The New Paradigm - Federal Reserve Bank of Dallas
46 At December 31, 1999, and December 31, 1998, matched sale–purchase transactions involving U.S. government securities with par values of $39,182 million and $20,927 million, respectively, were outstanding, of which $1,952 million and $952 million were allocated to the Bank. Matched sale–purchase transactions are generally overnight arrangements. 5. INVESTMENTS DENOMINATED IN FOREIGN CURRENCIES The FRBNY, on behalf of the Reserve Banks, holds foreign currency deposits with foreign central banks and the Bank for International Settlements and invests in foreign government debt instruments. Foreign government debt instruments held include both securities bought outright and securities held under agreements to resell. These investments are guaranteed as to principal and interest by the foreign governments. Each Reserve Bank is allocated a share of foreign-currency-denominated assets, the related interest income, and realized and unrealized foreign currency gains and losses, with the exception of unrealized gains and losses on F/X swaps and warehousing transactions. This allocation is based on the ratio of each Reserve Bank’s capital and surplus to aggregate capital and surplus at the preceding December 31. The Bank’s allocated share of investments denominated in foreign currencies was approximately 3.818 percent and 5.203 percent at December 31, 1999, and December 31, 1998, respectively. The Bank’s allocated share of investments denominated in foreign currencies, valued at current exchange rates at December 31, was as follows (in millions): 1999 1998 German marks: Foreign currency deposits $ — $ 544 Government debt instruments including agreements to resell — 123 European Union euro: Foreign currency deposits 165 — Government debt instruments including agreements to resell 97 — Japanese yen: Foreign currency deposits 12 35 Government debt instruments including agreements to resell 340 322 Accrued interest 2 5 Total $ 616 $ 1,029 Total investments denominated in foreign currencies were $16,140 million and $19,769 million at December 31, 1999, and December 31, 1998, respectively. The 1998 balance includes $15 million in unearned interest collected on certain foreign currency holdings that is allocated solely to the FRBNY. 1999 ANNUAL REPORT Federal Reserve Bank of Dallas
47 The maturities of investments denominated in foreign currencies that were allocated to the Bank at December 31, 1999, were as follows (in millions): Maturities of Investments Denominated in Foreign Currencies Within 1 year $ 575 Over 1 year to 5 years 19 Over 5 years to 10 years 22 Total $ 616 At December 31, 1999, and December 31, 1998, there were no open foreign exchange contracts or outstanding F/X swaps. At December 31, 1999, and December 31, 1998, the warehousing facility was $5,000 million, with nothing outstanding. 6. BANK PREMISES AND EQUIPMENT A summary of bank premises and equipment at December 31 is as follows (in millions): 1999 1998 Bank premises and equipment: Land $ 32 $ 32 Buildings 116 115 Building machinery and equipment 26 24 Construction in progress 1 2 Furniture and equipment 80 77 255 250 Accumulated depreciation (77) (68) Bank premises and equipment, net $178 $ 182 Depreciation expense was $11 million for each of the years ended December 31, 1999, and December 31, 1998. 7. COMMITMENTS AND CONTINGENCIES At December 31, 1999, the Bank was obligated under noncancelable leases for premises and equipment with terms ranging from one to approximately five years. These leases provide for increased rentals based upon increases in real estate taxes, operating costs, or selected price indices. Rental expense under operating leases for certain operating facilities, warehouses, and data processing and office equipment (including taxes, insurance, and maintenance when included in rent), net of sublease rentals, was $484,000 and $399,000 for the years ended December 31, 1999, and December 31, 1998, respectively. Certain of the Bank’s leases have options to renew. Federal Reserve Bank of Dallas 1999 ANNUAL REPORT
- Page 1 and 2: The New Paradigm Federal Reserve Ba
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- Page 7 and 8: 5 Exhibit 2 Technology Spillovers:
- Page 9 and 10: 7 a. Microgyro chip: navigation, b.
- Page 11 and 12: 9 Exhibit 4 16 Stats on the New Eco
- Page 13 and 14: 11 Exhibit 6 The Shifting Values of
- Page 15 and 16: 13 Modern autos use upward of 120 m
- Page 17 and 18: 15 Exhibit 9 First in Line and Last
- Page 19 and 20: 17 Exhibit 11 Better Shop Around Th
- Page 21 and 22: 19 Exhibit 13 Bigger Is Better Neve
- Page 23 and 24: 21 Many of the new technologies hav
- Page 25 and 26: 23 versatile, far-reaching asset—
- Page 27 and 28: 25 and 1980, Compustat. 1990 and 19
- Page 29 and 30: 27 Financial Services In 1999 the D
- Page 31 and 32: 29 Senior Management From left: Joe
- Page 33 and 34: 31 Houston Richard Weekley Chairman
- Page 35 and 36: 33 February 10, 2000 To the Board o
- Page 37 and 38: 35 REPORT OF INDEPENDENT ACCOUNTANT
- Page 39 and 40: 37 Statements of Income (in million
- Page 41 and 42: Notes to Financial Statements 1. OR
- Page 43 and 44: 41 b. Special Drawing Rights Certif
- Page 45 and 46: 43 U.S. government and federal agen
- Page 47: 45 j. Income and Cost Related to Tr
- Page 51 and 52: 49 9. POSTRETIREMENT BENEFITS OTHER
- Page 53 and 54: 51 Volume of Operations (UNAUDITED)
47<br />
<strong>The</strong> maturities <strong>of</strong> investments denominated in foreign currencies that were allocated to<br />
the <strong>Bank</strong> at December 31, 1999, were as follows (in millions):<br />
Maturities <strong>of</strong> Investments Denominated<br />
in Foreign Currencies<br />
Within 1 year $ 575<br />
Over 1 year to 5 years 19<br />
Over 5 years to 10 years 22<br />
Total $ 616<br />
At December 31, 1999, and December 31, 1998, there were no open foreign exchange<br />
contracts or outstanding F/X swaps.<br />
At December 31, 1999, and December 31, 1998, the warehousing facility was $5,000<br />
million, with nothing outstanding.<br />
6. BANK PREMISES AND EQUIPMENT<br />
A summary <strong>of</strong> bank premises and equipment at December 31 is as follows (in millions):<br />
1999 1998<br />
<strong>Bank</strong> premises and equipment:<br />
Land $ 32 $ 32<br />
Buildings 116 115<br />
Building machinery and equipment 26 24<br />
Construction in progress 1 2<br />
Furniture and equipment 80 77<br />
255 250<br />
Accumulated depreciation (77) (68)<br />
<strong>Bank</strong> premises and equipment, net $178 $ 182<br />
Depreciation expense was $11 million for each <strong>of</strong> the years ended December 31, 1999,<br />
and December 31, 1998.<br />
7. COMMITMENTS AND CONTINGENCIES<br />
At December 31, 1999, the <strong>Bank</strong> was obligated under noncancelable leases for premises<br />
and equipment with terms ranging from one to approximately five years. <strong>The</strong>se<br />
leases provide for increased rentals based upon increases in real estate taxes, operating<br />
costs, or selected price indices.<br />
Rental expense under operating leases for certain operating facilities, warehouses, and<br />
data processing and <strong>of</strong>fice equipment (including taxes, insurance, and maintenance<br />
when included in rent), net <strong>of</strong> sublease rentals, was $484,000 and $399,000 for the<br />
years ended December 31, 1999, and December 31, 1998, respectively. Certain <strong>of</strong> the<br />
<strong>Bank</strong>’s leases have options to renew.<br />
<strong>Federal</strong> <strong>Reserve</strong> <strong>Bank</strong> <strong>of</strong> <strong>Dallas</strong> 1999 ANNUAL REPORT
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