The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
2001, I SSUE 1 CREATING CRITICAL MASS Fostering a High-Tech Economy in New Mexico THE AUSTIN TECHNOLOGY INCUBATOR PLUS BANKING OUTSIDE THE BOX Meeting the Needs of the Unbanked OUR NEW LOOK The technological innovations of the past few years have transformed our daily lives. The changes are not limited to how we buy airline tickets, trade stocks or check the weather forecast. Our expectations have also changed. We want products, services and information delivered faster than ever, and we want them tailored to our needs. With that in mind, the Community Affairs Office of the Dallas Fed has changed how it delivers information. In January we published the first issue of our new webzine to better serve our readers by offering quick access to timely information. You’ll find a new issue of e-Perspectives at www.e-perspectives.org six times a year. Twice a year, we’ll publish a print-copy Perspectives. Each issue will focus on a major theme in community and economic development. In the spirit of the driving force behind our changes, the premiere issue in our new format focuses on technology as a tool for economic development and the delivery of financial services. Read “Creating Critical Mass” to discover how a nonprofit is helping reshape New Mexico’s economy and “Banking Outside the Box” to learn how companies are extending financial services to those without bank accounts. I hope our new format meets your expectations. Let us know what you think. Nancy Vickrey Assistant Vice President and Community Affairs Officer Federal Reserve Bank of Dallas 2 PERSPECTIVES CREATING CRITICAL MASS Fostering a High-Tech Economy in New Mexico With its high poverty rates, low per offers investors access to some of the capita income and intractable pockets of state’s most promising start-ups. If TVC double-digit unemployment, New Mexico decides a proposal has potential, the often seems to be on the wrong end of organization works with the entrepreneur state economic rankings. Heavily depend- to refine the business plan and develop ent on federal spending to create jobs, the marketing strategies. A pro bono advisory state’s prospects have long been consid- committee provides expertise in law, ered limited. accounting, marketing and business man- That perception may no longer capture agement. reality, however, thanks in part to an Albuquerque nonprofit. Technology Ventures “Our metric is job creation,” Corp. (TVC) is forging relationships with says Sherman McCorkle. state government and venture capitalists to transform New Mexico into a high-tech Finding the right partners is critical, says hot spot like Silicon Valley or Austin. In the McCorkle. “Entrepreneurs and investors process, it has created an economic devel- need to make sure they can live with each opment model other regions can follow. other for the next five-plus years. That is TVC, along with the State Investment Council, is attracting millions in equity why our guiding principle is the right investor for the right technology.” investment for entrepreneurs seeking to TVC’s efforts are attracting attention. commercialize technologies created at The Association of University Related Sandia National Laboratories, Los Alamos Research Parks has recognized TVC for its National Laboratory and other R&D facili- technology commercialization model, and ties in the state. TVC also assists and the Small Business Administration has advises researchers and scientists, among applauded its venture and seed capital others, on how to take their groundbreak- development. ing innovations to market. When the effort began eight years ago, A Three-Legged Stool New Mexico had no venture capital firms. In 1992, Bill Garcia, then state secretary Today, it has nine. And TVC has helped of economic development, compared the establish 46 tech companies that combined New Mexico economy to a three-legged have generated 3,125 new jobs and stool with a missing leg. The state had a attracted $295 million in equity investment. strong business infrastructure and the “We are now positioned to create a crit- technology produced by the $3 billion ical mass of technology firms in New Mex- sunk annually into federal R&D. What it ico,” says Sherman McCorkle, TVC presi- lacked, he said, was the investment neces- dent and CEO. “TVC’s primary goal is sary to capitalize on those assets. creation of high quality, well-paying, long- “We took that report and decided to term jobs. Everything we do is just a mech- design TVC to be the third leg,” says anism to achieve that goal.” McCorkle. By screening prospective companies The organization grew out of Martin and mentoring the cream of the crop, TVC Marietta’s bid to manage Sandia National | Federal Reserve Bank of Dallas and invest or cause to invest an amount of capital equal to what the state is willing to put up. The internal rate of return on the state’s investment has been 44 percent. TVC has played a key role in the amount of revenue dedicated to the state’s venture capital fund. The organization led an effort in the legislature to allocate $25 million to the fund in 1997. A second push in 2000 increased the allocation to $150 million and boosted the cap on single investments from $7.5 million to $15 million. Profitable Location Five of the state’s venture capital firms take advantage of TVC’s offer of free office space in its Albuquerque building. Among them is Murphree Venture Partners, which Labs, a defense-related R&D facility head- when the defense contractor won a five- quartered in Albuquerque. Team mem- year contract to manage Sandia, and TVC bers—including McCorkle—wanted to was funded. “One of the most impressive aspects of TVC’s operation is its understanding of all the elements that make up a successful give something back to the state and stand out from competitors, so their pitch relies heavily on TVC as a source of deals. Attracting Equity and Start-ups technology business: technology, manage- Not only does New Mexico now have ment, marketing, operations and finance,” nine venture capital firms, a 2000 Milken says Murphree partner Tom Stephenson, Institute report named Albuquerque the who describes his firm’s return on invest- ture and processes, McCorkle and crew country’s fastest-growing city in high-tech ment as “very profitable.” visited emerging technology hubs like output. The think tank credited the rank- Murphree, which has invested $3.5 mil- Austin and venture capitalists in California ing to Intel’s nearby semiconductor fabri- lion in New Mexico start-ups since 1995, and Colorado. They found few models for cation plant, the state’s national lead in per recently received $15 million from the effective technology transfer from federal capita federal R&D funding and the rise of State Investment R&D labs, but what high-tech start-ups. Council for a new included an economic development component. Laying the groundwork for TVC’s struc- they did learn con- Attracting equity investment is a dual vinced them that effort of the TVC and the State Investment making the organi- Council, which oversees the state’s venture zation nonprofit capital program. Since 1995, nearly $80 mil- was the way to go. lion in state funds has been plowed into Another firm that benefited from TVC “Being a nonprofit New Mexico start-ups through limited part- and state venture capital was MicroOptical organization gives nerships with venture capital firms. It was Devices. While working at Sandia, Tom credibility on both sides of the street decided that pairing with established firms Brennan used his background in physics because we get no finders fees or equity would be more efficient than creating a and material sciences to develop a low- position,” McCorkle says. “Our metric is new state agency, says council Chairman cost way to manufacture high-quality job creation.” $150 million fund. The Right Investor for the Right Technology Gordon Wise. And the council’s being a lasers. In 1995 he teamed with fellow sci- Martin Marietta—by then Lockheed silent investor “insulates the investment entist Robert Bryan to commercialize the Martin, due to a merger—pledged $1 mil- process from the political process by put- technology and start MicroOptical. lion annually to cover TVC operating costs ting a layer between the entrepreneur and Brennan and Bryan worked with TVC to and $5 million for a building to house the the money appropriated by the legislature.” secure rights to the technology, then nonprofit and the start-ups it would foster. To receive state funds, venture capital In 1993 the research and planning paid off firms must have an office in New Mexico Federal Reserve Bank of Dallas | Continued on page 8 PERSPECTIVES 3 THE AUSTIN TECHNOLOGY INCUBATOR nies. “High-tech does not necessarily translate into dot-com,” Wiggins says. ATI covers its operating expenses through space and service fees, along with a 1 percent equity stake in each resident company—far lower than the 40 to 60 percent some for-profit incubators require. As testimony to ATI’s local credibility, the city of Austin and the Austin Chamber of Commerce each give the incubator $25,000 a Aruni Gunasegaram and Erin Defossé year. Through ATI’s Know-How Network, got tired of vending machines at the Uni- more than 100 local professional service versity of Texas–Austin always running out providers give resident companies dis- of their favorite drinks. So these entrepre- “The resources and support we have neurial graduate students came up with a received from ATI have enabled us to build solution: enable the machine owner to our credibility and win customers.” monitor its contents via the Internet. —Kristyne Raley Tough Admissions Standards Because ATI accepts only about 10 percent of all applicants, investors and cus- Thanks in part to guidance and education from UT’s Austin Technology Incuba- counts on products and services. Numbers Tell the Story tomers believe a company’s admission to tor (ATI), Gunasegaram, a former account- To judge ATI’s success over its 12 years, ant, and Defossé, an ex-NASA rocket Wiggins looks to the numbers. ATI’s grad- scientist, are putting their ideas into uate companies and current “resident” Applicants must submit a business action. Their company, Isochron Data companies have created more than 2,500 plan for a technology-based product or Corp., develops and markets wireless tech- high-tech jobs in Austin, generated more service that shows promise for creating nology for businesses to obtain real-time than $1 billion in revenue and raised more jobs. They must have six months of work- information on the maintenance and than $600 million in capital. ing capital and be beyond the R&D stage. inventory of products from ice and vending machines via web-based browsers. the incubator signals a strong potential for success, Wiggins says. ATI is operated by UT’s IC2 Institute, an They also must demonstrate the potential internationally recognized research and to generate significant revenues within five to seven years. “Customers sometimes regard incuba- educational organization that works with tor companies as less stable, but we’ve the public and private sectors to foster B2Gsource Inc. (business to government been able to prove that Isochron is a real, technology-based economic development. source) is a perfect example of a company high-growth company with a path to prof- George Kozmetsky, an institute founder that met the tough admissions criteria. In itability,” Gunasegaram says. and former dean of UT–Austin’s business early 2000, Kristyne Raley, B2Gsource That’s music to Joel Wiggins’ ears. school, and Laura Kilcrease started the founder and CEO, decided to offer a web Wiggins, the incubator’s executive direc- award-winning, nonprofit incubator. portal for governmental units to post tor, says ATI supports promising early-stage The original incubator had 4,000 requests for bids and receive responses. high-tech companies like Isochron by help- square feet of space and two residents. B2Gsource also provides customers with ing them solidify management teams, Today, ATI office space is 10 times that size information on contracting with state and secure financing, get products to market and home to 19 companies. local governments, finding qualified ven- and compete globally. These companies, in Fifty-four companies, including five turn, will generate wealth, create jobs, that have gone public, have graduated strengthen the city’s global reach and add from the incubator. Another eight— ATI acceptance of B2Gsource as a resi- dors and meeting requirements for doing business in the public sector. including Isochron—will graduate this dent has been critical to the company. “ATI doesn’t take credit for the accom- year. The products and services these “There are nine of us in these two rooms. plishments, because the companies do the companies offer represent a range of tech- Our entire business is here,” Raley says. real work,” he says. “The incubator’s value nology, from Internet-based school curric- “Without the Austin Technology Incuba- lies in the networks and contacts, not to ula to online marketing support for car tor, I’m not sure B2Gsource would be mention the cost savings passed on to the dealers. ATI also reaches out to early-stage around. I think many of us would have companies.” biotech and renewable-energy compa- given up.” value to UT programs. 4 PERSPECTIVES | Federal Reserve Bank of Dallas Named technology Digital imaging technology Acquired by BMC Acquired by Commerce Received $55 million in “Incubator Client of the given Innovations 2000 Software Inc. for One for $78 million, fifth-round venture funding, Year” by National Business Award by Consumer $100 million, May March 2001 for total of more than $90 Incubation Association, Electronics Association, 2000 March 1999 January 2000 In addition to a banking relationship million since 1995 founding, April 2001 A Winning Plan Draws Investors with J.P. Morgan Chase & Co., Raley has a In May 1998, Isochron entered ATI by loan from ACCION Texas, which lends to winning the International MOOT CORP small businesses that lack financing from business plan competition, administered commercial sources. B2Gsource has been by UT–Austin’s graduate business school. able to sustain growth with revenue generated by its services. Isochron received $1 million in seed “We are using the Internet to help bricks-and-mortar companies do business better,” she’s been quoted as saying. After three years at ATI, where Isochron occupied 4,000 square feet with 44 employees, Gunasegaram and Defossé moved out capital in September 1998, $2.5 million in 1999 and $12 million in its first round of From Office Space to Venture Capital venture capital funding last year. Two orig- B2Gsource and the other ATI residents inal investors were Gunasegaram’s mother enjoy a wide array of tangible benefits, and America Online cofounder Marc Ser- including below-market-rate office space, iff, who now serves on Isochron’s board. furniture, access to T-1 lines, telecommu- Current investors include TL Ventures, nications equipment and office supplies. Sanchez Capital Partners, SAP Ventures, The companies share conference rooms, WR Hambrecht & Co., Arkoma Venture copy machines and a receptionist. Partners, Convergent Investors and Sage- With the incubator staff’s assistance, brook Technology Partners. the companies establish networking and For winning the MOOT CORP competi- mentoring contacts, recruit professionals tion, Gunasegaram and Defossé—Iso- and student interns, and obtain help with chron’s chief strategy officer and chief market research and public relations. technology officer, respectively—received Leaders in Austin’s high-tech community a year of free office space at ATI. and ATI professionals counsel business Armed with plans and seed capital, the owners on organizational strategy. The two developed a 5-by-7-inch wireless box “ATI offered us a safe, nurturing place to companies also gain brand recognition that sits inside a vending machine and build our business. The people were wonder- from ATI’s positive image and its contin- transmits information to the distributor ful to work with and did everything they could ued success. on the machine’s contents, customer use to help us succeed.” —Aruni Gunasegaram ATI also provides links to venture capi- and maintenance needs. The information talists, angel investors and other funding is stored at Isochron’s operation center, in May and almost tripled their office sources. Resident companies, for example, then posted on a web site from which the space. receive automatic membership in The Cap- distributor can run its entire vending Pepper/Seven-Up Corp.; Coca-Cola Bot- ital Network, which matches entrepreneurs operation. Gunasegaram says Isochron’s tling Co. of Chicago, the country’s largest with investors. Resident owners give mock technology allows the distributor to man- independent Coca-Cola bottler; and Pack- presentations of their business plans to age operation and maintenance more aged Ice/Reddy Ice Inc., the country’s technology business leaders so they can cost-effectively by eliminating the need to largest manufacturer and distributor of ice hone their strategies before pitching their manually check every vending machine. products. ■ Among its clients are Dr ideas to venture capitalists. Federal Reserve Bank of Dallas | PERSPECTIVES 5 BANKING OUTSIDE THE BOX Meeting the Needs of the Unbanked Technology is bringing financial serv- Employers can expand their direct- ices to consumers who lack a banking rela- deposit payroll program, cut costs and tionship. improve worker retention because the More than 11 million U.S. households program is an employee benefit. have no connection to financial institu- In addition to saving on check-cashing tions. So when the need arises, they turn to fees, employees have immediate, around- check-cashing outlets and other services the-clock access to their money. They also that often charge exorbitant fees. don’t have to stand in long lines to cash Thanks to new products, the unbanked checks or carry large amounts of cash. can get the kinds of financial services Twenty companies have hired Directo available to those who have checking to handle their pay card direct-deposit accounts. At the same time, financial insti- payments since its start two years ago. tutions are reducing their risks, lowering They include Georgia Pacific, a manu- No one will ever accuse Frank Petro, their costs and providing additional serv- facturer/distributor of paper and building CEO of InnoVentry Corp., of thinking small. Smile! You’re on Camera ices—plus building trust and confi- products, and OneSource, a janitorial In March, Petro declared that the privately dence—to those who’ve been unable or services contractor with 1,300 offices held San Francisco-based company fully chosen not to have a banking relationship. throughout the country. expects “to change how millions of working Many of Directo’s client companies sign Debit Cards for the Unbanked Americans handle their personal finances.” up for the service because much of their InnoVentry plans to accomplish this As companies seek to cut costs, direct workforce consists of people who don’t use with its network of RPM kiosks, which use deposit is increasingly becoming the pay- checking accounts. “This program has real Internet and biometric technology to cash roll vehicle of choice. But that means social value,” says Directo CEO Rhen Cain. checks and provide standard ATM services. employees need accounts into which that “It helps underbanked and unbanked peo- InnoVentry has enrolled more than 1 money can be deposited. ple get established in the financial services million customers and cashed more than arena.” $1.5 billion in checks since the first RPM Directo Inc. of Atlanta has developed a debit card for people without checking A companion product, the Acce$oCard, was introduced in 1999. InnoVentry kiosks accounts. Direct2Cash works two ways. allows people to transfer money to desig- can be found in 27 states, in major retail Companies use Directo to provide a mech- nated parties anywhere in the world. chains that include Kroger, Albertson’s, anism for these people to receive manda- These linked accounts are especially Circle K, Kmart and Wal-Mart. In March, tory direct payroll deposits. And banks can appealing to people with family living out- the refer people to Directo if they’ve been side the country. By splitting their deposits machine. turned down for regular checking accounts among several cards, employees can give Kroger managers say the machines are and their employers offer direct deposit. family members ATM access to their attractive additions because they reduce deposits and avoid costly wire transfers. the costs and risks associated with gro- Those who sign up for Directo accounts company installed its 1,000th have their paychecks direct deposited into Directo recently introduced another cery-counter check-cashing services and an FDIC-insured account at one of the product—an electronic paycheck that bring in more shoppers. People cash company’s partner banks. Cardholders allows employees to print out their stubs checks for an average of $250, then often then use their debit cards to access their via company intranet or a secured Internet spend some or most of it on groceries, says money from an ATM or get cash back from site. The electronic stub, coupled with Gil Roeder, InnoVentry vice president of point-of-sale transactions. The accounts direct deposit, could ultimately result in communications. can also accept ACH credits and debits. paperless payrolls, Cain says. 6 PERSPECTIVES | Federal Reserve Bank of Dallas InnoVentry began as a joint venture of Wells Fargo & Co. and Cash America International and now counts Capital One Financial Corp., whose principal sub- E-COMMERCE Resource Centers sidiaries offer consumer lending products, among its backers. In February, InnoVentry announced completion of a $253 million funding package that will enable the company to add 3,000 RPMs. InnoVentry Businesses seeking federal contracts also plans to add electronic bill payment, may want to take the information highway money order and wire transfer services to to the customer’s door. The government is To Jon Doherty, deputy program man- its machines by year’s end. encouraging its suppliers to use electronic ager in San Antonio, e-commerce is about business success stories and ideas for addressing specific situations. Enrolling takes about five minutes. The commerce to streamline purchasing pro- cutting expenses, saving time, and expand- customer answers questions on the cedures and slash paperwork. In fact, the ing customer and supplier bases. The abil- screen, talks directly to a service person Defense Department requires that ven- ity to invoice online is one big advantage from a phone attached to the RPM and dors go this route. for vendors. When vendors combine online keys in his or her Social Security number. Of course, not all businesses are Inter- invoicing with direct deposit, they receive The customer’s picture is taken, then net savvy. That’s why the San Antonio Elec- payment in as few as seven days, rather interpreted by facial recognition software tronic Commerce Resource Center and its than the 30 it could have taken before. This as a unique biometric signature that 16 counterparts around the country are helps vendors improve their cash-flow becomes the source of future identifica- helping companies harness the power of forecasting and ensure solvency. tion. Subsequent checks are cashed auto- computers and the Internet to sell goods Theresa Chavez knows the benefits of matically if the image matches the photo and services to the government. E-com- e-commerce and the San Antonio Elec- file and the check has no high-risk charac- merce can be used to send and receive tronic Commerce Resource Center. In teristics. The service center can speak product specs and drawings, bids, pur- 1991, Chavez, her husband and brother- with the customer if there’s a question chase orders, invoices and payments. in-law started High Quality Machine Shop about a check or who’s cashing it. Charge Created by the Defense Department in in southwest San Antonio with two Air varies by region and type of check but typ- 1992, the centers assist small and Force contracts for airplane hardware. But ically runs about 2 percent of face value. medium-sized companies interested in the business struggled with only eight full- Roeder says that although two-thirds of doing business with the government. The time employees, and Chavez soon realized the people who use the machines have other Texas centers are in Dallas, Palestine the company needed greater operating bank accounts, InnoVentry’s market is the and Orange. efficiency—and more business. underbanked. “We actually see our market The San Antonio center, which opened Five years ago, she heard about the San larger than what the Federal Reserve in 1993, covers Southwest Texas, New Antonio center’s services. With the help of would define as the number of Americans Mexico and Arizona, with the help of a several classes and one-on-one technical who have no bank accounts—roughly 11 satellite office in Santa Fe, N.M. The cen- assistance, Chavez’s company now relies million,” he says. “We see our target mar- ter provides information, training, consul- on the Internet for securing government ket as…60 million adults living in house- tation and technical support for all federal contracts. Today, the machine shop has holds that cash checks outside banks.” e-commerce initiatives. contracts with seven Air Force bases. Roeder describes the typical RPM user The free services include 23 classes and Chavez employs 16 people full-time and as under 40, male, and Hispanic, African- workshops with such titles as Getting has doubled her revenues, from $600,000 American or a recent immigrant. Median Started with Electronic Commerce, Mar- in 1991 to more than $1.2 million last year. household income is $37,000. keting on the Internet, Internet Business None of this would have been possible, “InnoVentry is reaching members of a Operations and Web Page Development. she believes, without the Electronic Com- very large and underserved market who Businesses wrestling with a specific prob- merce Resource Center. ■ often are choosing not to use banks,” lem can also get one-on-one help. For more information, call Jon Doherty, Roeder says. “Many of the fringe banking Bits and Bytes, the center’s online types of outlets have been prone to exploit newsletter, reports information on upcom- deputy program manager, this group.” ■ ing workshops and conferences as well as (210) 732-1141, or go to www.saecrc.org. Federal Reserve Bank of Dallas | PERSPECTIVES 7 Critical Mass entists and engineers, thanks to its loca- Continued from page 3 tion next to Sandia National Labs. received a $200,000 seed grant from ARCH II Venture Partners Fund to write a business Looking to the Future HOW DO THEY DO THAT? How can Sandia Lab employees plan and make a prototype. They moved Rather than resting on their success, and private citizens commercialize into the TVC building, where they were sup- New Mexico’s technology leaders are and profit from technology developed plied with office space, help with the busi- determined to capitalize on their momen- with federal funding? ness plan and, says Brennan, moral support. tum and forever transform the state’s A catalog of legislation has made “Being located...in the same building economy. TVC is seeking a five-year fund- technology commercialization a priority made a huge difference,” he says. “We all ing extension from parent company Lock- for federal R&D organizations. Of lived and breathed MicroOptical Devices.” heed Martin. MicroOptical’s Brennan special relevance for Sandia is the In 1996, Brennan and Bryan attended recently started Zircle, an equity invest- National Competitiveness Technology TVC’s Annual Equity Capital Symposium, ment firm based on his own technology Transfer Act of 1989, which makes which draws venture capitalists from around commercialization model. technology transfer from federal labs part of the Department of Energy’s the world. The pair came away with $3.1 mil- “We are going to show people how well lion in second-round money from several technology commercialization works in firms, including Murphree and ARCH. New Mexico and in the process improve The DOE and federal labs hold intel- MicroOptical also secured a $2.75 million our education system, our infrastructure lectual property rights to a variety of line of credit. and our communities” by expanding the technologies and generally make them tax base, he says. available for license to applicants with The following year, New Jersey-based mission. EMCORE Corp. acquired MicroOptical for Wise, of the State Investment Council, satisfactory plans to commercialize $32 million, invested $60 million in expan- is among those who believe New Mexico is their use. The DOE or the lab negoti- sion and created EMCORE PhotoVoltaics. just beginning to see the benefits of tech- ates license agreements on a case-by- EMCORE now employs 220 people but has nology-based economic development. case basis. The terms and conditions “We’ll really see the benefit in five or 10 of such agreements include compen- EMCORE has become an anchor at years, when our economy is more like sation structures that may involve an Sandia Science & Technology Park, which Austin’s or the Silicon Valley’s,” he says. up-front fee, royalties based on rev- is managed by a TVC spin-off. The 19-acre “The increase in the number of jobs and enues or both. complex offers tenants fiber-optic infra- businesses will boost the well-being of the structure and proximity to world-class sci- entire state.”■ plans to create up to 600 additional jobs. NEW ROADS & E-ROADS Market Innovations in Community Development Federal Reserve Bank of Dallas 2001 Community Affairs Conference, August 23–24 This conference will look at ways the rapidly changing banking environment is affecting low- and moderateincome communities. Current issues, including CRA, will WEBZINE e-Perspectives is on the web at e-perspectives.org. Look for a new issue six times a year. also be discussed. A registration brochure will be coming soon. perspectives Federal Reserve Bank of Dallas Community Affairs Office P.O. Box 655906 Dallas, TX 75265-5906 Nancy C. Vickrey Assistant Vice President and Community Affairs Officer nancy.vickrey@dal.frb.org Gloria Vasquez Brown Vice President gloria.brown@dal.frb.org Toby Cook Community Affairs Specialist toby.cook@dal.frb.org 8 www.dallasfed.org 2001, Issue 1 PERSPECTIVES Diana Garza Community Affairs Specialist diana.garza@dal.frb.org Jackie Hoyer Houston Branch Community Affairs Advisor jackie.hoyer@dal.frb.org | Federal Reserve Bank of Dallas Publications Director: Kay Champagne Writer: Steve Smith Editor: Monica Reeves Designer: Patti Holland Issue Editor: Toby Cook June 2001 The views expressed are those of the authors and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System. Articles may be reprinted if the source is credited and a copy is provided to the Community Affairs Office.