FEDERAL RESERVE BANKS ANNOUNCE
RESTRUCTURING OF CASH AND CHECK OPERATIONS

            The Federal Reserve Bank of Kansas City, in conjunction with the other Reserve Banks throughout the nation, today announced a further streamlining of its cash and check-processing services.

·         Cash operations at the Bank’s Omaha Branch will transition to a third-party vendor that will operate a cash depot operation in Omaha to be serviced by the Federal Reserve Bank of Kansas City some time following completion of the new Kansas City headquarters building in 2008. The transition is expected to affect 16 cash employees.

·         Check-processing operations at the Kansas City office will be consolidated into the Federal Reserve Bank of St. Louis. No firm date has been determined for the transition, but it is expected to occur in 2007 or the first half of 2008. The consolidation is expected to affect 93 employees.  A check processing center was not planned for the new Kansas City headquarters building currently under construction.  Therefore, this announcement has no effect on the new building’s size or completion timeline.

·         The Kansas City office will retain a check adjustment operation to be located in the headquarters building. 

·         The Bank’s Denver Branch will assume check-processing operations currently conducted in the Federal Reserve’s Helena, Mont. office.

These changes reflect the continued transition in the United States to electronic payments, away from check and other paper-based payments methods.  The Kansas City Federal Reserve Bank is committed to moving its operations toward these emerging payments methods.

Other components of the restructuring announced by the Federal Reserve today include the consolidation of the Federal Reserve Bank of San Francisco’s check processing operations into its Los Angeles Branch. Additionally, check adjustment functions, which work to resolve errors in the check collection process, will be discontinued at Federal Reserve locations in Detroit, Helena, Houston, Memphis, and San Francisco. As a result of this restructuring, the Reserve Banks will reduce their overall check staff by approximately 280 positions. All of the transitions are expected to take place in 2007 or the first half of 2008.  To assist affected employees, the Federal Reserve Banks will offer various separation packages.

            The Federal Reserve Bank of Kansas City, and its branch offices in Denver, Oklahoma City and Omaha, serve the Tenth Federal Reserve District: Colorado, Kansas, Nebraska, Oklahoma, Wyoming, western Missouri and northern New Mexico. As part of the nation’s central bank, the Bank participates in setting national monetary policy, supervising and regulating numerous commercial banks and bank holding companies and providing payments services to depository institutions.

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