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DALLAS
Federal Reserve Bank of Dallas

July 1984

New Options for RESPONSE Network
The Federal Reserve Bank of Dallas
has announced new options regarding
its RESPONSE communications net­
work which involve additional com­
puter links to the system for those
already on-line, new computer equip­
ment available to access the system
and memory upgrades on older com­
puter equipment already on-line with
the system.
If an institution already is on-line
with the system, an additional link may
be installed which utilizes either the
same or different computer equipment
than the first link. For example, an in­
stitution currently using the dedicated
line terminal system for funds transfer
may acquire an IBM Personal Com­
puter to access the Dallas Fed’s con­
temporaneous reserve requirements
system. Additionally, both sets of
equipment may access the same ap­

plications, with the exception of funds
transfer and securities transfer ap­
plications. Access to the Funds
Transfer system can only be gained by
one access alternative per institution.
Financial institutions can be linked
with the RESPONSE network in three
ways. They may be directly connected
to the Dallas Fed’s computer by a
com pute r-to -c o m p u te r lin k , by
dedicated computer lines or by per­
sonal computers. If an institution
decides to be connected by personal
computer, three options are available.
The first is through an IBM Personal
Computer leased from the Dallas Fed.
This system first was offered by the
Dallas Fed as a connection to the net­
work in May 1982. In addition to that
system, institutions also can access
the RESPONSE network through an
IBM Personal Computer Model XT.

Finally, a financial institution may pro­
vide its own link to the system through
a computer system compatible with
the RESPONSE network.
Another option available to financial
institutions involves computer memory
upgrades. With this alternative, the
base memory for IBM Personal Com­
puters can be upgraded from 128K to
256K or 512K. The standard Model XT
configuration already includes 512K
memory.
Institutions are not allowed to at­
tach other equipment upgrades to con­
figurations leased from the Dallas Fed,
and they are responsible for the ac­
quisition of a business line and a
modem for communications with the
Bank. The Dallas Fed does, however,
provide toll free lines for accessing the
RESPONSE network.
Services that are provided over the
RESPONSE network include ordering
currency and coin, receiving reserve
statement information, sending and
receiving funds transfers, transferring
securities and computing reserve re­
quirements. The Dallas Fed also pro­
vides training for those responsible for
operating the computer equipment.

INSIDE_____________

The RESPONSE network connects with computers at the Dallas Fed.

■

U.S. TREASURER________

■

NEW DIRECTOR_________

■

REGULATORY AGENCIES

K a th e rin e D avalos O rte g a ’ s
signature changes hands millions of
times each day, but it is not autograph
hounds who are doing the trading.
Ortega is Treasurer of the United
States, and her signature appears on
all U.S. currency printed since she took
office in October 1983.
In Dallas to address the Women’s
Business Ownership Conference,
Ortega was honored at an evening
reception June 14 at the Dallas Fed.
As Treasurer of the United States,
Ortega is the official custodian of most
public funds. She oversees the Bureau
of the Mint, the Bureau of Engraving
and Printing, the U.S. Savings Bond
Program and the Olympic Com­
memorative Coin Program that will
support the 1984 games in Los
Angeles.
Previously, Ortega served as one of

five commissioners on the Copyright
Royalty Tribunal and, prior to that, as
one of 10 members of the President’s
Advisory Committee on Small and
Minority Business.
Before joining the Reagan Ad­
ministration, Ortega worked in the
banking and accounting industries.
She became the first woman to serve
as a bank president in California when
she was elected president of the Santa
Ana State Bank in 1975.
Ortega is an honor graduate of
Eastern New Mexico University, having
received her B.A. in business and
economics in 1957. She was the 1977
recipient of the school’s Outstanding
Alumni Award. She also has received
the C a lifo rnia Businesswom en’s
Achievement Award and the Damas de
Commercio Outstanding Woman of the
Year Award in Los Angeles.

MCC’s Inman Joins Board of Directors
Admiral B. R. Inman, USN (retired),
has been appointed to the board of
directors of the Dallas Fed.
Inman is president and chief ex­
ecutive officer of Microelectronics and
Computer Technology Corporation, an
Austin-based research consortium. He
also serves as chairman of MCC’s
board of directors.
A native of Rhonesboro, Texas,
Inman received a B.A. degree from the
University of Texas at Austin. The
following year he entered the Naval
Reserve and began a distinguished
military career that spanned 30 years.
Inman was promoted to the rank of ad­
miral in 1981, coincident with his
assignment as deputy director of the
Central Intelligence Agency. Inman
was the first naval intelligence

B.R. Inman

specialist to attain four star rank.
Admiral Inman currently serves on
the board of directors of Dravo Corp.,
Science Applications Inc., Texas
Eastern Corp., Tracor Inc. and Western
Union Corporation. He also serves in a
voluntary capacity for several defense
associations, and is a senior fellow at
the Hoover Institution of War, Peace
and Revolution, a public policy
research organization at Stanford
University.
Inman joins the board of the Dallas
Fed as a Class C director appointed by
the Board of Governors of the Federal
Reserve System. Class A and B direc­
tors are elected by district member
banks. Head offices of the 12 Reserve
Banks have three directors from each
of the three classes.

Regulatory Agencies and Their Scope
Financial institutions are chartered
and supervised by various agencies.
The following tables give a general ex­
planation of which agency oversees
particular areas of regulatory respon­
sibility in financial institutions and pro­
vide some background on the agencies
themselves. For detailed information
on their duties, please contact the
regulatory agency directly.
FEDERAL RESERVE SYSTEM— The
Federal Reserve System is the central
banking system of the United States. It
was created by the Federal Reserve
Act approved December 23, 1913. The
system includes 12 regional Reserve
Banks, their 25 branches and the Board
of Governors, headquartered in
Washington, D.C.
Federal Reserve Banks perform
various services for financial institu­
tions, act as Fiscal Agent for the
United States, regulate and supervise
member banks and bank holding com­
panies, issue Federal Reserve notes,
and hold deposits of and make loans to
financial institutions.

operation and liquidation of national
banks. The Comptroller’s approval is
required by law in connection with the
organization of new national banks,
the conversion of state-chartered
banks into national banks, and con­
solidations or mergers of banks.

ings and loans, extends loans to them
to meet liquidity requirements, pro­
vides financial services and ad­
ministers the FSLIC and the Federal
Home Loan Mortgage Corporation.
FEDERAL SAVINGS AND LOAN IN­
SURANCE CORPORATION (FSLIC)—

The FSLIC was established June 27,
1934. The corporation functions under
the direction of the Federal Home Loan
Bank Board. The FSLIC insures sav­
ings accounts up to $100,000 for in­
sured savings and loan associations.
The FSLIC also is authorized to
make loans to savings and loans ex­
periencing financial difficulty and, if
necessary, act as receiver in cases of
liquidation.

FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC)— The FDIC is

an independent executive agency
established by the Banking Act of 1933
to insure bank deposits. It is headed by
a three-member board of directors. The
president appoints two members (with
approval of the Senate) for terms of six
years. The third member is the Comp­
troller of the Currency.
The FDIC, in addition to insuring
funds up to $100,000, has important
supervisory and examination powers
and acts as receiver for all national
banks placed in receivership. The FDIC
acts as receiver for state banks if
asked to do so by state authorities.

NATIONAL CREDIT UNION AD­
MINISTRATION (NCUA)— The National

Credit Union Adm inistration was
established as an independent agency
within the executive branch of the
federal government on March 10, 1970.
This agency has primary responsiblity
for chartering, regulating and supervis­
ing credit unions.

FEDERAL HOME LOAN BANK
SYSTEM (FHLB)— The Federal Home

Loan Bank System was created in 1932
to provide a central credit system for
nonbank mortgage lending institu­
tions. The system is governed by a
three-member board. This board,
located in Washington D.C., along with
12 regional Federal Home Loan Banks
and member institutions form the
system. The system supervises sav-

COMPTROLLER OF THE CURREN­
CY— The Office of the Comptroller of

the Currency was created by an act of
Congress approved February 23, 1863,
to be an integral part of the National
Banking System.
The most important functions of the
Comptroller relate to the organization,

NATIONAL CREDIT UNION SHARE
INSURANCE FUND (N C USIF)-The

NCUSIF was created by a law passed
October 19, 1970. It was established as
a revolving fund in the Treasury of the
United States under the management
of the NCUA. It insures funds in credit
union accounts up to $100,000.

FINANCIAL INSTITUTIONS AND THEIR REGULATORS
Chartering and
Licensing

Branching
Intrastate

Mergers and Acquisitions
Interstate

Intrastate

National Banks

Comptroller

Comptroller

1

Comptroller

State Member
Banks

State Banking
Department

Federal Reserve/
State Banking
Department

'

Federal Reserve/
State Banking
Department

Bank Holding
Companies

Federal Reserve

Savings & Loan
Associations
(Federal/State)

FHLB/
State Banking
Department

Credit Unions
(Federal/State)

NCUA/
State Banking
Department

FHLB/FSLIC/
State Banking
Department
No approval necessary

Interstate

3

Deposit Insurance

Supervision and
Examination

FDIC

Comptroller

FDIC

Federal Reserve/
State Banking
Department

Federal Reserve/
State Banking
Department

Federal Reserve/
State Banking
Department4

FHLB/
State Banking
Department

FSLIC3

FSLIC/
State Insurance
Funds

FHLB/
State Banking
Department

NCUA/
State Banking
Department

NCUA/
State Banking
Department3

NCUSIF/
State Insurance
Funds

NCUA1
State Banking
Department

Federal Reserve

1. Not applicable.
2. Generally prohibited for federal thrifts.
3. The FDIC, FSLIC and NCUA may arrange interstate acquisitions or mergers of closed or failing federally insured institutions until 1985.
Details differ across type of institution.
4. Only if allowed by the state where the bank being acquired is located.
SOURCE: Depository Institutions and Their Regulators. Federal Reserve Bank of New York.

Boykin: Economic Recovery ‘Going Well’
“We are much less insulated here in
Texas from national economic condi­
tions than was the case a decade or
two ago,” stated Dallas Fed President
Robert Boykin to members of the
media and business community in
Austin on June 21. His remarks, which
followed a meeting of the Board of
Directors of the San Antonio Branch,
outlined economic strides being made
throughout the state and nation.
“The recovery seems to be going
well,” Boykin stated. “There may be
concern that it is stronger than normal,
but the duration of the excess seems
to be fairly short and I don’t see it as
being of great concern at this time.”
Boykin stated that the present
recovery is being fueled by increased
capital investment as opposed to in­
creased consumer expenditures which
has sparked past recoveries. He sees
this as favorable for the economy for
two reasons. First, it tends to enhance
productivity, which in turn adds to the

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nation’s capacity for growth and addi­
tional jobs. And second, increased
cap ital investm ent is desirable
because higher rates of productivity
tend to hold down inflation. The fac­
tors he cited as formidable deterrents
to continued economic health were the
budget deficit and a possible rise in
the rate of inflation. “ Inflation, or the
threat of inflation, should always be a
key concern of policy makers,” he said.
Turning specifically to the Texas
economy, Boykin noted that there is
great diversification in the area’s
economy. As a result, recessions here
tend to be shallower than the nation’s,
and for the same reason, recoveries
tend to be less rapid. However, he
stated that the beginning of a modest
recovery in the energy industry, the
favorable effects of a gradually
strengthening peso on border cities
and an upturn in the agricultural situa­
tion are all contributing favorably to
the recovery in Texas.