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FEDNOTICE

FedNotice October 2008 (v.2)‏

Federal Reserve Bank of Minneapolis

on behalf of Diane Wells (dlw@MINNEAPOLISFED.ORG)

dlw@minneapolisfed.org

Tue 10/28/08

FedNotice

Federal Reserve Bank of Minneapolis

In This Issue:
——————-

Federal Reserve Bank of Minneapolis
Gary Stern Speech
Board of Governors

Testimony

Speeches
Press Releases

Interest Statement
S&R and CA Letters
Beige Book
Legal Developments
FOMC
Other Federal Reserve Banks

Publications

Speeches

Federal Reserve Bank of Minneapolis
GARY STERN SPEECH
Policy and the Economy in the Wake of the Shock,
Escanaba, Michigan, October 21, 2008.

Board of Governors

TESTIMONY
Governor Elizabeth A. DUKE: Foreclosure prevention efforts and market stability
before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate.
October 23, 2008.

SPEECHES
Chairman Ben S. BERNANKE: Economic outlook and financial markets before
the Committee on the Budget, U.S. House of Representatives. October 20, 2008.

Governor Randall S. KROSZNER: Strategic Risk Management in an Interconnected
World at the Risk Management Association Annual Risk Management Conference,
Baltimore, Maryland. October 20, 2008.

Chairman Ben S. BERNANKE: Stabilizing the Financial Markets and the
Economy at the Economic Club of New York, New York, New York. October 15, 2008.

Vice Chairman Donald L. KOHN: Economic Outlook at the Georgetown University
Wall Street Alliance, New York, New York. October 15, 2008.

Chairman Ben S. BERNANKE: Remarks at the President’s Working Group
Market Stability Initiative Announcement. October 14, 2008.

PRESS RELEASES

Federal Reserve announces it will alter the formula used to determine the interest
rate paid to depository institutions on excess balances. October 22, 2008.

Written agreement with Bank of Canton. October 22, 2008.

Approval of proposal by Corpbanca. October 22, 2008.

Federal Reserve releases concentrated poverty report. October 24, 2008.

Written agreement with Remo DuQuoin LLC, Privee LLC, and Republic
Federal Bancorp. October 28, 2008.
Federal Reserve announces the creation of the Money Market Investor Funding
Facility (MMIFF). October 21, 2008.

Federal Reserve announces results of auction of $150 billion in 28-day credit
held on October 20, 2008. October 21, 2008.

Federal Reserve will offer $150 billion in 28-day credit through its Term Auction
Facility today. October 20, 2008.

Agencies encourage participation in Treasury’s Capital Purchase Program,
FDIC’s Temporary Liquidity Guarantee Program. October 20, 2008.

Federal Reserve approves final amendments to Regulation C that revise the rules
for reporting price information on higher-priced mortgage loans. October 20, 2008.

Agencies announce decision on regulatory capital impact of Emergency
Economic Stabilization Act of 2008 on Fannie Mae and Freddie Mac preferred
stock. October 17, 2008.

Written agreement with Alliance Bancshares California. October 16, 2008.

Written agreement with AmericasBank. October 16, 2008.

Federal Reserve issues guidance for consolidated supervision of bank holding
companies and combined U.S. operations of foreign banking organizations.
October 16, 2008.

Approval of proposal by Caja de Ahorros and Caja Madrid Cibeles. October 16, 2008.

Federal Reserve announces interim final rule to allow bank holding companies to
include senior perpetual preferred stock issued to the Treasury Department in
Tier 1 capital. October 16, 2008.

Joint statement by Federal Reserve, U.S. Department of the Treasury, and Federal
Deposit Insurance Corporation (FDIC). October 14, 2008.

Board announces additional details regarding the Commercial Paper Funding
Facility (CPFF). October 14, 2008.

Written agreement with Irwin Financial Corporation. October 14, 2008.

Minutes of Board discount rate meetings, August 18 through September 15, 2008.
October 14, 2008.

FOMC authorizes an increase in the size of its temporary reciprocal currency
arrangement with the Bank of Japan. October 14, 2008.

Federal Reserve and other central banks announce further measures to provide broad
access to liquidity and funding to financial institutions. October 13, 2008.

Approval of proposal by Wells Fargo & Company to acquire Wachovia Corporation.
October 12, 2008.

Statement on the efforts of Citigroup and Wells Fargo to reach an accord regarding
the acquisition of Wachovia Corporation. October 9, 2008.

Federal Reserve and other central banks announce reductions in policy interest
rates. October 8, 2008.

Shared National Credits Program reports large increase in credit volume and
significant deterioration in credit quality. October 8, 2008.

Board authorizes Federal Reserve Bank of New York to borrow securities from
certain regulated U.S. insurance subsidiaries of AIG. October 8, 2008.

Approval of the discount rate action of the Federal Reserve Banks of New York,
Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Minneapolis, Kansas City,
Dallas, San Francisco, and St. Louis. October 8, 2008.

INTEREST STATEMENT
Maintenance period ending October 22, 2008. October 22, 2008.

S&R AND CA LETTERS
Consolidated Supervision of Bank Holding Companies and the Combined
U.S. Operations of Foreign Banking Organizations. October 16, 2008.

Compliance Risk Management Programs and Oversight at Large Banking
Organizations with Complex Compliance Profiles. October 16, 2008.

Interagency Examination Procedures for the Identity Theft Red Flags and Other
Regulations under the Fair Credit Reporting Act. October 10, 2008.

BEIGE BOOK
Informal review by the Federal Reserve Banks of current economic conditions
in their Districts. October 15, 2008.

LEGAL DEVELOPMENTS

Section 19 Letters, September 17, 18, and 19, 2008. October 24, 2008.

Federal Deposit Insurance Act, Section 19, September 4, 2008 and
September 19, 2008. October 16, 2008.

FOMC
Historical materials, 1967-1977. October 17, 2008.

<Other Federal Reserve Banks>
PUBLICATIONS
Navigating the New World of Private Equity—A conference summary,
The Federal Reserve System’s Private Equity Merchant Banking Knowledge Center, formed at the
Chicago Fed in 2000 shortly after the passage of the Gramm–Leach–Bliley Act, sponsors an annual conference
on new industry developments. This article summarizes the 2008 conference held on July 9–10.
Chicago Fed Letter, FRB Chicago. November 2008.

What Exactly Is a Recession—and Are We in One?
The common definition of a recession, and the one most frequently cited in the media, is a period of
two consecutive quarterly declines in real GDP. NBER’s actual definition is fairly vague, which explains
why many prefer the shorthand definition, but the idea is fairly simple. A recession is any period when
economic activity experiences a prolonged and widespread decline.
Economic Trends, FRB Cleveland. October 10, 2008.

Covered Bonds: A New Way to Fund Residential Mortgages,
Like the now government-owned Fannie Mae and Freddie Mac, large investment banks helped create funds
to finance new mortgages by issuing securities backed by pools of existing mortgages. But private firms have
abandoned these instruments, and with them a large source of mortgage funds has disappeared. Four large investment
banks plan to create a new U.S. market for an old instrument, hoping to bring liquidity back to the mortgage market.
Economic Commentary, FRB Cleveland. July 15, 2008.

The Yield Curve, October 2008,
Since last month, the yield curve has gotten steeper, as short rates fell and long-term rates rose. The flight to quality
and the turmoil in the financial markets may impact the reliability of the yield curve as an indicator, but projecting forward
using past values of the spread and GDP growth suggests that real GDP will grow at about a 3.0 percent rate over the next year.
This remains on the high side of other forecasts, many of which are predicting reductions in real GDP.
Economic Trends, FRB Cleveland.

Employment in the New York–New Jersey Region: 2008 Review and Outlook,
The 2007 slowing in job growth in the New York–New Jersey region continued through August 2008. A projected weakening
in the national economy through the end of 2008 combined with the market turmoil affecting New York City’s finance sector
suggests that the region will post substantially smaller job gains this year than it did in 2007. Beyond 2008, continued financial
stress could lead to an even sharper and more protracted contraction in the city’s finance sector, potentially spreading to other sectors of the region’s economy.
Current Issues in Economics and Finance, FRB New York. September/October 2008.

President’s Message,
Financial Stability and the Fed.
The State of Modern Economics
Unsteady State,
The ongoing evolution of mainstream economics.
Economist, Study Thyself,
The way economists are trained has come a long way in the past 20 years. Has it come far enough?
Policy Update,
New Farm Bill Extends Menu.
Region Focus, FRB Richmond. Spring/Summer 2008.

Inflation Expectations: Their Sources and Effects,
Shocks to the macroeconomy can affect the public’s expectations about inflation.
But if the Federal Reserve monitors those expectations carefully and vigilantly pursues
price stability, it can establish credibility and keep inflation in check.
Economic Brief, FRB Richmond. EB08-01, October 2008.

What Is Liquidity Risk?
Increased financial globalization, the development of new financial instruments, and changing
macroeconomic conditions have led to a renewed examination of liquidity risk. This Letter highlights
key elements of liquidity risk measurement and management.
Economic Letter, FRB San Francisco. October 24, 2008.

Sectoral Reallocation and Unemployment,
This Letter examines whether the reallocation of labor demand across industry
sectors has caused the noninflationary rate of unemployment to rise of late.
Economic Letter, FRB San Francisco. October 17, 2008.

SPEECHES
Unprecedented Times in our Economy,
President Charles Evans, FRB Chicago. October 17, 2008.

Observations on Housing, Lending, and Foreclosure Prevention,
President Eric Rosengren, FRB Boston. October 16, 2008.

The Financial System and the Economy,
President Janet Yellen, FRB San Francisco. October 14, 2008.

The Limits of Central Banking,
President Charles Plosser, FRB Philadelphia. October 8, 2008.

FEDNOTICE

FedNotice October 2008 (v.2)‏

Federal Reserve Bank of Minneapolis

on behalf of Diane Wells (dlw@MINNEAPOLISFED.ORG)

dlw@minneapolisfed.org

Tue 10/28/08