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F E D E R A L

R E S E R V E

1 9 9 5

Our Vision

unmatched

C H I C A G O

R E P O R T

and stable financial

economy

Provide products

andserviceof

value to those we serve.

standard for excellence
System.

of

Further the public interest by

fostering a sound
system.

A N N U A L

B A N K

in

the

Federal

Work together, communicate

Set the
Reserve

openly,

be creative and fair. Live by our core values of
integrity, respect, responsibility and excellence.

The Federal Reserve
with

the Board

Reserve

System,

supported

Bank of Chicago

of Governors

is one of 12 regional

in Washington,

since its establishment

by a stable financial

monetary

policy,

services

to depository

Detroit,

regional

Reserve

Bank of Chicago

Indiana,

Michigan

Bank of Chicago
and regulates

central

that,

together

bank. The role of the

in 1913, has been to foster

participates

Indianapolis

serves the Seventh

Through

and Milwaukee,

Federal Reserve

plus all of

in the formulation

banks and bank holding

and the U.S. government.

offices in Des Moines,

and Wisconsin,

D.C., serve as the nation's

States

a strong

Federal
economy,

system.

supervises

institutions

Banks across the United

by an act of Congress passed

To this end, the Federal Reserve
national

Reserve

District,

and implementation

companies,

and provides

its head office in Chicago,

and a new facility
which includes

of

financial
branch

in

in Peoria,

the

Federal

major portions

of

Illinois,

Iowa.

C O N T E N T S

Message to our Customers
Committed to our Customers

1
4

1995 Highlights

16

Operations Volumes

17

Financial Statements

18

Directors and Advisory Councils

20

Officers

22

Executive Changes

24

P R E S I D E N T ' s

FROM

LEFT:

HEALEY,

" T H E

CUSTOMER

M E S S A G E

FIRST

DEPUTY

VICE

PRESIDENT

CHAIRMAN

to

WILLIAM

RICHARD CLINE,

AND

CONRAD,

our

CHAIRMAN

PRESIDENT

MICHAEL

C U S T O M E R S

ROBERT
MOSKOW

is K I N G " This maxim and similar refrains reflect the commitment to customers that has

become the rallying cry for businesses ranging from Mom-and-Pop stores to huge retail conglomerates.
Customer focus has to be paramount for a firm that exists to turn a profit. For such a firm the customer is truly
the u l t i m a t e j u d g e , not t o m e n t i o n the jury, a n d , in s o m e cases, the executioner. But is f o c u s i n g
on the customer relevant for a public entity such as the Federal Reserve Bank of Chicago? This was
a question we considered carefully during 1995, and the answer we arrived at was a resounding "Yes."

1

OUR

VISION

Further the public interest by
fostering a sound economy and
stable financial system

Provide products and services
of unmatched value to those
we serve

Admittedly, one does not necessarily associate central banking with customer service. Nevertheless,
the Federal Reserve Bank of Chicago does serve customers. We have customers in the traditional sense because we provide financial services for a fee to depository institutions. We also provide a variety of services
to the U.S. Treasury in our role as fiscal agent. Customers who use our economic research "services" include
groups interested in our regional economic analysis and a number of internal customers such as the Board of
Governors in Washington, D.C., and our board of directors. Even depository institutions that we supervise
and regulate are "customers" in a sense. Broadly speaking, the public at large is our most important customer
as we are a creation of Congress and ultimately answerable to the American people.
Evaluating our approach to customers was a key aspect of a Bank-wide strategic planning initiative
during 1995 in which we took a "Fresh Look" at our organization. Perhaps the most important element of
this "Fresh Look" planning effort was the development of a vision statement. In some ways, developing
the vision was straightforward. For example, our vision reaffirms our mission to further the public interest
by fostering a sound economy and stable financial system. That's the starting point for everything we do—
the reason we come to work in the morning.
H o w best to fulfill that mission is more difficult to determine. In our vision we have stated our
commitment to achieving excellence. In most industries, a company will naturally compare itself to its competitors to gauge its progress. That strategy has an obvious drawback for a central bank. We're one of a
kind, at least within our national borders. But given the Federal Reserve's structure of 12 regional Banks,
we do have a basis of comparison. A healthy sense of competition exists within the System in which the
Reserve Banks work together closely and share ideas but also try to outperform one another. The Reserve
Banks are somewhat like runners in a relay team working together to win the event but also striving to post
the best possible time for their leg of the race. Given this background, we have committed ourselves to
setting the standard for excellence in the Federal Reserve System.
What is the surest, most direct way to set the standard of excellence? In my view, it is focusing on
customers. Our vision reflects this focus by committing us to providing products and services of unmatched
value to those we serve. The key phrase is to those we serve. In other words, our customers determine if we
are truly providing unmatched value.

2

Set the standard for excellence
in the Federal Reserve System

Work together, communicate
openly, be creative and fair

Live by our core values of
integrity, respect, responsibility
and excellence

Clearly, the Federal Reserve cannot be driven by the customer in the same way as a for-profit firm.
Our bottom line is serving the public good. Nevertheless, our customers, though diverse and sometimes
amorphous, are the best and truest source of feedback for evaluating our efforts. At the end of the day,
they determine if we are achieving excellence. The customer is king, even for a public institution such as
the Federal Reserve Bank of Chicago.
The past year has been challenging and exciting. I am very proud of what we have already accomplished and look to the future with optimism. Our achievements during the past year would not have
been possible without the contributions of our entire staff of over 2300 people. The Chicago Fed also
benefited greatly from the services of our directors in Chicago and Detroit, an outstanding group of individuals
who unselfishly provided their time and expertise. I want to express my gratitude to three directors who
completed their terms at the end of 1995: Richard Cline, J. Michael Moore, and Norman Rodgers. I particularly want to thank Richard Cline, who served as deputy chairman for two years and as chairman for three
years. During their six years of service on the Chicago and Detroit boards, all three provided insightful
perspectives and leadership that helped guide our activities.
A commitment to our customers was the common thread tying together our activities during 1995.
The following article briefly reports on just a few of our efforts, which reflect our commitment to providing
excellent service to customers for many years to come.

Michael H. Moskow, President
March 28,1996

3

C

O

IN

M

M

I

T

PURSUING

T

ITS

PUBLIC,

PEOPLE

A S H L E Y

A N D

URBANDALE,

E

D

MISSION
SUCH

J A R E D
IOWA

AS

TO

THE

CHICAGO

(FROM

G R A N T ,

H O M E — T H E

OUR

FED

LEFT

SHOWN

TO
HERE

KITCHEN.

4

C

ULTIMATELY
RIGHT),
IN

THE

U

S

SERVES

J A S O N ,
NERVE

T

O

THE

M

GENERAL

B O N N I E ,
CENTER

E

BARRY,
OF

THEIR

R

S

We

are committed to responding to

the needs of our customers. That is
the surest way to achieve excellence
and fulfill our mission of fostering
a healthy, growing economy and a
stable financial system. Who are the
Federal Reserve Bank of Chicago's
customers? Given our broad mission,
ultimately everyone in the Seventh
Federal Reserve District,

including

people such as the Grant family of
Urbandale, Iowa.
On the following pages we will
introduce you to more of our customers
and review some of the Chicago Fed's
accomplishments in 1995 driven by
customer needs.

5

C O M M I T T E D

to

our

CUSTOMERS

D E P O S I T O R Y

I N S T I T U T I O N S

Working with depository institutions
The Chicago Fed in 1995 opened a
new check-processing facility at the Peoria Airport, improving customer service to
area financial institutions. Since the facility is located in central Illinois, nearby
customers have more time each day to process checks internally. Customers also
benefit from lower prices for check-processing services.
P R O C E S S I N G

CHECKS

B U I L D I N G

MORE

EFFICIENTLY

RELATIONSHIPS

WITH

C U S T O M E R S

In an effort to provide better

Chicago Reserve Bank works

service, the Bank created three customer advisory groups made up of Seventh

in a number of ways with depository

District bankers. The advisory groups provided feedback on financial services,

The

institutions

in the Seventh

District. The Chicago Fed's
responsibilities include supervising bank holding companies

offeringS suggestions RonI C E types of products and services to offer. to imthe A group of Bank staff studied ways
C U T O M E R
SE V
prove customer service during 1995. Based on the group's recommendations,
the Chicago Fed will develop a new area dedicated to handling the wide range
of customer service inquiries received by the Bank. The unit will initially focus
on inquires and requests for new services from depository institutions.
IMPROVING

and state member banks and offering
financial services such as check processing and electronic payments to all
District

C O N D U C T I N G
EXAMINATIONS OFF-SITE
The Chicago Fed was a leader among
the Reserve Banks in 1995 in developing programs to increase the off-site portions
of exams. Examiners are now spending more of their time at Fed offices and less
time on bank premises. The result has been to enhance the efficiency of exams and
reduce the disruption to commercial bank operations.

institutions.
R E S P O N D I N G
TOCHANGE
The Chicago Fed played an active role in a Federal
Reserve System initiative called Reserve Bank Examination Process for the 21st
Century, which is designed to adapt the Fed's supervisory approach to the changing nature of banking and financial services. Input for this process was gathered
through surveys and interviews with officials from depository institutions.

S P O N S O R I N G
C O N F E R E N C E S
O N BANKING
The Chicago Fed continued to
sponsor conferences on the changing dynamics of the banking industry. The 31st
annual Conference on Bank Structure and Competition examined innovations in
the banking industry. The Chicago Fed also co-sponsored a conference on bringing
harmony to international financial regulatory systems.

6

KAY
A

ROLANDO

BANK

CAN,

IS

THE

EMPLOYEE

FOR

INCLUDING

KAY'S
BANK'S

WHEN

INTERACTION
NEW

CASHIER
3 7

SHE

WITH

OF

YEARS,
VISITS

THE

CHECK-PROCESSING

BANK

KAY

OF

FARMINGTON

LISTENS

THE

TO

KERSH

CHICAGO

FED

FACILITY

7

HER

CAFE

IN

INCLUDES

AT T H E

IN

CENTRAL

CUSTOMERS

DOWNTOWN
TAKING

NEARBY

ILLINOIS.

WHENEVER

ADVANTAGE

PEORIA

SHE

FARMINGTON.

AIRPORT.

OF

THE

C O M M I T T E d

to

our

CUSTOMERS

P

O

L

I

C

Y

M

A

K

E

R

S

Contributing to public policy
R E S E A R C H I N G
THE
M I D W E S T ' S
P R O S P E C T S
During 1995 the Chicago Fed
initiated a comprehensive, year-long study of the Midwest economy The goal of the
study is to better understand the Midwest's economic prospects by studying its
turnaround since the early 1980s. The project will involve workshops and research
studies carried out by Federal Reserve analysts and other researchers from throughout the region. Workshops will consider issues such as labor force training and
education, global linkages, and changes in manufacturing industries. The project
-will culminate with the publication of the study, which will provide policymakers
with the information they need to help ensure the region's continued success.

T h e Federal Reserve System is known
for research used in the formulation
of national monetary policy.
In helping develop a national
picture, the Chicago Fed examines a broad range of economic
issues that affect the Midwest.
This research benefits national

PROVIDING RESOURCES FOR REGULATORY POLICYMAKERS
Regulatory policymakers benefited in 1995 from research on the latest developments in financial risk
management products and on how best to oversee the use of derivatives. As part of
this effort, Chicago Fed researchers studied the "Pre-Commitment Approach" to
setting bank capital standards for market risk. In this approach, banks commit to
containing their cumulative losses in their trading portfolio below a certain level
and set aside capital sufficient to cover the maximum loss level. A fine would result
if losses exceeded this pre-committed level.

policymakers as well as those at the state
and local level.

C O N T R I B U T I N G TO I N F O R M E D P O L I C Y
The Chicago Fed continued to conduct
research to help policymakers formulate national monetary policy. For example, an
article in the Bank's Economic Perspectives explored the relationship between wage
increases and inflation. The article suggests that only manufacturing and retail trade
wages can be used to predict inflation. In other major industries the pattern is
reversed—inflation is a predictor of wage growth.

The Bank's monetary policy efforts include supporting
internal policymakers such as President Michael Moskow and the board of directors.
By supporting the president's participation on the Federal Open Market Committee
and the board's deliberations on the Chicago Fed discount rate, the Bank contributes
to the formulation of effective monetary policy
S U P P O R T I N G

THE

F O M C

STUDYING DISPLACED WORKERS AND RETRAINING
Economists at the Chicago Fed
studied numerous issues related to displaced workers and retraining programs.
One study explored the impact of plant closings and corporate down-sizing, finding that earnings were generally lower for workers even after they found new jobs.
Another study examined retraining programs offered at local community colleges.
The study offers evidence that such programs can be effective in preparing some
workers for different types of work with better pay.

8

G R A H A M

TOFT

BROADENS

INDIANA'S

INDIANA

ECONOMIC

DEVELOPMENT

GRAHAM

EVALUATE

INDIANA'S

INFORMATION

ON

ISSUES

ECONOMIC

COUNCIL,

ECONOMIC

AFFECTING

THE

INC.

HORIZONS
CHICAGO

PERFORMANCE
MIDWEST.

9

AS

PRESIDENT

FED

AND

RESEARCH

OBTAIN

OF

THE

HELPS

UP-TO-DATE

C O M M I T T E D

TO

OUR

C U S T O M E R S

B

U

S

I

N

E

S

S

O

W

N

E

R

S

Meeting the needs of business
The Chicago Fed in 1995 continued to
foster economic and community development by encouraging partnerships among
business owners, lenders, local government officials, and community groups.
Initiatives included a major conference on economic development as well as a series
of workshops and roundtable discussions focusing on issues such as lender involvement in empowerment zones. The Chicago Fed also carried out several initiatives
in 1995 to help ensure fair access to credit. For example, the Bank published Access
to Credit: Women, Lenders, and Small Business Loans, which is intended to help improve
communication between lenders and women owners of small businesses.
F O S T E R I N G

B y fostering

a healthy,

growing economy with price
stability, the Chicago Fed helps

ensure a sound economic environment
that enables business owners to operate
efficiently. Among the Bank's activities
are researching economic issues affecting
the business environment in the Midwest,
fostering an efficient and reliable
payments system, and helping
to ensure fair access to credit.

ECONOMIC

D E V E L O P M E N T

The Chicago Fed joined forces
with utility companies, financial institutions, and a u t o m a t e d clearinghouse
associations to encourage consumers to pay their bills electronically. In addition,
the Bank directed efforts to explain the benefits of electronic payments to bankers,
corporations, municipalities, and non-profit agencies. Through such efforts to
promote the use of electronic alternatives to paper checks, the Bank fosters a more
efficient payments system.
P R O M O T I N G

AN

EFFICIENT

P A Y M E N T S

SYSTEM

UNVEILING
NEW CURRENCY
DESIGN
The Chicago Fed worked with other Fed
Banks and U.S. Treasury officials to unveil redesigned $100 bills in 1995. The Bank
conducted a series of w o r k s h o p s for depository institutions throughout the
Seventh District explaining the security features of the new currency. The new
design was initiated to reduce the threat of counterfeiting and maintain confidence
in our nation's currency.

RESEARCHING ECONOMIC ISSUES
Throughout 1995, the Chicago Fed researched
issues that affect Midwest businesses, identifying trends in sectors such as services,
manufacturing, and agriculture. As part of this effort, the Bank produced research
on regional issues such as education reform, corporate tax practices, emerging
trade opportunities, environmental regulation, and trade policy.

10

IRMA

ELDER

TROY

FORD

OWNS

HISPANIC-OWNED
BUSINESSES

FOUR

AUTO

AND JAGUAR-SAAB
BUSINESS

IN

IN T H E C O U N T R Y .

DEALERSHIPS

OF TROY.

HER

AMERICA
BUSINESS

AND

IN

SUBURBAN

CORPORATION
ONE

OWNERS

OF

THE

SUCH

AS

DETROIT,
IS T H E

TOP
IRMA

FED INITIATIVES THAT PROMOTE A STABLE ECONOMY A N D A S O U N D

11

5 0

INCLUDING

SIXTH

LARGEST

FEMALE-OWNED

RELY ON

CHICAGO

FINANCIAL

SYSTEM.

C O M M I T T E D

to

our

C U S T O M E R S

Working

C

O

N

S

U

M

E

R

S

for consumers

Chicago Fed research contributed to effective
national monetary policy that fostered sustainable economic growth with price
stability. In 1995, inflation as measured by the Consumer Price Index (CPI) was
three percent or below for the fourth consecutive year.
MAINTAINING

Consumers benefit from

many

Chicago Fed activities. These include
helping to ensure fair treatment in credit transactions,
sponsoring programs that
assist consumers in making
informed financial

STABILITY

P R O V I D I N G ELECTRONIC INFORMATION
The Chicago Fed installed its own home
page on the Internet's World Wide Web. Consumers can electronically access economic and financial data, up-to-the-minute information on business conditions, news
of interest rate changes, and Chicago Fed publications at http://www.frbchi.org.

E N S U R I N G
HIGH-QUALITY C U R R E N C Y
The Bank continued to convert to stateof-the-art ISS 3000 currency-processing machines in 1995. The new equipment
improves speed and accuracy and helps provide more efficient and cost-effective
currency processing. It's part of the Chicago Fed's ongoing efforts to provide
consumers with high-quality currency free from counterfeits.

decisions, and

offering a wide variety of services in
a cost-effective manner.

PRICE

I N F O R M I N G C O N S U M E R S
In 1995 the Chicago Fed continued to help consumers
make informed decisions. Efforts included distributing publications on consumers'
credit rights and offering programs focusing on informing investors that many
mutual funds offered by banks are not covered by federal deposit insurance. In
addition, the Bank conducted a series of seminars for consumer groups on recent
revisions to the Community Reinvestment Act (CRA).

INVESTIGATING
L E N D I N G
DISCRIMINATION
A study by the Federal Reserve
Bank of Chicago during 1995 investigated the role of race in mortgage lending
decisions. Using data drawn from loan applications from the Boston area, the study
found that race had played a role in denial rates for applicants of marginal creditworthiness. In cases where the credit history of applicants was good, the denial
rates between races were not appreciably different.

MOVING
T O ELECTRONICS
In financial services, the Chicago Fed continued to
encourage the use of more efficient electronic alternatives to paper check transactions.
Reflecting this effort, the volume of electronic check products increased by 64
percent during 1995. Initiatives to encourage the use of Automated Clearinghouse
(ACH) services included playing a key role in testing much of the software in
preparation for a System-wide centralization of automated payment services.

12

KENNETH
MALL.

AND

THE

PAULINE

VERNONS

KENNETH

RECENTLY

SERVICE.

CONSUMERS

MAINTAIN

PRICE

VERNON

ARE

NOW

RETIRED
SUCH

STABILITY

OF

MILWAUKEE

EMBARKING
FROM

ON

AT T H E
A

NEW

WISCONSIN

AS

THE

VERNONS

AND

THE

PURCHASING

13

GRAND
PHASE

ELECTRIC

RELY

ON

THE

POWER

OF

AVENUE
IN

AFTER

4 0

CHICAGO
THEIR

SHOPPING

THEIR

LIVES

AS

YEARS

OF

FED

MONEY.

TO

HELP

C O M M I T T E D

to

our

C U S T O M E R S

B

A

N

K

S

T

A

F

F

Serving internal customers
T A K I N G A F R E S H L O O K A T O U R A C T I V I T I E S To help guide staff in carrying out their
responsibilities, the Chicago Fed took a "Fresh Look" at its activities. Over 200 staff
members took part in the planning process, which included the development of multiyear strategies for the Bank's four main operating areas. The Chicago Fed also
embarked on several initiatives to realign the Bank's culture with its vision, including
a number of short-term changes implemented in 1995. At the same time, a work group
was formed to examine longer-term changes in areas such as rewards and recognition, communication, and management style.

PROVIDING

The

Chicago Fed's emphasis

on

serving customers is not restricted to
people outside the Bank. It also includes internal

customers—

Bank staff. An important
responsibility

for all staff

members is providing services
and support to one another.

STAFF

MEMBERS

WITH

ELECTRONIC

INFORMATION

During 1995, the

Bank developed a new on-line communication service that provides staff with easy
access to Bank news, forms, and reports. Called FROLIC (Federal Reserve On-Line
Information Center), the electronic service offers information via computer on a wide
range of different topics and is updated daily.

E M P H A S I Z I N G TRAINING A N D P E R S O N A L D E V E L O P M E N T
Staff members were
encouraged to participate in Bank-sponsored training that ranged from basic reading
and math skills to computer training to executive assessment and career planning.
Course offerings in 1995 were expanded to emphasize customer service, team-building,
and other skills critical to achieving the Bank's strategic direction. Approximately
830 staff members attended one or more of the 90 training sessions throughout the
year. The Bank also encouraged staff to continue their education, providing tuition
assistance to more than 100 individuals.

By working together, Bank
staff is better able to provide high-quality
service to external customers.

To increase efficiency in
providing services, automation and check staff worked together to take advantage
of new "remote processing" technology. The technology enables the Bank's regional
check-processing offices to use mainframe computers in Chicago to drive their
check-sorting equipment. The remote processing technology enables the Bank to
stay close to the customer at regional offices but still take advantage of efficiencies
offered by automation consolidation. The Indianapolis Office implemented the
technology in early 1995—the first Federal Reserve office to do so. In addition, the
Detroit, Milwaukee, and Peoria offices adopted remote processing during 1995.
Conversion of all District offices will be completed in 1996.
PROVIDING

N E W

TECHNOLOGY

14

FOR

REGIONAL

OFFICES

THE

BANK'S

STAFFERS

F O C U S ON

WHO

EMPLOYEES.

HELPED

DAVID

APPLICATIONS;
PROCESS;
GRAPHIC

INTERNAL CUSTOMERS
DEVELOP

MOORE

D E N N I S

MARY

BALOUN

FROLIC,

(CENTER)

D A N I E L S
CONVERTS

IS R E F L E C T E D

A NEW ON-LINE

MANAGES

THE

COORDINATES
THE

FORMAT.

15

IN T H E E F F O R T S O F

INFORMATION

DEVELOPMENT

THE

INFORMATION

THREE

SERVICE

OF

FOR

COMPUTER

INFORMATION-GATHERING
INTO

A

READER-FRIENDLY

THE BANK IN 1995

ADDITIONAL

1 9 9 5

HIGHLIGHTS

• President Michael Moskow and First Vice President
William Conrad discussed the Bank's vision statement
during a series of meetings attended by roughly 1,000
staff members.

• The Bank continued to encourage more efficient electronic
alternatives, focusing on expanding Fedline customer
connections, increasing electronic check processing, and
encouraging the use of Automated Clearinghouse (ACH).

• Economic research had 44 papers published or accepted for publication in leading U.S. and international
scholarly journals.

• Check services lowered many of its fees in keeping with a
new pricing structure intended to meet the demands of
the market.

• The Bank initiated a visiting scholars program to enhance
links with the academic and policymaking communities.

• The Detroit Branch handled the highest volume of electronic cash letters in the Federal Reserve System.

• Research staff evaluated alternative means of controlling payments system risk, proposing in conjunction with
supervision and regulation the optimal clearinghouse
structure for risk management purposes.

• The Bank successfully introduced the System's new
centralized software application for wire transfers.
• A video-conferencing facility was opened, linking the
Chicago Fed with the other Reserve Banks and the Federal
Reserve Board.

• The Bank assumed responsibility as the repository for
nationwide fair lending data and as the System liaison for
research related to the data.

• An early retirement program was successfully completed.
• Efforts to enhance management and staff development
included offering expanded career management programs.

• Staffers in economic research and supervision and regulation continued to increase their expertise in financial
markets, particularly derivatives and non-traditional
financial products.

• The Bank created a unit to conduct applied research on
consumer issues such as credit access, fair lending, and
community and economic development.

• The Bank successfully carried out its supervisory responsibilities, despite legislative and regulatory changes
and a dramatic increase in the number of Seventh District
state-member banks.

• The Bank conducted tours of its operations for more than
9,500 visitors.
• The Bank's audit department coordinated the audit of
the national network services division of FRAS (Federal
Reserve Automation Services).

• Chicago Fed staff processed approximately 37 percent
of all Home Mortgage Disclosure Act (HMDA) data for
the System.

• The Chicago N e t w o r k O p e r a t i o n s C e n t e r (CNOC)
played a leadership role in reviewing FEDNET backbone
circuits and planning reductions that will substantially
lower costs.

• Supervision and regulation staff met guidelines for timeliness and quality while processing the highest volume
of applications in the System.

• Chicago Fed staff provided expertise to other countries,
traveling overseas on temporary assignments and hosting
numerous programs for foreign visitors.

• The Bank completed the consolidation of Seventh District
savings bond operations at the Minneapolis Reserve Bank
on time and on budget.

• Bank staff continued to play a leadership role through
participation in many System groups, including serving
as chair of more than 20 committees.

• A cross-functional team guided the establishment of the
new check-processing facility in Peoria, a complex effort
that was completed on schedule in a relatively short
period of time.

16

OPERATIONS

VOLUMES

The Federal Reserve Bank of Chicago's
volume of operations
flected

efforts

efficient

during

to encourage

electronic

paper-based

The

Clearinghouse

items increased

1995. The volume

to
volume
(ACH)

by 14 percent

during

of electronic

products

also continued

creasing

by 64 percent.

check

to rise, inThe

number

of paper checks processed declined,
flecting

increased

consolidations

competition,

of the same-day

consolidation
operations
Bank of

the

base, and the effect
settlement

The volume of savings
ed declined

rebank

that have reduced

Bank's customer

sharply

bonds

at the Federal
Minneapolis

regulation.
process-

as a result of the

of Seventh

dollar amount

more

alternatives

payments.

of Automated

1995 re-

District
Reserve

1 9 9 5
CHECK

AND

ELECTRONIC

number of items

1 9 9 4

1 9 9 5

1 9 9 4

PAYMENTS

Checks, NOWs, &
share drafts processed

1.7 billion

1.2 trillion

1.2 trillion

101.2 billion

131.7 billion

217.2 million

306.6 million

49.5 billion

48.1 billion

50.2 million

50.2 million

2.5 trillion

2.2 trillion

626.3 million

547.8 million

Transfers of funds

31.5 trillion

30.3 trillion

14.3 million

13.6 million

Electronic checks processed

13.1 million

9.0 million

507.8 million

309.7 million

Fine sort & packaged
checks handled
U.S. government
checks processed
Automated Clearinghouse
(ACH) items processed

CASH

1.8 billion

OPERATIONS

32.7 billion

Currency received & counted
Unfit currency destroyed

7.7 billion

Coin received & counted
SECURITIES

SERVICES

6.5 billion

836.2 million
FOR

DEPOSITORY

2.4 billion

30.9 billion

958.3 million
6.7 billion

714.0 million

2.2 billion
726.0 million
6.3 billion

INSTITUTIONS

Safekeeping balance December 31
Definitive securities

13.3 billion

452.6 billion

4.0 billion

Purchase & sale

24.4 thousand 29.7 thousand

12.7 billion

406.7 billion

Book-entry securities

4.9 billion

—

—

14.6 thousand 18.5 thousand

Collection of securities
& other noncash items

167.0 million

200.0 million

Book-entry government
securities processed

7.1 trillion

9.7 trillion

1.1 million

1.2 million

1.7 billion

855

1,211

4.0 million

LOANS

TO DEPOSITORY

INSTITUTIONS

Total loans made during year

SERVICES

TOU.S.

194.7 thousand 78.6 thousand

1.2 billion

TREASURY AND

GOVERNMENT

AGENCIES

Issues, redemptions & exchanges:
U.S. savings bonds

167.9 million

1.5 billion

374.1 thousand

Definitive government securities

357.8 million

2.3 billion

9.9 thousand

Government coupons paid
Federal tax deposits processed

101.1 million

98.8 million

17

152.9 billion

2.3 billion

Food stamps redeemed

99.3 billion

2.3 billion

9.1 thousand

21.7 thousand 28.9 thousand
883.6 thousand 877.7 thousand
443.0 million

452.8 million

1

9

9

5

S T A T E M E N T S

FINANCIAL

STATEMENT

OF

CONDITION

Year-to-year changes in Reserve Bank
assets and liabilities largely reflect
1 2 / 3 1 / 9 5

general economic developments and
System monetary policy actions. By

Gold certificate account

purchasing

Interdistrict settlement account
Special d r a w i n g rights
certificate account

securities

in the open

market and making loans to depository

1 2 / 3 1 / 9 4

ASSETS

$

1,220,000,000

$

1,217,000,000

creases reserves, providing a base for

1,079,000,000

Coin

(1,047,960,762)
1,036,000,000

35,087,340

institutions, the Federal Reserve in-

(3,015,622,660)

22,888,996

Loans and securities:
Loans

775,000

monetary expansion in accord with the
national economy's growth needs. In

416,608,353

43,601,557,630

U.S. g o v e r n m e n t securities

18,145,000

303,667,515

Federal agency securities

41,758,063,888

1995 the Bank's total assets fell slight-

Total loans and securities

ly, accommodating a slight decrease

Items in process of collection

519,317,534

Bank premises

109,889,992

112,246,500

3,519,876,662

3,595,919,395

in currency outstanding

that more

than offset an increase in deposits
of District depository

$

O t h e r assets

43,906,000,145

$

42,192,817,241
509,387,271

$

Total assets

47,373,549,013

$

47,638,298,641

$

41,757,639,370

$

42,264,580,153

institutions.

Nationally, however, currency out-

LIABILITIES

Federal Reserve notes

standing increased substantially in 1995.

Deposits:
Depository institutions

3,396,794,719

3,539,487,150

U.S. Treasury—general account

0

Total deposits

$

16,162,207

160,003,522

Other

0

16,040,164

Foreign, official accounts

147,593,207

3,715,530,836

D e f e r r e d credit items

492,307,818

Total liabilities

CAPITAL

$

3,560,550,133
495,947,869

462,639,489

O t h e r liabilities

$

479,189,786

46,428,117,513

$

472,715,750

$

46,800,267,941

ACCOUNTS

Capital paid in

$

472,715,750

Surplus

419,015,350
419,015,350

Total capital

$

945,431,500

$

838,030,700

Total liabilities and capital

$

47,373,549,013

$

47,638,298,641

18

STATEMENT

OF

INCOME

A Reserve Bank's income is largely a
by-product of monetary policy rather
1 9 9 4

1 9 9 5

than the pursuit of profit. Most of the
Bank's income is interest on its share
of the System Open Market Account

CURRENT

INCOME

Interest o n loans

$

821,393

$

993,816

2,720,699,403

Interest o n g o v e r n m e n t securities

2,199,668,608

portfolio of securities, and appropriately,

Interest o n investments
of foreign currencies

89,218,527

102,461,570

the vast majority of this income is turned

Service fees

96,210,847

98,049,361

over to the U.S. Treasury each year.

All other

Current income increased compared to
1994, primarily because of an increase
in interest received from government
securities. Operating expenses rose slightly as costs associated with increased

913,388

CURRENT

917,915

$

2,907,863,558

$

2,402,091,270

$

Total current income

207,012,155

$

203,349,407

EXPENSES

O p e r a t i n g expenses
Other current expenses

41,724,210

43,386,374

Total current expenses

248,736,365

246,735,781

supervisory activities and centralized

Less r e i m b u r s e m e n t for certain
fiscal agency a n d other expenses

automation more than offset expense

Current net expenses

$

231,319,759

$

226,411,009

reductions in other areas of operations.

Current net income

$

2,676,543,799

$

2,175,680,261

$

734,844

$

(2,773,780)

ADDITIONS
CURRENT

TO(OR
NET

DEDUCTIONS

17,416,606

20,324,772

'

FROM)

INCOME

N e t profit (or loss) o n sales of securities
N e t profit (or loss) o n
foreign exchange transactions

114,291,538

277,694,924

Assessment for Board of G o v e r n o r s
expenditures

(18,572,800)

(16,877,600)

Cost of Federal Reserve currency

(41,012,869)

(44,471,199)

All other—net

(10,624,127)

(4,189,236)

44,816,586

209,383,109

Net additions (or deductions)

DISTRIBUTION

OFNET

$

2,721,360,385

$

2,385,063,370

$

Net income available for distribution

27,267,891

$

24,284,767

INCOME

D i v i d e n d s paid
P a y m e n t s to U.S. Treasury
(as interest on Federal Reserve notes)

2,640,392,094
53,700,400

Transferred to s u r p l u s
Total income distributed

19

2,331,628,353

$

2,721,360,385

29,150,250
$

2,385,063,370

DIRECTORS

AND ADVISORY

COUNCILS

1995 Board of Directors, Federal Reserve Bank of Chicago, from left to right:
Robert Healey, Lester McKeever, Richard Cline, Stefan Anderson,

Charlene

Sullivan, David Fox, Donald Schneider, Arnold Schultz, and Thomas Dorr.

Reserve Bank directors have a general governance responsibility

BOARD

for the management of operations, approving budgets, expenditures,
and official appointments. In addition, directors provide advice

OF

DIRECTORS

RESERVE

BANK

CHICAGO

Lester H. McKeever, Jr.
Managing Partner
Washington, Pittman, & McKeever
Chicago, Illinois

CHAIRMAN

and counsel to the Reserve Bank president on the state of the economy and financial system. Reserve Bank directors also determine,
subject to review by the Board of Governors, the Bank's discount
rate. The Chicago Reserve Bank and Detroit Branch directors are
selected to represent a variety of interests and activities within the
District and bring to their diverse duties a broad range of expertise
and experience.
The Federal Advisory Council, consisting of one representative from each District, meets quarterly with the Board of
Governors to discuss economic conditions. The Chicago Reserve
Bank's advisory councils on small business and

o f

FEDERAL

agriculture

provide a vital communication link between the Bank and these
important economic sectors.

Robert M. Healey
Member
Illinois Labor Relations Board
Chicago, Illinois
DEPUTY CHAIRMAN

Richard G. Cline
Chairman and
Chief Executive Officer
NICOR, Inc.
Naperville, Illinois
Stefan S. Anderson
Chairman, President,
and Chief Executive Officer
First Merchants Corporation
Muncie, Indiana
Thomas C. Dorr
President and
Chief Executive Officer
Dorr's Pine Grove Farm Company
Marcus, Iowa
David W. Fox
Former Chairman and
Chief Executive Officer
The Northern Trust Corporation
Chicago, Illinois

20

Donald J. Schneider
President
Schneider National, Inc.
Green Bay, Wisconsin
Arnold C. Schultz
Chairman, President,
and Chief Executive Officer
The Grundy National Bank
Grundy Center, Iowa
A. Charlene Sullivan
Associate Professor of Management
Krannert Graduate School
of Management
Purdue University
West Lafayette, Indiana

1995 Board of Directors, Detroit Branch, from left
to right: John Forsyth, William Odom, Norman Rodgers,
Florine Mark, Charles Weeks, J. Michael Moore, and
Charles Allen.

BOARD OF
DETROIT

DIRECTORS
BRANCH

CHAIRMAN

John D. Forsyth
Executive Director
University of Michigan Hospitals
Ann Arbor, Michigan
Charles E. Allen
President and
Chief Executive Officer
Graimark Realty Advisors, Inc.
Detroit, Michigan

FEDERAL

Kam Washburn
Elsie, Michigan
Michigan Soybean Association

ADVISORY

COUNCIL

REPRESENTATIVE

Roger L. Fitzsimonds
Chairman and
Chief Executive Officer
Firstar Corporation
Milwaukee, Wisconsin
ADVISORY
ON

Kaye Whitehead
Muncie, Indiana
Member-at-Large
Patricia M. Yungclas
Ellsworth, Iowa
Women Involved in Farm
Economics (WIFE)

COUNCIL

AGRICULTURE

Reginald J. Clause
Jefferson, Iowa
Iowa Cattlemen's Association

ADVISORY
ON

Florine Mark
President and
Chief Executive Officer
The WW Group, Inc.
Farmington Hills, Michigan
J. Michael Moore
Chairman and
Chief Executive Officer
Invetech Company
Detroit, Michigan
William E. Odom
Chairman
Ford Motor Credit Company,
and Group Vice President
Ford Motor Company
Dearborn, Michigan
Norman F. Rodgers
President and
Chief Executive Officer
Hillsdale County National Bank
Hillsdale, Michigan
Charles R. Weeks
Chairman, President,
and Chief Executive Officer
Citizens Banking Corporation
Flint, Michigan

SMALL

COUNCIL
BUSINESS

George Crosby
Greensburg, Indiana
Milk Promotion Services
of Indiana, Inc.

Gary E. Baker
Ann Arbor, Michigan
Small Business Association
of Michigan

David DeLong
Clinton, Wisconsin
Wisconsin Fertilizer and
Chemical Association

James Bernstein
Sioux City, Iowa
Member-at-Large

William D. Engelbrecht
Henry, Illinois
Illinois Beef Association

Charles J. Garcia
Carmel, Indiana
Indiana Hispanic Chamber
of Commerce

Donald W. Gillings
Bay City, Michigan
Michigan Agri-Business
Association

Thomas Gearing
Milwaukee, Wisconsin
Independent Business
Association of Wisconsin

Tim L. Kapucian
Keystone, Iowa
Iowa Pork Producers
Association

Sue Ling Gin
Chicago, Illinois
Member-at-Large
David W. Goodrich
Indianapolis, Indiana
National Federation of Independent
Business/Indiana

Gary Steiner
Mondovi, Wisconsin
Wisconsin Farm Bureau
Federation

Ray J. Green
Jacksonville, Illinois
National Automobile Dealers
Association

Richard Ward
Crawfordsville, Indiana
Indiana Pork Producers
Association

21

Diana J. Hall
Peoria, Illinois
National Association of Women
Business Owners (NAWBO)
Central Illinois Chapter
Linda M. Jolicoeur
Farmington Hills, Michigan
National Association of Women
Business Owners (NAWBO)
Greater Detroit Chapter
Kendig K. Kneen
Ottumwa, Iowa
Iowa Association of Business
and Industry
Lucius Murray, Jr.
Detroit, Michigan
Booker T. Washington Business
Association
Gene Qualmann
Oregon, Wisconsin
Wisconsin Manufacturers
and Commerce
Eduardo Salse
Northbrook, Illmois
Latin American Chamber
of Commerce
R Eric Turner
Gas City, Indiana
Indiana Chamber of Commerce

OFFICERS

Federal Reserve Bank of Chicago Management Committee, from left to right: Charles Furbee, Richard Anstee,
Carl Vander Wilt, George Coe, William Hunter, Nancy Goodman, Michael Moskow, William Conrad, David Allardice,
William Gram, Franklin Dreyer, and Jerome John.

Appointments to and promotions within the Federal Reserve Bank's
official staff are made by the Bank's board of directors. The board

Michael H. Moskow
President
William C. Conrad
First Vice President

appoints the Bank's president (chief executive officer) and first
vice president (chief operating officer) to five-year terms, subject
to approval by the Board of Governors.

CENTRAL

BANK

ACTIVITIES

ECONOMIC RESEARCH

divided into nine functional areas, overseen by senior vice pres-

William C. Hunter
Senior Vice President and
Director of Research

idents who report to the Bank's president and first vice president.

James T. Moser
Senior Research Economist
and Research Officer
Paula R. Worthington
Senior Research Economist
and Research Officer
REGIONAL ECONOMIC

MONETARY POLICY A N D

The primary activities of the Chicago Reserve Bank are

FINANCIAL MARKETS RESEARCH

An additional function, the Auditing Department, reports directly
to the board of directors' Audit Committee. The Bank's senior
officers together form the Management Committee and determine

Elijah Brewer III
Senior Economist and
Assistant Vice President
Douglas D. Evanoff
Senior Economist and
Assistant Vice President

the Chicago Reserve Bank's strategic direction.

Charles L. Evans
Senior Economist and
Assistant Vice President

PROGRAMS

Gary L. Benjamin
Economic Advisor
and Vice President
Robert H. Schnorbus
Senior Economist and
Assistant Vice President
William A. Testa
Senior Economist and
Assistant Vice President
Philip R. Israilevich
Senior Regional Economist
and Research Officer
STATISTICS

Anne Marie L. Gonczy
Senior Economist and
Assistant Vice President
Kenneth N. Kuttner
Senior Economist and
Assistant Vice President
Daniel G. Sullivan
Senior Economist and
Assistant Vice President

22

Jean L. Valerius
Vice President
Loretta C. Ardaugh
Statistical Reports Officer

SUPERVISION A N D REGULATION

L O A N S A N D RESERVES

DETROIT BRANCH

SUPPORT SERVICES

AND LOANS

Gerard J. Nick
Vice President

David R. Allardice
Senior Vice President
and Branch Manager

Carl E. Vander Wilt
Senior Vice President
and Chief Financial Officer

Yvonne H. Montgomery
Vice President

A C C O U N T I N G SERVICES

Franklin D. Dreyer
Senior Vice President
REGULATION

William J. O'Connor
Assistant Vice President

James A. Bluemle
Vice President and
Director of Regulation

Robert A. Lyon
Loans Officer

David S. Epstein
Vice President

SERVICES

Douglas J. Kasl
Vice President

CASH/FISCAL AND

TO

Valerie J. Van Meter
Vice President
DEPOSITORY

Richard P. Bush
Vice President
M A N A G E M E N T SERVICES

Brian D. Egan
Assistant Vice President

Margaret K. Koenigs
Assistant Vice President

Joseph R. O'Connor
Assistant Vice President

W H O L E S A L E SERVICES

Glenn C. Hansen
Vice President

Patrick A. Garrean
Assistant Vice President

INSTITUTIONS

Jeffrey B. Marcus
Assistant Vice President
SUPPORT SERVICES

Sheryn E. Bormann
Assistant Vice President

Richard P. Anstee
Senior Vice President

Maureen A. Cummings
Assistant Vice President

William A. Bonifield
Vice President

F. Alan Wells
Assistant Vice President

William H. Lossie Jr.
Assistant Vice President

Jerome D. Nicolas
Assistant Vice President

Robert M. Marable
Operations Officer

James W. Nelson
Assistant Vice President

Lawrence J. Powaga
Assistant Vice President

Anne M. Phillips
Assistant Vice Presideiit

James M. Rudny
Assistant Vice President

AUTOMATION AND

Ronald A. Rolighed
Assistant Vice President

Guadalupe Garcia
Operations Officer

George E. Coe
Senior Vice President

Philip G. Jackson
Applications Officer

INTERSTATE M A R K E T I N G

A U T O M A T I O N SUPPORT

Glen Brooks
Vice President

R. Steve Crain
Assistant Vice President

RETAIL SERVICES

Brenda D. Ladipo
Assistant Vice President

Carl R. Quinn
Examining Officer
John A. Valenti
Information Support Officer

Kenneth R. Berg
Assistant Vice President
SUPPORT

FUNCTIONS

Charles W. Furbee
Senior Vice President

Frank S. McKenna
Assistant Vice President

C H E C K SERVICES

Diane S. Noble
Vice President

David E. Ritter
Assistant Vice President
and Data Security Officer

William A. Barouski
Vice President

Cynthia L. Rasche
Operations Officer

Karen L. Rosenberg
Assistant Vice President

Geoffrey C. Rosean
Vice President

Mary H. Sherburne
Operations Officer

A. Raymond Bacon
Assistant Vice President

REGIONAL OFFICES

Robert A. Bechaz
Assistant Vice President
Kathleen E. Benson
Assistant Vice President
Michael R. Jarrell
Assistant Vice President
Gay Whiting
Assistant Vice President
Charles A. Jeffrey
Examining Officer
Jeffrey A. Jensen
Examining Officer
Jean T. Parulski
Examining Officer

Tyler K. Smith
Operations Officer

C O M M U N I C A T I O N S SERVICES

SUPERVISION

Barbara D. Benson
Vice President and
Director of Supervision

Wayne R. Baxter
Vice President

H U M A N RESOURCE SERVICES

Thomas G. Ciesielski
Vice President
Richard F. Opalinski
Assistant Vice President
Angela D. Robinson
Assistant Vice President
Jeffrey S. Anderson
Personnel Officer
O F F I C E OF THE
GENERAL

AUDITOR

Jerome F. John
General Auditor
Robert M. Casey
Assistant General Auditor

E L E C T R O N I C A C C E S S SUPPORT

Anthony J. Tempelman
Assistant Vice President

David R. Starin
Vice President

COMMUNITY AND

Joseph B. Green
Audit Officer
O F F I C E OF THE
GENERAL COUNSEL

I N F O R M A T I O N SERVICES

Des Moines Office
L. Edward Ketchmark
Assistant Vice President

Nancy M. Goodman
Senior Vice President
CONSUMER AND

Indianapolis Office
Donna M. Yates
Assistant Vice President

William H. Gram
Senior Vice President,
General Counsel and Secretary
L E G A L SERVICES

C O M M U N I T Y AFFAIRS

Alicia Williams
Vice President

Milwaukee Office
Angelina S. Chin
Assistant Vice President

John L. Bergstrom
Assistant Vice President

RETAIL SERVICES

G E N E R A L SERVICES

Stephen M. Pill
Vice President

Kristi L. Zimmermann
Assistant Vice President

Kathleen H. Williams
Assistant Vice President

PUBLIC AFFAIRS

James R. Holland
Public Affairs Officer

23

Elizabeth A. Knospe
Assistant Vice President and
Assistant General Counsel
Yurii Skorin
Assistant Vice President and
Assistant General Counsel
Anna M. Voytovich
Assistant Vice President and
Assistant General Counsel

EXECUTIVE

Members of the Federal Reserve Bank of
Chicago's board of directors are selected to represent a cross
section of the Seventh District economy, including consumers,
industry, agriculture, the service sector, labor, and commercial banks of various sizes.
The nine-member board includes three bankers and
three nonbankers, all elected by member banks. Three additional nonbankers are appointed by the Board of Governors,
which also designates the Reserve Bank chairman and deputy
chairman from among its three appointees.
DIRECTORS

The Board of Governors also selects three nonbankers
to serve on the seven-member board of the Bank's Detroit
Branch. Four additional directors are selected by the Chicago
Reserve Bank board. The Branch board selects its own chairman each year. All Reserve Bank and Branch directors serve
three-year terms, with a two-term maximum.
Director appointments and elections at the Chicago
Reserve Bank and its Detroit Branch effective in 1995 were:
• Robert M. Healey designated Chairman.
• Richard G. Cline designated Deputy Chairman.
• Lester H. McKeever, Jr. appointed to three-year term as
director, replacing Duane Burnham.
• Thomas C. Dorr and Stefan S. Anderson elected to second
three-year terms as directors.
• John D. Forsyth designated Branch Chairman.
At year-end 1995 the following appointments and
elections to terms beginning in 1996 were announced:
• Robert M. Healey redesignated Chairman.
• Lester H. McKeever, Jr. designated Deputy Chairman.
• Arthur C. Martinez, Chairman and Chief Executive Officer
of Sears, Roebuck and Co., appointed to a three-year term
as a director, replacing Richard Cline.
• John D. Forsyth redesignated Branch Chairman.
• Richard M. Bell, president of the First National Bank of Three
Rivers in Three Rivers, Michigan, and Stephen R. Polk, chairman and chief executive officer of R. L. Polk & Co., Detroit,
Michigan, appointed to three-year terms as Branch directors, replacing Norman F. Rodgers and J. Michael Moore.

24

CHANGES

The Federal Advisory Council, which
meets quarterly to discuss business and financial conditions
with the Board of Governors in Washington, D.C., is comprised
of one member from each of the 12 Federal Reserve Districts.
Each year the Chicago Reserve Bank's board of directors
selects a representative to this group. Roger L. Fitzsimonds
served as the Seventh District's representative in 1995 and was
re-appointed to a second one-year term for 1996.
ADVISORY

C O U N C I L S

Members of the Bank's two advisory councils, who are
selected from nominations by Seventh District small business
and agricultural organizations, served the second year of their
terms in 1995. The councils provide a vital communication
link between the Bank and these important sectors. Two new
members, Sue Ling Gin and Eduardo Salse, were appointed
to the Advisory Council on Small Business for 1995.
O F F I C E R S
The Bank's board of directors acted on the
following promotions during 1995:
• David R. Allardice, to Senior Vice President and
Branch Manager, Detroit Branch.
• Alicia Williams, to Vice President, Community
and Information Services.
• Brian D. Egan, to Assistant Vice President,
Detroit Branch.
New officers appointed by the board in 1995 were:
• William C. Hunter, to Senior Vice President and
Director of Research.
• Elijah Brewer III, to Senior Economist and
Assistant Vice President, Economic Research.
• James W. Nelson, to Assistant Vice President,
Supervision and Regulation.
• Joseph B. Green, to Audit Officer, Auditing.
• James R. Holland, to Public Affairs Officer,
Community and Information Services.
• Cynthia L Rasche, to Auditing Officer, Auditing.
Roby L. Sloan, Senior Vice President and Branch
Manager, retired after 33 years of service to the Bank, including
11 years as manager of the Detroit Branch.
Joan M. DeRycke, Assistant Vice President and Assistant
Secretary, retired after 21 years of service to the Bank, including
12 years in the Office of the Bank Secretariat.

HEAD

OFFICE

230 South LaSalle Street
P.O. Box 834
Chicago, Illinois 60690-0834
312-322-5322
DETROIT

BRANCH

160 West Fort Street
P.O. Box 1059
Detroit, Michigan 48231-1059
313-961-6880

616 Tenth Street
P.O. Box 1903
Des Moines, Iowa 50306-1903
515-284-8800
INDIANAPOLIS

OFFICE

8311 North Perimeter Road
P.O. Box 2020 B
Indianapolis, Indiana 46206-2020
317-244-1744
MILWAUKEE

OFFICE

304 East State Street
P.O. Box 361
Milwaukee, Wisconsin 53201-0361
414-276-2323
PEORIA

OFFICE

6100 West Dirksen Parkway
P.O. Box 4318
Peoria, Illinois 61607-0318
309-633-5000

For additional copies of this report,
contact the Public Information Center,
Federal Reserve Bank of Chicago, at
312-322-5111 or access the Bank's Internet
home page at http://www.frbchi.org.

FEDERAL RESERVE BANK
OF CHICAGO

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