COMMITTEE (from left to right): Karl Ashman; Mary
Karr; Hank Bourgaux; LeGrande Rives; William Poole; Robert
Julie Stackhouse; Dave Sapenaro
As this year’s annual report clearly illustrates,
the Federal Reserve Bank of St. Louis is undergoing considerable
change. A new model for
how we operate our branches is just one indication—though a
significant one—that the phrase business as usual no longer
applies to the Eighth District.
Thus, for 2004 we deemed it necessary to write a new vision statement
for the Bank, which reads: The Federal Reserve Bank of St.
Louis will be recognized as a leader in shaping the future of the
business and support functions, and as a benchmark provider of services
among Federal Reserve banks. Looking back on 2003, we are encouraged
to see that in many aspects, we are already fulfilling these critical
Many of our employees—like those who support the Fed’s
important relationship with the U.S. Treasury—exhibit leadership
on a daily basis. As home to the Treasury Relations and Support
Office, the St. Louis Fed oversees the full range of projects and
that Reserve banks around the country provide to the Treasury.
In addition, the District continued its leadership and operational
of the Treasury’s cash management, tax collection and collateral
monitoring business. Year-end feedback from Treasury senior executives
indicated a high level of satisfaction with our performance at
both the District and System level.
The District’s Banking
Supervision and Regulation Division displayed leadership in a number
of areas. Division management
either chairs or participates on several critical System-level
and work groups. On behalf of the Federal Reserve System, the consumer
compliance function developed a web site to train bankers on significant
changes to Regulation C. The web site received national acclaim
across the banking community. The Center for Online Learning, one
division’s unique offerings, continued to grow as the System
leader in web-based training, resulting in a savings in time and
money for learners.
Our Research Division continued to be a leader
in the electronic transmission of economic data and Bank-related
the Internet. After 38 years, the printing of U.S. Financial
discontinued and successfully transitioned to electronic distribution.
Federal Reserve Electronic Data (FRED) traffic increased 79 percent
over 2002, and the Research function’s web pages received
18.8 million hits during 2003, a 65 percent increase over 2002.
Research economists realized substantial increases in productivity
last year, with 43 articles published or accepted for publication
in refereed journals, 20 more than in 2002. Also, Bank economists
made 118 presentations at System meetings, professional conferences
and university-sponsored seminars, double the amount from 2002.
In partnership with the Fourth Federal Reserve District, the Bank
pioneered the first regional approach to financial services sales
and marketing. This endeavor resulted in a savings of approximately
$2 million in the two districts as productivity was improved and
redundancies eliminated. The collaborative approach may serve as
a template for similar sales and marketing consolidations in other
Continuing to place a high priority on the Bank’s
public presence, the Community Affairs Office
sponsored 42 meetings for District audiences on
topics such as serving immigrant markets, community investment
opportunities and personal financial
education. Our economic education efforts drew more than 900 people
to 34 events throughout the year. The Bank’s tour program
attracted 255 groups for a total attendance of 5,359. The St. Louis
led a System work group to create a single web
page from which visitors can link directly to all regional and
national Fed web sites, as well as other selected Fed resources.
is located at www.federalreserveonline.org.
To explain what it means
to be a benchmark provider of services, one need only look at the
Bank’s Check and Cash departments.
During a year of uncertainty, these departments performed in an
outstanding manner. All four District check operations areas met
their net revenue,
cost and productivity targets. Cash exceeded its bundles-per-hour
target, as well as the System average.
In Treasury services, the District achieved 18 of 19 operational/service
quality measures in 2003, and a formal customer satisfaction survey
conducted in late 2002 showed that 94 percent of Treasury Tax and
Loan (TT&L) customers are “very satisfied” or “satisfied” with
the District’s services.
Our bank examiners met nearly all
examination, inspection and applications processing mandates. The
Credit/Payments Risk and Statistics function
achieved all of its operating mandates, even during a year in which
the functions were reorganized to realize efficiencies and enhance
cross-functional communications and staff development. Staff members
in these areas participated in new outreach programs to educate
bankers on reporting requirements, account management practices
and new credit
In 2004, the District’s primary challenge will
be the check and cash consolidation efforts and the concurrent
efforts to implement
a new model for the branch offices. At the same time, District
management will continue to look for opportunities to assume System
responsibilities while striving to remain a benchmark provider
In order to meet System security requirements and add some additional
office space, last spring we announced a multiyear, multimillion-dollar
strategy to renovate and expand our existing downtown
St. Louis office. In addition to the extensive security improvements,
we will add 54,000 square feet of office space by 2007.
Louis Fed is poised to face a set of challenges never encountered
before. Our staff’s continued high level of performance indicates
that we are well-positioned to meet the expectations and needs
of the System, our customers and our constituents.
PRESIDENT AND CEO
W. LeGrande Rives
FIRST VICE PRESIDENT AND COO