Financial Update (July-September 1999)

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Cover Story

Bureau of Public Debt Ends Window Services

Revisions Clarify Reg Z

DEPARTMENTS

Sweep Accounts

Data Bank

The Docket

Bureau of Public Debt Ends Window Services at Fed Banks

T he Bureau of Public Debt has announced that it will close the Treasury securities window operations at all Federal Reserve Banks and branches on Aug. 31, 1999.

The window closings at Fed banks were prompted in part by the popularity of the Bureau of Public Debt's automated transactions, which include telephone and Internet services to purchase Treasury securities. Additionally, discontinuing walk-in services at the 37 Federal Reserve Banks is the first step in a process that the Bureau of Public Debt estimates will save taxpayers $5 million annually. The final step will be to create, over the next few years, customer toll-free call centers at the Federal Reserve Banks in Boston, Minneapolis and Dallas that will serve the customers of Treasury Direct.

Discontinuing the Treasury securities window operations will affect owners of paper-registered and bearer U.S. Treasury securities. These customers will no longer be able to conduct redemptions or other service transactions such as transfers of ownership at Fed Banks and branches. The Bureau of the Public Debt in Parkersburg, W. Va., will be the only location handling these transactions after Aug. 31.

Other Options for Purchasing Securities

While walk-in service is being discontinued, customers can still bid on and purchase U.S. Treasury securities by telephone, computer or mail or through many commercial banks. Investors holding registered and bearer certificates can deposit them into a Treasury Direct account, free of charge, through Public Debt's Smart Exchange program by calling 1-800-366-3144.

Investors who own Treasury bearer bonds may find it more convenient to have commercial banks handle their interest coupons. Customers may continue to present their coupons at Federal Reserve Banks and branches until Aug. 31. After that date, investors can mail their coupons to the Definitive Processing Group, Bureau of Public Debt, P.O. Box 426, Parkersburg, W. Va. 26106-0426.

Savings Bond Customers

After Aug. 31, savings bonds will no longer be available for purchase or processing at Federal Reserve offices in Buffalo, Kansas City, Minneapolis, Pittsburgh and Richmond. Savings bond investors can purchase bonds and have other transactions processed at their local financial institutions.

Other services offered by Federal Reserve Banks and branches to walk-in visitors will remain unchanged — the paying teller will continue to receive damaged currency and exchange currency.

To find out more about these changes in services, see the Bureau of Public Debt's Web site at www.publicdebt.treas.gov/com/comclose.htm.