviceproducing industries except government—
represents nearly 60 percent of the Distirct’s
total employment. But, the service sector
accounted for three-quarters of the 338,000
net increase in employment in the five District
states during 1987.
Employment growth, as a measure of
economic activity in the service sector, can
also provide a basis for measuring the sector’s
performance in the District, relative to the
nation. For example, is the District’s service
sector keeping pace with the growth of the
sevice sector nationwide? Unfortunately,
service sector employment in the District
grew by 3.0 percent in 1987, just under the
national growth of 3.4 percent. While the
District’s growth rate lagged the national
sector slightly, however, the gap between the
District’s and nation’s growth rate was the
smallest it has been in the 1980s.
Moreover, some segments within the service
sector and some states within the District did
exceed the pace set by the nation. Among
industries within the service sector, for
example, both retail and wholesale trade
industries expanded their employment faster
than the industries nationally.
Somewhat troublesome is the fact that
business-related services other than wholesale

trade could not transfer the growth in the
District’s manufacturing activity into above­
average service employment growth during
1987. To the extent that the two sectors are
linked through manufacturing’s need for a
variety of business services, manufacturing’s
beneficial impact on business-service growth
may yet become evident in 1988.
One reason for the District’s poor
performance in business services employment
may be the uneven distribution of servicesector growth among the five states of the
District. Service sector employment growth
exceeded the national average in two states—
Indiana and Wisconsin. In the case of Indiana
particularly, service sector gains were
pervasive, in large part associated with growth
in the Indianapolis area. On the other hand,
service sector growth in Michigan probably
was depressed by developments in the auto
industry.
Farm sector: financial stress eases
Last year also marked an upturn for the
District’s farm sector. Improvements were
evident in several broad measures of the farm
sector’s performance in 1987, including
farmland values, overall farm commodity
prices, and—again—exports. In fiscal 1987,
U.S. agricultural exports rose 18 percent in
tonnage and 6 percent in value from the lows
set the year before. Equally important to
District farmers, farm sector earnings rose
sharply to a new high, paced by another
banner year for livestock producers. And
evidence of financial stress among farmers
and their lenders eased considerably, with
further declines in outstanding debt and the
upturn in farmland values.
Indeed, considering the widespread financial
stress that has affected agriculture in recent
years, one of the most encouraging
developments for District farmers was the
indication that farmland values were starting
to rise. Following a five-year slide that
resulted in farmland values nationwide
declining by a third, USDA analysts now
estimate that farmland values in 1987 rose
about 3 percent. The upturn was more
pronounced in the District where earlier
declines had eroded farmland values in some

states by 50 to 60 percent. Farmland values,
however, are still well below early 1980 peaks.
Conditions in the farm sector remain
vulnerable in both the District and the nation.
The recovery in most measures of farm sector
performance has been modest compared to
earlier declines. And although most observers
expect further recovery in the year ahead,
those expectations hinge on continued large
government farm programs and subsidies.
Government farm programs underlie much of
the recent prospects for a continuing recovery
for U.S. farmers. The long-run health of the
sector depends on achieving greater
efficiency in agricultural production, while
farmers must become less dependent on large
government subsidies.
Summing up: looking toward the 1990s

Service sector employment
growth: 1987

percent change (4Q/4Q)

U.S. IL

IN

IA

Ml Wl

Farmland values
index, 1976=100

190

With perhaps one notable exception—the
auto industry—the District’s economy had every­
thing going for it in 1987. While one year does
not make a trend, there is reason to be
optimistic about the prospects for the
District’s economy as it approaches the 1990s.
If the dollar remains at current levels, more
exports and less competition from imports
should be a major benefit to both District
manufacturers and farmers. The service sector
should continue its trend growth and may get
an additional boost from the District’s
expanding manufacturing sector. And all signs
from the farm sector point to improvement in
the years ahead, which should also benefit the
District’s service sector.
Perhaps, the real test for the District’s
industries in the remaining years of this
decade will be their competitive
performance—particularly whether District
manufacturing activity can continue to
outpace the growth of manufacturing activity
in the nation as a whole. If so, 1987 may
eventually be recognized as the turning point
in the region’s economic fortunes.

7

Economic research and
monitoring activities support the
Bank's role in System monetary
policy decisions which seek to
foster a healthy, growing, and
noninflationary economy.

8

The Bank's economic research efforts are
aimed at gaining a better understanding of
the workings of the national and District
economy as well as the financial system. To
further these efforts, the Bank placed special
emphasis on three important goals during
1987: enhancing the analytical quality of the
Bank’s economic research, strengthening the
relevance of that research to policy decisions,
and improving the two-way flow of
information between the Bank and its various
audiences.
Economic policy analysis
Three major lines of study anchored policy
research efforts during 1987. The first
provided useful insights into the fundamental
causes of business fluctuations, including the
role of financial markets in those fluctuations.
The second explored the role of fiscal policy
and its effects on the overall economy. The
third focused on alternate measures of
monetary policy in light of the large structural
changes that have affected M1 and other
monetary aggregates in recent years.
Financial system research
Regulatory research in 1987 continued to
focus on public policy toward off-balance
sheet activities in banking. These studies had
two major facets: the role of regulation in
stimulating the growth of off-balance sheet
activities and the impact of these activities on
bank risk. In addition, research on financial
futures and options was emphasized. Because
of this work—in particular, work on market
regulation—the Bank was well prepared to
analyze issues raised by the October 19th
stock market decline.
Regional studies
Regional research activity emphasized a dual
objective—cooperative efforts with public and
private sector decision makers and basic
research on the District economy. The Bank’s
new Midwest Manufacturing Index,
developed to monitor industrial activity in the
District, was introduced during 1987. Other
efforts stressed the evolving structure of the
District’s economic base. The Department also
worked on several joint regional efforts.

including The Iowa Economy—Dimensions of
Change, in conjunction with the Iowa
Business Council; a cost-of-doing-business
study for The Commercial Club of Chicago;
and further work in cooperation with the
Great Lakes Commission and the Detroit
Financial Center Task Force.
Information flows
Critical to all research efforts is the flow of
information—adequate and effective com­
munication between the Bank and the
banking community, other regulatory bodies,
the academic community, business and
industry, the Federal Reserve Board and
System, other central banks, and the public as
a whole. The Bank’s understanding of
economic conditions and relationships and its
effectiveness as a participant in the monetary
policy process depends on this input.
An important component in the information
flow is the enormous amount of data
collected from District financial institutions by
the Bank's Statistics Division. To improve the
collection process, the handling of all data
reports was converted in 1987 to STAT, a com­
prehensive and flexible data management soft­
ware system now used by all System Banks.
As part of its outreach activities during the
past year, the Bank hosted District-wide
forums to discuss economic conditions with
financial, business, and other community
leaders. The Bank’s annual Conference on
Bank Structure and Competition provided an
opportunity for the discussion of critical issues
facing the financial community both today
and in the future. In 1987 the Bank
inaugurated a macroeconomics seminar series
in conjunction with the Northwestern
University Economics Department. This past
year the Bank also expanded its
communications efforts through a new
publication, Chicago Fed Letter, a monthly
newsletter which focuses on economic topics
of regional interest and features a special
section on the Midwest Manufacturing Index.

Through its supervisory,
regulatory and lending activities,
the Bank strives to ensure that
the financial system is stable,
competitive, and responsive to
public needs.

10

Since the beginning of this decade, several
trends have emerged which have made the
supervisory, regulatory, and lending functions
of the Bank more complex and more critical.
Among these are the problems that financial
institutions encounter in the midst of more
volatile economic conditions and the blurring
of market distinctions within the financial
arena itself.

The number of branches of foreign banks in
the Seventh District continued to grow in
1987, reflecting the increasing globalization of
banking and Chicago’s position as an
international financial center. By the end of
the year there were 52 foreign branches in
Chicago, compared to 48 in 1986, with total
assets of $29.3 billion compared to $21.9
billion in 1986.

Bank supervision

Merger and acquisition activities also
continued at a rapid pace throughout 1987, in
response to eased state banking restrictions
on branching and interstate banking. Within
the District, Illinois, Indiana, Michigan, and
Wisconsin have passed reciprocal regional
interstate banking legislation. During 1987 the
Bank received, and was able to process in a
timely manner, 510 domestic and foreign
applications. Although merger and acquisition
activity has decreased the overall number of
banking organizations within the District,
those that remain are larger and more
complex, and present new supervisory
challenges to the Bank.

Thanks in large part to the improvement in
the agricultural economy, the District
experienced a reduction during 1987 in the
number of banking organizations of
supervisory concern. But despite this
heartening news, the examination and
surveillance activities of the Bank must
continue to evolve to meet the ever-changing
and complex challenges of the marketplace.
In 1987, the Bank’s examination staff
conducted 973 examinations and
inspections—100 more than in 1986. Enhanced
training efforts and the use of automation
helped the division meet this increased
workload. This past year the Chicago Reserve
Bank supplemented the 30 different courses
offered by the System and the Federal
Financial Institutions Examination Council
with monthly seminars for Bank staff on topics
of special interest.
Continuous change in the banking industry
makes coordination with other bank
regulatory agencies more critical than ever.
Last year. Bank representatives increased the
frequency of meetings with counterparts from
the Office of the Comptroller of the
Currency, the Federal Deposit Insurance
Corporation, state regulators, and
neighboring Federal Reserve Districts to
discuss critical issues. These enhanced
communications helped the Chicago Bank
remain responsive to the banking community.
Banking structure
Globalization, changes in interstate banking
laws, new bank powers and activities have
each had a profound effect on the structure
of today's banking system. And each
contributes to the complexities the System
and the Chicago Reserve Bank must sort out.

Consolidation of Seventh Districtbased banking organizations
number of banking organizations
with assets over $1 billion
50

illlll

number of commercial banks
3,000

1982 1983 1984 1985 19861987

Payment system risk
During 1987, as in the previous year, efforts
were made to reduce and control the risks
inherent in the large-dollar wire transfer
networks. Modifications to the payment
system risk policy were adopted by the Board
of Governors. The success of this program
continued during 1987 thanks to the
cooperative efforts of the Bank and senior
management of Seventh District depository
institutions.
Additional initiatives
Communication efforts were boosted this past
year with the introduction of Banking
Barometer, a quarterly analysis of banking
conditions in the U.S. and the Seventh
District. The Bank also conducted seminars for
banking, regulatory agency, and general
public audiences on a number of regulatory
topics including Bank Secrecy Act
requirements, capital guidelines, bank
holding company requirements, capital
market activities, and the Community
Reinvestment Act.

11

Annual reports typically focus on one major
factor when measuring success: the bottom
line. Certainly on this basis, the Federal
Reserve Bank of Chicago had another
successful year as it fully recovered the costs
of providing its priced financial services as
required by the Monetary Control Act of
1980. Unlike a private corporation, however,
the Bank's success cannot be fully captured in
a dollar figure. While the bottom line is a key
component, the Federal Reserve has a
broader responsibility to foster a safe and
effective financial system and payments
mechanism.
Check services
For check services, 1987 was a year of
increasing volumes, stable expenses, and
unchanged prices. The Bank accomplished
this by developing more efficient operations
and enhancing services. For example, the
Bank improved operations by “ repairing”
high-dollar checks that could not be
processed by its high-speed sorters. The
repaired checks can then be processed by
automated equipment and no longer require
time-consuming manual sorting. Many of the
Bank's service enhancements involved
tailoring services to the specific needs of
customers. Under the Streamlined Deposit
Program, for example, the Bank offers
standardized deposit requirements to all
Chicago institutions. Similarly, the Bank
initiated a program to encourage small
depositors to consolidate their check deposits.
Both programs increase productivity for the
Chicago Reserve Bank and the depositor. The
Bank also enhanced its payor information
services, and established an internal inquiry
unit that centralizes all telephone contact
between institutions and the check
adjustment area.

develop the operational changes and service
modifications that will enable District
institutions to comply with the Act.
Electronic services
The Bank’s priced electronic services volumes
rose sharply in 1987, with a 7 percent increase
in wire transfer, a 38 percent increase in ACH,
and a 27 percent increase in book-entry
securities services. Contributing to these
accelerating volumes was a variety of service
improvements offered by the Bank. One
major effort was the linkage of 268 dial-up
personal computer terminals at District
institutions to the Bank’s Connect 7/850
system. This network enables institutions to
complete electronic transfers through the
Federal Reserve by using their own personal
computers rather than terminals leased from
the Bank. Designed for institutions that do not
need a high-speed computer connection for
their electronic funds transfer volume,
Connect 7/850 offers improved security,
efficiency, and versatility.
Improved data security was another major
goal in the electronic services area in 1987. To
help assure security, the Bank emphasized
encryption—or coded text—for electronic
payments. At year-end 1987, all computerlinked institution transfers were 100 percent
encrypted. In all, 75 percent of wire transfer
volume is now text-coded, while all the
remaining electronic volume (which will be
encrypted in 1988) is transfered through a
secured authentication system. Another
important 1987 effort was the Bank’s two-day
Data Security Awareness Conference at which
approximately 250 financial institution
executives discussed topics such as fraud
prevention and microcomputer security.
Fiscal agency, cash, and securities services

During 1987, the Federal Reserve initiated the
long and complicated process of implement­
ing the Expedited Funds Availability Act. As
part of this responsibility, the Federal Reserve
Board proposed a series of regulatory
initiatives and service modifications designed
to speed both the check collection and return
processes. To explain the proposals, the
Chicago Reserve Bank conducted a series of
56 seminars which were attended by almost
2500 financial institution executives in early
1988. At the same time, the Bank began to

Efforts in these areas focused on enhancing
productivity and quality controls. One major
project was completing the final stage of the
Treasury Direct program for U.S. government
securities. Under Treasury Direct, all govern­
ment securities are now issued in book-entry
form. The new system simplifies recordkeeping,
deposits payments automatically, and eliminates
the possibility of lost or stolen securities.

Providing for its human, physical
and financial resources enables
the Chicago Reserve Bank to
meet its goals today and in the
future.

14

For the Bank to successfully meet its
responsibilities, considerable work and effort
is required behind the scenes. One significant
internal support activity in 1987 actually went
beyond the Bank itself. Last year the Bank’s
senior management chaired both the
Conference of Presidents and Conference of
First Vice Presidents within the Federal
Reserve System. These two groups provide
important coordination and future direction
for all the System’s varied activities. Another
major support project aimed at improving
present and future operations was the
implementation of the Integrated Accounting
System. The system eliminates duplication of
work and increases efficiency by enabling the
Bank’s diverse operations units to directly
enter any transaction, such as the deposit of
checks by a financial institution, into the
Bank’s central accounting system. Other
support activities in 1987 were directed at
enhancing each of the physical components
that make up the Federal Reserve Bank of
Chicago: its facilities, its equipment, and,
most importantly, its staff.
Building project
The Bank’s renovation and expansion project
was undertaken in 1986 to modernize its 65year-old headquarters building, which had
become increasingly outdated as operations
grew and became more complex and
automated. When completed in 1989, the
project will solve this problem and provide
nearly a million square feet of space,
compared to the current total of 650,000.
The complex project continued on schedule
in 1987. The 13th through the 16th floors—as
well as the eastern half of the 12th floor—
were redone, and departments were
relocated to the new areas. The fifth floor was
also renovated and a new employee cafeteria
and a conference center were constructed
after the Bank's library was moved to new
quarters on the 11th floor.
The renovation also affected the building’s
exterior. Limestone facing was placed on the
outside of a newly-constructed 14-story
addition and on a previous addition built in
1957, matching these sections with the original
building’s exterior. A less visible, but still
extensive, effort was the installation of new

mechanical, heating, ventilation, and air
conditioning systems.
Computer operations
Computer operation improvements in 1987
included testing and implementing the
Seventh District Communications Network.
The network will enable institutions with high
volumes of electronic funds transfers and
other needs such as payor bank information
to maintain a direct connection to their local
Seventh District office. Because the network
offers increased efficiency and enhanced
security technology, it is a cost-effective
solution to the Bank's current and future data
communication needs.
The Bank also developed a comprehensive
plan for continuing essential computer
operations in the event of a disaster. As part
of this effort, the Bank successfully retested a
computer relocation contingency site in
Culpeper, Virginia. Additionally, the Chicago
Office moved its electronic funds operations,
and the computer support for them, to a
nearby location in the South Loop. The move
eliminates the risk of these services being
disrupted during the Bank’s renovation.
Human resources
A less technological but surely as vital
approach to preparing for tomorrow was the
implementation of programs designed to
develop the Bank’s future leaders. The Project
in Management Excellence or PRIME program
was developed and introduced to help highpotential employees enhance their abilities
and management skills. During 1987, 31
employees were selected for the program,
which consists of a comprehensive series of
activities including workshops with senior
officers.
A very successful early retirement program
was also developed and implemented in 1987.
With 155 employees participating, cost savings
objectives were exceeded and significant
advancement opportunities were opened for
the Bank's remaining staff.

Deputy Chairman Marcus Alexis

B. F. Backlund

John W. Gabbert

Charles S. McNeer

Max J. Naylor

Edward D, Powers

Paul J. Schierl

Barry F, Sullivan

The nine-member Reserve Bank
board has a general governance
responsibility over Bank
operations, acts on the discount
rate, and contributes to
monetary policy by advising on
economic conditions.

16

Robert J. Day
Chairman and Chief
Executive Officer
USC Corporation
Chicago, Illinois
Marcus Alexis
Dean, College of Business
Administration
University of Illinois at
Chicago
Chicago, Illinois
B. F. Backlund
President and Chief
Executive Officer
Bartonville Bank
Bartonville, Illinois
John W. Gabbert
President and Chief
Executive Officer
First O f America BankLa Porte, N.A.
La Porte, Indiana
Charles S. McNeer
Chairman of the Board and
Chief Executive Officer
Wisconsin Electric Power
Company
Milwaukee, Wisconsin
Max J. Naylor
Crain and livestock farmer
Jefferson, Iowa
Edward D. Powers
Chairman of the Board and
Chief Executive Officer
Mueller Company
Decatur, Illinois
Paul J. Schierl
Chairman and Chief
Executive Officer
Fort Howard Paper
Company
Green Bay, Wisconsin
Barry F. Sullivan
Chairman of the Board
The First National Bank of
Chicago
Chicago, Illinois

Robert E. Brewer
Senior Vice President
(»>c-lif “ uy

K mart Corporation
Troy, Michigan
Richard M. Gillett
Old Kent Financial
Grand Rapids, Michigan
Richard T. Lindgren
President and Chief
Executive Officer
Cross & Trecker Corporation
Bloomfield Hills, Michigan
Donald R. Mandich
Chairman ana v^niet
Executive Officer
Comerica Bank-Detroit
Detroit, Michigan
Phyllis E. Peters
Director, Professional
Standards Review
Touche Ross and Company
Detroit, Michigan
Thomas R. Ricketts
Chairman of the Board and
President
Standard Federal Bank
Troy, Michigan
Ronald D. Story
Chairman and President
The Ionia County National
Bank
Ionia, Michigan

The seven-member Branch
board has a general oversight
responsibility and provides
additional information about
regional conditions.

17

Advisory Council on Agriculture

Federal Advisory Council
Representative
Charles T. Fisher III
Chairman and President
NBD Bancorp and National
Bank of Detroit
Detroit, Michigan

The twelve-member Federal
Advisory Council, with one
representative from each
District, meets quarterly with
the Board of Governors to
discuss business and financial
conditions. The Chicago
Reserve Bank’s two advisory
councils serve to promote
communication with the
agricultural and small business
sectors in the District.

18

Advisory Council on Small Business

Ben Bement
Dowagiac, Michigan
Michigan Pork Producers Association
Russell J. Clark
Frankfort, Indiana
Indiana Pork Producers Association
David Conklin
Corunna, Michigan
Michigan Farm Bureau
Kenneth Dalenberg
Mansfield, Illinois
Land of Lincoln Soybean Association
Thomas Dorr
Marcus, Iowa
Iowa Corn Growers Association
Gerald Elenbaum
Owendale, Michigan
Michigan Bean Commission
James A. Grenlund
Capron, Illinois
Illinois Beef Association
Robert R. Joslin
Clarence, Iowa
Iowa Farm Bureau Federation
Jerry King
Victoria, Illinois
Illinois Pork Producers Association
Anita Klein
Plymouth, Wisconsin
Women Involved in Farm Economics
Wendel E. Shireman
Columbus, Indiana
Indiana Grange
Gale Tigert
Oshkosh, Wisconsin
Wisconsin Soybean Association

Frank A. Buethe
Green Bay, Wisconsin
Independent Business Association of
Wisconsin
James N. Farley
Des Plaines, Illinois
Independent Business Association of Illinois
Enrique Loza
Chicago, Illinois
U.S. Hispanic Chamber of Commerce
Cyril Ann Mandelbaum
Des Moines, Iowa
National Association of Women Business
Owners/lowa Chapter
Marilu B. Meyer
Chicago, Illinois
Illinois State Chamber of Commerce
Michael J. Morton
Southfield, Michigan
The Small Business Association of Michigan
Clifford A. Nederveld
Lansing, Michigan
National Federation of Independent Business
Jeanne G. Paluzzi
Livonia, Michigan
National Association of Women Business
Owners/Michigan Chapter
James L. Siegmann
Goshen, Indiana
Indiana Chamber of Commerce
John A. Travlos
Ottumwa, Iowa
Iowa Association of Business and Industry

Directors
The selection process for Reserve Bank
directors assures broad representation across
the District. Member banks, divided into size
groups, elect three banker and three
nonbanker directors. The Board of Governors
in Washington, D.C., appoints the three
remaining nonbanker directors.
District member banks elected two new
directors in 1987—B. F. Backlund and Paul J.
Schierl. They replaced Leon T. Kendall,
chairman of the board and chief executive
officer of Mortgage Guaranty Insurance
Corporation, Milwaukee, and O. J. Tomson,
president of the Citizens National Bank of
Charles City, Iowa. In addition, the Board of
Governors appointed Robert J. Day to a
second three-year term as a director and
redesignated Mr. Day and Dr. Marcus Alexis
as chairman and deputy chairman for 1987.
At year-end 1987, Dr. Alexis was reappointed
and Edward D. Powers and Barry F. Sullivan
were re-elected as directors, to begin second
three-year terms in 1988. Also, Mr. Day and
Dr. Alexis were redesignated chairman and
deputy chairman for 1988.
Four of the seven Branch directors are
appointed by the Chicago Reserve Bank
board. The other Branch directors, all
nonbankers, are selected by the Board of
Governors. The Branch board selects its own
chairman from among these three.
In 1987, Richard T. Lindgren joined the Branch
board and Ronald D. Story was reappointed to
a three-year term. Mr. Lindgren replaced Karl
D. Gregory, professor of economics and
management, Oakland University, Rochester,
Michigan. In addition, Robert E. Brewer was
selected as board chairman for 1987.
At year-end 1987, three new directors were
named to join the Detroit Branch board in
1988: James A. Aliber, chairman and chief
executive officer of First Federal of Michigan,
Detroit; Beverly Beltaire, president of P. R.
Associates, Detroit; and Frederik G. H.
Meijer, chairman of Meijer Incorporated,
Grand Rapids, Michigan. They replaced
Robert E. Brewer, Richard M. Gillett, and
Thomas R. Ricketts who completed their
terms. Also effective in 1988 was the selection
of Richard T. Lindgren as Branch chairman.

The board of directors of each Reserve Bank
names one representative to the System's
Federal Advisory Council each year. Charles T.
Fisher III served in that capacity during 1987
and was reappointed for 1988.
Members of the Chicago Reserve Bank’s two
advisory councils are selected from
nominations by Seventh District small business
and agricultural organizations. To provide the
largest possible representation of various
geographic areas and business activities, all
new members were selected during 1987.
Officers
Appointments to a Federal Reserve Bank’s
official staff are made by the Bank's board of
directors. In 1987, the Board promoted
William H. Gram to senior vice president,
general counsel, and secretary, and
designated Vice President David R. Allardice
assistant director of research. Other 1987
promotions included James A. Bluemle to vice
president in Financial Institution Accounts,
David S. Epstein and Geoffrey C. Rosean to
vice presidents in Supervision and Regulation,
Teri J. Kurasch to vice president and associate
general counsel, and Maria H. Coons to
assistant vice president in Check Services.
New officers named in 1987 included:
A. Raymond Bacon, Robert A. Bechaz, and
Barbara D. Benson, examining officers; Gay
Whiting, applications officer; Brian W.
Hausmann and Sheryn E. Bormann, personnel
officers; and William J. O ’Connor, loans
officer. Other new officers in 1987 were:
Herbert L. Baer, research officer; Diane S.
Noble, operations officer; and Margaret A.
Koenigs, planning officer.
Also in 1987, Vice President George W. Cloos
and Assistant Vice President Rose M. Kubush
retired after 38 years and 43 years of service respec­
tively. A sad note for 1987 was the death of
Thomas P. Killeen who passed away while
serving as vice president in charge of the Des
Moines Office. He worked at the Bank for 26
years, including nine years of service as head
of the Des Moines Office. Effective March 1,
1988, Assistant Vice President Edward
Ketchmark was named to oversee that Office.

19

Services to Depository Institutions
Operations and Check Services
Charles W. Furbee, Senior Vice President

Silas Keehn
President

Supervision and Regulation
Franklin D. Dreyer, Vice President
Roderick L. Housenga, Vice President
Geoffrey C. Rosean, Vice President
Nicholas P. Alban, Assistant Vice President
John L. Bergstrom, Assistant Vice President
Douglas J. Kasl, Assistant Vice President
William H. Lossie, Jr., Assistant Vice President
Patrick J. Tracy, Assistant Vice President
Alicia Williams, Assistant Vice President
A. Raymond Bacon, Examining Officer
Robert A. Bechaz, Examining Officer
Barbara D. Benson, Examining Officer
Gay Whiting, Applications Officer
Loans and Reserves
Gerard J. Nick, Vice President
William J. O ’Connor, Loans Officer

Daniel M. Doyle
First Vice President

Economic Research and Information Services
Karl A. Scheld, Senior Vice President and
Director of Research
Economic Research
David R. Allardice, Vice President and Assistant
Director of Research
Gary L. Benjamin, Economic Adviser and Vice
President
Joseph G. Kvasnicka, Economic Adviser and
Vice President
.
Larry R. Mote, Economic Adviser and Vice
President
Anne Marie L. Gonczy, Senior Economist and
Assistant Vice President
Herbert L. Baer, Research Officer
Steven H. Strongin, Research Officer
Information Services
Nancy M. Goodman, Assistant Vice President
Statistics
Jean L. Valerius, Vice President

20

Cash, Fiscal Agency and Securities Services
David R. Starin, Vice President
Daniel P. Kinsella, Vice President
Jerome D. Nicolas, Assistant Vice President
Lawrence J. Powaga, Assistant Vice President
Check Services
Wayne R. Baxter, Vice President
Paul J. Bettini, Vice President
William A. Bonifield, Vice President
Robert W. Wellhausen, Vice President
Allen G. Wolkey, Vice President
Maria H. Coons, Assistant Vice President
Theodore E. Downing, Jr., Assistant Vice
President
Colleen M. Walsh, Assistant Vice President
DeWayne W. Baker, Operations Officer
Diane S. Noble, Operations Officer
Automation and Electronic Services
William C. Conrad, Senior Vice President
Automation Support and Computer
Operations
Stephen M. Pill, Vice President
Frank S. McKenna, Assistant Vice President
Charles L. Schultz, Assistant Vice President
James A. Suprinski, Assistant Vice President
Electronic Services
Glen Brooks, Vice President
Kenneth R. Berg, Assistant Vice President
James M. Rudny, Assistant Vice President
Janet M. Terry, Assistant Vice President
Leonard A. Lombardo, Operations Officer
Linda B. Maschio, Operations Officer
System Communications Center
George E. Coe, Vice President
Bonnie Bates, Assistant Vice President
R. Steve Crain, Assistant Vice President

Support Functions
Financial and Management Services
Carl E. Vander Wilt, Senior Vice President and
Chief Financial Officer
Financial Institution Accounts
James A. Bluemle, Vice President
Richard P. Anstee

Financial Management and Management
Services
Glenn C. Hansen, Vice President
Jerome F. John, Assistant Vice President
Margaret A. Koenigs, Planning Officer
Office of the General Auditor
Richard P. Bush, General Auditor
Angelina Chin, Auditing Officer

Richard P. Bush

Office of the General Counsel
William H. Gram, Senior Vice President, General
Counsel, and Secretary
Legal Services
Teri J. Kurasch, Vice President and Associate
General Counsel
Office of the Bank Secretariat
Joan M. DeRycke, Assistant Vice President and
Assistant Secretary
Support Services
Richard P. Anstee, Senior Vice President

William C. Conrad

Charles W. Furbee

Administrative and General Services
Robert A. Ludwig, Vice President
Adolph J. Stojetz, Vice President
Susan H. Riis, Assistant Vice President
Facilities Improvement
Robert D. Lauson, Vice President
Human Resource Services
Thomas G. Ciesielski, Vice President
Gerald I. Silber, Assistant Vice President
Sheryn E. Bormann, Personnel Officer
Brian W. Hausmann, Personnel Officer
District O ffices
Detroit Branch
Roby-L. Sloan, Senior Vice President and
Branch Manager
Frederick S. Dominick, Vice President and
Assistant Branch Manager
Joseph R. O'Connor, Assistant Vice President
Richard L. Simms, Jr., Assistant Vice President
F. Alan Wells, Assistant Vice President
Yvonne H. Montgomery, Operations Officer

William H. Gram

James R. Morrison

Karl A. Scheld

Regional Offices
Des Moines
Edward Ketchmark, Assistant Vice President*
Indianapolis
Allen R. Jensen, Assistant Vice President
Milwaukee
Charles M. Lund, Assistant Vice President
^effective March 1,1988.

Carl E. VanderWilt

21

Statement of Condition
December 31,1987
Changes in Reserve Bank asset,
liability and income items
largely reflect economic
developments and System
monetary policy actions.
Through securities purchases
and loans to depository
institutions, the Federal Reserve
increases reserves, providing a
base for monetary expansion in
accord with the economy’s real
growth.

Assets
Cold certificate account
Interdistrict settlement account
Special drawing rights certificate account
Coin
Loans and securities:
Loans
Federal agency securities
U.S. government securities
Total loans and securities
Cash items in process of collection
Bank premises

December 31, 1986

$ 1,383,000,000
2,605,492,303
656,000,000
30,996,628

$ 1,394,000,000
2,974,753,447
656,000,000
28,851,439

19,275,000
875,886,823
25,385,206,512
26,280,368,335

88,875,000
873,140,707
22,039,465,372
23,001,481,079

619,910,166
70,486,933

1,012,503,507
43,165,213

2,623,471,867
1,617,504,999
4,240,976,866

Other assets:
FDIC assumed indebtedness
Other
Total other assets
Total assets

$35,887,231,231

2,904,298,639
1,694,646,893
4,598,945,532
$33,709,700,217

Liabilities
Federal Reserve notes

$30,029,272,890

$27,063,964,386

4,324,615,741

5,008,402,617

Deposits:
Depository institutions
U.S. Treasury—general account
Foreign
Other
Total deposits
Deferred availability cash items
Other liabilities
Total liabilities
Capital accounts
Capital paid in
Surplus
Total capital
Total liabilities and capital

22

0

0

20,400,000
145,421,015
4,490,436,756

20,250,000
102,368,860
5,131,021,477

522,129,789
322,785,696
$35,364,625,131

751,662,283
260,308,071
$33,206,956,217

261.303.050
261.303.050
522,606,100
$35,887,231,231

$

251,372,000
251.372.000
502.744.000

$33,709,700,217

Stateme.
1986

1987
Current income
Interest on loans
Interest on government securities
Interest on investments of foreign currencies
Service fees
All other
Total current income
Current expenses
Operating expenses
Other current expenses
Total current expenses
Less reimbursement for certain fiscal
agency and other expenses
Current net expenses
Current net income
Additions to (or deductions from)
current net earnings
Net profit (or loss) on sales of securities
Net profit (or loss) on foreign exchange
transactions
Board of Governors assessment
All other-net
Net additions (or deductions)
Net earnings available for distribution
Distribution of net earnings
Dividends paid
Payments to U.S. Treasury (as interest on
Federal Reserve notes)
Transferred to surplus

$ 179,483,497
1,858,905,221
46,776,722
85,444,353
2,439,365
$ 2,173,049,158

$ 206,123,740
1,782,213,012
53,106,506
84,722,988
1,712,351
$ 2,127,878,597

$ 142,027,683
22,891,037
164,918,720

$ 137,964,974
21,705,770
159,670,744

12,305,001
$ 152,613,719

12,795,133
$ 146,875,611

$ 2,020,435,439

$ 1,981,002,986

$

4,853,276

$

$

245,381,666
(34,556,202)
(5,212,203)
210,466,537

266,035,104
(36,885,127)
(7,541,544)
$ 229,060,200

$ 2,230,901,976

$ 2,210,063,186

$

$

Reserve Bank income largely
consists of interest on its share
of the System’s securities
portfolio purchased for
monetary policy purposes.
Almost all of this considerable
income is returned to the
Treasury after expenses and
statutory dividends to member
banks are paid.

15,356,719

2,205,614,207
9,931,050
$ 2,230,901,976

7,421,767

14,838,725

2,185,033,711
10,190,750
$ 2,210,063,186

23

Volume

Dollar amount

1987
Check and electronic
payments
Checks, NOWs, and share
drafts processed
Fine sort and packaged
checks handled
U.S. government checks
processed
Automated clearinghouse
(ACH) items processed
Transfers of funds
Cash operations
Currency received and
counted
Unfit currency withdrawn
Coin received and processed
Securities services for
depository institutions
Safekeeping balance
December 31:
Definitive securities
Book entry securities
Purchase and sale
Collection of securities and
other noncash items
Loans to depository
institutions
Total loans made
Institutions accommodated
Services to U.S. Treasury
U.S. savings bonds issued,
exchanged and redeemed
Other government securities
issued, exchanged
and redeemed:
Definitive securities
Book entry securities
Government coupons paid
Federal tax deposits
processed
Food stamps processed

1986

1987

1986

2 .0 b illio n

1.9 billion

1.1 trillion

1 .0 t r illio n

150.6 billion

1 2 9 .4 b illio n

292.5 million

52.4 billion

5 5 .2 b illio n

63.8 million

750.9 billion
23.0 trillion

5 7 3 .7 b illio n

21.0 billion
3.2 billion
540.1 million

13.6 billion
192.7 billion
3.9 billion

146.1 m illio n

117.4 million
9.2 million

1 8 .4 b illio n

1.9 b illio n

2 .9 b illio n

4 7 6 .6 m illio n

4 7 8 .3 m illio n

4 .0 b illio n

1.8 billion
480.7 million
3.6 billion

1 4 .0 b illio n

0 .5 m illio n

0.5 million

19 .8 t h o u s a n d

13.7 thousand

2 7 6 .5 t h o u s a n d

278.3 thousand

2,353

1,840
207

2 0 .8 t r illio n

1 6 9 .9 b illio n
3 .2 b illio n

1.4 billion

4.7 billion

4 .5 b illio n

3.6 billion

3 .6 b illio n

1.7 billion
4.2 trillion
172.1 million

4 .2 t r illio n

1.2 m illio n

1 5 8 .6 m illio n

1 9 5 .0 t h o u s a n d

233.6 thousand
1.1 million
277.0 thousand

2 9 5 .0 m illio n

860.6 thousand
307.4 million

98.3 billion
1.4 billion

30.1 million

144.1 t h o u s a n d

9 2 .3 b illio n
1 .5 b illio n

Federal Reserve Bank of Chicago
Head Office
230 South LaSalle Street
P.O. Box 834
Chicago, Illinois 60690
Detroit Branch
160 West Fort Street
P.O. Box 1059
Detroit, Michigan 48231
Des Moines Office
616 Tenth Street
P.O. Box 1903
Des Moines, Iowa 50306
Indianapolis Office
41 East Washington Street
P.O. Box 2020B
Indianapolis, Indiana 46206
Milwaukee Office
304 East State Street
P.O. Box 361
Milwaukee, Wisconsin 53201

For additional copies of this
report, contact the Public
Information Center, Federal
Reserve Bank of Chicago, at
312/322-5111.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102