The New Paradigm - Federal Reserve Bank of Dallas

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38 Statements of Changes in Capital For the Years Ended December 31, 1999, and December 31, 1998 (in millions) Capital Paid-In Surplus Total Capital BALANCE AT JANUARY 1, 1998 (5.6 MILLION SHARES) $ 283 $ 270 $ 553 Net income transferred (from) surplus — ( 43 ) ( 43 ) Net change in capital stock (redeemed) (1.1 million shares) _____ ( 56 ) _____ — _____ ( 56 ) BALANCE AT DECEMBER 31, 1998 (4.5 MILLION SHARES) $ 227 $ 227 $ 454 Net income transferred (from) surplus — (16) (16) Net change in capital stock (redeemed) (0.3 million shares) _____ ( 16 ) _____ — _____ (16) BALANCE AT DECEMBER 31, 1999 (4.2 MILLION SHARES) $ 211 _____ $ 211 _____ $ 422 _____ The accompanying notes are an integral part of these financial statements. 1999 ANNUAL REPORT Federal Reserve Bank of Dallas
Notes to Financial Statements 1. ORGANIZATION The Federal Reserve Bank of Dallas (“Bank”) is part of the Federal Reserve System (“System”) created by Congress under the Federal Reserve Act of 1913 (“Federal Reserve Act”), which established the central bank of the United States. The System consists of the Board of Governors of the Federal Reserve System (“Board of Governors”) and 12 Federal Reserve Banks (“Reserve Banks”). The Reserve Banks are chartered by the federal government and possess a unique set of governmental, corporate, and central bank characteristics. Other major elements of the System are the Federal Open Market Committee (“FOMC”) and the Federal Advisory Council. The FOMC is composed of members of the Board of Governors, the president of the Federal Reserve Bank of New York (“FRBNY”), and, on a rotating basis, four other Reserve Bank presidents. 39 Structure The Bank and its branches in El Paso, Houston, and San Antonio serve the Eleventh Federal Reserve District, which includes Texas and portions of Louisiana and New Mexico. In accordance with the Federal Reserve Act, supervision and control of the Bank are exercised by a board of directors. Banks that are members of the System include all national banks and any state-chartered bank that applies and is approved for membership in the System. Board of Directors The Federal Reserve Act specifies the composition of the board of directors for each of the Reserve Banks. Each board is composed of nine members serving three-year terms: three directors, including those designated as chairman and deputy chairman, are appointed by the Board of Governors, and six directors are elected by member banks. Of the six elected by member banks, three represent the public and three represent member banks. Member banks are divided into three classes according to size. Member banks in each class elect one director representing member banks and one representing the public. In any election of directors, each member bank receives one vote, regardless of the number of shares of Reserve Bank stock it holds. 2. OPERATIONS AND SERVICES The System performs a variety of services and operations. Functions include formulating and conducting monetary policy; participating actively in the payments mechanism, including large-dollar transfers of funds, automated clearinghouse operations, and check processing; distributing coin and currency; providing fiscal agency functions for the U.S. Treasury and certain federal agencies; serving as the federal government’s bank; providing short-term loans to depository institutions; serving the consumer and the community by providing educational materials and information regarding consumer laws; supervising bank holding companies and state member banks; and administering other regulations of the Board of Governors. The Board of Governors’ operating costs are funded through assessments on the Reserve Banks. The FOMC establishes policy regarding open market operations, oversees these operations, and issues authorizations and directives to the FRBNY for its execution of transactions. Authorized transaction types include direct purchase and sale of securities, matched sale–purchase transactions, purchase of securities under agreements to resell, and lending of U.S. government securities. Additionally, the FRBNY is authorized by the FOMC to hold balances of, and to execute spot and forward foreign exchange and securities contracts in, 14 foreign currencies; maintain reciprocal currency arrangements (“F/X swaps”) with various central banks; and “warehouse” foreign currencies for the U.S. Treasury and Exchange Stabilization Fund (“ESF”) through the Reserve Banks. Federal Reserve Bank of Dallas 1999 ANNUAL REPORT
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Page 5 and 6: 3 The New Paradigm The United State
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Page 33 and 34: 31 Houston Richard Weekley Chairman
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Page 37 and 38: 35 REPORT OF INDEPENDENT ACCOUNTANT
Page 39: 37 Statements of Income (in million
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Page 47 and 48: 45 j. Income and Cost Related to Tr
Page 49 and 50: 47 The maturities of investments de
Page 51 and 52: 49 9. POSTRETIREMENT BENEFITS OTHER
Page 53 and 54: 51 Volume of Operations (UNAUDITED)

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