Financial Update (Fourth Quarter 2005)


 Jack Guynn on
 Economic Growth,

 Payment Services

 Pat Barron on the
 Need to Improve
 Payment Systems

 Directo a México
 Promotes FedACH

 Introduces New
 Bank Secrecy
 Act Manual

 Credit Cards’
 Benefits Outweigh
 Identity Theft

 Go Direct Campaign
 Encourages Direct

 New HMDA Data
 Include Loan Pricing

 Redesigned $10 Bill
 to Debut in ’06

 Explores Latin
 American Bank

 Final CRA Rules
 Take Effect

 Revisions Proposed
 to ATM Fee


 Data Bank

 Circular Letters



Atlanta Fed Operations Withstand Katrina’s Might


When Hurricane Katrina struck the Gulf Coast on Aug. 29, the widespread destruction tested the Sixth Federal Reserve District’s operations in unprecedented ways. While the Federal Reserve Bank of Atlanta’s New Orleans Branch sustained only minimal damage and no flooding, damage to the city’s essential infrastructure such as water and power services closed the branch for four weeks after the hurricane. The Sixth District’s cash and check operations faced difficult challenges in responding to the disaster.

Fed’s cash operations meet Katrina’s challenge
Check operations adjust on the run
Fed waives appraisal requirements for affected banks
Federal Reserve Board press release on recovery facilitation

Just before and after the hurricane hit, mass evacuations and power outages initially increased the demand for cash in the area served by the New Orleans Branch: southern Louisiana and Mississippi, Mobile and coastal Alabama, and the Florida Panhandle. To meet that demand, the Sixth District’s contingency plans helped banks maintain sufficient volumes of coin and currency while the branch was closed.

Likewise, business continuity and resumption plans allowed checks from the Gulf Coast area, normally handled in New Orleans, to be processed through the head office in Atlanta.