Fed Shifts Y2K Plans
to Contingency

Regional Roundup

Fed Establishes Special Y2K Liquidity Facility

The Federal Reserve Board has voted to establish a Century Date Change Special Liquidity Facility, a program for lending to depository institutions from Oct. 1, 1999, through April 7, 2000. The facility will help ensure that depository institutions have adequate liquidity to meet any unusual demands and enable them to more confidently commit to supplying loans to other financial institutions and businesses through the Y2K rollover period.

The interest rate charged on loans from the special facility will be 150 basis points higher than the Federal Open Market Committee's intended federal funds rate. Although collateral requirements will be the same as for regular discount window loans, there will be no restrictions on the use and duration of loans from the special facility while it is in operation. Moreover, borrowers will not be required to seek funds elsewhere first.

For more information, call Harold Slingerland at (314) 444-8752.

Five Join St. Louis Fed's Business Development Staff

The St. Louis Fed has announced the following staff additions to its Business Development function:

• Robert Kellar, operations officer, St. Louis, (314) 444-8451;

• Pam Hake, account executive, St. Louis, (314) 444-8319;

• Kim Peters, account executive, Little Rock, (501) 324-8251; and

• Chandra Hester, customer service representative, Memphis,
  (901) 579-2435.

Out for Comment

The following is a Federal Reserve System proposal currently out for comment:

Request for public comment on proposed revisions to Regulation B, Equal Credit Opportunity, which implements the Equal Credit Opportunity Act. The proposed revisions would: remove the general prohibition against creditors, noting characteristics such as race, sex and national origin of applications for nonmortgage credit; require creditors to retain certain records for preapproved credit solicitations; and expand from 12 to 25 months the record retention period for most business credit applications. Comments due by Nov. 10, 1999. (Docket No. R-1008)

Direct all comments to Jennifer Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th St. and Constitution Ave., N.W., Washington, D.C., 20551.