Wegmans LPGA was women's professional golf tournament on the LPGA Tour . It was played from 1977 to 2009 at the Locust Hill Country Club in Pittsford, New York .
86-620: The tournament was originally known as the Bankers Trust Classic, a 54-hole event. From 1979 to 1981, Sarah Coventry took over sponsorship of the tournament, changed its title and extended it to 72 holes. While the tournament was The Sarah Coventry, the tournament didn't recognize the Bankers Trust as part of the tournament's history. Today it does and The Sarah Coventry prior to 1979 was held in Florida and California
172-571: A "unique structure that is both public and private" and is described as " independent within the government " rather than " independent of government ". The System does not require public funding, and derives its authority and purpose from the Federal Reserve Act , which was passed by Congress in 1913 and is subject to Congressional modification or repeal. The four main components of the Federal Reserve System are (1)
258-642: A Nobel Prize-winning economist, withdrew his nomination to the board in June [2011] in the face of Republican opposition. Richard Clarida , a potential nominee who was a Treasury official under George W. Bush , pulled out of consideration in August [2011]", one account of the December nominations noted. The two other Obama nominees in 2011, Janet Yellen and Sarah Bloom Raskin , were confirmed in September. One of
344-500: A check-clearing system was created in the Federal Reserve System. It is briefly described in The Federal Reserve System—;Purposes and Functions as follows: By creating the Federal Reserve System, Congress intended to eliminate the severe financial crises that had periodically swept the nation, especially the sort of financial panic that occurred in 1907. During that episode, payments were disrupted throughout
430-552: A depository institution's large corporate customers or counterparties, including other financial institutions. The Reserve Banks' wholesale services include electronically transferring funds through the Fedwire Funds Service and transferring securities issued by the U.S. government, its agencies, and certain other entities through the Fedwire Securities Service. The Federal Reserve System has
516-578: A depository institution's retail clients—individuals and smaller businesses. The Reserve Banks' retail services include distributing currency and coin, collecting checks, electronically transferring funds through FedACH (the Federal Reserve's automated clearing house system), and beginning in 2023, facilitating instant payments using the FedNow service. By contrast, wholesale payments are generally for large-dollar amounts and often involve
602-623: A director of the Astor and Edmund C. Converse was president of the Astor and a director of the Bankers. The Astor continued "with no change in management, as the uptown branch of the Bankers Trust Company." The new company had capital of $ 11,250,000, "undivided profit of more than $ 5,000,000 and deposits of about $ 300,000,000." In October 1917, the company became a member of the Federal Reserve system. Prosser served as president of
688-657: A foreign central bank or government or non-private international financing organization; (2) deliberations, decisions, or actions on monetary policy matters; (3) transactions made under the direction of the Federal Open Market Committee; or (4) a part of a discussion or communication among or between members of the board of governors and officers and employees of the Federal Reserve System related to items (1), (2), or (3). See Federal Reserve System Audits: Restrictions on GAO's Access (GAO/T-GGD-94-44), statement of Charles A. Bowsher. The board of governors in
774-513: A group of New York national banks formed trust company Bankers Trust to provide trust services to customers of state and national banks throughout the country on the premise that it would not lure commercial bank customers away. In addition to offering the usual trust and commercial banking functions, it also acted as a "bankers' bank" by holding the reserves of other banks and trust companies and loaning them money when they needed additional reserves due to unexpected withdrawals. Bankers Trust Company
860-441: A one-third interest in an Antwerp banking company, Banque G.&C. Kreglinger, S.A. which was renamed to Banque de Benelux after the transaction. The other one-third partners were Plouvier et Cie., S.A., a Belgian group composed of the former Kreglinger owners, and L'Union des Mines- La Henin, a French investment and holding company in which Bankers Trust had an equity interest. In 1980, Bankers Trust exited retail banking under
946-617: A role in the U.S. payments system. The twelve Federal Reserve Banks provide banking services to depository institutions and to the federal government. For depository institutions, they maintain accounts and provide various payment services, including collecting checks, electronically transferring funds, and distributing and receiving currency and coin. For the federal government, the Reserve Banks act as fiscal agents, paying Treasury checks; processing electronic payments; and issuing, transferring, and redeeming U.S. government securities. In
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#17327907839731032-483: A second term." Allan R. Landon , former president and CEO of the Bank of Hawaii , was nominated in early 2015 by President Obama to the board. In July 2015, President Obama nominated University of Michigan economist Kathryn M. Dominguez to fill the second vacancy on the board. The Senate had not yet acted on Landon's confirmation by the time of the second nomination. Daniel Tarullo submitted his resignation from
1118-724: A year in telephone consultations and other meetings are held when needed. There is very strong consensus among economists against politicising the FOMC. The Federal Advisory Council, composed of twelve representatives of the banking industry, advises the board on all matters within its jurisdiction. There are 12 Federal Reserve Banks, each of which is responsible for member banks located in its district. They are located in Boston , New York , Philadelphia , Cleveland , Richmond , Atlanta , Chicago , St. Louis , Minneapolis , Kansas City , Dallas , and San Francisco . The size of each district
1204-404: Is called fractional-reserve banking . As a result, banks usually invest the majority of the funds received from depositors. On rare occasions, too many of the bank's customers will withdraw their savings and the bank will need help from another institution to continue operating; this is called a bank run . Bank runs can lead to a multitude of social and economic problems. The Federal Reserve System
1290-558: Is nominated by their Bank's board of directors, but the nomination is contingent upon approval by the board of governors. Presidents serve five-year terms and may be reappointed. Each regional Bank's board consists of nine members. Members are broken down into three classes: A, B, and C. There are three board members in each class. Class A members are chosen by the regional Bank's shareholders, and are intended to represent member banks' interests. Member banks are divided into three categories: large, medium, and small. Each category elects one of
1376-532: Is regarded as the separate tournament. Nancy Lopez won the tournament for a third time at age 24 in 1981, with Locust Hill set as a par-73 at 6,155 yards (5,628 m). Wegmans Food Markets took over as the title sponsor in 1998. Working with the Monroe County Rotary Clubs , tournament proceeds are donated to support local summer camps for disabled children. Through 2005, more than $ 6.6 million had been raised for these charities through
1462-582: Is to have a mechanism for private banks to lend funds to one another. This market for funds plays an important role in the Federal Reserve System as it is the basis for its monetary policy work. Monetary policy is put into effect partly by influencing how much interest the private banks charge each other for the lending of these funds. Federal reserve accounts contain federal reserve credit, which can be converted into federal reserve notes . Private banks maintain their bank reserves in federal reserve accounts. The Federal Reserve regulates private banks. The system
1548-667: The Depository Institutions Deregulation and Monetary Control Act of 1980, Congress reaffirmed that the Federal Reserve should promote an efficient nationwide payments system. The act subjects all depository institutions, not just member commercial banks, to reserve requirements and grants them equal access to Reserve Bank payment services. The Federal Reserve plays a role in the nation's retail and wholesale payments systems by providing financial services to depository institutions. Retail payments are generally for relatively small-dollar amounts and often involve
1634-558: The Federal Reserve Act , such as "to furnish an elastic currency, to afford means of rediscounting commercial paper , to establish a more effective supervision of banking in the United States, and for other purposes". Before the founding of the Federal Reserve System, the United States underwent several financial crises. A particularly severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today
1720-522: The Fiscal Year 2020, the Bureau of Engraving and Printing delivered 57.95 billion notes at an average cost of 7.4 cents per note. Federal funds are the reserve balances (also called Federal Reserve Deposits ) that private banks keep at their local Federal Reserve Bank. These balances are the namesake reserves of the Federal Reserve System. The purpose of keeping funds at a Federal Reserve Bank
1806-589: The President of the United States and has regular meetings with the Secretary of the Treasury . The Chair has formal responsibilities in the international arena as well. The board of directors of each Federal Reserve Bank District also has regulatory and supervisory responsibilities. If the board of directors of a district bank has judged that a member bank is performing or behaving poorly, it will report this to
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#17327907839731892-515: The United States Department of the Treasury , an entity outside of the central bank, prints the currency used. The federal government sets the salaries of the board's seven governors, and it receives all the system's annual profits after dividends on member banks' capital investments are paid, and an account surplus is maintained. In 2015, the Federal Reserve earned a net income of $ 100.2 billion and transferred $ 97.7 billion to
1978-480: The monetary transmission mechanism . The FOMC consists of all seven members of the board of governors and the twelve regional Federal Reserve Bank presidents, though only five bank presidents vote at a time—the president of the New York Fed and four others who rotate through one-year voting terms. There are also various advisory councils. It has a structure unique among central banks, and is also unusual in that
2064-594: The summer of 1998 due to the bank having a large position in Russian government bonds. In late 1998, shortly before Bankers Trust was acquired by Deutsche Bank , BT pleaded guilty to institutional fraud due to the failure of certain members of senior management to escheat abandoned property to the State of New York and other states. Rather than turn over to the states' funds from dormant customer accounts and uncashed dividend and interest checks as required by law, some of
2150-510: The Bankers Trust Company succeeding Colt who had become chairman in 1956, when Ardrey became president. In 1960, Wallis B. Dunckel , a senior vice president who had been with the bank since 1923, was elected president of Bankers Trust to succeed Ardrey, who was elected vice chairman. In 1966, Alfred Brittain III, then head of the foreign department, was elected president of Bankers Trust to succeed Dunckel who retired. In 1966, Bankers Trust acquired
2236-571: The Board of Governors are in continual contact with other policy makers in government. They frequently testify before congressional committees on the economy, monetary policy , banking supervision and regulation , consumer credit protection , financial markets , and other matters. The Board has regular contact with members of the President's Council of Economic Advisers and other key economic officials. The Chair also meets from time to time with
2322-656: The Economic Meltdown , was that the failure of Congress to allow CFTC a role in regulating derivatives was a key element eventually leading to the financial crisis of 2007–2010 . Federal Reserve System This is an accepted version of this page The Federal Reserve System (often shortened to the Federal Reserve , or simply the Fed ) is the central banking system of the United States . It
2408-632: The FOMC vote on policy decisions. The FOMC determines its own internal organization and, by tradition, elects the chair of the board of governors as its chair and the president of the Federal Reserve Bank of New York as its vice chair. Formal meetings typically are held eight times each year in Washington, D.C. Nonvoting Reserve Bank presidents also participate in Committee deliberations and discussion. The FOMC generally meets eight times
2494-447: The Fed charges banks for these loans is called the discount rate (officially the primary credit rate). By making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and supply. This contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates. For example, on September 16, 2008,
2580-468: The Fed processes a variety of financial transactions involving trillions of dollars. Just as an individual might keep an account at a bank, the U.S. Treasury keeps a checking account with the Federal Reserve, through which incoming federal tax deposits and outgoing government payments are handled. As part of this service relationship, the Fed sells and redeems U.S. government securities such as savings bonds and Treasury bills, notes and bonds. It also issues
2666-946: The Federal Reserve Banks as tax-exempt federally created instrumentalities whose profits belong to the federal government, but this interest is not proprietary. In Lewis v. United States , the United States Court of Appeals for the Ninth Circuit stated that: "The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act ], but are independent, privately owned and locally controlled corporations." The opinion went on to say, however, that: "The Reserve Banks have properly been held to be federal instrumentalities for some purposes." Another relevant decision
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2752-489: The Federal Reserve Board authorized an $ 85 billion loan to stave off the bankruptcy of international insurance giant American International Group (AIG). In its role as the central bank of the United States, the Fed serves as a banker's bank and as the government's bank. As the banker's bank, it helps to assure the safety and efficiency of the payments system. As the government's bank or fiscal agent,
2838-586: The Federal Reserve System and national banks, which by law must be members of the System. The Board also issues regulations to carry out major federal laws governing consumer credit protection , such as the Truth in Lending , Equal Credit Opportunity , and Home Mortgage Disclosure Acts . Many of these consumer protection regulations apply to various lenders outside the banking industry as well as to banks. Members of
2924-543: The Federal Reserve System has a number of supervisory and regulatory responsibilities in the U.S. banking system, but not complete responsibility. A general description of the types of regulation and supervision involved in the U.S. banking system is given by the Federal Reserve: The Board also plays a major role in the supervision and regulation of the U.S. banking system. It has supervisory responsibilities for state-chartered banks that are members of
3010-402: The Federal Reserve System has responsibilities in addition to stabilizing the financial system. Current functions of the Federal Reserve System include: Banking institutions in the United States are required to hold reserves—amounts of currency and deposits in other banks—equal to only a fraction of the amount of the bank's deposit liabilities owed to customers. This practice
3096-467: The Federal Reserve System, bank holding companies (companies that control banks), the foreign activities of member banks, the U.S. activities of foreign banks, and Edge Act and "agreement corporations" (limited-purpose institutions that engage in a foreign banking business). The Board and, under delegated authority, the Federal Reserve Banks, supervise approximately 900 state member banks and 5,000 bank holding companies. Other federal agencies also serve as
3182-488: The Federal Reserve System. Congress established three key objectives for monetary policy in the Federal Reserve Act: maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserve's dual mandate. Its duties have expanded over the years, and currently also include supervising and regulating banks , maintaining
3268-681: The Federal Reserve banks may be audited by the Government Accountability Office (GAO). The GAO has authority to audit check-processing, currency storage and shipments, and some regulatory and bank examination functions–though there are restrictions to what the GAO may audit. Under the Federal Banking Agency Audit Act, 31 U.S.C. section 714(b), audits of the Federal Reserve Board and Federal Reserve banks do not include (1) transactions for or with
3354-440: The Federal Reserve in foreign exchange markets. The FOMC must reach consensus on all decisions. The president of the Federal Reserve Bank of New York is a permanent member of the FOMC; the presidents of the other banks rotate membership at two- and three-year intervals. All Regional Reserve Bank presidents contribute to the committee's assessment of the economy and of policy options, but only the five presidents who are then members of
3440-527: The Montage front-end package that traders used to obtain data from data feeds and broker screens. In early 1994, despite all its prowess in managing the risks in the trading room , the bank suffered irreparable reputational damage when some complex derivative transactions caused large losses for major corporate clients. Two of these— Gibson Greetings and Procter & Gamble (P&G)—successfully sued BT, asserting that they had not been informed of, or (in
3526-461: The U.S. Treasury, and 2020 earnings were approximately $ 88.6 billion with remittances to the U.S. Treasury of $ 86.9 billion. Although an instrument of the U.S. government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the president or by anyone else in the executive or legislative branches of government, it does not receive funding appropriated by Congress, and
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3612-531: The U.S. banking system in general. Governors are appointed by the president of the United States and confirmed by the Senate for staggered 14-year terms. One term begins every two years, on February 1 of even-numbered years, and members serving a full term cannot be renominated for a second term. "[U]pon the expiration of their terms of office, members of the Board shall continue to serve until their successors are appointed and have qualified." The law provides for
3698-1037: The US Commodity Futures Trading Commission (CFTC) during this time was later interviewed by Frontline in October 2009: "The only way the CFTC found out about the Bankers Trust fraud was because Procter & Gamble , and others, filed suit. There was no record keeping requirement imposed on participants in the market. There was no reporting. We had no information." - Brooksley Born , US CFTC Chair, 1996-'99. Several Bankers Trust brokers were caught on tape remarking that their client [Gibson Greetings and P&G, respectively] would not be able to understand what they were doing in reference to derivatives contracts sold in 1993. As part of their legal case against Bankers Trust, Procter & Gamble (P&G) "discovered secret telephone recordings between brokers at Bankers Trust, where 'one employee described
3784-757: The United States, the Federal Reserve serves as the lender of last resort to those institutions that cannot obtain credit elsewhere and the collapse of which would have serious implications for the economy. It took over this role from the private sector "clearing houses" which operated during the Free Banking Era ; whether public or private, the availability of liquidity was intended to prevent bank runs. Through its discount window and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals. Longer-term liquidity may also be provided in exceptional circumstances. The rate
3870-841: The Wegmans LPGA Tournament. In 2010 , the tournament was replaced by the LPGA Championship , a major championship . Wegmans served as presenting sponsor instead of Coca-Cola in 2010 , as ownership of the championship reverted from McDonald's back to the LPGA. Wegmans took over as title sponsor in 2011 , with the regular (non-major) tour stop continuing on hiatus, at least through 2014 . The LPGA Championship stayed in Rochester and left Locust Hill for Monroe Golf Club where it stayed until 2015. Since 2014, there has been no LPGA tournament in Rochester. In 2015 it
3956-639: The asset management division to Westpac on October 31, 2002. This organisation now uses the name BT Financial Group . Deutsche Bank announced on November 5, 2002 that it would sell The Trust and Custody division of Bankers Trust to State Street Corporation . The sale finalized in February 2003. In 1995, litigation by two major corporate clients against Bankers Trust shed light on the market for over-the-counter derivatives . Bankers Trust employees were found to have repeatedly provided customers with incorrect valuations of their derivative exposures. The head of
4042-562: The bank became an acknowledged leader in risk management. Lacking the boardroom contacts of its larger rivals, notably J. P. Morgan , BT attempted to make a virtue of necessity by specializing in trading and in product innovation. The company shied away from using market data distribution products from companies such as Reuters , instead choosing to develop its own systems in-house. A small development team based in London created BIDDS (Broadgate Information Data Distribution System) which included
4128-708: The bank would hold a large position in Russian government bonds. On June 4, 1999, Deutsche Bank merged its Bankers Trust and Deutsche Morgan Grenfell to became Deutsche Asset Management (DAM) with Robert Smith as the CEO. In 1999, Deutsche Bank sold the Bankers Trust Australian division to the Principal Financial Group who, in turn, sold the Investment Banking Business to Macquarie Group in June 1999 and
4214-607: The bank's senior executives credited this money as income and moved it to its operating account. Bruce J. Kingdon, the head of the bank's Corporate Trust and Agency group spearheaded the fraud and (in 2001) entered into a guilty plea in the US District Court for the Southern District of New York and was sentenced to community service. Some of his subordinates were thereafter barred forever by the SEC from working in
4300-399: The banking business, opposed a central bank structure directed by political appointees. The legislation that Congress ultimately adopted in 1913 reflected a hard-fought battle to balance these two competing views and created the hybrid public-private, centralized-decentralized structure that we have today. The balance between private interests and government can also be seen in the structure of
4386-612: The board of governors expire. The current members of the board of governors are: In late December 2011, President Barack Obama nominated Jeremy C. Stein , a Harvard University finance professor and a Democrat , and Jerome Powell , formerly of Dillon Read , Bankers Trust and The Carlyle Group and a Republican . Both candidates also have Treasury Department experience in the Obama and George H. W. Bush administrations respectively. "Obama administration officials [had] regrouped to identify Fed candidates after Peter Diamond ,
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#17327907839734472-430: The board of governors, (2) the Federal Open Market Committee, (3) the twelve regional Federal Reserve Banks, and (4) the member banks throughout the country. The seven-member board of governors is a large federal agency that functions in business oversight by examining national banks. It is charged with the overseeing of the 12 District Reserve Banks and setting national monetary policy. It also supervises and regulates
4558-401: The board of governors. This policy is described in law: Each Federal reserve bank shall keep itself informed of the general character and amount of the loans and investments of its member banks with a view to ascertaining whether undue use is being made of bank credit for the speculative carrying of or trading in securities, real estate, or commodities, or for any other purpose inconsistent with
4644-545: The board on February 10, 2017, effective on or around April 5, 2017. The Federal Open Market Committee (FOMC) consists of 12 members, seven from the board of governors and 5 of the regional Federal Reserve Bank presidents. The FOMC oversees and sets policy on open market operations , the principal tool of national monetary policy. These operations affect the amount of Federal Reserve balances available to depository institutions, thereby influencing overall monetary and credit conditions. The FOMC also directs operations undertaken by
4730-454: The business as 'a wet dream,' ... another Bankers Trust employee said, '...we set 'em up.'" The bank's row with P&G made the front page of major US magazines during 1995. On October 16, 1995, the US magazine BusinessWeek published a cover story that P&G was pursuing racketeering charges against Bankers Trust: "The key evidence: some 6,500 tape recordings." Both the magnitude of losses and
4816-539: The country because many banks and clearinghouses refused to clear checks drawn on certain other banks, a practice that contributed to the failure of otherwise solvent banks. To address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system. The System, then, was to provide not only an elastic currency—that is, a currency that would expand or shrink in amount as economic conditions warranted—but also an efficient and equitable check-collection system. In
4902-594: The direction of Brittain. The bank attempted to sell its credit portfolio and branches to Bank of Montreal ; however, the deal was not completed due to a disagreement over BankAmericard (known today as Visa ). Bank of Montreal wanted to include BankAmericard in the terms of sale, but Bankers Trust did not want to sell the new credit card program licensed from Bank of America due to its profitable future. Eventually, Bankers Trust sold 89 branches to five banks including Republic National Bank of New York . Republic National Bank of New York expanded its branch network to 32 with
4988-559: The general public. In 1916, it completed alterations to the Bankers Trust Building, its offices at the corner of Wall and Nassau Streets that it had built 4 years earlier. Under Prosser's leadership, Bankers Trust merged with the Astor Trust Company on April 23, 1917. The merger had been rumored for some time as both banks had a number of directors in common; Prosser was president of the Bankers and
5074-401: The judgment of the Board of Governors of the Federal Reserve System, any member bank is making such undue use of bank credit, the Board may, in its discretion, after reasonable notice and an opportunity for a hearing, suspend such bank from the use of the credit facilities of the Federal Reserve System and may terminate such suspension or may renew it from time to time. The Federal Reserve plays
5160-609: The latter case), had been unable to understand the risks involved. In 1995, the Securities and Exchange Commission sanctioned Gibson Greetings for its handling of derivatives trading, and Bankers Trust settled the P&;G case in May 1996. In 1997, Bankers Trust acquired Alex. Brown & Sons , founded in 1800 and a public corporation since 1986, in an attempt to grow its investment banking business. The bank suffered major losses in
5246-550: The litigation by well-known companies caused market regulators to intervene. Concerns motivated by the particular Bankers Trust case eventually extended to the OTC derivatives market in general. The US CFTC embarked on a failed attempt to take over part of the bank regulators' role in regulating the OTC derivatives market in the late 1990s. The thesis of an October 20, 2009, broadcast of the PBS television magazine Frontline , Early Warnings of
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#17327907839735332-482: The maintenance of sound credit conditions; and, in determining whether to grant or refuse advances, rediscounts, or other credit accommodations, the Federal reserve bank shall give consideration to such information. The chairman of the Federal reserve bank shall report to the Board of Governors of the Federal Reserve System any such undue use of bank credit by any member bank, together with his recommendation. Whenever, in
5418-400: The merged entity until 1923 when was elected chairman of the board and was succeeded by Albert Arthur Tilney . Prosser served as chairman until his death in 1942. Tilney's presidency was short-lived, however, as Henry J. Cochran , who had been a vice president at the company for twelve years, was elected as the fifth president in 1929. Upon Cochran's elevation to the presidency, Tilney assumed
5504-451: The nation's coin and paper currency . The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing , actually produces the nation's cash supply and, in effect, sells the paper currency to the Federal Reserve Banks at manufacturing cost, and the coins at face value. The Federal Reserve Banks then distribute it to other financial institutions in various ways. During
5590-425: The nation, regulate and oversee privately owned commercial banks. Nationally chartered commercial banks are required to hold stock in, and can elect some board members of, the Federal Reserve Bank of their region. The Federal Open Market Committee (FOMC) sets monetary policy by adjusting the target for the federal funds rate , which generally influences market interest rates and, in turn, US economic activity via
5676-500: The newly created position of vice chairman of the board of directors. Cochran served as president until 1931 when S. Sloan Colt was elected the sixth president and Cochran became vice chairman of the board. In 1956, Alex H. Ardrey became president of Bankers Trust. Ardrey joined the bank in 1930 as a vice president and was elected executive vice president in 1948. In 1957, 42 year old William Moore, an executive vice president and director, became chairman and chief executive officer of
5762-574: The opening of a new branch in Manhattan's World Trade Center and the acquisition of a dozen Bankers Trust Company branches—ten in Manhattan, one in the Bronx, and one in Brooklyn. Bankers Trust became a leader in the nascent derivatives business under the management of Charlie Sanford , who succeeded Alfred Brittain III, in the early 1990s. Having de-emphasized traditional loans in favor of trading,
5848-682: The primary federal supervisors of commercial banks; the Office of the Comptroller of the Currency supervises national banks, and the Federal Deposit Insurance Corporation supervises state banks that are not members of the Federal Reserve System. Some regulations issued by the Board apply to the entire banking industry, whereas others apply only to member banks, that is, state banks that have chosen to join
5934-495: The purchase was finalized on June 4, 1999. At the time, Deutsche Bank owned a 12% stake in DaimlerChrysler but United States banking laws prohibit banks from owning industrial companies, so Deutsche Bank received an exception to this prohibition through 1978 legislation from Congress. CEO Frank N. Newman received $ 55 million in severance. He had led the Bankers Trust acquisition of Alex. Brown & Sons and ensured that
6020-478: The removal of a member of the board by the president "for cause". The board is required to make an annual report of operations to the Speaker of the U.S. House of Representatives. The chair and vice chair of the board of governors are appointed by the president from among the sitting governors. They both serve a four-year term and they can be renominated as many times as the president chooses, until their terms on
6106-548: The securities markets. With the Bank's guilty plea in the escheatment lawsuit, and thereafter its status as a convicted felon, it became ineligible to transact business with most municipalities and many companies which are prohibited from transacting business with felons. Consequently, the acquisition by Deutsche Bank was a windfall to the bank's shareholders, who avoided losing their entire investments. In November 1998, Deutsche Bank agreed to purchase Bankers Trust for $ 10.1 billion;
6192-631: The stability of the financial system, and providing financial services to depository institutions , the U.S. government, and foreign official institutions. The Fed also conducts research into the economy and provides numerous publications, such as the Beige Book and the FRED database . The Federal Reserve System is composed of several layers. It is governed by the presidentially-appointed board of governors or Federal Reserve Board (FRB). Twelve regional Federal Reserve Banks , located in cities throughout
6278-407: The system. Private banks elect members of the board of directors at their regional Federal Reserve Bank while the members of the board of governors are selected by the president of the United States and confirmed by the Senate . The Federal Banking Agency Audit Act, enacted in 1978 as Public Law 95-320 and 31 U.S.C. section 714 establish that the board of governors of the Federal Reserve System and
6364-404: The terms of the members of the board of governors span multiple presidential and congressional terms." The Federal Reserve has been criticized by some for its approach to managing inflation , perceived lack of transparency, and its role in economic downturns. The primary declared motivation for creating the Federal Reserve System was to address banking panics . Other purposes are stated in
6450-509: The three class A board members. Class B board members are also nominated by the region's member banks, but class B board members are supposed to represent the interests of the public. Lastly, class C board members are appointed by the board of governors, and are also intended to represent the interests of the public. The Federal Reserve Banks have an intermediate legal status, with some features of private corporations and some features of public federal agencies. The United States has an interest in
6536-456: The vacancies was created in 2011 with the resignation of Kevin Warsh , who took office in 2006 to fill the unexpired term ending January 31, 2018, and resigned his position effective March 31, 2011. In March 2012, U.S. Senator David Vitter ( R , LA ) said he would oppose Obama's Stein and Powell nominations, dampening near-term hopes for approval. However, Senate leaders reached a deal, paving
6622-464: The vice-chair. In April 2014, Stein announced he was leaving to return to Harvard on May 28 with four years remaining on his term. At the time of the announcement, the FOMC "already is down three members as it awaits the Senate confirmation of ... Fischer and Lael Brainard , and as [President] Obama has yet to name a replacement for ... Duke. ... Powell is still serving as he awaits his confirmation for
6708-504: The way for affirmative votes on the two nominees in May 2012 and bringing the board to full strength for the first time since 2006 with Duke's service after term end. Later, on January 6, 2014, the United States Senate confirmed Yellen's nomination to be chair of the Federal Reserve Board of Governors; she was the first woman to hold the position. Subsequently, President Obama nominated Stanley Fischer to replace Yellen as
6794-669: Was announced that the Symetra Tour was coming to town with the creation of the Toyota Danielle Downey Classic . *Championship won in sudden-death playoff. Bankers Trust Bankers Trust was a historic American banking organization. The bank merged with Alex. Brown & Sons in 1997 before being acquired by Deutsche Bank in 1999. Deutsche Bank sold the Trust and Custody division of Bankers Trust to State Street Corporation in 2003. In 1903
6880-710: Was chosen to serve as Bankers Trust's first president. Bankers Trust quickly grew to be the second largest U.S. trust company and a dominant Wall Street institution. During the Panic of 1907 , Bankers Trust worked closely with J.P. Morgan to help avoid a general financial collapse by lending money to sound banks. In 1911, it acquired the Mercantile Company and, a year later, the Manhattan Trust Company. In 1914 Converse resigned to become president of Astor Trust Company , another Morgan company. He
6966-559: Was created on December 23, 1913, with the enactment of the Federal Reserve Act , after a series of financial panics (particularly the panic of 1907 ) led to the desire for central control of the monetary system in order to alleviate financial crises. Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of
7052-507: Was designed as an attempt to prevent or minimize the occurrence of bank runs, and possibly act as a lender of last resort when a bank run does occur. Many economists, following Nobel laureate Milton Friedman , believe that the Federal Reserve inappropriately refused to lend money to small banks during the bank runs of 1929; Friedman argued that this contributed to the Great Depression . Because some banks refused to clear checks from certain other banks during times of economic uncertainty,
7138-452: Was designed out of a compromise between the competing philosophies of privatization and government regulation. In 2006 Donald L. Kohn , vice chairman of the board of governors, summarized the history of this compromise: Agrarian and progressive interests, led by William Jennings Bryan, favored a central bank under public, rather than banker, control. However, the vast majority of the nation's bankers, concerned about government intervention in
7224-399: Was incorporated on March 24, 1903, with an initial capital of $ 1.5 million. Despite technically having numerous stockholders, the voting power was held by three associates of J.P. Morgan . Thus, it was widely viewed as a Morgan company. J. P. Morgan himself held a controlling interest, and Edmund C. Converse , a steel manufacturer turned financier and then president of Liberty National Bank ,
7310-469: Was set based upon the population distribution of the United States when the Federal Reserve Act was passed. The charter and organization of each Federal Reserve Bank is established by law and cannot be altered by the member banks. Member banks do, however, elect six of the nine members of the Federal Reserve Banks' boards of directors. Each regional Bank has a president, who is the chief executive officer of their Bank. Each regional Reserve Bank's president
7396-711: Was succeeded by his son-in-law Benjamin Strong Jr. Strong served as president for less than a year, leaving Bankers Trust to become the first governor of the Federal Reserve Bank of New York after helping to establish the Federal Reserve System . Strong was succeeded by Seward Prosser , who became the third president of Bankers Trust. By 1915, Bankers Trust was doing approximately $ 30,000,000,000 of business, consisting of solely business from companies and no safes or other deposits were from
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