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Table
of
Contents

From the Boardroom
Community Outreach in the 1990s
Organization Chart
Highlights of 1990
Directors

2
4
14
16

20

The Federal Reserve Bank of San Franci sco is one of
twelve regional Reserve Banks which , together w ith the
Board of Governors in Wash ington, D.C., comp rise the
na tion's centra l bank.
As the nation 's central bank, the Federa l Reserve is
responsible for making and carrying out our nat ion's
mo neta ry policy. It also is a bank regu latory agency,
a provider of wholesale priced banking services, and
the f iscal agent for the Un ited States Treasury.
The Federal Reserve Bank of San Franci sco serves the
Twe lf th Fede ral Reserve Distr ict, wh ich includ es the nine
western states-Alaska, Arizona, California, Hawaii,
Idaho, Nevada , Oregon , Utah and Wash ington-Guam,
American Samoa , and the Northern Mariana Islands.
To serve this expansive reg ion, the San Francisco Reserve
Bank has five offices: the headquarters in San Francisco,
and offices in Los Ange les, Port land , Sa lt Lake City, and
Seattle. Each office provides financial services to the
public and ba nk ing i nstit uti o ns in its locale.

From
the
Boardroom

The basic mission of our Bank is to promote the safety and soundness of the f inancial
system, to insure a safe and efficient payments system, and to act as fiscal agen t f o r the
u.s. government. These important roles were clearly defined w hen our nation's central
ban king system was founded in 1913, and they remain a very high priority today .
However, as we enter the final decade of the 20th Century, our basic responsib i lit ies
have taken on an added dimension. The management and staff of our Bank, with the
support of our Board of Directors, are reaching out to our various publics in a variety
of ways which ass ist in achieving our basic goals.
In th is report we have chosen to highl ight some of these outreach efforts. They range
from helping to develop programs leading to community betterment and more afford­
able housing, to providing educational resources to help de-mystify the economy for
students and prepare them for the workplace, to providing bank examiner tra in ing
programs in the People's Republic of Ch ina .
The District's pos ition on the Pacific Rim provides our Bank w ith important
opportunities to foster understanding and awareness of the growing inter d epend ence
of the economies of the u.s. and Pacific Basin nations. We report on econom ic
research and education programs to achieve these ends, as well as actions we are
taking to maintain strong relationships with central banks throughout the region.
This report also reviews the Bank's performance in achieving its bas ic ob jectives in an
increa sing ly dynam ic environment that is shaped by technolog ical advances and major
regulatory and economic changes.
Our goal in the supervi sion and reg ulati o n of bank holding companies and state­
chartered member banks continues to be the maintenance of a sound banking system
and compliance w ith the Community Reinvestment Act (CRA) . Proposed banking and
regulatory changes and new capital guidelines for financial institutions make this a
very active area.
In the wholesale banking area, we continue to improve our payments system to
benefit financial institutions in all market segments and ultimately the general public.
Innovations in electronic technology constantly provide new opportunities for improve­
ments in this vital function .
We would like to express our thanks and appreciation to all of the Twelfth District's
directors for their valuable counsel and assistance throughout 1990. We also thank
them for keeping us in tune with the larger community we serve throughout the nine
western states .
Our deep apprec iation to several directors who completed their terms of service in
1990 : on the San Francisco Head Office Board, R. Blair Hawkes (President and CEO ,
Ireland Bank, Malad City , ID) and Corde ll W . Hull (Executive Vice President and
Director, Bechtel Group, Inc. San Franc isco, CAli on the Los Angeles Branch Board,
Ross M. Blakely (Chairman of the Executive Committee of the Board, Coast Savings
and Loan, Los Angeles, CAl and Richard C. Seaver (Chairman, Hydril Company, Los
Angeles, CAli on the Portland Branch Board, Sandra A. Suran (President, The Suran
Group, Portland, OR) and G. Dale Weight (Dean, George H. Atkinson Graduate
School of Management, Wil lamette University, Salem, OR) ; and on the Salt Lake
City Branch Board, Don M . Wheeler (President, Wheeler Mach inery Company,
Salt Lake City, UT) .

Robert F. Erburu
Chairman

~T.:,(7
President

From left , Robert T. Parry, President, Robert F. Erburu, Chairman,

Carolyn S. Chambers, Deputy Chairman, and Carl E. Powell, First Vice President.


Community
Outreach
in the
19905

The Federal Reserve System has a very direct and
dramatic influence on the economy of the United States,
and consequently the international economy as well. And
yet, despite a long-term on-going program of providing
information and educational materials to member banks
and others who request them, its complex role is not
clearly understood by the American public.
In 1990, the Federal Reserve Bank of San Francisco
stepped up its programs of community outreach to
heighten an understanding of the Federal Reserve
System, its impact on the economy, its relevance to
the society in which it operates, and the responsibilities
of member banks in serving their communities.
This is an awesome challenge given the Twelfth District's
geographic scope. The District encompasses nine west­
ern states and three U.S. territories. The land area this
District covers is 1.3 million square miles, roughly the size
of the Indian subcontinent. Its jurisdiction over Alaska,
Hawaii and American territories in the Pacific means it
spans eight time zones and crosses the International
Date Line.
Because it is the Federal Reserve's window on the rich
and dynamic Pacific Basin, the District's community out­
reach programs have extended far beyond its immediate
jurisdiction to develop links with other nations that touch
the Pacific Ocean.

Ma nagement Comm ittee
(f ro m left)
Thomas D. Thomson
Executive Vice President
M ichae l J. Murray
Sen ior V ice President
Robert T. Parry
President
Thomas C. Warren
Execut ive V ice President
Los Angel es
Carl E. Powell
First V ice President

Outreach efforts of the Bank have been implemented
at all lev el s of the organization . Employees have tapped
into a variety of community needs, from helping to gather
and ana lyze inf o rma tio n for reg ional economic deve lop­
ment planning, to organizing conferences and seminars,
to grassroots support for local United Way campa igns.
As an example of the pervasive sp irit of comm unity
sup p o rt, in 1990 Zoltan (Nick) Krayn ik , a protection
serv ices corporal from the San Francisco Office, ran
496 miles from that office to the Los Angeles Branch to
encourage pledges to the United Way drives of both
cities. His 14-day run raised more than $5,000 from his
fellow employees for the two United Way campaigns .

Top-Down Participation
Federa l Reserve Banks a re p rohibited from mak ing
donation s o r grants to co mmun ity o rganiza tions. Conse ­
quently, the San Fra ncisco Fed im pl em ents its co mmu nity
serv ice rol e by help ing to organ ize, direct, or facilitate
activities that wi ll benefit consumers , businesses, job­
seekers, and the econom ies in the Dist rict.
The impetus for our outreach programs emanates from
the Bank president's office , wh ich has set the pace for
community activism .
Senior officers mainta in an energetic schedule of publ ic
appearances th roughout the District to speak to civic and
service organizations, industry groups, and academic
audiences on the economic outlook and on the activities
of the Federal Reserve . They also regularly make Bank
facilities available to a wide range of commun ity -based
organizations for mee tings and sem inars on f inancial
and economic issues.
In addition, senior management has played a pivotal ro le
in establish ing organ izations to meet commun ity needs.
In 1989, the San Francisco Reserve Bank helped bring
about a meeting of business organizations and public
officials in the San Francisco Bay Area to create the Bay
Area Econom ic Foru m. Th is organ iza tion is des igned to
research and propose reg iona l so lutions to econom ic
and infrastructure problems of nine contiguous Bay Area
counties . The president of the San Franc isco Federal
Reserve Bank is cha ir man of the Forum.
Virtually every poll and study of problems in the area
has listed transpo rtat ion and impend ing grid lock as a
number one priority for regional attention. In response,
one of the Economic Forum's first major studies, pub­
lished in May 1990, focused on "Market-Based Solutions
to the Transportation Crisis ."
The Forum also has created a Bay Area Bioscience
Center to take advantage of the San Francisco Bay
Area's reputat ion as world leader in the field of b io­
science research and innova tio n. It has established an
Econom ic Info rmation Clearinghouse to advise investo rs
about the reg io n' s economy, business climate, business
facil ities, and other useful data designed to promote
economic development at the reg io nal level.

In another type of community development undertaking,
the Federal Reserve Bank of San Francisco in 1988 as­
sisted the non-profit Development Fund in the creat ion
of a statewide lender consort ium called the California
Community Reinvestment Corporation (CCRC). The group
has raised a revolving loan pool of $100 million from
participating institutions to finance affordable housing
throughout California . In 1990, its first full year of oper­
at ion, CCRC made 10 loans totaling nearly $10 million
for construction of 296 affordable housing units in
California.
Interest in this concept prompted District officers
in 1990 to make presentations to bankers in Nevada,
Washington and Hawaii on formation of similar state­
wide community reinvestment corporations. In Oregon,
a statewide nonprofit corporation called the Network of
Oregon Affordable Housing (NOAH), is being formed
using the same model for its operations.
The Bank's Community Affairs staff also provides
information to banks and bank holding companies
about development needs and small business lending
opportunities in their communities. In 1990, the staff
worked with bankers in Arizona in their efforts to create
a multibank statewide community development corpora­
tion to finance affordable housing and small bus iness .
Community Reinvestment Support
The Community Reinvestment Act (CRA) was passed
by the Congress in 1977 to require federal agencies that
regulate financ ial institut ions to encourage lenders to
help meet the credit needs of their communities. It has
been amended and strengthened since its original pas­
sage, and the latest change, which took effect in July
1990, required public disclosures of the regulator'S
evaluation of each bank's CRA performance.

The Bank's Community Affairs department evaluates the
CRA record of performance for banks when they submit
applications to merge w ith or acquire another entity. As
a long -term objective, it is dedicated to advising f inan­
cial institutions on opportunities fo r investment in the ir
communities . The demand for its serv ices has increased
dramatically in recent years.

The Community Affairs department carries out its

advisory role in five ways :

1. It sets up conferences and workshops throughout the
District that bring together lenders, government agencies
at all levels, and community organizations to identify
viable community projects for potential investment. It
provides an ongoing linkage among these various
players, and serves as an advisor and sounding board
for community groups.
2. The Community Affairs office distributes a quarterly
newsletter called "Community Investments," which
provides advice and suggestions on how to evaluate
and implement undertakings worthy of investment. It
is currently distributed to some 4,000 interested readers
throughout the Twelfth District and beyond .
3. Community Affairs officers and staff often involve senior
officers of the Bank in making speeches and hosting
meetings with bankers, public officials and community
representatives seeking information on economic and
community development opportun ities, and on com­
pliance with recent CRA amendments. One of several
presentations made to the Cal ifornia Bankers Associa­
tion regional meetings in autumn 1990 was fi lmed for
w ider distribution to the Association 's members in 1991 .
4. Commun ity cred it needs assessments are prepared for
selected metropolitan areas in the District. These assess­
ments pinpoint developmental needs and name local
organizations interested in participating in development
with financial institutions. The latest such profile of the
Sacramento area was completed in 1990.
5.	 The Community Affairs staff has comp iled CRA infor­
mation packets wh ich give guidelines and information on
compliance to banks, their directors, and other interested
parties . They were updated in December 1990 to include
a "Guide to Business Credit for Women, Minorities and
Small Businesses," a report recently issued by the Dis­
trict's Board of Governors. The staff fills phone orders
for about 20 packets a week.
Two major conferences with the theme "Communities
Are Your Best Investment" were co-sponsored by the
Commun ity Affa irs department in 1990. A September
conference in Bellevue, Wash ington , was joi ntly hosted
w ith the Federa l Home Loan Bank of Seattle, and an
October conference in San Franc isco was co-hosted by
the Federa l Home Loan Bank of San Franc isco. The two
events were attended by nearly 600 bankers, commun ity
lea ders, government agency officials, and others inter­
ested in community development.

Economic Education
For many yea rs, the Federal Reserve has provided
educationa l materials on economics, mon ey, and bank­
ing for use by educators, bankers, economists, students,
and the general public. The innovative lobby exhibits in
the Bank's San Francisco and Los Angeles offices depict­
ing how the economy works have drawn thousands of
vis itors annually who are able to work with interactive
displays to enhance their understand ing of our economy.
In addition, the Bank and its branches provide tours of
thei r cash vau Its, check processi ng faci Iities, and other
operational activities. A great many schools and colleges
in the District annually take advantage of the tour
opportunities .
Today, nearly half of the states in the Twelfth District
mandate economic education in public schools. The
needs of teachers in these states have provided an ex­
cellent opportunity for the Reserve Bank to expand its
outreach programs on economic education .

The Publ ic Information department works with affiliates
of the Joint Council on Economic Education and other
education groups to provide workshops and summer
courses for high school teachers . Courses are offered
in conjunction with universities and colleges or by the
Reserve Bank itself.
As publ ic schools are squeezed by budget constraints,
they ore able to buy fewer textbooks . To help fill this
void , the Bank produces creative and easily understood
curriculum materials. Its educational videotape series,
entitled liThe World of Economics," covers a wide array
of top ic s: the working s of the Federal Reserve System; its
role in the economy; how money works for individuals
and businesses in the economy; how foreign trade
works; basic schools of economic thought; who are the
key players in the national economy; and what various
economic indicators mean .
The Bank also provides support to the Academy of
Finance, an accelerated training and internship program
for high school students who are interested in careers in
finance .

Center for Pacific Basin Studies
From its vantage on the edge of the Pacific Basin, the
Bank has come to view the region as of crucial impor­
tance to the Twelfth District economy. The Bank believes
that research and analysis on the economic growth and
dynamics of the Pacific Basin is of utmost importance to
the economy of the West Coast. These studies will also
have broad application to other nations in the world
seeking to improve or develop new economic and
financial systems.
For 16 years, the Reserve Bank has conducted an active
Pacific Basin program to promote cooperation among
central banks in the region and to enhance public under­
standing of major Pacific Basin monetary and economic
policy issues. The Bank decided to take this program a
step further by providing it with a permanent structure
and opening it to the direct participation of institutions
and individuals who share its wish to promote greater
understanding of major Pacific Basin economies. The
result was the establishment, in July 1990, of the Center
for Pacific Basin Monetary and Economic Studies at
the Bank's headquarters.
The Center is an integral part of the Bank's Economic
Research department, and its director is the Vice Presi­
dent for International Studies. The Center plans to invite
three Visiting Scholars every six months to conduct re­
search at the Center on monetary, financial, and eco­
nomic policy issues of interest to the United States and
other nations in the region. It is anticipated that of the
six annual Visiting Scholars, two will be from the United
States, two from developed nations, and two from devel­
oping countries. In its first six months of operation, the
Center hosted five scholars. In 1991, it is expected to
host Visiting Scholars from The Philippines, Korea,
New Zealand, and Japan.

Visiting Scholars work on their own specific research,
but spend cons iderable time interacting with each other
and with the four resident international economists on the
Center's staff. The Center also conducts seminars and
workshops as well as conferences of researchers and
senior officials from Pacific Basin central banks, inter­
national organ izations, universities, banks, and corpo­
rations. The Center plans to publ ish working papers
produced by its own staff, visiting scholars, and research
associates. Its long-term goal is to increase the breadth
of knowledge in academic and economic communities
of the forces shaping the spectacular growth and devel­
opment in the Pacific Basin.
Traditional Activities Augmented
One of the Federal Reserve's bas ic functions is to
support the health of U.S. commun ities by ensuring that
their financial institutions are well-managed and have
adequate capital. It fulfills this task by examining state
member banks, bank holding companies, foreign
branches and agencies, and Edge Act corporations for
safety and soundness. Since the mid-1970s, it has added
examinations for Community Reinvestment Act com­
pliance, and for compliance with all state and federal
regulations relating to truth in lending and equal cred it
opportunity.

Accompanying the spate of applications in the mid-1980s
by financial inst itutions for permission to merge, expand,
or make acquisitions, have come demands by consumer
and commun ity groups for information about these in ­
stitutions' record of compliance. The Bank has worked
to bring these parties together to negotiate and, where
necessary, to help its banks develop new programs to
meet consumer and community needs. Its Consumer Af­
fairs department adjudicates all inquiries and complaints
about member-bank performance.
In the mid-1980s, the Bank began to share its expertise
in examining banks for basic safety and soundness w ith
the People's Bank of China (PBCl, which is working to
reform its banking structure and monetary system . The
PBC has hundreds of offices and thousands of employees
engaged in commercial lending and foreign exchange
transactions. Its leadership has a particular interest in
improving its system of banking supervision and
regulation .
A Reserve Bank team of three traveled to China in 1986
and again in 1990 to provide two-week seminars for the
People's Bank staff. In 1988-89, two PBC staff members
were invited to the Twelfth Federal Reserve District for
intensive on-the-job training in bank examinations over a
12-month period. A similar tra in ing session is planned for
1991. The Bank believes that providing this type of techni­
cal assistance adds to the spi rit of cooperation among
central banks and enhances the Bank's Pacific Basin
program .

Affirmative Action and Community Support
The Twelfth Di strict ha s an active and re sponsive
affirmative action program for its staff of more than
2,500 workers. Opportunities for upward movement for
minorities are made available through in-house recruit­
ment, training and development.
To enhance external recru itment efforts, the Employment/
Employee Relat ions staff increa sed and strengthened ties
with professional women 's and minority organizations,
and intensified its efforts to help motivate inner-city youth
to develop an interest in careers in finance .
The San Francisco office has a minority internship
program known as INROADS for college level students
selected as potential emp loyees of the Bank . Members
of the staff are invo lved w ith the Mayo r's Committee
for the Employment of Disabled Persons, and work with
the Personnel Management Association of Aztlan, an
organ ization to promote and develop Hispanics in the
field of personnel. The staff also met with a variety of
ethnic community groups to develop recruiting sources,
and conducted interviewing workshops at a local high
scho ol.

The Los Angeles Branch staff made presentations
on interviewing sk il ls and employment opportunities at
the Federal Reserve Bank at five inner-city organizations
and partic ipated in job fairs sponsored by three. A per­
sonnel representative of the Los Angeles office appeared
on local television to encourage employment of disab led
persons.
In Seattle, summer interns were recru ited from an inner­
city high school and through the Academy of Finance,
an organization that targets inner-city high school junior
and seniors for careers in f inance.
The Port land Branch focused its attention on recruitment
and job training of disadvantaged youth at both the high
schoo l and college level, and on participation in the
Financial Services Academy. The staff participates in the
Portland Chamber of Commerce's Scholar Recognition
and Tracking Program.
The Salt Lake City Branch participates i n lo ca l jo b fairs
and actively recruits employees through organizations
represent ing women, minorities, d isabled persons, and
protected-age individuals. The Branch has received state
and loca l awards for the employment of disabled per­
sons and older workers.
Throughout the D istr ict, Federal Reserve employees have
won awards for outstanding participation in local United
Way campaigns and have actively supported other com­
munity- sponsored programs, such as ride sharing.

Branch Operations
(From left)
Gerald R. Kelly, Senior Vice President in Charge, Seattle
Carl E. Powell, First Vice President and Chief Operating Officer
Thomas C. Warren, Executive Vice President in Charge, Los Angeles
Angelo S. Carella, Senior Vice President in Charge, Portland
E. Ronald Liggett, Senior Vice President in Charge, Salt Lake City

~Jr

Boa rd of Dtrcc rc rs

Audit in g
Robe r t I. G~lC;.hd l
Gc m.;r:11 ,\ u di lo r

Pet er K. C. H.:.ieh
Vice Pre std c r u

. \...~ i s ta n l

Aud i lill R
ltobt" rl T. P:ur}

e eucc

Prc~idclll

.-\$... i, Uo t

Auwl Orfice r:

=d
Ch il-f F.xecuI;'"e O fficer

Ge nc nl l\udilOr

Sou th e r n Rcgj on

H.

Thompso n

Cn a r tes O . Bo wd en

Garv G. Ho cth
Audlc O llie.: r
NOrth ern Region

\
D rl E. POVI'e li
f lrslVlcc Pr c o;idcnl
=d
Chid Operanng o mcn

13w

Su pervis io n , Regulat io n and Cre d it

Louis E. Reill y
Se n io r Vice Pre sident
and Gc.nc r.il Coun ..c l

Eugene ..\ . TI10l;tlas
Senior vice Prcstdem
Su p e r vis io n . Re gula t io n a nd Cr l:'Ulr

Jan e .\ 1. \l'aIC rD J,aJ1

Robe r t D.

Ombu ds m a n

Vic e Prc s td e m
and Cou n sel

v lcc Pre s ide n t
Ba n k cxarotnauons

OOlJg!;L'iR. Shaw
Vice Pres id en t

Rodney ~ . Reid
Vice Pre" id e n l
OUC and lnlcrna ti onal Supervt vton

'ie-ric E. Bo rche r t

~ll lfo (" d

and Counse l

\1 Go rdo.. Smith
:
Vice Pre s id e",
Credit an d Co ns um e r

Kcnndh ,\ 1. Kino shil.1.
A.~ocia IC

Gc oe ra t Co u ns el

W. Sta r r Scqlm il k r
A,<;sist ant vtce IJr c ')id enl
Tnl SI

'\.ff-Ji ( ~

Harold H. Blum

Phillp .\ 1. (ry.m
'\ :'5is lan l Vi ce: Pr e s id cnl
ln l< tu lional E..'\:tm ULll lons
;r

Donald R. uee
,\.s.S tan l Vice Pr e loidel1t
is
Oi$u-i c l <:redit

Ke nn eth R. Btrmlng
BHC and In ternational Regllbti ull

Ricl u rd S. Cam pos
vfcc Pres id en l
8 HC In specuon s

,~ is t.a n t

wayoc L. Rickard:.
Dir <; lOr
C
U:;I,lIk an d Co n s u m e r gcgutarlon

1110m :\., P. ,\ lc<ir. ll h
A.~ is t.a n t vtcc I'r c o;de n t
i
Ua nk Pxaminarions , S.Le.

TeN)' S. Sdn.~k op f
M'S;Sl<).nl \ 'ic <: Pn:."idenl
OUC ln SI'<: tl on:<
c

Robert C.jo hll son
A.<,:sistant Vice I're,o;id c
cn
"a
U:mk f_ m i.nal io o .... l ~"' .

Robe rt C. Oc rnle r
f'~""'Ul)in ingO fficc(

UHC

I)-; id M . vaodee
w
Dblri CI Compliance O{f1ccr

In spec l i o.o.~ .

S.F.

1110m 3.,j. 8 :tck er
f-'\.'U'niniJ1J,:O fficl·
;
8 HC Im.p, 'cti o lls ,

I'cll)' K. \\ a.l. h
s
Co m m Un il)' . \ ffu;~ Office r

Geo rge \\ 'e ~ t t'r m :1l\
Applicati o n s Office r

gobc rt A.Johnston
D Ire ct or
I(e p orrs and An a ly:o
is

Otrecto r

.\1. Bar ne s
J\ S1l'ls tan t Vice President
Bank Examtnarton s. S.I'.

jame~

Director
Bank Examt narlo n s

K.1 Pukuha ra
ck
,\ ta n a RiJl g Officer
Su p c rvi s lc n , Reg'u lar.iorr arrd Cr l,; J t
d

Computer Se rvices

Pe rs onne l and Adrninistrafive Serv ices

Se c ret a ry 's Office

Pa tr ic k To ns
vice Pr esid e n t
Co m pu te r Op oerut ons
,

MlctueJJ. .\turl":l
Y
Sen io r Vice President

.vdmt n ts tra non

La u r e n c e \Va... b u en
Sen ior v tce Pr e s id ent
Computer Se rvi ce s

Eltt.abt: tll R, .\ta.sle n
Vice t'restdcnt
a nd Sc c r c Ut")' o f th e Board

John Y.C. lin
DI..U::CIO t

S)'SIl: m s and Comr uuo tca non s

~I

fina n ce and Pr oduct MnJl3gcn
Sara K. Ga r'r-iao o
Senior vtcc Pr e aid e ru
finance and Pr odu ct .\ la na ll~ llI e n t

e. Kenne th Arnold
Vice Preside n t
Dis tric t Sccu r try

c an A. Tay lor
Vice l.'r e:sidCJ11
SU lblic... a nd Accoou u n g

\\ 'Uliam K. Gin tc r
Vice I're s iden l
BUd!;e ts and Pro perly

~I~n ag'"fl l cnt

D ir ec to r
Applicttioll 5 SY':'l ms
e

s e me 1 \\ jd~ i n g ~ r
1.
Vice r-r c stdcru
Co r po ra te Personnel

Jo an L. Mogha d aru
,\.<;.:o;is La vt cc Pr ('o;c
ni
; ,h:n1
Ap plicat to rs.sSys ll,;m<l

l
Sy lvia A. Cu n n ing h,. m
,\. I MaJ U Vice President
~
Uu ildi ng a n d Pcop cr-rv ~l :.n :' R e m t: nl

Su sa n G, Porte rfield
Direc tor
Compcn sa t lcn ;lOd Bencfirx

fJ i7~1 be l h K. Ch rt s re n se n
A.....s unl vt cc I~.(e s i.d cn. t
l
}'in.:wci.a J PL'lnn in g and Control

u e eba ea j, Co n t in i
Vice Prc s tdcut
Electronic .\ cce S1l'

~n k<.·~

Ga il G. Qua rk
.\.", j' lJ,n t vtcc
F.lcClf'OJl.iC'-\C(

J an11C.!>J. 'rengc
A ~is(;lJl t Vice Peestdc rn
Ad mlniSlrJtj"e Se rvices

N :UICY E. P dklll S

Deborah S.Jack"On .Oll kc
Personnc ! O ffic c r

Paige B. SCOIt
n
As.sb taru v rce P r ('s id <: t
Data Sccurtry,
Con li n Re n<y pL.;-u w in g
and Su p port services

l o s An gel e s Br an d l
Ihonl;l.. C. ","
.
'arre n
Exe curl ve \ ic c

Ln Ch a rg e

Prl,; ~jde '" ~
.

Go r don R,G. \\ 't:rk em.a
5t'llio r Vice Pr es id e n t
Ope r,lti OlU an d
~i5ta.n t Brotnch \I anag~r

Po rt land Branch
Chade:. L. H u ffs t(' lkr
Vice pr l,; ~.idC nt
CU:i1ody S""n ICt'!i

G. Kerry W b b
e
D i r~cto r
Pa Y lm:nl ~

.\t;uk W. Fish ba c k
Di re c to r
Cas h ;lnd S~ c u r i t j e s
Op\.'" tion:­
ra

fra nk A. .Bentle y
,\S.Sis la ll l \ 'ice P rc s id (~nt
Re lurn I l e m ~

Theodo r e .-\. Schroed e r

.......
\ ..tetam vrcc Pre vtd e m
S~Cl l rj lics

[TJ.rcy). COIl II""
fJenronl c Pa)11le n ls Office r

SlCrvices

Jan ic (' ,\ L Ha rdina
,\'<j:S is U Il CVic ~ P res ide n t
:' d jus tm e J'lts

\ ·;.rn,o t

As si s(;UlI " icc )' r c s id enl
Ch ec k PnJ( e~/iins

G. Br.Jd k y Snodg.r.L.....
.
A....htanl Vice Prcsid e nt
..
Fin.a.ocul S<'rvi cc s

Sa l

A., gclo S. Car-e lla
Senloe Vice Prestd em
In Ch:lrgc

f.. J'
S, n
In<

SUl'an l. Ro be rl.'>O n
,~ b l;lDl Vice Pr C!'iidlClll
Pa pm,;nts St:niCt.'.s
0<.-:11....C. <.on.oe rm an
Vic e Prt' s id~nl
Fin :<.nC'ial Servi ces
a,n d Pu blic In fo r m a tlo n

A."~ iM:Ull
~ l aT)'

Elk n 7
..ask",
U irccto r
Adlll in hlr:tl io n "'li d
Snre t:l.('Y of thc Board
.

Pa m cbJ. Ro be rl son
.·\.s.o. bu n l Vitt Prl,;sidl;.lll
H um a n Re s ou r(l,;S

6 re n l .\ 1. J) u.. b u l:Y
"
.\s s iMa n l Vice Preside ll t
Adminb t r:ll ivc Se n'i ces

les lie R. Wallers
'\ )S ls t:Ult Vice Prexident

i

CO'
'u s
P;l)

'0 1

As<
,\ d ,

Anl
,,,
fin

C U lo l o d )' S ~ rv ic<: s

:lJ 1(

Ro llo;: r t 0, long
'\."Sb tar\ l \ ic~ presid('nt
,J,dmiJtis lrJ tivo;: Sc rv iclCs

"lIIIl

Organ ization Chart

Fe b ru a ry

I,

1991

I

1

Th omas I) , Th om son
E,;c (u th,(.' Vice P n:s id c lll

Ccnu-al B:ulk f u ilC l lOil S

Ecooorruc Rese ar c h
J uh n H . Beebe
Se n io r Vie t:"Pre..idelll
a n d D tr e c ro r o f n~ ' ~ J. rch

:.) n h n so n

Jo h n P.Jm.ld
vice President a n d
Ass o ci a te Dtrecr or of n es ca rc f

1\ "i( 1::Pr c-sldc n t
~ rtI i na l i o o s .

(..,\ .
G . ROM varoz
L:'<.:
lfniJll n g O f fice r
lI He In "lpcc ri o n s . 5.1
..C.

Thorn as j . Back er

r
!\.I-.

f.x;lm in ;l1~ O ffi c c: r

BHC J n ~J'~criom•. L..\ .

II!JI
ty .\f faiA Offi Ct"
T

H;u\ g- Sh ('ll g Chl: n .~
vfc e Prestde m
ln le r .llI l io n..'1 IS ru d ....'

Public In formation
A d r ia n W. Thr-oo p

Resea rch Offi ce r
Do m e s t ic .'<!
;l(;To t:c on o m ic Stvd les

F re d e r ic k T. Furl o n g
Research Offi cer
Domcs uc M;lCTtJCCOll o m ic

S l u d i t"~

Ro be rt L. Ftc nb erg
vl ce Prcs fde m an d
O teccroe o r Pu b l tc lnfor m ;u io n

ne uvc n Gli ck
Rc se a ,ch O ffi c er
In lc r n a l io rul Stu di (' <;

Ran da ll). Po ... e ua
d
Vic e P rC'ji d c n l

8ank.i.ng and Rq : ;o n;l. Sru d ics
1

d Product Management

Dlstrt ct Op e ra tlon s

San Eranc tsco Ope ra rlons

.on

john w. Gle as o n
Se nio r vlce Pr e s ideD I
D i~ l ric l Opeeanon s

Sha ron L Re is d o rf
Se n io r vl ce Pr cs tc eru
S.. Fra nd ~ O p e ea ttons
m

'n: ~ide nl

Product vrao a c e ruc ru
~ t ri<ia

II

vr ce

Accourt l i n~

lI m i	

Sen'ices

A. \"ii::k h

P rc~ ide.o l

St.::U i~ l i C'>

Ga il G. Q ' I :lrle ~
A.. I:lI."u1I vic e Prcs hJc n t
""
Plc crrontc Acce -«

Elio t F.. Gi ui ll
Dir e c to r
h U<,rn .:n io n a l and D omcs ttc
firL.
1.nci a IR e ~r1 '"

FJ l~'o r lh E. l u n d
Ass is lafll vsce Pr c~jd c nt
.\tom: l;lry '\ W .. g:tle:­
:
and Reserve R..-p orlS

Tho roa:- R. T b aamr m
Vice Pr e $ id ~nl
xccounung

.~ j s b n l

Ad e lJ~

A . Fo k )"

vtc e Pn:sid ~n l
eorpor al (' PIMni n g
B uffi n~lon
" ic~

Cby .\l lll .. r
Pr eside n t
Op ceano os

Dis t~i c l

[)a w n S. Rlo ck
As.sis u ,n t Vice Prc ~ idcnt
Cash s cevt ce s

john A . 'r rocc o c
~1 ~1~1I V ice Pr C-'tid c n l
Ceepora ee Pl:Jn ni ng
j o h.u H. wo n g
A-. i s •ant Vice Prcs tdcru
~

s ec u rtue s Scr-...tees

Ge ral d L sto reno

Elec tron tc Payments Offi c er

Dou~1S

O . Ko.u d.'¥I.:n
r\S6is LU11 vrce p re s fdent
,'
Fin a n c ia l servi ce s

Ste p h e n A. lUtu fm an
As.~ls [aJ1 1 Vice p r e s id e n t
Pay me n ts St:rv ic c !>
TnJ dy L Nio
A.'iSi :<LUIl v tce Preli id el'l t
O peralion:- Ad Jll in isl r~ l ion

Salt lake Ciry Branch

Se a ttle Branch

F.. ROI".
::tld ligget!
St' ni "", vice Pr e sld e m

Ge ra ld R Kell y
Se n io r Vice President
11'1 <': :l q:e
h

I n Ch~ tr j;l <.e

Pa )'m c n ts s e rv tcc s

G.J. <:P.AHs ci l
I
\ " i, I.lOt vi ce l'r~idCl'l t
Ad.tn il'liSl ra l i.'c SCrv ic....
1>

Rob e rt R. Rid la r d s
A. is l:m l Vice Prc:- id e n l
"
,\ d m ln iSL ive Se rv ic e s
f"Jl

A.sl;iSlan l Vice President
P:lYlIlc n L. Se rv ic e s
'

P. wo tco u
'\ !l-::ijs l:ll11vice P restde ru
Fi n:lJ1 a l Se r vic es
ci

JI m m y F. Kamada
~ h la l'l l Vice Prestd e ru
Cu s lo d y Services

C ra ld R. Oa Ulng
.o.;
A.ss isU11 1 Vic e Presi d ent

A Jl(J ~

all d~h

•

Kt'nnClI:t 1. Peterson

Highlights of 1990

Economic Research

Domestic macroeconomic research focused on several issues of interest to the Federal
Reserve in the conduct of monetary policy in 1990 and the years ahead. For example,
studies examined the effects of oil shocks on inflation and economic output, the relia­
bility of the unemployment rate as an indicator of inflationary pressures, and the roles
of aggregate-demand and -supply factors in determining business cycle fluctuations.
International research examined international implications of monetary-fiscal policy
mix, factors determining demand for U.S. exports, Japan's capital outflow, interactions
between the exchange rate and financial markets in Taiwan, and economic reform in
China.
Banking and financial markets research included pricing retail deposits in California,
interstate banking, informational effects of the Community Reinvestment Act, ATM
regulations, agricultural lending, deposit insurance reform, and reform of bank
securities powers.
Regional research studied the effects of imperfect information on investment, the
determinants of the geographic dispersion of high-technology industries, real estate
markets in the West, venture capital, and the sensitivity of homebuilding activity to
interest rates.
The Center for Pacific Basin Monetary and Economic Studies was inaugurated with
a conference at the Bank in July.

Public Information

Media relations efforts were expanded to increase public awareness and under­
standing of the Federal Reserve System and its policies. These programs included
conducting media training workshops at Salt Lake City and Portland branches, meeting
with print and broadcast editors and editorial staffs, news releases, news briefings and
recorded audio interviews of Bank staff for broadcast use.
An informational Media Day at the Los Angeles Branch attracted 20 media repre­
sentatives who toured the Branch and listened to briefings from top Bank management.
The economic education program was strengthened through meetings with the Joint
Council on Economic Education and directors of state Councils on Economic Education
in all nine District states. As an outgrowth of this collaboration the Federal Reserve is
producing a semi-annual newsletter with the Arizona Council for distribution to 3,500
educators and civic and business leaders.

Over all , th e financ ial condition of state member banks was good . During the year,
Reserve Bank examiners conducted a tota l of 60 examinations of commercial banks.
At year-end a total of 25 state member banks were subject to special supervisory
attention because of unfavorable f inancial cond it ion, four mo re than at yea r-end 1989.

Supervision, Regulation
and Credit

The Reserve Bank held $25.3 billion in collateral accounts at year end, reflect ing a
sharp increase from $20.1 b illio n at the end of 1989 . The i ncrease was due primarily to
a des ire by la rg e banks to increase their collatera l balances for contingency borrowing
purposes should the need arise in the future.
An extensive training course on banking superv ision was conducted by three members
of the department for a large number of officers and staff at the People's Bank of
China.
Large bank holding companies continued to expand their operations through
acquis itions during the year requ iring examiners to broaden the ir scope of inspections
to evaluate much larger asset ba ses and operational complexit ies. Nevertheless, only
seven correct ive act ion program s were issued to bank holding companies in 1990, a
sharp contrast to 23 actions in 1989 . Most of those removed from the roster were as
a result of sustained improvement in f inancial conditions rather than failures .
The number of applications by bank holding companies to acquire additional banks,
and al so to acquire nonbank companies declined slightly, wh ile the volume of other
major appl ications such as change of control and bank holding company fo rmat ions
he ld re lative ly steady.
Consume r compliance examiners faced a particular challenge growing out of the
requirements of FIRREA. In conjunction with their normal examinations, the Act called
for the generation of a separate document conta in ing the exam iner's assessment of the
banks CRA performance. This document is sub ject to public disclosure for a ll examina­
tions conducted after mid-year 1990 and must be made available for public rev iew by
the examined bank .
The Community Affairs staff held two community development conferences in
conjunct ion w ith the Federal Home Loan Banks of Seattle and San Francisco attracting
more than 500 attendees .

Service availability and reliability cont inue to be a major focus . Critical hou rs service
availab i lity has been at 100 percent consistently for more than two years and full-day
availab il ity averaging 99.84 percent is well ahead of the System target of 99.5 percent.
Volume growth for Fedwire transactions in the Twelfth District was surp r ising ly strong
in 1990, fully double the average of the Federal Reserve System. Basic transaction
volu me in 1990 g rew 11 .5 percent in the Twelfth District versus 5.7 percent for the
System .

Funds Transfer

Automated Clearinghouse

Consolidation and automation programs along with contingency planning were major
efforts in 1990 . A major data processing consolidation program transferred all Auto­
mated Clearinghouse (ACH) activity from the northern branch data centers to the San
Francisco data center. In addition to enhancing the Bank's contingency capabilities and
increasing its efficiency, this move best positions the Bank to move into the future AII­
Electronic ACH environment.
Growth in ACH transaction volume continues to be very strong in the Twelfth D istrict,
outpacing the growth in most other Reserve Districts.

Electronic Access

This Bank continues to serve as the Electronic Access Office with responsibility for
developing and implementing System-wide strategic plans for electronic access to
Federal Reserve services and introduction of new electronic access mechanisms.
During 1990 the District neared completion of its program to standardize electronic
access options. FLASH-Light, a new connection option to FEDLINE II, was introduced.
It is designed for the small ACH receiver as a simple-to-use, receive-only personal
computer-based electronic connection to Federal Reserve Bank information services.

Check Services

A key milestone in long-term automation of the check processing area was achieved
with conversion of all offices to a processing system which provides increased bal­
ancing capability and greater capacity for future business needs. As part of this
project, channel extenders were installed to run northern branch check equipment
from the San Francisco data center. New software for logging and tracing check
adjustments was implemented in San Francisco, Portland, Salt Lake City and Seattle.
Los Angeles Branch will implement the system in 1991.

Securities and
Fiscal Services

A program to streamline the processing of the applications and issuance of Savings
Bonds is underway. It is a major step in the smooth implementation of the Treasury's
Regional Delivery System for Savings Bonds scheduled for complet ion at the end of
1992.
During 1990, this Bank converted from use of its own Treasury Tax and Loan system
to an application system shared by all Federal Reserve Banks which enabled Securities
Services to further automate a number of Treasury Tax and Loan functions and to con­
solidate a number of activities in the San Francisco office.

Managing currency volume growth and increasing automation were key emphases
during 1990. Currency volume growth slowed somewhat in California during 1990 but
increased in the Northwest compared to the latter half of the 1980s. Sharing capac ity
among the five branch offices and add ing staff and equipment expanded the capac ity
of the high-speed currency processing resources and led to reduced backlogs of un­
processed currency.

Cash Services

Cash automation efforts have centered around designing an integrated compute r
system to minimize paper records of valuables transfers and improve accountability
and efficiency throughout the operation .

Volume (in thousands)
1988

1989

Summary of Operations

1990

Custody Services
Cash Services
Currency notes paid into circulation
Food stamp coupons processed
Securities Services
Savings Bonds original issues
Savings Bonds redemptions processed
Other Treasury original issues
Book -Ent ry Securities processed

3,207,649
295,264

3,405,037
309,852

3,516,705
364,702

3,534
283
142
303

3,437
278
396
685

3,456
249
583
656

3,022,928
83,867
35,714

3,082,631
82,827
37,676

3,128,340
82,274
34,085

14,224

15,431

17,196

210,867

245,740

300 ,865

1,013

1,329

1,088

104

129

101

Payments Services
Check Services

Commercial checks collected

Government checks processed

Return item s processed

Electronic Payments Services

Wi re transfers processed

Automated clearinghouse

transact ions processed

Discounts and Advances
Total discounts and advanc es*

Number of financial institutions

accommodated *

* Whole number (not in thousand s)

Federal Reserve Bank of San Francisco

Board of Directors


Chairman and
Federal Reserve Agent

Robert F. Erburu
Chairman of the Board and CEO
The Times Mirror Company
Los Angeles, California

Deputy Chairman

Member, Federal Advisory Council

Carolyn S. Chambers
President and CEO
Chambers Communications Corp.
Eugene, Oregon

Paul Hazen
President and COO
Wells Fargo Bank, N.A. and
Well s Fargo & Co.
San Francisco, California

Richa rd L. Mount
Chair man, President and CEO
Sara toga Bancorp
Saratoga , Cal iforn ia

Warren K. K. Luke
President and Director
Hawa ii Na tional Bancshares, Inc.
and Vice Chairman of the Board
Hawa ii Nat ional Bank
Honolulu, Hawaii

Jo hn N. Nordstrom
Co-Chairman of the Board
Nordstrom, Inc.
Seattle , Washington

Wil liam E. B. Siart
President
First Interstate Bancorp
Los Angeles, California

W illiam L. Tooley
Chairman
Too ley & Co.,
Investment Bu ilders
Los Angeles, Californ ia

James A . Vohs
Chairman and CEO
Kaiser Foundation
Health Plan, Inc. and
Kaiser Foundation Hospitals
Oak land, Californ ia

Los Angeles Branch

Board of Directors


Chairman of the Board

Yvonne Brathwaite Burke
Portner
Jones, Day, Reavis & Pogue
Los Angeles, California

Fred D. Jensen

Harry W . Todd

Chairman of the Boord,
Presid ent and CEO
Notio na l Bank of Long Beach
Long Beach, Ca lifornia

Managing Portner
Carlisle Enterpr ises, L.P.
La Jolla, Cal ifornia

An ita E. Landecker

Dona ld G . Phelps

Di rect or of Cali forn ia Progra ms
Local Initi ati ves Support Co rp .
Los Angeles, Cal ifornia

Chancellor
Los Angeles Commun ity
College District
Los Angeles, Cal iforn ia

David R. Lovejoy

Ignacio E. Lozano , Jr.

Vic e Chai rman
Securit y Pacif ic No tiona l Bank
Los Angeles, Californ ia

Editor- in-Ch ief
La Opin ion
Los Angeles, Cal iforn ia

Portland Branch

Board of Directors


Chairman of the Board

William A. Hil liard
Editor
The O regon ian
Portlan d, Oregon

Stua rt H. Co mpto n

E. Kay Stepp

Cha irma n and CEO
Pio neer Trust Ba nk, N .A.
Salem, Oregon

President a nd COO
Portland G enera l Electric
Po rt la nd, O rego n

Ceci l W . Dri nkward

Ross R. Runkel

Presid ent
Hoff man Con struct ion Co .
Portl and , Oreg on

Professor of Law and D irector
W ill a mette Un iversity Center
fo r Dispu te Reso lution
W ill a metl e U niver sity
Sal em, O reg o n

Stephen G. Kimbal l

Wayne E. Ph illips, Jr.


Pr esid ent and CEO
Baker Boyer Bancorp
W al la Wa lla, Wa shingto n

Vic e President

Phillips Ranch, Inc.

Bake r, O r egon


Salt Lake City Branch

Board of Directors


Chairman of the Board

D. N. Rose
President and CEO
M o unta in Fuel Supply Comp any
Salt La ke City, Uta h

Gera ld R. Christensen


Gary G . Michael

Preside nt and Cha irman

First Fede ra l Savings Bank

Salt Lake City, Utah


Cha ir man and CEO
A lbertso n's, Inc.
Boise, Idaho

Curtis H. Eaton

Virginia P. Kelson, M .B.S.

Vice President ; Manager,
Com muni ty Banking Area and
Me mbe r of Board of Directo rs
First Security Bank of Ida ho, N .A .
Twi n Falls, Ida ho

Partner

Ralston & A ssociates

Sal t La ke City, Utah


Ronald S. Hanson

Constance G . Hog land

Vice Cha irman of the Board
Zion s First Nationa l Bank
Salt Lake City, Utah

Executive Di recto r
Boise Ne ighborhood
Hous ing Services, Inc.
Boise, Idaho

Seattle Branch

Board of Directors


Chairman of the Board

Bruce R. Kennedy
Cha irman
Ala ska A ir Group
Seattl e, Wash ington

B. R. Beeksma

Geo rge F. Russell, Jr.

Cha irma n of the Boa rd
InterWest Sav ings Bank
Oa k Harbor, Wa shington

Cha irma n
Fra nk Russe ll Compa ny
Taco ma , Wa shington

Gerry B. Cameron

Judith M. Runstad

Presid ent and CEO
U.S. Bank of Wash ington, NA
Seattle, W ash ing ton

Ma nag ing Partn er
Foster, Peppe r & Shefelma n
Seattl e, Wash ington

Robert P. G ray

H. H. Larison

Presid ent
Natio na l Bank of A la ska
An cho ra ge, A las ka

President
Columbia Paint & Coatings
Spoka ne, Was hington

Advisory Council on Small Business and Agriculture -1991

Chairman

Fred W . Andrew

Kendall E. Bert

Robert D. Fay

Boyd R. Poulton

Chai rman of the Board
Andr ew & Will iamson
Sa les Co .
Bakersf ie ld , Ca lifo rn ia

Econom ic De velopment
Director
City Manage r' s Office
Tucson , Arizona

Vi ce President and
Operations Manager
JoLoNa For ms
Sunnyside, Washington

Partne r
Price, Poulton and Co .
Burl ey, Idaho

David N imkin

Donald Butler

Robert L. Hancock

Leslie Tang Schilling

Execut ive D irector
Utah Small Business
Development Center
Salt Lake City, Utah

President
Shasta Foods International , Inc.
Gonzales, California

President
Avtech Corporation
Seattle, Washington

President
L.TD.D., Inc.
San Francisco, Cal iforn ia

Barry Baszile

George M . DeMedeiros

Elizabeth K. Johnson

Henry J. Voss

Preside nt
Basz il e Metals Serv ice
Los Ange les, Ca lifornia

Consu ltant and Retired
Corporate Presiden t
Dairyman ' s Co-op
Creamery Assn .
Tulare, California

President and
Chi ef Operating Officer
Tran swe stern Helicopters, Inc.
Scappoose, Oregon

Director
California Department of
Food and Agriculture
Sa cra me nto, Cal iforn ia

Vice Chairman

Comparative Statement of Account

(Thousands of Dollars)
December 31,
1990

1989


A ssets
Go ld certificate acco unt

Special Drawing Right s ce rtifica te account

Other cash


.
.
.

1,329,000
1,072, 000
89,178

1 A 02,000
922 ,000
77)06

Loans to depository institutio ns

.

25,030

220

Federal Agen cy obligations

.

706,352

795 ,57 1

United States Governm en t se curities :

Bills

No tes

Bonds


.
.
.

12,532 ,995
10,181,288
3A71,101

12,751,915
11,142,450
3,757,22 1

Total loans and securities

.
.

26 ,185 ,384
26,916,766

27,651,586
28A 47,377

Items in process of co ll ection

Bank premises

Operating equipmen t


.
.
.

684,5 44
148,4 93
33 ,075

1 A 09,038
149,708
32, 015

Other assets:

Denominated in foreign cu rrencies

All other


.
.

4A05,320
526,052

4) 23,816
1,000,609

Interdistrict Settlement Account

.

(1,482,186)

(2,007 ,957)

Total assets

.

33,722,242

35,755,812

Federal Reserve Notes

.

24,562,533

25,863,292

Deposits:

Tota l de posito ry institution s- re se rve accoun ts

Foreig n

Oth er depos its

Total deposits

.
.
.
.

7,740,779
20)50
6,799
7,767,828

7,546 ,848
20,700
128,965
7,696 ,51 3

Deferred credit item s

Othe r liabilities


.
.

448,150
312,977

1,234,897
357) 90

Total liabilities

.

33,091A88

35,151,992

Cap ita l pai d in

Surplu s


.
.

315,377
315 ,377

301 ,910
301 ,910

Total liabilities and capital accounts

.

33,722,242

35,755,8 12

Tota l U nite d States Government securities

Liabilities

Capital Accounts

Earnings and Expenses

(Thousands of Dollars)
December 31 ,


1990

1989


Current Earnings
Di sco unts and advances

United States Government secur ities

Foreign currencies

Income f rom se rvices

All oth e r


.
.
.
.
.

2,023
2,272,869
352,012
83A53
1)35

5)48
2A69 ,1 40
143)52
78,683
2,197

Total cur rent ea rnings

.

2}12,092

2,699,120

Curre nt Expenses
Total cur rent expe nse s

Less: rei m b ursem ent fo r ce rta in fi scal agency

and other expen ses


.

164,950

170,670

.

N et ex penses

.

14,031
150,919

13)49
157A21

Cost of earnin gs c red its

.

15,043

15,585

Cu rrent net ea rn ings

.

2,546,130

2,526,1 14

Profit a nd Loss
A dd it ions to cu rrent net earni ngs
Profit on p rio r pe riod a djustme nts

Profit on sa les of Un ited Stat es Government

secu rit ies (net)

Profit on fo reign exchange t ransactions (net )

A ll othe r

Total a d d itions


.
.
.
.
,.

6,999
288,818
295,817

1,281

174A06

1)57

177,044


356

356


0

Deductio ns f rom current net earnings
Loss on f o re ig n excha nge tran sactio ns (net)
All oth er
Total d ed ucti o ns

,

.

.
.

Net additions ( + ) or deductions ( - )

.

Cost of Un reimbu rsed Treasury Serv ice s

.

(11,178)

(6,691 )

.
.

(14,097)
(20,650)

(12,316)
(18,860)

Assessments by Board of Governors

Board expenditu res

Federal Reserve cu rrency cos ts

Net earn ings b ef ore pay ments to the
United States Treasury

Dividends paid

Payments to the Un ited States Tr easury (interest on

Federal Reserve Notes)
Transferred to surplus

Surplus, Janu ary 1

Surplu s, December 31


295A61

177,044

.
.

2)95,666
18,929

2(665)91
17)14

.

2)63,270

2,636,822

.
.

13A67
301,910
315,377

10}55
29U55
301,910

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11127

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Portland

La. Ang.I••
San Francisco Office
P.O. Box 7702, San Franc isco, Cal ifornia 94120
Los Angeles Branch
P.O. Box 2077, Terminal Annex,
Los Angeles, California 90051
Portland Branch
P.O. Box 3436, Portland, Oregon 97208
Salt Lake City Branch
P.O. Box 30780, Salt Lake City, Utah 84125
Seattle Branch
P.O. Box 3567, Terminal Annex,
Seatt le, Washington 98124

This Report was produced by Karen Flamme and wr itten
by Lana Jupiter and Koren Flamme. Cover, ill ustratio ns,
and graph ics were created by Mark Hendricks and
William Rosen thal. Color photography by Paul Schulz.

o

printed on recycled pape r