View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal Reserve Bank of Dallas

March/April 1987

Volume 6, Number 2

Discount window operations

Fed loans assist depository institutions
The objective of the discount win­
dow is to assist financial institutions
in maintaining their liquidity, accord­
ing to Jesse Sanders, vice president
over the Loan Department of the Dallas
Fed. Loans from the Federal Reserve
provide depository institutions with
cash advances necessary to meet their
short-term liquidity needs.
Prior to the passage of the Monetary
Control Act of 1980 (MCA), loans were
available only to commercial banks
which were members of the Fed. MCA
directed the Fed to open its discount
window to all depository institutions

that maintain transaction accounts or
nonpersonal time deposits. This
change allowed state nonmember
banks access to Fed loans.
Savings and loan associations, as
well as credit unions, also became
eligible to borrow from the Fed.
However, these institutions are ex­
pected to seek funds from the Federal
Home Loan Bank, the National Credit
Union Administration’s Central Liquidi­
ty Facility or similar industry sources,
prior to borrowing from the discount
window. This treatment is consistent
with the Fed’s posture of being the

Welcoming Governor Wayne Angel to the Dallas Fed are Robert Boykin, president, and
Adm. Bobby Inman, chairman of the board of directors. Angel, a member of the Fed’s
Board of Governors in Washington, was in Dallas to attend a directors’ meeting and
discuss issues of concern within the District.

“ lender of last resort” —that is,
depository institutions are expected to
seek all other reasonable sources of
funds before requesting a loan from
the Fed.
The discount rate, the rate of in­
terest charged on loans made by the
Fed to depository institutions, is one of
the primary tools used by the Federal
Reserve System to implement the na­
tion’s monetary policy. The lending
functions of the Fed are conducted in
conjunction with the System’s efforts
to maintain a sound and efficient
financial system.
Historically, the Fed’s announce­
ment of a change in the discount rate
has been taken as a signal of the direc­
tion of monetary policy. The discount
rate—currently 5.5 percent—is ad­
justed from time to time to reflect
prevailing economic and money mar­
ket conditions.
Theoretically, the purpose of the dis­
count window is to extend credit to
depository institutions in response to
changes in commerce, industry, and
agriculture at any given period of time.
Loans from the discount window sup­
ply reserves to meet the particular
(Continued on page 2)









Discount window operations (Cont.)
credit needs of individual depository
“ Smaller banks tend to have limited
sources of liquidity, frequently limited
to one or more correspondent banks,”
Sanders said. “ Large banks may also
have access to the nationwide Fed
Funds market, the brokered certificate
of deposit market and Eurodollars, but
these sources are less available to
smaller banks throughout the country.”
Loans from the Fed’s discount win­
dow are usually one to seven days in
length, according to Finlay Higgins,
manager of the Loan Department in
Dallas. However, loans to institutions
with unusual liquidity needs are pay­
able on demand and may be reviewed
daily to meet the institution’s business
Loans to smaller banks tend to be
extended for a longer period of time.
Higgins explained that the turnaround
time necessary to correct a liquidity
need is usually longer for smaller in­
stitutions. “ They simply cannot make
the adjustment as quickly as the larger
institutions; therefore, we allow for
that extra time when granting the ad­
vance,” he said.

Loans to smaller banks tend
to be extended for a longer
period of time....
the turnaround time
necessary to correct a
liquidity need is usually
longer for smaller
Higgins added that a request for a
loan to buy securities at a higher in­
terest rate than the discount rate (“ ar­
bitrage” ) or to promote a big loan cam­
paign would generally be denied.
“ Those types of requests do not meet
the criteria or purposes of discount
window operations,” Higgins re­
Most loan requests to the Dallas Fed
are made by phone. Depository institu­
tions must have proper documentation
already on file with the Fed before any


loan can be granted. When the request
is made by an authorized official of the
requesting financial institution, Loan
Department employees get the reason
for the loan and other general informa­
tion. The loan can then be granted after
arrangements to obtain the collateral
are made.

The term “ discount window”
reflects previous procedures
for extending credit by
discounting commercial and
agricultural paper.
“ Financial institutions must have
collateral of sufficient value to support
the loan,” Sanders said. “ Government
securities, federal agency securities
and state and municipal obligations
are the major acceptable forms of col­
lateral. If an institution has no such
securities available, the Loan Depart­
ment will consider the pledging of
customers’ notes.”
The term “ discount window” reflects
previous procedures for extending
credit by discounting commercial and
agricultural paper. The Reserve Bank
deducted interest from the face
amount of eligible commercial and
agricultural paper and credited the net
proceeds. At maturity of the commer­
cial and agricultural paper, the borrow­
ing institution would pay the Reserve
Bank the face amount. This practice
ended, for the most part, in the mid-tolate 1950s, Sander said.
According to Sanders, financial in­
stitutions experience a high loan de­
mand and are actively seeking addi­
tional customer deposits during
periods of rapid economic growth as
experienced in the Eleventh District
during the 70s and early 80s. At the
same time, they generally de-emphasize the purchase of government
securities because of comparatively
lower rates of return. Therefore, when
economic co nditions tighten or
deposits actually decrease, institu­
tions may find themselves with limited
marketable securities as a hedge for li­

quidity needs.
Traditionally, adjustment credit has
accounted for the majority of borrow­
ing in all Fed Districts. Adjustment bor­
rowing tends to be heaviest and more
widespread during periods of tight
credit. Primarily, adjustment borrowing
is used by institutions experiencing an
unexpected outflow of volatile funds.
Higgins explained that these borrow­
ings are utilized pending an orderly ad­
justment of the institution’s assets
and liabilities.
Extended credit, on the other hand,
is divided into three different pro­
grams. One program provides seasonal
credit for nine months or less to
smaller depository institutions lacking
access to market funds, while a sec­
ond type assists depository institu­
tions experiencing special difficulties
arising from exceptional circum ­
stances or practices involving that in­
stitution. A third type of program is
designed to meet the general liquidity
needs of a broad range of depository
The seasonal credit program began
in the early 1970s to meet the needs of
(Continued on page 6)
Lupe Garcia, president of the Dallas
Hispanic Chamber of Commerce,
welcomes William Wallace, first vice presi­
dent of the Dallas Fed, to the DHCC.
Wallace spoke at the March meeting of
the group, outlining the purposes and
functions of the Fed System.

Changes in payments system proposed
The Federal Reserve Board recently
issued for comment a series of propos­
ed amendments to its May 17, 1985,
Payments System Risk Policy. The
policy is designed to reduce and con­
trol the payments system risk resulting
from the use of large-dollar funds
transfer networks, book-entry securi­
ties transfer systems, and automated
clearing houses (ACHs).
Large-dollar funds transfer networks
are an integral part of the payments
and clearing mechanism. Participants
on these networks incur total over­
drafts of more than $80 billion per day.
A daylight overdraft occurs when an
institution sends funds over Fedwire,
the Federal Reserve’s funds transfer
system, in excess of the balance in its
account at the Fed, or sends more
funds over a private funds transfer net­
work than it has received.
Overdrafts of another $60 billion per
day result from book-entry transfers of
U.S. Government and agency securi­
ties. These overdrafts occur when a
depository institution receives and
pays for more securities over Fedwire
than it has sent and received payment.
The Board’s policy is designed to
reduce the domino effect on the bank­

ing system—called systemic risk—
which might result if a large institution
were unable to settle its daylight over­
drafts on a private-wire funds transfer
system at the close of a day. The policy
also attempts to limit potential loss to
the Federal Reserve through the failure
of depository institutions to settle for
daylight overdrafts in their Fed ac­
The policy seeks to accomplish
these objectives by reducing the total
volume of daylight overdrafts and the
number of depository instititions that
rely substantially on them. The prin­
cipal method is the sender net debit
cap, a self-determined limit on the
amount of daylight overdrafts at each
depository institution.
With respect to book-entry security
daylight overdrafts, the Board asked
for comment on the following:
• a proposal to give depository institu­
tions an option for dealing with bookentry securities overdrafts. One option
is to combine securities daylight over­
drafts with other daylight overdrafts
(primarily caused by fund transfers) in
meeting the overall sender net debit cap.
• a proposal to limit the size of individ­
ual book-entry securities transfers, and

whether the limit should be $25 or $50
The Board also asked for comment
on the following proposals affecting
sender net debit caps:
• a proposal to reduce the cap levels
established in May 1985 by 25 percent,
effective June 18, 1987.
• a proposal to establish a new de
minimis cap category for institutions
that do not incur large or frequent
daylight overdrafts.
Proposals affecting ACH include:
• whether to post all entries for ACH
debit transactions and checks as of 1
p.m. Eastern time for purposes of
calculating daylight overdraft levels.
• whether to grant finality for ACH
credit payments of $5,000 and all ACH
debit items until the Reserve Banks
have actually received the funds.
In connection with these proposals,
the Board also requested comment on
the concept of charging a fee for
daylight overdrafts in accounts at the
Federal Reserve that are subject to the
net debit cap. The objective of this fee
would be to provide an additional in­
centive for depository institutions and
their customers to reduce daylight
Public comment, with deadlines in
mid-April, was requested on each of
these proposed changes. These pro­
posals were distributed to depository
institutions in the Eleventh District in
circular 86-112. Persons interested in
receiving a copy of the circular may
call the Public Affairs Department at

Discussing recent trends in banking are
Gerald Fronterhouse, chairman of the
board at RepublicBank, and Bob Clair,
economist at the Dallas Fed. Clair was
recently the speaker at a Fed luncheon for
financial leaders in the metroplex, ad­
dressing the topic of bank profitability.


STRIPS now eligible for TT&L
The separate interest and principal
components of Treasury STRIPS
became eligible as collateral for
Treasury Tax & Loan (TT&L) accounts
in March, according to Tyrone
Gholson, assistant vice president in
the Securities Department of the
Federal Reserve Bank of Dallas.
The STRIPS program, Separate
Trading of Registered Interest and
Principal of Securities, was announced
by the U.S. Treasury in 1985.
STRIPS are selected Treasury
securities maintained in book-entry
form at a Reserve Bank. These
securities are generally new securities
with ten or more years of original
maturity. They may be stripped into

UBPR released
The December 1986 Uniform Bank
Performance Report (UBPR) has
been released to all insured com­
mercial banks and is available for
sale to the general public. The
December edition is identical in for­
mat to the September 1986 edition.
The quarterly UBPR is designed
for use by Bank examiners, financial
analysts and bank managers. It pro­
vides information for both summary
and in-depth analysis of a commer­
cial bank’s financial performance
and trends.
All copies of individual bank
UBPRs are $30 per report for the
general public. UBPR User’s Guides
may be obtained for $15 each.
December 1986 and prior State
Average Reports are also available
for $30 per copy and Peer Group
Reports are $50 per copy.
Persons interested in ordering the
reports or obtaining additional infor­
mation on them should call the
Federal Financial Institutions Ex­
amination Council at 1-800-843-1669,
or send a check payable to the
Council at UBPR, Department 4320,
Chicago, IL 60673.


separate principal and interest com­
ponents or zero-coupon instruments,
as direct obligations of the U.S. govern­
The Treasury will assign a valuation
expressed as a percentage of the
maturity value of the component for
each outstanding maturity date of a
STRIPS component.
For collateral value purposes,
STRIPS components with less than a
year to maturity will be accepted at
face value. STRIPS components with
more than one year to maturity will be
accepted on the basis of a valuation
rate calculated by the Treasury every
three months.
In order to determine the component
value, the Treasury will use the “ lost
bond program” method. The “ lost bond
program” is used to find the present
value of a zero-coupon instrument that
is consistent with a given par value
yield curve. This method is the same

used for valuing STRIPS components
for broker reporting purposes in Inter­
nal Revenue Service Publication 1212.
The U.S. Treasury Department distri­
butes valuation rates to the Federal
Reserve banks for use in revaluing the
STRIPS components held for col­
lateral. Upon revaluation the Federal
Reserve banks will notify affected
financial institutions as to the amount
of over- or under-collateralization.
Creation of zero-coupon securities
has benefited the Treasury by broaden­
ing the appeal of Treasury securities.
The popularity of stripped Treasury
securities has been a major develop­
ment in the government security
market because of increased attrac­
tiveness among prospective investors.
Questions concerning the use of
STRIPS components as collateral for
TT&L accounts should be directed to
the S e c u ritie s D e p artm en t at

S ystem pays Treasury $17.8 billio n
If you like big numbers, then you’ll
love this story. Following are a few of
the more interesting and illustrative ex­
cerpts from the Federal Reserve
System’s 1986 “ income statement” .
System earnings consist primarily of
interest earned on securities held and
traded for monetary policy purposes,
fees earned through the provision of
priced financial services and interest
earned on loans to financial institu­
tions. These revenues are returned to
the U.S. Treasury once the System’s
operating expenses are deducted, a
statutory six percent dividend is paid
to member banks on their Federal
Reserve stock and additional account­
ing gymnastics have been performed.
Here’s the fun .. .
. . . the Federal Reserve turned over
$17.8 billion to the Treasury during
. . . it cost $181 million for the
System to have new Federal Reserve
notes printed by the Bureau of Engrav-

ing and Printing
. . . the System reflected a special
gain of $1,981 million due to the annual
revaluation of foreign denominated
assets such as currency and securities
maintained at the New York Fed in its
operations with foreign central banks
. . . the Federal Reserve Banks earn­
ed $630 million through the provision
of priced financial services to commer­
cial banks and others
. . . the statutory dividend to member
banks amounted to $110 million
. . . the Reserve Banks were assess­
ed $97 million to recover the operating
expenses of the Board of Governors
and its staff in Washington, D.C.
... the System increased the amount
of its own capital and surplus by $92
. . . the 12 Federal Reserve Banks
and 25 branches operating expenses
totaled $1,156 billion.
Now, aren’t you glad you read the
whole story?

Inman new chairman

Directors named for Dallas Fed and Branches
The board of directors of the Federal
Reserve Bank of Dallas and its Branch
offices have announced the following:
Admiral Bobby R. Inman, chairman
and chief executive officer of Westmark Systems, Inc., in Austin, has been
designated chairman of the Head Of­
fice board by the Board of Governors of
the Federal Reserve System. Inman
succeeds Robert D. Rogers, president
and chief executive officer of Texas In­
dustries, Inc., in Dallas.
Hugh G. Robinson, president of Cityplace Development C orporation,
Dallas, has been designated deputy
chairman of the Head Office board.
Robert G. Greer, chairman of the
board of Tanglewood Bank, Houston,
was elected by Federal Reserve
member banks to serve as a Head Of­
fice director.
Gary E. Wood, finance professor and
director of governmental relations at
Baylor University, Waco, was elected
by member banks to serve as a Head
Office director.
Leo E. Linbeck, Jr., chairman and
chief executive officer of Linbeck Con­
struction Corporation, Houston, was
appointed by the Board of Governors of
the Federal Reserve System to serve as
a Head Office director.
In addition, Gerald W. Fronterhouse,
chairman of the board and chief ex­
ecutive officer of RepublicBank Cor­
poration, Dallas, has been appointed
by the Board of Governors to serve as
the Dallas Fed’s member of the Feder­
al Advisory Committee for 1987. Each
of the 12 Federal Reserve Banks has a
representative on the council, which
meets at least four times per year to
discuss economic and banking mat­
ters and to make recommendations
regarding the activities of the Federal
Reserve System.
In addition to the Head Office an­
nouncements, changes to the Branch
boards of directors have also been
released as follows:

El Paso Branch

David L. Stone, president of the Portales National Bank in Portales, New
Mexico, has been reappointed by the
Head Office board to serve another
term as a director for the El Paso
Branch board.
Humberto M. Sambrano, partner
with Urban General Contractors, Inc.,
in El Paso, has been appointed by the
Head Office to serve as a director for
the El Paso Branch board.
John R. Sibley, president of
Delaware Mountain Enterprises in
Carlsbad, New Mexico, was re­
appointed by the Board of Governors to
serve as a director for the El Paso
Branch board.

San Antonio Branch board.
Nine directors serve on the Dallas of­
fice board and seven directors serve on
each of the three branch office boards.
Each board meets monthly to discuss
matters of importance to the Eleventh
District’s economy as well as to the na­
tion’s. All directors serve three year
terms. Head Office directors are either
elected by Eleventh District member
banks or are appointed by the Board of
Governors of the Federal Reserve
System. Branch office directors are
either appointed by the Federal
Reserve Bank of Dallas directors or by
the Board of Governors.

Houston Branch

Jenard M. Gross, chairman of the
board and chief executive officer of
United Savings Association of Texas,
Houston, has been appointed by the
Head Office board to serve as a direc­
tor for the Houston Branch board.
Walter M. Mischer, Jr., president of
the Mischer Corporation in Houston,
has been reappointed by the Board of
Governors to serve another term as
director for the Houston Branch board.
Gilbert D. Gaedcke, chief executive
officer and chairman of the board of
Gaedcke Equipment Company, Houston,
has been appointed by the Board of
Governors to serve as director for the
Houston Branch board.
San Antonio Branch

C. Ivan Wilson, chairman of the
board and chief executive officer of
First City Bank of Corpus Christi, has
been reappointed by the Head Office
board to serve another term as director
for the San Antonio Branch board.
Patricia Patterson Lebermann, presi­
dent of Patterson Investments, Inc.,
has been appointed by the Board of
Governors to serve as a director for the



f c


B m




A familiar face to banking people
throughout the Eleventh District, T. Guy
Brown, assistant vice president of the
Dallas Fed, says his farewells to Barbara
Bates, executive vice president and
cashier, and Frank Cox, president and
CEO, both of North Dallas Bank. Brown
retired from the Corporate Banking
Department after five years of service at
the Fed and a distinguished career with
the U.S. Treasury.


Discount window operations (Cont.)
small banks with limited access to
funds in national money markets.
These banks frequently had difficulty
serving their local customers. Since
the smaller institutions were unable to
borrow funds in the money markets,
they found it necessary to accumulate
a greater amount of liquid assets
throughout the year to meet their
seasonal demand. This practice
limited the amount of credit available
to their customers.
The seasonal credit program gives
banks an assurance of access to bor­
rowed funds during normal peak
seasons. This accessibility keeps them
from having to carry the increased liq­
uid assets during other times of the
year. As a result, more funds are
available for loans in the local com­
munity throughout the year.
Sanders explained that banks must
establish their seasonal line with the
Fed before being eligible for this credit
program. The seasonal line is based on
the bank’s projected available funds
for the next 12 months as compared
with its actual needs for the same time
frames in previous years. He added
that many smaller banks in the District
are eligible for the program.
According to Sanders, the program
was partially designed to aid smaller
banks with a large number of agricul­
tural loans due to their seasonal cash
demands. For example, farmers tend to
borrow funds and use their own
deposits for planting costs and have
little, if any, cash flow until the crop is
harvested and sold. The seasonal loan
provides an operating cushion for
those financial institutions.
The Fed also offers a temporary
simplified seasonal credit program to
small and mid-sized agricultural banks
experiencing unusually strong loan
demands. Under the temporary pro­
gram, which was created in response
to farm ers’ request for special
assistance due to the downturn in
agricultural prices, qualifying banks
may borrow at the discount window to
fund half of their loan growth in excess
of 2 percent over a base level.


In addition to seasonal credit, ex­
tended credit may be provided when
exceptional circumstances or prac­
tices adversely affect the liquidity of
an individual institution. These cir­
cumstances may include the closing of
a major industrial plant in a local com­
munity, a natural disaster, or an overall
downturn in economic activity.
The key in determining an institu­
tion’s eligibility for extended credit is
the Reserve Bank’s judgment that ex­
tending credit is in the public interest
for an orderly resolution of the prob­
lem. The repayment plan usually in­
cludes special monitoring to insure
fulfillment of the agreement, repay­
ment of the loan as conditions permit
and restraint on the institution’s lend­
ing activity.
“ Extended credit is also provided to
meet liquidity problems of depository
institutions, including those with
longer-term asset portfolios which are
experiencing difficulties in adjusting

Examining high-speed check sorting
equipment operating at the Dallas Fed are
Ren Gao Lian, Bao Zhen Zhang and Jian
Lin Wang. They visited the Bank as part of
a business exchange program between
metroplex companies and China.
Enjoying food and friendship at a Dallas
Fed reception are Adolf Latuhamallo and
Akman Aga. The event was held to honor
a group of 10 visitors from Bank Indonesia
participating in a four week computer
training program at the Fed.

to changing market conditions such as
disinterm ediation,” Higgins said.
Although some commercial banks
have such portfolios, they are more
common to thrifts that have invested a
large portion of their funds in long-term
residential mortgages.
Eleventh District loan operations
were centralized in January of this
year, with all loan requests directed to
the Dallas office rather than the three
branches. Sanders said centralization
of loan activities is a current trend
within the Fed System.
“ We realize that the Fed is the
ultimate resource to meet the liquidity
needs of financial in s titu tio n s ,”
Sanders said. “ While monetary policy
is the big picture for the Fed, there are
always instances where local demands
are not following the overall banking
industry. Therefore, loan operations
must also meet the individual needs of
the financial institutions in the local
communities throughout the District.”

Spring 1987

Following is a listing of recent System speeches and statements,
Eleventh District circulars, and pamphlets and brochures which
currently are available from the Federal Reserve Bank of Dallas.
To place an order please circle the number of the item you wish
to receive, fill out the address information at the bottom of the
page, enclose a check or money order if applicable, and mail the en­
tire page to:
Public Affairs Department
Federal Reserve Bank of Dallas
Station K
Dallas, Texas 75222
System Speeches and Statements
1. Statement by Manuel H. Johnson, Jr., before the Subcommittee

on Financial Institutions, Supervision, Regulation and In­
surance of the Committee on Banking, Finance and Urban Af­
fairs, U.S. House of Representatives, Washington, D.C. March
24, 1987.
2. “Anchoring the International Monetary System.” Remarks by H.
Robert Heller at the International Economic Development Work­
ing Group Luncheon, The Heritage Foundation, Washington,
D.C. March 24, 1987.
3. “Future Directions in the Financial Services Industry: The Inter­
national Markets.” Remarks by H. Robert Heller at the National
Conference co-sponsored by the Georgetown University Law
Center Continuing Education Division and Georgetown School
of Business Administration, Washington, D.C. March 6, 1987.
4. Address by Manuel H. Johnson before the Eastern Economic
Association, Washington, D.C. March 5, 1987.
5. Remarks by Wayne D. Angell before the National Association of
Business Economists Policy Forum, Washington, D.C. February
24, 1987.
6. Testimony by Paul A. Volcker before the Committee on the
Budget, U.S. Senate, Washington, D.C. February 24, 1987.
7. Address by Manuel H. Johnson before the Economic Outlook
Conference, United States League of Savings Institutions,
Washington, D.C. February 23, 1987.
8. Testimony by Paul A. Volcker before the Committee on Bank­
ing, Housing and Urban Affairs, U.S. Senate, Washington, D.C.
February 19, 1987.
9. The International Challenge: How Will America Respond?”
Remarks by H. Robert Heller at the Federal Reserve Bank of

Atlanta, Atlanta, Georgia. February 12, 1987.
10. Statement by Wayne D. Angell before the Subcommittee on
Consumer Affairs of the Committee on Banking, Housing and
Urban Affairs, U.S. Senate, Washington, D.C. February 5, 1987.
11. Statement by Paul A. Volcker before the Joint Economic Com­
mittee, Washington, D.C. February 2, 1987.
12. Statement by Wayne D. Angell before the Committee on Bank­
ing Finance and Urban Affairs, U.S. House of Respresentatives,
Washington, D.C. January 27, 1987.
13. Statement by Paul A. Volcker before the Committee on Banking,
Housing and Urban Affairs, U.S. Senate, Washington, D.C.
January 21, 1987.

Federal Reserve Bank of Dallas

14. Remarks by Wayne D. Angell before the University Club of

Chicago, Chicago, Illinois. January 6, 1987.
15. “The Debt Crisis and the Future of International Bank Lending.”
Remarks by H. Robert Heller at the Annual Convention of the
American Economic Association, New Orleans, Louisiana.
December 29, 1986.
Eleventh District Circulars

16. Announcement of appointments to the Advisory Council of
Financial Institutions. 87-25. March 26, 1987.
17. Announcement of a change in the official staff of the Federal
Reserve Bank of Dallas. 87-20. March 18, 1987.
18. The Board of Governor’s list of OTC (over-the-counter) Margin
Stocks. 87-15. February 26, 1987.
19. The September 1986 UBPR (Uniform Bank Performance Report)
available for sale to public 87-13. February 17, 1987.
20. Election and appointments to the board of directors of the
Federal Reserve Bank of Dallas. 87-12. February 24, 1987.
21. Announcement of appointments to the Advisory Council of
Financial Institutions. 87-11. February 11, 1987.
22. Partial list of designated nationals published by the Office of
Foreign Assets Control. 87-5. January 16, 1987.
23. Announcement of changes in the official staff of the Federal
Reserve Bank of Dallas. 87-1. January 7, 1987.
24. Issuance of final rule amending Regulation Z—Truth in Lend­
ing. 86-118. December 30, 1986.
25. Partial list of designated nationals. 86-110. December 12, 1986.
26. 1987 Federal Reserve System holidays. 86-103. December 4,

Pamphlets, Brochures and Reports

27. 1986 Annual Report of the Federal Reserve Bank of Dallas. In­
cludes a comprehensive research article on lower oil prices and
the economic outlook for the Eleventh District states.
28. Monetary Policy Objectives for 1987: Summary Report of the
Federal Reserve Board. Semiannual. February 19, 1987.
29. Monetary Policy Objectives for 1987: Testimony of Paul A.
Volcker, Chairman. Semiannual. February 19, 1987.
30. Selected Interest Rates. 86/87 updates of weekly, monthly and
annual interest rate histories of Treasury bill auctions, Treasury
constant maturities, Fed funds, and prime.
31. Energy and Southwest Economy. Proceedings of the 1985 Con­
ference on Energy and the Southwest Economy. 313 pp.
32. Trade-Weighted Value of the Dollar. Monthly statistical release
of the X-131 Nominal Dollar Exchange Rate Index and the X-101
Real Dollar Index recently established by the Federal Reserve
Bank of Dallas. The X-131 compares the value of the dollar to all
131 U.S. trading partners. The RX-101 compares the purchasing
power of the dollar to the 101 U.S. trading partners who have
consumer price indexes. $48/annual subscription.
33. Truth in Lending, Regulation Z, Annual Percentage Rate
Tables and Factor Tables for Irregular Transactions. $4/Twovolume set.

City, State________________________________________________________________________ Zip Code


News Briefs
New council
members announced
Four new members have been ap­
pointed to the Advisory Council of
Financial Institutions of the Federal
Reserve Bank of Dallas. They are Clyde
N. Choate, president, Enserch Federal
Credit Union, Dallas; Bookman Peters,
chairman of the board and chief ex­
ecutive officer, First City National
Bank, Bryan, TX; Ben Land, president,
Family Federal Savings and Loan
Association, Shreveport, LA and
Walter E. Johnson, president, Allied
Bank of Texas, Houston.
The 12-member advisory council was
founded in 1985 to provide improved
communication between financial in­
stitutions and the Federal Reserve. It
meets with the Bank’s senior manage­
ment twice yearly. At its most recent
meeting in mid-January, the topics of
discussion included the regional
economic outlook and the impact of in­

Proceedings available
terstate banking and limited branch
banking. The council is chaired by A.W.
Riter, Jr., chairman of the board and
chief executive officer, InterFirst Bank
Tyler, Tyler, TX.
Other council members, who were
reappointed for 1987, are James A.
Altick, Central Bank, Monroe, LA; John
H. Dalton, Freedom Capital Corpora­
tion, San Antonio; Lowell Smith, Jr.,
First State Bank, Rio Vista, TX; William
E. Brady, Denton Savings Association,
Denton, TX; Kenneth L. Burgess, First
State Bank, Abilene, TX; Garry Owen,
First Federal Savings, Roswell, NM
and H.O. Bursum, III, First State Bank,
Socorro, NM.
The Dallas Fed also has an Advisory
Council of Small Business and Agri­
culture. Similar councils have been
established by other Federal Reserve
banks elsewhere in the country.

Copies of the proceedings of the
1985 Conference on Energy and the
Southwest Economy, sponsored by the
Federal Reserve Bank of Dallas, are
now available.
The volume contains the twelve con­
ference papers presented by several
outstanding economists.
The book also contains the text of
the luncheon address by Admiral Bob­
by R. Inman, USN (Ret.), on the diver­
sification of the Texas economy.
Copies may be ordered by sending a
check or money order for $10.00 per
copy to: Symposium, Public Affairs
Department, Federal Reseserve Bank
of Dallas, Station K, Dallas, TX 75222.
Checks should be made payable to the
Federal Reserve Bank of Dallas.

Roundup is published monthly by the Federal Reserve Bank of Dallas and its Branches at El Paso, Houston, and San
Antonio. Additional copies of most issues and subscription information are available from the Public Affairs Department.
Editor: Sue Lynn Sasser



P E R M IT NO. 151