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Media FAQs
Below you will find the answers to the frequently
asked questions our Media Relations specialists usually answer.
If you cannot find the question (and answer) you are looking for
below, we encourage you to visit our
FAQ database, which lists FAQs for the entire Federal Reserve
System.
Structure and Functions of the Fed
FOMC
and Monetary Policy (link to Board)
Bank Supervision and Regulation
Payment System
Consumer Information
Other Resources
Structure and Functions of the Fed
- What is the Board of Governors of the Federal Reserve System?
Who are the current board members?
The Federal Reserve System is composed basically of a central,
governmental agency--the Board of Governors in Washington,
D.C.--and 12 regional Federal Reserve banks.
The seven members of the Board of Governors are nominated by
the president of the United States and confirmed by the Senate.
A full term is 14 years. The appointments are staggered so that
one term begins every two years, on Feb. 1 of each even-numbered
year. A member who serves a full term may not be reappointed;
however, a member who is appointed and confirmed to serve the
unexpired portion of a term may later be reappointed to a full
term. All terms end on their statutory date regardless of the
date on which the member is sworn into office.
The chairman and the vice chairman of the Board are named by
the president from among the members and are confirmed by the
Senate. They serve four-year terms. A member's term on
the Board is not affected by his or her status as chairman or
vice chairman.
Current members
of the Board of Governors (link to Board)
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What are the Federal Reserve banks?
Each of the 12 Federal Reserve banks is an operating arm of
the Federal Reserve System. These banks have a total of 25 branches.
The banks and branches carry out various functions, including
operating a nationwide payment system, distributing the nation's
currency and coin, supervising and regulating member banks and
bank holding companies, and serving as the banker for the U.S.
Treasury. The Federal Reserve banks are located in Boston, New
York City, Philadelphia, Cleveland, Richmond, Atlanta, Chicago,
St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.
Listing
and map of the districts (link to Board)
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Which states compose the Eighth Federal Reserve District,
based in St. Louis? Where are the branches?
The Federal Reserve Bank of St. Louis territory covers the
Eighth Federal Reserve District, which includes all of Arkansas,
eastern Missouri, southern Indiana, southern Illinois, western
Kentucky, western Tennessee and northern Mississippi. Branch
offices are located in Little Rock, Louisville and Memphis.
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Does the St. Louis Fed have a board of directors? What do
the board members do? How are your board members chosen? Who
are the current board members?
Each Reserve bank has a board of directors. Reserve bank directors,
under Board of Governors' supervision, oversee their bank's
operations and appoint the bank's president and first vice
president. Of the nine directors, six--three Class A, representing
the banking industry, and three Class B--are elected by
member banks, including all nationally chartered banks and state-chartered
banks that meet certain requirements. Three Class C directors,
including the chairman and deputy chairman, are appointed by
the Board of Governors. Class B and C directors represent agriculture,
commerce, industry, labor and services in the Federal Reserve
District. They cannot be officers, directors, or employees of
a bank. Class C directors cannot be bank stockholders.
Boards of branch banks have five or seven directors, most of
whom are appointed by head-office directors and the rest by
the Board of Governors.
Boards of directors of the Reserve banks and branches provide
the Federal Reserve System with a wealth of information on economic
conditions in virtually every corner of the nation. This information
is used by the Federal Open Market Committee (FOMC) and the Board
of Governors in reaching major decisions about monetary policy.
Information from directors and other sources gathered by the Reserve
banks is also shared with the public in a special report--informally
called the Beige
Book--which is issued about two weeks before each
meeting of the FOMC. In addition, every two weeks, the board of
each bank must recommend to the Board of Governors a discount
rate for each bank. A recommendation for a change cannot take
effect unless the Board of Governors approves it.
Current list of the Federal Reserve Bank of St. Louis' board
of directors
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What role does the St. Louis Fed play in the economy/payment
system?
The Federal Reserve Bank of St. Louis is one of 12 regional
Reserve banks in the United States that, together with the Board
of Governors in Washington, D.C., make up the Federal Reserve
System--the nation's central bank. Since its establishment
by an act of Congress in 1913, the Federal Reserve System's
primary goal has been to foster a sound financial system and
a healthy economy. To advance this goal, the St. Louis Fed and
the other regional Reserve banks help formulate monetary policy,
supervise and regulate banks and bank holding companies, and
provide financial services to depository institutions and the
federal government.
Back to top
Bank Supervision and Regulation
- Which banks does the Federal Reserve System supervise and
regulate? What is a bank holding company?
The Fed has primary supervisory responsibility for two major
categories of banking organizations: state-chartered banks that
are members of the Federal Reserve System and their subsidiaries,
and bank holding companies and certain of their subsidiaries.
As a part of the Gramm-Leach-Bliley Act, the Fed's role as an
"umbrella" supervisor of bank holding companies was
expanded to include financial holding companies and their nonbank
subsidiaries.
A bank holding company is simply a company that may own many
banks. A bank holding company can choose to obtain a financial
holding company status so that it may engage in a broad array
of financially related activities.
More about the Fed's supervisory
responsibilities (PDF 71.1 kb)
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Where can I find information on bank mergers and acquisitions
or enforcement actions against banks?
The Federal Reserve acts or makes recommendations with respect
to notices by individuals seeking to acquire controlling interests
in state member banks and bank holding companies.
More about bank acquisitions
Part of the Federal Reserve's role is to respond appropriately
when it determines that a state member bank or bank holding company
has problems that affect the institution's safety and soundness
or is not in compliance with laws and regulations. In some cases,
the Fed may need to take an informal supervisory action or a formal
enforcement action. The Fed's actions are designed to address
concerns about a bank's operations and to encourage banks
and their affiliated parties to follow the law.
More about enforcement
actions (link to Board)
- Where can I find a complete list of Federal Reserve regulations?
Congress has assigned to the Board of Governors responsibility
for implementing certain laws pertaining to a wide range of
banking and financial activities. The Board implements those
laws in part through its regulations, which are codified in
title 12, chapter II, of the Code of Federal Regulations (12
CFR 201 et seq.).
List of
Federal Reserve regulations (link to Board)
- What is the Community Reinvestment Act, and what does a Reserve
bank's Community Affairs department do?
In accordance with the Community Reinvestment Act (CRA) of
1977, the Federal Reserve encourages banks to work with community
organizations to promote local economic development. In the
bank examination process, the Federal Reserve reviews a bank's
efforts to meet the credit needs of its entire community, including
low- and moderate-income neighborhoods. For example, the Federal
Reserve looks at the extent to which a bank has programs that
contribute to the building of affordable housing and to other
aspects of community development. Banks are rated separately
for compliance with the CRA, and the Federal Reserve takes an
institution's performance under the CRA into account when
deciding whether to approve an application for acquisition or
merger or for the formation of a bank holding company. The public
may protest the approval of an application on the basis of the
institution's record in community reinvestment.
Each Reserve bank has on its staff a community affairs officer
who is familiar with the credit needs in the communities served
by the institutions in the bank's district. The officer's
responsibilities include fostering communication among banking
institutions, government agencies and community groups. Through
newsletters and other publications, seminars, workshops and
conferences, the Federal Reserve provides information to banks
and bank holding companies about economic initiatives in the
private sector, community development finance, public-private
partnerships, and federal and state development programs. Staff
members also work directly with individual bankers and community
development representatives to promote community lending.
More about the St. Louis Fed's Community
Affairs department
- Who regulates banks? Where can I find out who regulates a
certain bank?
The Federal Reserve is one of four federal regulatory agencies--the
other three being the Office of the Comptroller of the Currency,
the Federal Deposit Insurance Corp. and the Office of Thrift
Supervision. These agencies, along with state banking agencies,
oversee the financial services industry.
The Fed has primary supervisory responsibility for two major
categories of banking organizations: state-chartered banks that
are members of the Federal Reserve System and their subsidiaries,
and bank holding companies and certain of their subsidiaries.
As a part of the Gramm-Leach-Bliley Act, the Fed's role as an
"umbrella" supervisor of bank holding companies was
expanded to include financial holding companies and their nonbank
subsidiaries. A bank holding company is simply a company that
may own many banks. A bank holding company can choose to obtain
a financial holding company status so that it may engage in
a broad array of financially related activities.
To determine a depository or financial institution's regulator,
go to the Federal Reserve System's National
Information Center web site.
Back to top
Payment System
- What is the Federal Reserve's role in the payment system?
The Federal Reserve provides services to help the nation's
payment system run efficiently. Through the Federal Reserve
banks' cash services operations, the Federal Reserve distributes
currency and coin to financial institutions. The Fed's
retail banking services consist primarily of check clearing
operations and electronic banking services. Besides clearing
paper checks, the Fed sends electronic check files to thousands
of financial institutions each day and is on the cutting edge
of the newest technology in the industry. The Fed also offers
a service called the automated clearinghouse, commonly known
as the ACH, which is used most often to process low-dollar,
preauthorized, recurring, retail transactions such as direct
deposit of payroll and government benefits, payment of mortgage
loans, insurance premiums and utility bills, and corporate cash
management.
Besides these retail services, the Fed also offers wholesale
services--those that are mostly for business-to-business
transactions. This activity is conducted using the Fed's
electronic network--called FedWire®. In addition to
this network, the New York Fed handles all foreign electronic
transfers, which can be sent anywhere in the world. Finally,
as the government's fiscal agent, the Fed provides a variety
of services to the U.S. Treasury as well as to other federal
and federally sponsored agencies.
More about the Federal
Reserve's role in the payment system (PDF 135 kb)
- Where can I find information on electronic payments?
Electronic payments of all kinds are used as a safe, reliable
and convenient way to conduct business. For example, direct
deposit is used for payroll, travel and expense reimbursements,
annuities and pensions, dividends, and government payments such
as Social Security and veterans benefits. Other types of electronic
payments are frequently used for bill payments, retail purchases,
Internet purchases, corporate payments and Treasury management,
and for the provision of food stamps and other government cash
assistance. To learn more about these types of payments, go
to the Federal Reserve
Financial Services or the National
Automated Clearinghouse Association web sites.
Back to top
Consumer Information
- Who enforces consumer protection regulations? Which types
of consumer protections does the Federal Reserve monitor?
Congress has assigned the Federal Reserve responsibility for
implementing certain consumer protection laws. These laws cover
almost all financial transactions involving consumers, such
as those involving ATMs, credit cards, checking and savings
accounts, and loans.
List of the specific consumer
regulations the Federal Reserve enforces (link to Board)
- Where can I find information on consumer debt levels?
The Board of Governors' web site offers a monthly listing of
outstanding consumer
credit levels (consumer debt).
- Where can I find information on debit or credit cards and
the regulations that govern them?
The Federal Reserve produces several publications that provide
information about debit and credit cards. In addition, the Board
offers guidance
on shopping for a credit card and understanding the information
in credit card solicitations and applications.
The Board's site also includes information
about shopping for or obtaining credit, maintaining credit,
disputing unfair credit transactions and resolving billing disputes.
The Federal
Trade Commission's web site also has information about
credit cards.
Three Federal Reserve Bank regulations relate to credit. They
are Regulation B, Equal Credit Opportunity; Regulation Z, Truth
in Lending; and Regulation AA, Unfair or Deceptive Acts or Practices.
More information about these regulations
(link to Board)
- Which consumer privacy laws does the Federal Reserve enforce?
Regulation P, Privacy of Consumer Financial Information, implements
the provisions of the Gramm-Leach-Bliley Act that prohibit a
financial institution from disclosing nonpublic personal information
to third parties that are not affiliated with the financial
institution.
More information about Regulation
P (link to Board)
Back to top
Other Resources
- I'm a reporter and have questions about the Federal
Reserve Bank of St. Louis. Whom should I contact?
Reporters can call the Bank's Public Affairs Office. Contact
Charles Henderson at 314-444-8311 or Adriene Dempsey at 314-444-7471.
- Where can I find additional information about the Federal
Reserve?
1. Federal Reserve public
web sites
2. In Plain
English (Making Sense of the Federal Reserve)
3. Structure
and Functions (link to Board)
4. Purposes
and Functions (link to Board)
Back to top
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