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News Releases | Federal Reserve Bank of Minneapolis



Federal Reserve Bank of Minneapolis News Releases



 



Bridges to retire from Federal Reserve Bank of Minneapolis

Mon, 23 Apr 2018 00:00:00 -0400

Following a distinguished career in banking, community development and public service, Dorothy Bridges, senior vice president for the Public Programs division, will retire from the Federal Reserve Bank of Minneapolis, effective July 1.
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Dorothy Bridges

“Dorothy has been integral to the Bank’s efforts to increase our public engagement and a tireless champion for promoting diversity and inclusion,” said Neel Kashkari, president, Federal Reserve Bank of Minneapolis. “We look forward to continuing this important work and wish Dorothy the very best in her next chapter.”

Bridges joined the Bank as a senior vice president in June 2011. In that capacity, she has responsibility for the Bank’s community development, public affairs and communications, and regional outreach functions, along with creating and providing leadership to the Center for Indian Country Development. Previously, she served as the president and CEO of City First Bank in Washington, D.C., and in the same role at Franklin National Bank in Minneapolis from 1999 to 2008. Prior to joining Franklin National Bank, Bridges was a senior consultant for Barefoot, Marrinan & Associates, a bank regulatory compliance firm, where she focused on issues related to the Community Reinvestment Act and the Fair Lending Act. She has also served on the Minneapolis Fed’s Board of Directors and on the Federal Reserve System’s Consumer Advisory Council.

Among her many recognitions and awards, the Business Journal named her one of the Twin Cities Most Influential Women in Business, and she has received the Women of Achievement Award from the Twin West Chamber of Commerce. She was also recognized by Finance and Commerce as one of the Top Women in Finance for her significant contributions to financial services.

An active community volunteer, Bridges currently serves on the boards of the Greater Twin Cities United Way, the Minneapolis Parks Foundation and the University of Montana Foundation Board of Directors. She plans to stay actively involved in the Twin Cities community.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Thornton Named Vice President at Minneapolis Fed

Mon, 16 Apr 2018 00:00:00 -0400

The Federal Reserve Bank of Minneapolis announced the appointment of Richard Thornton as vice president of law enforcement and operations, effective April 23, 2018.

“We are very excited to have someone of Rick’s experience, stature and strong reputation join the Bank,” said Chief Operating Officer Ron Feldman. “We know he will make great contributions to the Bank, the Federal Reserve System and the community at large.”

Thornton brings more than two decades of leadership experience in law enforcement to the Bank, having recently served as special agent in charge over 450 employees at the FBI’s Minneapolis field office that services Minnesota, North Dakota and South Dakota. Prior to that, Thornton served as a section chief for the FBI in Washington, D.C., overseeing the bureau’s domestic and worldwide physical surveillance and aviation programs.

In his new role, Thornton will oversee the Bank’s law enforcement department and operations, including all security operations at both the Minneapolis and Helena, Mont., locations. Thornton will report to Duane Carter, senior vice president of operations and Central Bank services.

Thornton holds a Bachelor of Science degree in business administration from the University of Missouri-St. Louis and is a Certified Protection Professional.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed Announces New Class of Visiting Scholars

Wed, 11 Apr 2018 00:00:00 -0400

The Minneapolis Fed announced a new and expanded cohort of 21 visiting scholars selected to conduct research while in residence at the Opportunity and Inclusive Growth Institute.

This diverse class of respected academics will conduct research to measure, analyze and make recommendations to increase economic opportunity for all Americans.

Shortly after the Institute’s 2017 launch, 17 scholars were chosen for the inaugural class. The initial plan was for up to five researchers to join the Institute for the 2017-2018 academic year, but with such strong interest from many highly qualified candidates, the Minneapolis Fed expanded the program. The new set of scholars is even larger and more diverse.

“It’s important that we understand the wide range of barriers to economic opportunity,” said Minneapolis Fed President Neel Kashkari. “Bringing together a well-respected and diverse set of scholars with unique ideas and experiences is vital to fully understanding and overcoming the obstacles to inclusive growth for all Americans.”

Visiting Scholars

For 2018-2019, the Minneapolis Fed has selected 21 scholars to conduct their research while in residence.

  • Douglas Almond, Professor of Economics, Columbia University
  • David Argente, Assistant Professor of Economics, Penn State University
  • Katarína Borovičková, Assistant Professor of Economics, New York University
  • Elizabeth Caucutt, Associate Professor of Economics, University of Western Ontario
  • Robynn Cox, Assistant Professor of Social Work, University of Southern California
  • Mariacristina De Nardi, Professor of Economics, University College London
  • Lena Edlund, Associate Professor of Economics, Columbia University
  • Eric French, Professor of Economics, University College London
  • Elisa Giannone, Assistant Professor of Economics, Penn State University
  • Loukas Karabarbounis, Consultant, Federal Reserve Bank of Minneapolis
  • Tom Krebs, Professor of Economics, University of Mannheim
  • Jeremy Lise, Associate Professor of Economics, University of Minnesota
  • Lance Lochner, Professor of Economics, Director of Centre for Human Capital and Productivity, University of Western Ontario
  • Trevon Logan, Professor and Chairperson of Economics, Ohio State University
  • Derek Neal, Professor in Economics, University of Chicago
  • Sophie Osotimehin, Assistant Professor of Economics, University of Virginia
  • Esteban Rossi-Hansberg, Theodore A. Wells ’29 Professor of Economics and International Affairs, Princeton University
  • Raül Santaeulàlia-Llopis, Assistant Professor, MOVE, UAB, and Barcelona Graduate School of Economics
  • Aaron Sojourner, Associate Professor of Economics, University of Minnesota
  • Thomas Winberry, Assistant Professor of Economics, University of Chicago
  • Fang Yang, Associate Professor of Economics, Louisiana State University

The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed Announces Community Advisory Board

Thu, 05 Apr 2018 00:00:00 -0400

The Minneapolis Fed announced the members of the newly formed Community Advisory Board for the Opportunity and Inclusive Growth Institute. This advisory board, made up of 12 local nonprofit, philanthropic, and government leaders, will serve as an important resource in crafting the Institute’s research agenda on economic opportunity and inclusive growth.

Maximum employment is a primary aim of the Minneapolis Fed and the Federal Reserve System. In pursuit of that goal, Fed policymakers seek to understand the mechanisms behind high unemployment rates for people of color.

“Behind the unemployment rate are the lives of millions of Americans who are affected by job loss and lack of opportunity to work,” said Mark Wright, director of Research at the Minneapolis Fed. “We have to understand the causes of unemployment for everyday Americans, and that means looking at barriers to opportunity and lack of inclusion.”

The Community Advisory Board will provide input into the Institute’s research agenda by helping to uncover gaps in the knowledge base and by identifying and explaining the practical barriers to economic opportunity and inclusive growth in local communities.

Community Advisory Board

  • Tawanna Black, Founder and CEO, Center for Economic Inclusion
  • Bruce Corrie, Director, St. Paul Planning and Economic Development Department
  • Paul Fleissner, Deputy County Administrator for the Health, Housing, and Human Services Division and Director of the Housing at Redevelopment Authority, Olmsted County
  • Michael A. Goze, CEO, American Indian Community Development Corporation
  • Danielle Grant, President and CEO, AchieveMpls
  • Shawntera Hardy, Commissioner, Minnesota Department of Employment and Economic Development
  • Ezell Jones, Vice President and Relationship Manager, CBIZ Inc.
  • Paul Mattessich, Executive Director, Wilder Research
  • Gloria Perez, President and CEO, Jeremiah Program
  • Gregory P. Russ, Executive Director and CEO, Minnesota Public Housing Authority
  • Sondra Samuels, President and CEO, Northside Achievement Zone
  • Kate Wolford, President, McKnight Foundation

The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed Releases Report on Workforce Diversity and Inclusion

Fri, 30 Mar 2018 00:00:00 -0400

The Minneapolis Fed, through the Office of Minority and Women Inclusion (OMWI), released its 2017 Annual Report to Congress detailing the Bank’s workforce representation and supplier diversity data. The Bank reports that its employee demographics reflect the region’s, with 52 percent being female and 23 percent people of color.

The Bank has worked to foster a diverse and inclusive workplace through recruitment efforts, training for staff and bankwide cultural awareness events, among other activities. These efforts, supported by Human Resources, are complemented by OMWI, which is charged with developing standards and procedures to ensure inclusion of minorities, women, and minority-owned and women-owned businesses in all activities of the Bank. 

The report gives senior management and policymakers metrics to consider as the Bank continues to advance an inclusive workplace and support outreach to diverse communities. “We strive to be thought leaders in everything we do, and having a diverse set of perspectives is paramount to achieving our goals,” said Michael Garrett, senior vice president of Human Resources and Inclusion. “We’ve made progress that we’re proud to share, and we are working to do even better.”

The Minneapolis Fed is headquartered in the Twin Cities, and the Bank recruits within a commutable distance for most positions. Metro area demographics provide a key metric for comparison. Bank minority staffing figures mirrored the Minneapolis-St. Paul area population by ethnicity, and external hires were even more diverse than the region’s residents in 2017.

For more on the Minneapolis Fed’s efforts to promote diversity and inclusion, read the full 2017 report.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed President Kashkari to Visit Duluth-Superior

Thu, 29 Mar 2018 00:00:00 -0400

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, will be visiting the Twin Ports area early next month to learn more about the region’s economy from area business owners, residents, community officials, and students.
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Neel Kashkari

“These trips are an important way that I learn about local economies across our region,” said Kashkari. “As we set monetary policy for the nation, it is helpful for me to hear from local business leaders and workers across a variety of industries. I also value the opportunity to hear from students, who are our next generation of community leaders and entrepreneurs.”

Kashkari will begin his visit on Monday, April 2, with a tour of Cirrus Aircraft’s world headquarters in Duluth, followed by an invitation-only listening session with military veterans regarding their experience in the job market. That evening, Kashkari will hold a town hall on monetary policy and the economy with students from the University of Minnesota-Duluth, University of Wisconsin-Superior, and St. Scholastica.

On Tuesday morning, April 3, Kashkari will be the keynote speaker at the Regional Economic Indicators Forum (REIF) at the Duluth Convention Center. He will give brief opening remarks, followed by an open-mic Q&A with the audience, which will be moderated by Bruce Thompson, executive vice president of the National Bank of Commerce. Later that morning, Kashkari will go to Superior, Wis., for a listening session with area business leaders organized by the Superior-Douglas County Area Chamber.

Kashkari has been president of the Minneapolis Fed since January 2016. During his brief tenure, he has made it a priority each year to visit local communities in every state in the Minneapolis Fed’s Ninth District.

REIF Q&A Program:

8:00 a.m. Welcome, followed by student presentations on regional economic indicators
8:30 a.m. Introduction of Neel Kashkari, followed by opening remarks
8:40 a.m. Q&A with audience, moderated by Bruce Thompson
9:30 a.m. Program ends

To register for this event, go to: https://nbcbanking.com/About-NBC/R-E-I-F/
Cost of the conference is $25. Financial assistance is available to those in need of help attending this event.

To watch a livestream of the town hall with students (April 2, 5 p.m. CT) or the REIF Q&A session (April 3, 8:30 a.m. CT), go to www.minneapolisfed.org.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Emery Elected to Minneapolis Fed Board of Directors

Fri, 02 Mar 2018 00:00:00 -0500

David Emery, chairman and CEO of Black Hills Corp. in Rapid City, South Dakota, has been elected to the Federal Reserve Bank of Minneapolis’ Board of Directors. His term begins immediately and runs through December 31, 2019, when he will be eligible for a second term.
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David Emery

Emery was named president and CEO, and elected to the board of directors of Black Hills Corp., in 2004 and was named chairman of the board in 2005. In 2016, he relinquished his role as president but continues to serve as chairman and CEO of the company. Black Hills Corp. is a utility company serving 1.25 million natural gas and electric utility customers in eight Midwestern and Rocky Mountain states. Prior to joining Black Hills Corp. in 1989, Emery began his career as a petroleum engineer in the oil and gas industry.

He is currently a director at both the Edison Electric Institute and the American Gas Association, and is a past board member of the United States Chamber of Commerce. An enrolled member of the Cheyenne River Sioux Tribe, Emery received his B.S. in petroleum engineering from the University of Wyoming and earned his MBA at the University of South Dakota.

Emery’s special election fills a Class B director seat left vacant when Srilata Zaheer was appointed to serve as a Class C director, beginning January 1, 2018.

About the Board of Directors

Minneapolis Fed directors are selected to represent a cross section of the Ninth District economy, including consumers, industry, agriculture, the service sector, labor and commercial banks of various sizes. Pursuant to the Federal Reserve Act, the Federal Reserve Bank of Minneapolis board has nine members, with three Class A directors representing the member banks and three each of Class B and C directors, selected to represent the public with “due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers.” The Class A and B directors are elected by member banks, and the Class C directors are appointed by the Board of Governors, which also designates the board’s chair and deputy chair from among its three appointees.

The responsibilities of directors are broad, ranging from overseeing the general operations of the Minneapolis Fed to reporting on district economic conditions. This information helps prepare the Minneapolis Fed president for participation in Federal Open Market Committee meetings, where decisions are made about monetary policy.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Payments Fraud Losses Remain a Problem for Financial Institutions

Tue, 06 Feb 2018 09:00:00 -0500

According to a new survey of nearly 300 financial institutions (FIs) across the country, payments fraud losses remain an issue for a majority of respondents. The survey also found that customer diligence, such as reviewing transaction activity and statements online and reporting suspicious activity to their FIs, is very effective across all payments types, including cards, checks, and automated clearinghouse and wire transfers. The survey, released by the Federal Reserve Bank of Minneapolis, aimed to identify ways to reduce payments fraud.

The survey found that payments fraud losses are a problem for 75 percent of FIs. FI losses on debit and credit cards are common, with 96 percent of debit card issuers and 77 percent of credit card issuers reporting them in 2016. Over 80 percent of FIs report that they are issuing chip cards for authentication, illustrating that the industry is continuing to increase chip card adoption. Chip card technology helps prevent counterfeit fraud for in-person point-of-sale transactions.

“This report provides great insights into what FIs are doing and find effective to mitigate payments fraud. FIs could use the information to benchmark their own fraud mitigation methods against those identified as effective in the survey,” said Guy Berg, vice president of the Payments, Standards, and Outreach Group at the Minneapolis Fed.

The report provides information about use and relative effectiveness of payments fraud detection and prevention methods as rated by FI respondents. Risk mitigation methods for each payment type are grouped into three categories: transaction screening and scoring, authentication methods, and other reporting and risk management methods.

Access the full 2017 Financial Institution Payments Fraud Mitigation Report.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed Releases Report on Early Childhood Development in Montana

Mon, 22 Jan 2018 10:00:00 -0500

The Federal Reserve Bank of Minneapolis and the Bank’s Helena Branch released a new report examining the economic benefits of early childhood development for Montana’s children. “Research shows that early intervention and prevention programs can produce savings to state and local governments, including reduced costs related to remedial education, social services and crime,” said Rob Grunewald, a Minneapolis Fed economist and the lead author of the report. Bank Intern Tegan Lane assisted in researching and writing the report. The report, Early Childhood Development in Montana, provides detailed statistics and information about early childhood health and development, child care quality, access to preschool and other important indicators of success for Montana’s youngest children and is designed to inform early childhood policy and program development. Data and resources for children in Native American communities are also highlighted. Building on the Minneapolis Fed’s significant scholarship on the issue, the report also outlines opportunities for new investments to support Montana’s children, particularly those who are most vulnerable. “Improving early childhood development in Montana is an economic issue that the entire community—including business leaders, funders and policymakers—has a stake in,” said Diana Holshue, director of the Helena Branch operations and outreach. “Our future prosperity depends on helping Montana’s children reach their full potential.” Key highlights of the report include: The share of Montana’s infants enrolled in Medicaid with evidence of perinatal drug exposure more than doubled from 2010 to 2016, putting more of Montana’s young children at risk for health problems and developmental delays. While Montana has made gains in reaching low-income families and young children with opportunities to attend high-quality early learning programs, less than 50 percent of 4-year-old low-income children and less than 10 percent of low-income children under age 3 have access to such programs. In addition to supporting childhood development when children are cared for outside the home, the ability to access high-quality child care can help parents enter the workforce and be productive at their jobs. More than 60 percent of Montana children under age 6 have all of their parents in the workforce. The Funders for Montana’s Children, a group of philanthropic foundations that are working together to increase awareness of and will to advance early childhood investments in the state, drafted the foreword to the report, which will be shared with business and civic leaders to help raise awareness of the challenges Montana children face and possible ways to address them. The Minneapolis Fed’s scholarship on early childhood development, spearheaded by Grunewald and former Research director, Art Rolnick, has consistently demonstrated that improving early childhood development is a key economic issue and has been the foundation for new policy in Minnesota. The full report can be found here. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.[...]



Coffee Appointed to Minneapolis Fed's Helena Branch Board

Thu, 11 Jan 2018 00:00:00 -0500

Beginning January 1, 2018, Bill Coffee, president and chief executive officer of Stockman Bank of Montana, became a member of the Helena Branch board of directors. Coffee will serve a 3-year term.
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Bill Coffee

Coffee has been with Stockman since 1994, where he helped facilitate the opening of Billings’ first Stockman Bank location. He was named president, chief executive officer and board chair in 2008.

He earned his Juris Doctorate from the University of Montana School of Law in Missoula in 1992. He received a Bachelor of Science degree in business accounting with a minor in finance from Montana State University Bozeman in 1986. He also holds a Certified Public Accountant license.

Coffee currently serves as co-chair of Financial Services for the Governor’s Main Street Montana Key Industry Network, a director of the Community Bankers of Montana, a director of the Montana Independent Bankers Association and a community volunteer for a variety of organizations in Billings. He was inducted into the Montana Business Hall of Fame from MSU-Billings College of Business this past September.

Coffee replaced Helena Branch director Duane Kurokawa, president of Western Bank of Wolf Point in Wolf Point, Montana. Kurokawa’s term ended December 31, 2017.

About the Helena Branch Board of Directors

Helena Branch directors contribute regional perspectives on economic conditions as part of the Federal Reserve’s monitoring of the national economy and the formulation of monetary policy. In addition, the Branch’s board of directors serves in an advisory capacity to the management of the Helena Branch of the Federal Reserve Bank of Minneapolis.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed Releases Final Plan to End Too Big to Fail

Wed, 10 Jan 2018 00:00:00 -0500

The Federal Reserve Bank of Minneapolis has released its final Minneapolis Plan to End Too Big to Fail (TBTF).The final Plan makes a stronger case than did the draft Plan for raising capital requirements for the largest banks, while drastically reducing burden on the smallest. Leaving capital requirements at current levels leaves taxpayers at risk of a future crisis and bailout. Enacting the Minneapolis Plan would reduce the 100-year chance of a crisis from the current risk of 67 percent to only 9 percent, while generating substantial benefits relative to costs. “We have repeatedly learned that it is almost impossible for governments to spot financial crises before they strike. But the data tell us that American taxpayers are still on the hook today,” said Minneapolis Fed President Neel Kashkari. “After witnessing the economic devastation from the 2008 financial crisis, I am committed to working with other policymakers to strengthen our financial system and reduce the danger of a future crisis. There is no excuse for inaction, and history will judge us poorly if we so soon forget the lessons we just learned.” Today’s release is the culmination of a two-year initiative launched by the Minneapolis Fed in February 2016 to address the continuing risk presented by TBTF financial institutions. In late 2016, the Bank released a draft Plan and invited public and expert review and feedback. The final Plan reflects the comments and subsequent analysis in three ways: The comments confirm that the fundamental analysis and recommendations were correct. The Minneapolis Fed received many comments from academics, industry critics and concerned citizens, which are summarized and addressed in the final Plan. None of the comments changed the fundamental conclusion that large banks do not have enough capital to protect taxpayers. New analyses by experts (who are unrelated to the Minneapolis Plan effort) during the review period also support and call for capital requirements similar to those recommended in the Minneapolis Plan. The final Plan cites six new independent studies by government and academic economists, whose methods are different from our own, that also support much higher capital requirements for large banks. Federal Reserve Chair Janet Yellen summarized some of this same research recently, noting that “this research points to benefits from capital requirements in excess of those adopted.” The final Plan provides significantly more detail on the recommendation to right-size the supervision and regulation of community banks. The Plan would fundamentally change the nature of community bank supervision, effectively limiting supervision to those aspects of community banking that pose real risk. The Plan brings that same approach to bank regulation, changing community bank rules around capital requirements, appraisals, data collection, some Dodd-Frank requirements and other areas. Summary: The Minneapolis Plan to End Too Big to Fail After the Great Recession of 2008, policymakers moved swiftly to reform and strengthen the financial system, including adopting higher capital requirements. The Minneapolis Plan finds, however, that such immediate measures only reduced the chance of a bailout over the next 100 years from 84 percent to 67 percent. The Minneapolis Plan includes four steps to strengthen the financial system: Step 1: Dramatically increase common equity capital for banks with assets exceeding $250 billion. The Plan requires the largest banks to issue common equity equal to 23.5 percent of risk-weighted assets, with a corresponding leverage ratio of 15 percent. This first step substantially reduces the chance of a public bailout relative to[...]



Zaheer, Powell and Melander Assume New Roles on Minneapolis Fed Board

Wed, 10 Jan 2018 00:00:00 -0500

Beginning on Jan. 1, 2018, Kendall J. Powell became board chair of the Federal Reserve Bank of Minneapolis. Harry Melander now serves as deputy chair, and Srilata Zaheer is a new Class C Director, serving a three year term. Only Class C directors may hold the role of board chair. With the change from a Class B to Class C director, Zaheer is now eligible to be board chair. Srilata Zaheer Zaheer, dean and Elmer L. Andersen Chair in Global Corporate Social Responsibility of the Carlson School of Management at the University of Minnesota, has served as a Class B director at the Bank since Jan. 1, 2017, and was recently appointed by the Board of Governors to the Class C position. Zaheer joined the University in 1991 as an assistant professor after earning her Ph.D. at the Sloan School of Management at MIT. Zaheer’s civic leadership includes serving as a director for numerous nonprofit organizations in the Ninth District, including the Greater Twin Cities United Way and the Destination Medical Center Economic Development Agency for the Mayo Clinic. Kendall J. Powell Powell is chairman and former chief executive officer of General Mills Inc. in Minneapolis. He has been on the Fed board since 2014 and also serves as vice chair of the University of Minnesota’s Board of Regents as well as on the board of directors for Medtronic, Greater MSP and the Minnesota Business Partnership. Melander is president of the Minnesota Building and Construction Trades Council in St. Paul. He has been on the Fed board since 2016 and is also a member of the Metropolitan Council. Harry Melander Zaheer succeeds director MayKao Y. Hang, president and CEO of the Amherst H. Wilder Foundation in St. Paul. Hang served two three-year terms as a Class C director and was board chair in 2016 and 2017. Hang’s term ended Dec. 31, 2017. About the Board of Directors Minneapolis Fed directors are selected to represent a cross section of the Ninth District economy, including consumers, industry, agriculture, the service sector, labor and commercial banks of various sizes. Pursuant to the Federal Reserve Act, the Federal Reserve Bank of Minneapolis board has nine members, with three Class A directors representing the member banks and three each of Class B and C directors, selected to represent the public with “due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers.”  The Class A and B directors are elected by member banks, and the Class C directors are appointed by the Board of Governors, which also designates the board’s chair and deputy chair from among its three appointees. The responsibilities of directors are broad, ranging from overseeing the general operations of the Minneapolis Fed to reporting on district economic conditions. This information helps prepare the Minneapolis Fed president for participation in Federal Open Market Committee meetings, where decisions are made about monetary policy. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.[...]



Amy Phenix Named Vice President at Minneapolis Fed

Thu, 09 Nov 2017 00:00:00 -0500

After a nationwide search, the Federal Reserve Bank of Minneapolis has hired Amy Phenix as vice president of Communications and Public Affairs, effective November 27, 2017. Phenix will report to Dorothy Bridges, senior vice president.

“Amy is an exceptionally well-qualified communications professional with extensive management experience. She will work closely with me and the other senior leaders of the Minneapolis Fed to help us enhance transparency with the community we serve,” said Minneapolis Fed President Neel Kashkari.

Phenix brings extensive knowledge and experience to her new role, having recently served as chief of staff for Eric Kaler, president of the University of Minnesota. Prior to that position, Phenix was director of communications and public relations at Macalester College. She has also served as vice president, marketing and communications, for Allina Health.

Phenix has more than 20 years of strategic public affairs and communications experience, including strategic planning and program management, branding, and media and government relations.

Phenix holds a Master of Business Administration from the University of Minnesota, Carlson School of Management, and a Bachelor of Arts degree from Macalester College.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Armstrong and Neset Re-elected to Minneapolis Fed Board of Directors

Wed, 08 Nov 2017 00:00:00 -0500

The Federal Reserve Bank of Minneapolis announces the re-election of Thomas W. Armstrong and Kathleen Neset to its board of directors, effective January 1, 2018.

Thomas W. Armstrong, president of the First National Bank of Park Falls in Park Falls, Wis., was re-elected by the member banks in Group 3 as a Class A director. Armstrong’s term will run until December 31, 2020.

The Class A group of directors is elected to the board of directors by member banks to represent member banks and includes Catherine T. Kelly, regional president of PNC Bank Minneapolis-St. Paul, in Minneapolis , and Randy L. Newman, chairman and chief executive officer of Alerus Financial N.A. and Alerus Financial Corp., Grand Forks, N.D.

Kathleen Neset, president of Neset Consulting Service in Tioga, N.D., was re-elected by member banks in Group 2 as a Class B director. Neset’s term will run until December 31, 2020.

The Class B group of directors is elected by member banks to represent the public and includes Christine Hamilton, managing partner of Christiansen Land and Cattle Ltd., Kimball, S.D., and Srilata Zaheer, dean and Elmer L. Andersen Chair in Global Corporate Social Responsibility of the Carlson School of Management at the University of Minnesota.

About the Board of Directors

Minneapolis Fed directors are selected to represent a cross section of the Ninth District economy, including consumers, industry, agriculture, the service sector, labor and commercial banks of various sizes. Pursuant to the Federal Reserve Act, the Federal Reserve Bank of Minneapolis board has nine members, with three Class A directors representing the member banks and three each of Class B and C directors, selected to represent the public with “due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers.” The Class A and B directors are elected by member banks, and the Class C directors are appointed by the Board of Governors, which also designates the board’s chair and deputy chair from among its three appointees.

The responsibilities of directors are broad, ranging from overseeing the general operations of the Minneapolis Fed to reporting on district economic conditions. This information helps prepare the Minneapolis Fed president for participation in Federal Open Market Committee meetings, where decisions are made about monetary policy.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Garrett and Larson Named Senior Vice Presidents at Minneapolis Fed

Mon, 16 Oct 2017 00:00:00 -0400

The Federal Reserve Bank of Minneapolis announces the appointments of Michael Garrett and Matt Larson as senior vice presidents. Garrett will serve as SVP of Human Resources and Inclusion, effective Oct. 16, 2017, and Larson will serve as SVP of Information Technology and Risk, effective Jan. 1, 2018.

For both positions, a separate search committee conducted a nationwide search. For the SVP of Human Resources and Inclusion role, the Bank also retained the services of the executive search firm Heidrick & Struggles. After extensive interview processes, the search committees made independent candidate recommendations to the Bank’s board of directors, which ultimately approved the appointments of Garrett and Larson.

Garrett joined the Bank in 1988 and has served in a variety of roles, including most recently as the vice president over Human Resources, Law Enforcement and Facilities. He also previously led various electronic payments efforts. Garrett will be the first person to serve in the newly created role of senior vice president of Human Resources and Inclusion.

“Michael is a collaborative leader and well regarded adviser at the Bank,” said President Neel Kashkari. “He has articulated a compelling vision for attracting and developing a diverse work force and continuing to make the Bank welcoming for all our staff.”

Larson is currently a senior leader in Federal Reserve System IT, having served as the chief administrative officer and, most recently, as leader of End User Services. He is also well known to the Bank, having led the Information Technology (IT) group during much of the 2000s before becoming the senior administrative officer for IT at the Federal Reserve Bank of New York. Larson will be the first person to serve in the newly created position of senior vice president of Information Technology and Risk.

“Matt is an influential Federal Reserve leader who will help the Minneapolis Fed advance our operational and thought leadership goals,” said First Vice President and Chief Operating Officer Ron J. Feldman.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Gaffney Named Senior Vice President of Supervision, Regulation and Credit at the Minneapolis Fed

Thu, 01 Jun 2017 00:00:00 -0400

The Federal Reserve Bank of Minneapolis appointed Christine Gaffney as the new senior vice president of the Bank’s Supervision, Regulation and Credit (SRC) department, effective June 1, 2017. In this role, she leads the regional supervision and regulation of bank holding companies and state member banks in the Ninth District.

Gaffney’s appointment was approved by the Bank’s board of directors after consultation with the Board of Governors of the Federal Reserve System. Gaffney previously served as a vice president in SRC with responsibility for the department’s statistics, credit, reserves, support, budget and planning functions. Gaffney has been at the Bank since 2001, where she began as a consumer examiner. During that period, she spent one year at the Board of Governors and four years as key support for the System’s examiner training efforts. She then managed SRC’s quality assurance function before becoming an assistant vice president and then vice president over her current areas of responsibility.

“Christine Gaffney has an extensive record of accomplishment across a wide range of Federal Reserve responsibilities,” said President Neel Kashkari. “That record, combined with her deep knowledge of the Ninth District, positions the Federal Reserve Bank of Minneapolis to build on its history of operational excellence and thought leadership.”

Gaffney is replacing Ron Feldman, who became first vice president of the Bank in April 2017.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




The Minneapolis Fed’s Opportunity and Inclusive Growth Institute Announces 17 Scholars for 2017-2018

Tue, 18 Apr 2017 08:30:00 -0400

The Federal Reserve Bank of Minneapolis is pleased to announce the names of 17 outstanding visiting scholars selected to conduct research while in residence at the Minneapolis Fed’s Opportunity and Inclusive Growth Institute. Shortly after the Institute launched in January 2017, researchers from all over the world were invited to submit applications to participate in the Institute’s visiting scholar program. A committee composed of Minneapolis Fed researchers reviewed the applications and curated an inaugural class of visiting scholars that will conduct world-class research to measure, analyze and make recommendations to improve the economic well-being of all Americans, with a particular focus on structural barriers that limit full participation in economic opportunity and advancement in the United States. The initial plan was for up to five scholars to join the Institute for the 2017-2018 academic year, but with such strong interest from many highly qualified scholars, the Minneapolis Fed expanded the program to include 17 scholars, some of whom will work at the Minneapolis Fed for up to a year, while others will come for shorter assignments. “To research and promote economic opportunity for all Americans, the Institute must bring together a diverse set of ideas and viewpoints,” said Minneapolis Fed President Neel Kashkari. “Hence, our scholars must themselves reflect a wide variety of experiences and communities. I am proud that we have been able to attract a world-class group of scholars with diverse backgrounds and perspectives.” Visiting Scholars For 2017-2018, the Minneapolis Fed has selected 17 scholars to conduct their research while in residence. Luisa Blanco, Senior Scholar, Associate Professor of Public Policy, Pepperdine University Mark Colas, Scholar, Assistant Professor of Economics, University of Oregon Lisa Cook, Senior Scholar, Associate Professor of Economics and International Relations, Michigan State University Sebastian Findeisen, Scholar, Assistant Professor of Economics, University of Mannheim Fatih Karahan, Scholar, Economist, Federal Reserve Bank of New York Stelios Michalopoulos, Senior Scholar, Associate Professor of Economics, Brown University Christian Moser, Scholar, Assistant Professor, Columbia Business School Dávid Krisztián Nagy, Scholar, Junior Researcher, Centre de Recerca en Economia Internacional Makoto Nakajima, Senior Scholar, Senior Economist, Federal Reserve Bank of Philadelphia Derek A. Neal, Senior Scholar, Professor in Economics, University of Chicago Serdar Ozkan, Senior Scholar, Assistant Professor, University of Toronto Elena Pastorino, Senior Scholar, Assistant Professor, University of Minnesota Ana Luisa Pessoa de Araujo, Scholar, Postdoctoral Researcher, University of Minnesota Esteban Rossi-Hansberg, Senior Scholar, Theodore A. Wells ’29 Professor of Economics and International Affairs, Princeton University Todd Schoellman, Senior Scholar, Assistant Professor of Economics, Arizona State University Kjetil Storesletten, Senior Scholar, Professor of Economics, University of Oslo Gianluca Violante, Senior Scholar, William R. Berkley Term Professor of Economics, New York University The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota,[...]



Robinson Named Assistant Vice President of Minneapolis Fed's Helena Branch

Mon, 10 Apr 2017 10:00:00 -0400

The Federal Reserve Bank of Minneapolis today announced Major Robinson as the new assistant vice president and Branch executive of the Bank’s Helena Branch, effective May 1, 2017.

Robinson will serve as the executive of the Helena Branch with direct responsibility for Branch corporate services. His responsibilities will include leading a visible community relations and outreach program in Montana, and providing high-level support for the Minneapolis Fed’s Center for Indian Country Development. He will work closely with the Center in developing strategies and initiatives related to economic development in Indian Country.

“Major Robinson’s breadth of management experience along with his leadership and volunteer work in Indian Country will be great assets to not only the Helena Branch and the Center for Indian Country Development, but to the Minneapolis Fed as a whole,” said Dorothy Bridges, senior vice president responsible for Community Development, Outreach and Public Affairs.

Robinson has worked extensively with American Indian tribes across the country, providing strategic and technical assistance on specific economic development initiatives. He has held various positions in Montana state government, including serving in the Montana Governor’s Office of Economic Development in Helena, with a specific focus on encouraging economic development in Indian Country.

Robinson is replacing Sue Woodrow, who retired from the Bank in December of 2016.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Ron J. Feldman Appointed First Vice President and COO

Tue, 24 Jan 2017 10:00:00 -0500

The Federal Reserve Bank of Minneapolis today announced the appointment of Ron J. Feldman as first vice president and chief operating officer. Feldman is currently executive vice president of Supervision, Regulation, and Credit and senior policy advisor. He will assume his new responsibilities on April 1, 2017. Feldman succeeds James Lyon, who is retiring after 41 years of distinguished service to the Federal Reserve System, including nearly 17 years as first vice president of the Minneapolis Fed. The Class B and C directors of the Minneapolis Fed (those directors not affiliated with a supervised entity) formed a committee to conduct a rigorous, nationwide search to identify a broad, diverse, highly qualified candidate pool for this position. In addition, the search firm Spencer Stuart was hired to assist in the process. (For further information about the search process, visit our website.) Feldman’s appointment was made by Class B and C directors of the Federal Reserve Bank of Minneapolis and approved by the Board of Governors of the Federal Reserve System in Washington, D.C. As first vice president, Feldman will lead and oversee the day-to-day operations of the Minneapolis Fed, including all operating and support function activities at the corporate headquarters in Minneapolis and its Branch in Helena, Mont. He also serves as backup to the Minneapolis Fed president in the execution of his duties, including his monetary policy responsibilities. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, praised the appointment, saying, “Ron is a recognized leader and will now serve in a critical role to help advance our strategic priorities at the Minneapolis Fed. He has a wealth of experience and has made many significant contributions to the Federal Reserve System across a wide range of areas. I look forward to his continued leadership at the Minneapolis Fed.” MayKao Y. Hang, chair of the Minneapolis Fed’s board of directors and president and CEO of the Amherst H. Wilder Foundation, echoed Kashkari’s comments, saying, “On behalf of the board of directors, I couldn’t be more pleased with the appointment of Ron as our next first vice president. Ron’s dedication to service, his excellent management skills and his leadership will greatly benefit the Minneapolis Federal Reserve Bank in this important role.” Feldman joined the Federal Reserve Bank of Minneapolis in 1995 in the Banking Supervision Department. He has since held several positions of increasing responsibility. He became a senior vice president in 2008 and executive vice president in 2013. In addition, Feldman oversaw the Financial Services Support Office, which assists in the oversight of the Federal Reserve’s financial services. Feldman has published research on a wide array of banking and financial topics. He is the co-author of Too Big to Fail: The Hazards of Bank Bailouts, published by the Brookings Institution (2004). He is active in the Minneapolis community, having served as a board member of a local neighborhood association and a local synagogue. Feldman has a B.A. from the University of Wisconsin and an M.P.A. from Syracuse University. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, Nort[...]



Mark L. J. Wright Appointed Senior Vice President and Research Director

Tue, 24 Jan 2017 00:00:00 -0500

The Federal Reserve Bank of Minneapolis today announced the appointment of Mark L. J. Wright as senior vice president and research director. In this capacity, Wright will provide strategic direction and leadership for all of the Bank’s research and policy priorities. He will build on the tradition of academic excellence at the Minneapolis Fed by fostering and promoting strong academic research, policy development and analysis of the regional, national and global economy. In addition, he will provide economic policy advice and analysis to the president of the Bank. Wright’s appointment is effective May 2017.

The Minneapolis Fed formed a search committee to conduct a rigorous, international search to identify a broad, diverse, highly qualified candidate pool for this position. In addition, the search firm Bridge Partners was hired to assist in the process.

Wright’s appointment was made by the board of directors of the Federal Reserve Bank of Minneapolis.

“Mark is an outstanding economist with experience in both premier universities and policy institutions and has made significant research contributions throughout his career. His academic record, combined with his keen interest in public policy and his leadership qualities, will make him an ideal leader for our Research Department, which is one of the most prestigious economic research groups in the country. I am delighted that he has decided to join us, and I look forward to working with him,” said Neel Kashkari, president of the Federal Reserve Bank of Minneapolis.

Wright is currently serving as a senior economist and research advisor in the economic research department of the Federal Reserve Bank of Chicago. His research examines the macroeconomics of developing countries, with a specific focus on their tendency to be prone to international financial crises. Much of his recent work has been devoted to sovereign default and the process by which sovereign debts are restructured.

Prior to joining the Chicago Fed, Wright was an associate professor at the University of California, Los Angeles, and an assistant professor at Stanford University. Wright has been an economist and advisor to the Reserve Bank of Australia and the Federal Reserve Banks of San Francisco and Minneapolis and an instructor at the I.M.F. Institute. He is currently a faculty research fellow of the National Bureau of Economic Research and serves on the editorial boards of the Journal of International Economics, Economics Letters and the Journal of Monetary Economics.

Wright received a bachelor of economics degree from the University of Sydney, Australia, and an M.A. and a Ph.D. in economics from the University of Chicago.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed Launches Opportunity and Inclusive Growth Institute

Wed, 18 Jan 2017 10:00:00 -0500

The Federal Reserve Bank of Minneapolis today launched the Opportunity and Inclusive Growth Institute, a new initiative focused on conducting and promoting research that increases economic opportunity and inclusive growth for all Americans. Minneapolis Fed President Neel Kashkari announced the details of this multidisciplinary effort today at a public event hosted by the Minneapolis Urban League, a 90-year-old advocacy and human services organization that serves the needs of thousands of African-Americans and other people of color in the Minneapolis-St. Paul metropolitan area. “The Opportunity and Inclusive Growth Institute is an important research initiative focusing on some of the most pressing economic issues we face as a nation. This work has the potential to help more Americans find real economic opportunity. I hope that scholars inside and outside the Federal Reserve System will contribute to this important work,” said Federal Reserve Chair Janet Yellen.‎ The Institute, based at the Minneapolis Fed, is a long-term commitment designed to engage a broad range of scholars. It will look beyond aggregate economic indicators in order to examine how national policies impact diverse communities of people within the U.S. economy. Such scholarship will allow the Federal Reserve System to better achieve one of its primary missions – maximum employment – and generate important new insights for other policymakers and the public. “Travelling around the Ninth District has helped me understand the economic challenges that we face in our region. Too many families rightly feel that their kids don’t have access to a bright future. While this Institute will bring together the best academic scholarship from around the nation, the intended effect is on the personal level, helping families and communities improve their prospects,” said Minneapolis Fed President Neel Kashkari. Board of Advisors The Institute will adopt a multidisciplinary approach that includes the participation of leading academics from a variety of fields, including economics, education, law, public health, public policy and sociology. A distinguished group of academics have joined the advisory board to help launch the Institute. The inaugural board includes: David Autor, Ford Professor of Economics and Associate Head of the Department of Economics at the Massachusetts Institute of Technology Marianne Bertrand, Chris P. Dialynas Distinguished Service Professor of Economics at the University of Chicago Booth School of Business Raj Chetty, Professor of Economics at Stanford University Janet Currie, Henry Putnam Professor of Economics and Public Affairs and Director of the Center for Health and Well Being at Princeton University William “Sandy” Darity Jr., Samuel DuBois Cook Professor of Public Policy, African and African American Studies, and Economics and Director of the Samuel DuBois Cook Center on Social Equity at Duke University Esther Duflo, the Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics in the Department of Economics at the Massachusetts Institute of Technology and a co-founder and co-director of the Abdul Latif Jameel Poverty Action Lab (J-PAL) Kathryn Edin, Bloomberg Distinguished Professor in the Department of Sociology, Zanvyl Krieger School of Arts and Sciences and Department of Population, Family, and Reproductive Health, Bloomberg School of Public Health at Johns Hopkins University Philip Jeffer[...]



Minneapolis Fed Releases Plan to End “Too Big to Fail”

Wed, 16 Nov 2016 07:00:00 -0500

Federal Reserve Bank of Minneapolis President Neel Kashkari today announced the release of the Minneapolis Plan to End Too Big to Fail (TBTF), a policy solution that will enable the U.S. economy to flourish without exposing it to large risks of financial crises and taxpayer bailouts. In February 2016, Kashkari announced a year-long initiative to explore policy solutions to address the continuing risk presented by TBTF financial institutions. As part of the initiative, the Minneapolis Fed organized four policy symposiums that brought together leading economists, academics and policymakers in an open and transparent process that also helped engage and educate the public about the risks posed by TBTF banks. Fulfilling the pledge to release a proposal by the end of the year, the Minneapolis Plan is designed to reduce the risk of financial crises and bailouts to less than 10 percent, while passing a benefit and cost test. “I have seen the damage that a deep financial crisis can inflict on Main Street and am committed to making sure it never happens again. The Minneapolis Plan dramatically increases safety within the financial system. It is now up to policymakers and the American people to decide the level of safety they want to protect against a future crisis,” said Kashkari. The Minneapolis Plan to End Too Big to Fail The TBTF problem is one of the most serious long-term risks to the U.S. economy. In 2008, TBTF banks were at the center of the financial crisis that triggered the Great Recession. Soon after, policymakers moved swiftly to approve reforms that have indeed strengthened the financial system, particularly with higher capital requirements. The Minneapolis Plan’s analysis shows, however, that these efforts have only reduced the chance of bailout over the next 100 years from 84 percent to 67 percent. The Minneapolis Plan includes four steps to strengthen the financial system: Step 1: Dramatically increase common equity capital for banks with assets exceeding $250 billion. The plan requires the largest banks to issue common equity equal to 23.5 percent of risk-weighted assets, with a corresponding leverage ratio of 15 percent. This first step substantially reduces the chance of public bailouts relative to current regulations from 67 percent to 39 percent. Step 2: Call on the U.S. Treasury Secretary to certify that individual large banks are no longer systemically important or else subject those banks to extraordinary increases in capital requirements—up to 38 percent over time. Once the new 23.5 percent capital standard has been implemented, the plan charges the Treasury Secretary with certifying that individual large banks are no longer systemically important. If the Treasury Secretary refuses to certify a large bank as no longer systemically important, that bank will automatically face increasing common equity capital requirements, an additional 5 percent of risk-weighted assets per year. The bank’s capital requirements will continue increasing either until the Treasury Secretary certifies it as no longer systemically important or until the bank’s capital reaches 38 percent, the level of capital that reduces the 100-year chance of a crisis to 9 percent. Step 3: Prevent future TBTF problems in the shadow financial sector by imposing a tax on the borrowings of shadow banks with assets over $50 billion. The Minneapolis Plan levels the cost of funding between banks subject to a 23.5 percent capital requirement and shadow [...]



Nickerson Appointed to Minneapolis Fed's Helena Branch Board

Thu, 29 Sep 2016 15:00:00 -0400

The Federal Reserve Bank of Minneapolis today announced the appointment of a new member of the Helena Branch board of directors for 2017.

Norma Polovitz Nickerson, research professor and director, Institute for Tourism and Recreation Research (ITRR) in the College of Forestry and Conservation at the University of Montana, was appointed to the Helena Branch board for a three-year term. Nickerson has 22 years of experience leading the ITRR and will join the Helena Branch board as a tourism and recreation expert. Nickerson’s civic participation spans more than 30 years and multiple organizations in the Ninth District, including Bike Walk Montana and Missoula in Motion. She will begin her first term on Jan. 1, 2017.

Nickerson is replacing Helena Branch director Thomas R. Swenson, president and chief executive officer of the Bank of Montana in Missoula. Swenson’s term will end on Dec. 31, 2016.

About the Helena Branch Board of Directors

Helena Branch directors contribute regional perspectives on economic conditions as part of the Federal Reserve’s monitoring of the national economy and the formulation of monetary policy. In addition, the Branch’s board of directors serves in an advisory capacity to the management of the Helena Branch of the Federal Reserve Bank of Minneapolis.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Zaheer Elected, Kelly Re-elected to the Federal Reserve Bank of Minneapolis Board of Directors

Thu, 29 Sep 2016 15:00:00 -0400

The Federal Reserve Bank of Minneapolis today announced the following election and re-election to its board of directors. Srilata Zaheer, dean and Elmer L. Andersen Chair in Global Corporate Social Responsibility of the Carlson School of Management at the University of Minnesota, was elected as a new Class B director and will serve a three-year term. Zaheer joined the University in 1991 as an assistant professor after earning her Ph.D. at the Sloan School of Management at MIT. Zaheer’s civic participation includes multiple organizations in the Ninth District, such as the Greater Twin Cities United Way and the Destination Medical Center Economic Development Agency for the Mayo Clinic. She will begin her first term on Jan. 1, 2017. Zaheer is replacing Class B director Lawrence R. Simkins, chairman, chief executive officer and president of the Washington Companies in Missoula, Mont. Simkins’ term will end on Dec. 31, 2016. The Class B group of directors is elected by member banks to represent the public and includes Christine Hamilton, managing partner of Christiansen Land and Cattle Ltd., Kimball, S. Dak., and Kathleen Neset, president of Neset Consulting Service, Tioga, N. Dak. Catherine T. Kelly, president and chief executive officer of Minnesota Bank and Trust in Edina, was re-elected to a three-year term as a Class A director. She will begin her second term on Jan. 1, 2017. The Class A group of directors is elected to the board of directors by member banks to represent member banks and includes Randy L. Newman, chairman and chief executive officer of Alerus Financial N.A. and Alerus Financial Corp., Grand Forks, N. Dak., and Thomas W. Armstrong, president of the First National Bank of Park Falls, Park Falls, Wis. About the Board of Directors Minneapolis Fed directors are selected to represent a cross section of the Ninth District economy, including consumers, industry, agriculture, the service sector, labor and commercial banks of various sizes. The Federal Reserve Bank of Minneapolis board has nine members, with three Class A directors representing the member banks; Class B and C directors are selected to represent the public with “due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers,” according to the Federal Reserve Act.  The Class A and B directors are elected by member banks, and the Class C directors are appointed by the Board of Governors, which also designates the board’s chair and deputy chair from among its three appointees. The responsibilities of directors are broad, ranging from overseeing the general operations of the Minneapolis Fed to reporting on district economic conditions. This information helps prepare the Minneapolis Fed president for participation in Federal Open Market Committee meetings, where decisions are made about monetary policy. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting natio[...]



Minneapolis Fed Board of Directors Begins Search for New First Vice President

Mon, 12 Sep 2016 10:00:00 -0400

The Federal Reserve Bank of Minneapolis board of directors today launched a search for a new first vice president and chief operating officer.

James Lyon, current first vice president and chief operating officer, informed the Bank’s board that in accordance with the Federal Reserve System’s mandatory retirement rules, he will conclude his 40-year service to the Minneapolis Fed and retire at the end of March 2017.

“Jim Lyon’s distinguished service to the Minneapolis Fed and to the Federal Reserve System is one that will be long remembered,” said Board Chair MayKao Hang, who is president and CEO of the Amherst H. Wilder Foundation. “Throughout Jim’s career, his capable leadership, sound judgment and management of a wide range of programs and operations has influenced many others and created a legacy of excellence. The System is stronger because of Jim’s enormous contributions.”

In preparation for Lyon’s retirement, the board has created a search committee consisting of Minneapolis Fed President Neel Kashkari and Class B and C directors MayKao Hang, Harry Melander and Larry Simkins. Class B and C directors are not affiliated with supervised entities.

The search firm Spencer Stuart has also been engaged to assist the search committee in conducting a nationwide search to identify a broad, diverse and highly qualified candidate pool. Applicants from both inside and outside the Federal Reserve System are welcome.

“The first vice president is an enormously important role in ensuring that the Minneapolis Fed accomplishes its public mission and in supporting the greater Federal Reserve System,” said Kashkari. “As my partner here in the Bank, the new FVP will serve as a member of the Bank’s management committee, become one of my chief advisers, help nurture and develop our talented Bank staff, and represent the Bank throughout the Federal Reserve System. We look forward to engaging with applicants who are excited to tackle big challenges and join the proud legacy of the Minneapolis Fed.”

President Kashkari will host an open #AskNeel Twitter Q&A at 10 a.m. CT on Friday, Sept. 23, 2016, to answer questions about this new first vice president search while also welcoming questions on other topics.

First Vice President Search Committee Members

  • Neel Kashkari, Chair
  • MayKao Hang
  • Harry Melander
  • Larry Simkins

Interested candidates can find more information here:
https://minneapolisfed.org/about/who-we-are/officers/first-vice-president-search-process




Media Advisory: The Second Symposium on Ending Too Big to Fail

Tue, 05 Apr 2016 00:00:00 -0400

The Federal Reserve Bank of Minneapolis announced today that it will hold its second symposium on the “Ending Too Big to Fail” (TBTF) initiative on Monday, May 16, 2016. Distinguished presenters will include John H. Cochrane of Stanford University and John Bovenzi of the Bipartisan Policy Center. The second symposium will focus on proposals that seek to address the TBTF problem in two ways: Panel 1: Taxing Leverage in the Financial System John H. Cochrane is a senior fellow at the Hoover Institution at Stanford University. Cochrane is also a distinguished senior fellow at the University of Chicago Booth School of Business and at the Becker-Friedman Institute. He authored a paper titled “Lessons from the Financial Crisis.” Other publications include the book Asset Pricing, op-eds for the Wall Street Journal and a blog called “The Grumpy Economist.” Confirmed discussants for this panel include: Michael Hasenstab, Executive Vice President & Chief Investment Officer at Templeton Global Macro Donald Marron, Institute Fellow and Director of Economic Policy Initiatives at the Urban Institute Thomas Philippon, Professor of Finance at the NYU Stern School of Business   Panel 2: Enhancements/Alternatives to DFA Resolution John Bovenzi co-chairs the Bipartisan Policy Center’s Failure Resolution Task Force. He joined Oliver Wyman’s Financial Services Practice in 2009 and is a partner in the public policy area. His work includes addressing corporate governance issues, failure-resolution planning, regulatory compliance and bank funding issues. Bovenzi is co-author of a report titled “Too Big to Fail: The Path to a Solution.”  Confirmed discussants for this panel include: Ben S. Bernanke, Distinguished Fellow in Residence, Economic Studies, Brookings Institution and Chairman of the Board of Governors of the Federal Reserve System from February 2006 to January 2014. Bernanke also served as Chairman of the Federal Open Market Committee, the System’s principal monetary policymaking body. J. Christopher Flowers, Managing Director and CEO of J.C. Flowers & Co. Richard J. Herring, Jacob Safra Professor of International Banking and Professor of Finance, Wharton School, University of Pennsylvania A complete agenda with additional speakers will be available soon. Members of the media, please email Alyssa Augustine at alyssa.augustine@mpls.frb.org if you would like to attend. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.[...]



Banking Conditions in Ninth District States 2016 Forecast and 2015 Update

Wed, 09 Mar 2016 14:00:00 -0500

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { padding-left: 7px; padding-right: 8px; } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 7px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/images/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Twin Cities 2016 Outlook for Minnesota Banks: Flat to Slightly Worse Conditions Minnesota banks can expect few changes in banking conditions in 2016, according to Ron Feldman, executive vice president of Supervision, Regulation and Credit at the Federal Reserve Bank of Minneapolis. “I expect another year of relatively little change, with the potential for a slightly worse year,” Feldman said. “That means profits and loan growth will stay around historical norms, while problem loans could increase a bit from historically low levels in 2015.” Pressure on bank profit margins and some borrowers—such as those in the agricultural sector—will be headwinds for banks in 2016, he said. Profits and loan growth are expected to be flat, while bankers may see a slight increase in problem loans. Profits, as measured by return on average assets, are expected to be between 0.92 percent and 1.12 percent, about the same as in 2015. Loan growth is expected to be between 3.1 percent and 7.1 percent, also about the same pace as in 2015. The share of problem loans (as a percent of the resources banks must have to cover potential losses) is expected to come in at 6.7 percent to 10.2 percent, slightly worse than 2015, but well below historic levels. Inputs to the annual forecast include data on recent performance of Ninth Federal Reserve District banks, analysis of trends in accounting statements and regulatory reports, statistical modeling, and on-the-ground information gathered by talking with banking professionals. 2015 performance Year-end data for 2015—from Ninth District banks’ quarterly regulatory submissions, known as “call reports”—show that profits at the median Minnesota bank were essentially flat at 1.02 percent, at the lower end of the forecast at the beginning of the year (see table below). That performance is below the historical norm since 2001. Loan growth rates for Minnesota banks declined by 1.5 percentage points to 5.1 percent year-over-year, below the forecast range.   2015 Bank Performance Compared to Fed Forecast Measure Forecast Range Midpoint of Range 2015 Actual Profitability (percent return on average assets) 0.97-1.17 1.07 1.[...]



Save the date: Minneapolis Fed Announces Date of First “Ending Too Big to Fail” Policy Symposium

Tue, 23 Feb 2016 00:00:00 -0500

Today the Federal Reserve Bank of Minneapolis announced the date of the first policy symposium as part of its efforts to end “too big to fail.” It will be held April 4, 2016, at the Federal Reserve Bank of Minneapolis.

The symposium is the first in a series. More details regarding the event, including schedule, program and additional speakers, are to be announced. The symposium will be open to the media and live-streamed for the public. 

Featured presenters include:

  • Anat R. Admati, the George G.C. Parker Professor of Finance and Economics at the Graduate School of Business, Stanford University
  • Simon Johnson, the Ronald A. Kurtz (1954) Professor of Entrepreneurship at the MIT Sloan School of Management and former Chief Economist at the International Monetary Fund

Admati has written extensively on information dissemination in financial markets, trading mechanisms, portfolio management, financial contracting, and corporate governance and banking.  Since 2010, she has been active in the debate over financial regulation, particularly capital regulation, and has written research and policy papers and commentary on the subject. She is a co-author of The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It.

Johnson was named a Main Street Hero by the Independent Community Bankers of America for “his articulate and outspoken support for public policies to end too-big-to-fail” in 2013 and has co-authored a book with James Kwak titled 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown (2010).

The Minneapolis Fed’s #EndingTBTF initiative will explore various proposals from expert researchers and incorporate input from a wide range of thought leaders, culminating in an actionable plan to end TBTF, which will be released by the end of the year.

Stay up to date with the initiative by filling out this form, or follow us on Twitter @MinneapolisFed and follow the conversation with the hashtag #EndingTBTF.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




President Kashkari Announces Initiative to End Too Big to Fail (TBTF) at the Brookings Institution

Tue, 16 Feb 2016 00:00:00 -0500

Today, the Federal Reserve Bank of Minneapolis launched an initiative to develop a plan to end Too Big to Fail (TBTF) and is now seeking public input to help identify solutions.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, delivered a speech at the Brookings Institution in Washington, D.C., today establishing a process to protect the U.S. economy by ending TBTF. Kashkari recalled the measures implemented to stem widespread economic collapse and stabilize the economy. 

Now, more than five years after the Dodd-Frank Act, Kashkari maintains that financial reform has not gone far enough. In particular, the biggest banks are still too big to fail and continue to pose a significant and ongoing risk to the U.S. economy.

The economists and policy experts at the Federal Reserve Bank of Minneapolis have an established history of research into the issue of TBTF.  Well before the Great Recession of 2008, former Bank President Gary Stern and current Executive Vice President and Senior Policy Adviser Ron Feldman were among the first to publish about the hazards of bank bailouts. 

Anyone interested in learning more or submitting ideas about ending TBTF may do so at minneapolisfed.org/endingTBTF.  Follow the Minneapolis Fed and the conversation on Twitter by searching @minneapolisfed and #EndingTBTF.


The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.




Minneapolis Fed Announces New Advisory Council Appointees

Tue, 09 Feb 2016 00:00:00 -0500

The Federal Reserve Bank of Minneapolis announced the 2016 appointees to the Bank’s four advisory councils, as well as three new advisory council chairs, effective immediately. Community Depository Institutions Advisory Council (CDIAC) 2016 Appointees: James Espeland President and CEO—First National Bank, Henning, MN Shari Laven President—Viking Savings Bank, Alexandria, MN Brian Sherrick President and CEO—Ideal Credit Union, Woodbury, MN Fran Sommerfeld President and CEO—Sioux Falls Federal Credit Union, Sioux Falls, SD Tim Ulrich President and COO—Citizens Bank & Trust Co., Hutchinson, MN Members of CDIAC provide information, advice and recommendations from the perspective of community depository institutions. Members are representatives of depository institutions (thrifts, credit unions and banks) in the Ninth District with total assets of less than $10 billion. The chair of the Minneapolis Council represents the Ninth District at meetings of the Board of Governors’ Community Depository Institution Advisory Council in Washington, D.C. Members are appointed by the Minneapolis Fed president. Great Lakes Advisory Council 2016 Chair: Todd Mandel Community Development Director—Couleecap, La Crosse, WI 2016 Appointees: Diana Anderson President and CEO—Southwest Initiative Foundation, Hutchinson, MN Mark Massicotte Owner—L’Anse Manufacturing, L’Anse, MI Abbey Pieper Vice President—Madden’s on Gull Lake, Brainerd, MN Council members advise the bank’s senior officers and economists on regional economic conditions in greater Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. New members are appointed by the Minneapolis Fed president. Great Plains Advisory Council 2016 Chair: Glen Crawford Owner/Operator—M.S. & F. Inc., Aberdeen, SD 2016 Appointees: Bob Hoffert CFO—Black Gold Farms, Grand Forks, ND Tim Rogers Environmental Manager—Black Hills Corporation, Rapid City, SD Rachael Sherard Senior Vice President, Rural Health Services, Avera—Sioux Falls, SD Council members advise the bank’s senior officers and economists on regional economic conditions in Montana, North Dakota and South Dakota. New members are appointed by the Minneapolis Fed president. Twin Cities Advisory Council 2016 Chair: Sarah Caruso President and CEO—Greater Twin Cities United Way, Minneapolis, MN 2016 Appointees: Liz Asmus Executive Vice President—SEIU Healthcare MN, Saint Paul, MN Maureen Steinwall President—Steinwall Inc., Coon Rapids, MN Council members advise the bank’s senior officers and economists on regional economic conditions in the Minneapolis-St. Paul metropolitan area. New members are appointed by the Minneapolis Fed president. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dako[...]



Minneapolis Fed Announces New Class C Director, Chair and Deputy Chair for 2016

Mon, 14 Dec 2015 00:00:00 -0500

The Federal Reserve Bank of Minneapolis announced the designation of its board chair and deputy chair and a new director, all effective January 1, 2016. New board member Harry Melander, President of the Minnesota Building and Construction Trades Council, was appointed as a new Class C member and will serve a three-year term. Melander has 25 years of experience representing unions in the construction industry and currently serves as the first vice chair of the Metropolitan Council. Melander’s civic participation spans nearly 30 years and multiple organizations in the Ninth District, including the St. Paul District Energy Board and Twin City Housing Development Corporation.  The Class C group of directors is appointed by the Board of Governors to represent the public and also includes MayKao Y. Hang, who was named the 2016 chair of the board of directors, and Kendall J. Powell, who was named 2016 deputy chair. Board chair and deputy chair MayKao Y. Hang, president and chief executive officer of the Amherst H. Wilder Foundation in St. Paul, was designated chair of the board of directors for 2016. Hang has been a board member since 2012 and currently serves as the board’s deputy chair. She also co-chaired the Presidential Search Committee in 2015.  Retiring from the Minneapolis Fed’s board is 2015 Board Chair Randall Hogan, chairman and chief executive officer of Pentair, Inc. Kendall J. Powell, chairman and chief executive officer of General Mills, Inc. in Minneapolis, was designated deputy chair of the board of directors for 2016. Powell joined the board in 2014 as a Class C director and succeeds 2015 Deputy Board Chair MayKao Y. Hang. Background about the board of directors of the Federal Reserve Bank of Minneapolis Minneapolis Fed directors are selected to represent a cross section of the Ninth District economy, including consumers, industry, agriculture, the service sector, labor and commercial banks of various sizes. The Federal Reserve Bank of Minneapolis Board has nine members, with three Class A directors representing the member banks; Class B and C directors are selected to represent the public with “due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers,” according to the Federal Reserve Act. The class A and B directors are elected by member banks, and the class C directors are appointed by the Board of Governors, which also designates the board's chair and deputy chair from among its three appointees. The responsibilities of directors are broad, ranging from overseeing the general operations of the Minneapolis Fed to reporting on district economic conditions. This information helps prepare the Minneapolis Fed president for participation in Federal Open Market Committee meetings, where decisions are made about monetary policy. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Mi[...]



Neel Kashkari named president and CEO of Minneapolis Fed, effective Jan. 1, 2016

Tue, 10 Nov 2015 10:30:00 -0500

The Federal Reserve Bank of Minneapolis announced today that Neel Kashkari has been appointed its 13th president and chief executive officer, effective Jan. 1, 2016. Narayana Kocherlakota will end his tenure as president and CEO on Dec. 31. Kocherlakota has led the Federal Reserve Bank of Minneapolis since 2009 and announced in December 2014 that he would not seek reappointment following the conclusion of his term in February 2016. width="472" height="266" src="https://www.youtube.com/embed/p870k9nY0Kk?&showinfo=0&autohide=1&theme=light&modestbranding=1" frameborder="0" style="margin-top: 18px;"> Watch Deputy Board Chair MayKao Hang announce the appointment of Mr. Kashkari. As president of the Minneapolis Fed, Kashkari will participate on the Federal Open Market Committee in the formulation of U.S. monetary policy. He will oversee 1,100 employees in Minneapolis and Helena, Mont., who conduct economic research, supervise financial institutions and provide payments services to commercial banks and the U.S. government, along with other supporting activities. Kashkari, 42, has had a varied career spanning both the private and public sectors. In the private sector, he was most recently managing director and member of the executive office at PIMCO. In January 2013, he resigned from the firm to explore a run for public office. One year later, he announced his candidacy for governor of California. He came in second in California’s nonpartisan blanket primary, but lost the general election to incumbent governor Jerry Brown. Prior to joining PIMCO in 2009, Kashkari served in the U.S. Department of the Treasury from 2006 to 2009, first as senior adviser to Secretary Henry Paulson and then as assistant secretary of the Treasury. In the latter role, he established and led the Office of Financial Stability and oversaw the Troubled Asset Relief Program (TARP) for both Presidents George W. Bush and Barack Obama. Before joining the Treasury Department, Kashkari was a vice president at Goldman Sachs in San Francisco. Previously, he was an aerospace engineer at TRW Corp. Kashkari holds an MBA from the Wharton School of the University of Pennsylvania and bachelor’s and master’s degrees in mechanical engineering from the University of Illinois at Urbana-Champaign. “The class B and C directors were unanimous and enthusiastic in appointing Mr. Kashkari to be the next president and CEO of the Federal Reserve Bank of Minneapolis. Mr. Kashkari is the right person to build on the Minneapolis Fed’s core strengths and successfully lead the Bank into the future,” said Randall Hogan, chairman of the Minneapolis Fed’s board of directors and co-chair of the search committee.  “Mr. Kashkari is an influential leader whose combined experience in the public and private sectors makes him the ideal candidate to head the Minneapolis Fed,” said MayKao Hang, incoming chair of the Minneapolis Fed’s board of directors and co-chair of the search committee.  “We were fortunate to have outstanding candidates during our national search. Mr. Kashkari stood out because of his inspiring leadership skills, solutions-oriented nature, collaborative st[...]



Minneapolis Fed Launches Center for Indian Country Development

Mon, 17 Aug 2015 07:00:00 -0400

The Federal Reserve Bank of Minneapolis today officially launched the Center for Indian Country Development (CICD). The CICD’s mission is to help self-governing communities of American Indians in the United States attain their economic development goals. It will build off the Minneapolis Fed’s 25-year history of working in Indian Country, which is rooted in the Federal Reserve System’s legislative responsibilities to understand and promote economic growth. The Center will focus on initiatives such as legal infrastructure development, improved access to capital for Native Americans, entrepreneurship and small business development, effective coordination and design of economic development programs, and related education and research. The CICD also formally announced the establishment of the CICD Leadership Council, composed of regional and national experts in Indian Country development issues. The Leadership Council will offer diverse perspectives on the economic and financial circumstances in American Indian communities and will advise and assist with the CICD’s strategy and priorities. Join the Minneapolis Fed on Monday, Aug. 17, at 2 p.m. EDT for an interactive, live webinar and Q&A for a discussion of the CICD’s mission and key priorities. For more details, visit the CICD web page. A replay of the webinar will be available. “For more than two decades, the Minneapolis Fed has committed significant resources to supporting economic development in Indian Country,” said Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis. “The center provides energy and coordination to Indian Country development initiatives across the Federal Reserve System and takes a lead role in forging Federal Reserve partnerships with other national and regional organizations,” he added. “By establishing the Center for Indian Country Development, we are committing to deepen and broaden this work, as well as expanding our national presence and partnerships, to better support tribal nations and organizations working with them in their development efforts,” said Susan Woodrow, co-director of the CICD. “The Federal Reserve System’s partnerships and collaborations with key stakeholders across the country have become critical resources to Indian Country economic development. We are excited about the opportunity to expand the Fed’s work with tribal leaders, government agencies, financial institutions and community organizations to improve education, business development and economic mobility throughout Indian Country,” said Patrice Kunesh, co-director of the CICD.   Leadership Council members:  Dante Desiderio, executive director, Native American Finance Officers Association Sarah DeWees, senior director, Research, Policy and Asset-Building Programs, First Nations Development Institute Miriam Jorgensen, director of research, Native Nations Institute for Leadership, Management and Policy, University of Arizona, and Harvard Project on American Indian Economic Development, Harvard University Elsie Meeks, board of directors, Federal Home Loan Bank of Des Moin[...]



Minneapolis Fed Research Shows Contrast Between Debt Crises in U.S. and Europe

Tue, 07 Jul 2015 11:00:00 -0400

While the recent debt crises in Europe and the U.S. states featured similar increases in spreads on government debt, they remained fundamentally different in nature, according to a new research report published today by the Federal Reserve Bank of Minneapolis. The report, “External and Public Debt Crises,” argues that different experiences between the United States and Europe result from the interplay between the ability of governments to interfere in the private external debt contracts of their citizens and the flexibility of state fiscal institutions. Accordingly, in Europe, the crisis occurred at high government indebtedness levels and had spillovers to the private sector. In the United States, state government indebtedness was low, and the crisis had no spillovers to the private sector. The report is by Cristina Arellano, a senior research economist at the Minneapolis Fed; Andrew Atkeson, an economics professor at the University of California, Los Angeles, and consultant to the Minneapolis Fed; and Mark Wright, a senior economist and research advisor at the Federal Reserve Bank of Chicago. According to the authors, the “governments of the U.S. states, for example, are less fiscally flexible than the members of other economic unions as a result of state and federal limitations on their ability to change taxes and borrow, but are prevented by the U.S. Constitution from interfering in private contracts. Together, these factors result in public debt intolerance and yet also limit the likelihood of an external debt crisis affecting private sector borrowers within the state.” They go on to say, “On the other hand, eurozone nations are more fiscally flexible but have a greater ability to interfere with the contracts of their citizens, particularly if one of them exits the eurozone, which together allows for more public borrowing but also raises the likelihood for external debt crises occurring together with public debt crises.” The Tale of Two Debts:  Greece and Puerto Rico As leaders of the governments of Greece and Puerto Rico face similar fates in confronting their respective public debts, the authors say, “there is one dimension in which these two public debt crises differ—the extent to which this public debt crisis has spilled over to the private sector.“ The authors say, “In the case of Greece, the public debt crisis has been accompanied by a run on Greek banks that has led the government to interfere in private debt contracts by declaring a bank holiday, limiting deposit withdrawals, and imposing controls on capital outflows. … In contrast, while the recession and public debt crisis in Puerto Rico has implications for the credit ratings of that island's banks, the impact of this public debt crisis on these banks is more limited than in Greece due to the legal certainty that the Commonwealth of Puerto Rico is not able to interfere with private external debt contracts. “It remains to be seen how the macroeconomic implications of the public debt crises in Greece and Puerto Rico will play out. Clearly, in Greece, the public debt crisis has also morphed into an[...]



Minneapolis Fed Appoints Patrice Kunesh as Co-Director of Center for Indian Country Development

Thu, 25 Jun 2015 11:00:00 -0400

The Federal Reserve Bank of Minneapolis has appointed Patrice Kunesh as co-director of the Center for Indian Country Development (CICD). She will join co-director Susan Woodrow, who also serves as the executive officer of the Minneapolis Fed’s Helena, Mont., Branch. The CICD will be formally launched in mid-year 2015 and will expand on the Federal Reserve System’s partnerships and collaborations with key stakeholders from across the country that are similarly committed to Indian Country economic development. Building on past efforts, the Minneapolis Fed will continue to work in collaboration with tribal leaders, government agencies, business enterprises, financial institutions, educational institutions and community organizations to improve education, income, business development and economic mobility on American Indian reservations and in other Native American communities. “During her time at the U.S. Department of Agriculture and throughout her career, Patrice has worked tirelessly to advocate on behalf of policies and programs that better serve the needs of Tribal communities. Indian Country and, truly, the country as a whole have been extraordinarily well served by Patrice,” said Agriculture Secretary Tom Vilsack. “I wish Patrice all the best as she assumes her role as co-director of the new Center for Indian Country Development.” “Patrice has dedicated more than two decades to improving the lives of the American tribal communities across the country.  I am confident that her experience and her leadership will further enhance our efforts to help self-governing communities of American Indians attain their economic development goals,” said Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis. Kunesh recently served as deputy under secretary of rural development at the U.S. Department of Agriculture, where she oversaw Operations & Management and the Office of Civil Rights and worked with the USDA’s state directors. Kunesh, who is of Standing Rock Lakota descent, has also served as the deputy solicitor for Indian affairs at the U.S. Department of the Interior, where she supervised work related to American Indian tribes, lands and gaming. Before that she was a member of the faculty at the University of South Dakota School of Law, where she taught as well as directed the university’s Institute of American Indian Studies. Kunesh began her legal career at the Native American Rights Fund, where she litigated cases involving tribal sovereignty and natural resources. She provided legal and policy advice to tribes on a range of issues. In 1995, she became in-house counsel to the Mashantucket Pequot Tribe of Connecticut, where she continued her legal and policy work. Kunesh received a Master of Public Administration from the Harvard Kennedy School of Government and a law degree from the University of Colorado School of Law, where she was an editor of the Colorado Law Review. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reser[...]



Minneapolis Fed Board of Directors Begins Search for New President

Mon, 08 Jun 2015 14:30:00 -0400

The Federal Reserve Bank of Minneapolis board of directors announced plans today to begin its formal search for a new president.

The Federal Reserve Bank of Minneapolis current president, Narayana Kocherlakota, informed the board that he will not seek reappointment to a new term as president of the Bank. He has accepted a position with the University of Rochester and will begin his appointment at the beginning of 2016.

The search committee is led by directors MayKao Hang and Randall Hogan, and includes the Bank’s Class B and C directors (those directors who are not affiliated with a supervised entity). In addition, the search firm Spencer Stuart has been hired to assist with preparation of the position announcement, providing the search committee with resumes of applicants who meet the minimum qualifications, conducting background and credential checks, and providing the search committee with other information, as requested.

“The position of a Federal Reserve Bank president reflects the unique nature of the Federal Reserve System itself, incorporating both public and private sector characteristics. The president’s responsibilities fall into three main categories: First, that of a public policymaker, second, acting as the Bank’s chief executive officer, and third, contributing to Federal Reserve leadership,” said MayKao Hang. “We will seek a broad, diverse group of candidates from within and outside the Federal Reserve System,” said Randy Hogan. “We plan to seek individuals who have the requisite experience to be both a strong policymaker and strong leader for the Reserve Bank and the Federal Reserve System.”

President Search Committee Members

For more information about the search process, please visit our website.




President Narayana Kocherlakota announces he will be joining the University of Rochester at the beginning of 2016

Mon, 08 Jun 2015 11:15:00 -0400

The Federal Reserve Bank of Minneapolis announced today that President Narayana Kocherlakota has accepted a position as the inaugural Lionel W. McKenzie Professor of Economics at the University of Rochester. His appointment is effective Jan. 1, 2016.

“I am truly honored to have been selected to serve as the first Lionel McKenzie Professor at the University of Rochester,” Kocherlakota said. “The university has a long, rich academic history with eight Nobel prize winners among its faculty and alumni, and I am excited to become a member of such a distinguished institution.”

Before his appointment as president the Federal Reserve Bank of Minneapolis, Kocherlakota served as a member of the Minneapolis Fed’s Research staff, as well as a Research consultant for the Bank. His prior experience also includes professorships at the University of Minnesota, where he was chair of the Economics Department, and at Stanford University.

Randy Hogan, chairman of the Minneapolis Fed’s board of directors, expressed his appreciation for Kocherlakota’s service. “On behalf of the board of directors, we want to express our appreciation and gratitude to Narayana for his visionary leadership and great contributions to the Bank and to the Federal Reserve System. We wish him the greatest success at the University of Rochester.”

For more information, please see the University of Rochester’s announcement.




Clear Communication on Economic Goals is Vital for Effective Policymaking, according to Minneapolis Fed Research Director

Mon, 18 May 2015 08:00:00 -0400

Central banks must clearly communicate their economic goals, not only likely interest rate paths and asset purchases, argues the 2014 Annual Report essay released today by the Federal Reserve Bank of Minneapolis. In “The Roadmap and the Destination: Words as a Monetary Policy Tool,” the Bank’s senior vice president and research director, Sam Schulhofer-Wohl, suggests that central bank policymakers should clearly explain not just what they intend to do, but also what they intend to achieve—the destination as well as the path.

“Describing the likely future path of policy—the roadmap, if you will—is clearly helpful in steering the economy,” writes Schulhofer-Wohl, noting that his essay expresses his own views, not necessarily those of the Federal Reserve Bank of Minneapolis or of the Federal Reserve System. “But unless policymakers also communicate clearly about the economic goals they aim to achieve—the destination—communications about the likely policy path alone leave the public more uncertain than it needs to be.”

Statements from the Federal Open Market Committee (FOMC), the Fed’s primary policymaking body, emphasize that its policies depend on how the economy evolves, observed Schulhofer-Wohl. “This data dependence, though crucial for effective policymaking, can be challenging to communicate,” he writes. He notes that while a communications strategy of describing the likely path of policy instruments such as interest rates is “clearly helpful for financial market participants…it is of limited benefit in helping ordinary households and businesses understand where the economy is headed.”

Central bank policymakers must constantly monitor the economy and adjust policy according to the unforeseeable shocks that all countries experience. “Given the vast variety of possible shocks, communicating about the desired destination is an efficient way to explain how policy will react,” explains Schulhofer-Wohl.

Schulhofer-Wohl notes that although communication came to the fore as a monetary policy tool in the aftermath of the financial crisis, it can be valuable in more ordinary times as well. “If the FOMC does not communicate its goals, the public must infer those goals from the FOMC’s actions. In the stable economic environment that existed before the crisis, such inferences were relatively easy. Today, by contrast, policymakers and the public face an unusual degree of uncertainty about economic fundamentals,” said Schulhofer-Wohl.



Banking Conditions in Ninth District States 2015 Forecast and 2014 Update

Fri, 06 Mar 2015 10:00:00 -0500

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { padding-left: 7px; padding-right: 8px; } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 7px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/images/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Strong year forecast for Minnesota banks in 2015 Minnesota banks are likely to do well across key measures of earnings, loan growth and asset quality in 2015, according to Ron Feldman, executive vice president of Supervision, Regulation and Credit at the Federal Reserve Bank of Minneapolis. “Minnesota’s banks can look forward to another good year in 2015, thanks to a rebounding economy and a return to more normal performance following the financial crisis,” Feldman said. “I expect to see moderate improvement in profitability, returning to—or possibly surpassing—long-run norms for the first time since the crisis.” Loan growth is expected to be between 5.6 percent and 9.6 percent, slightly better than the 2014 pace and above historic norms. The share of problem loans (as a percent of the resources banks must have to cover potential losses) is expected to come in at 4.8 percent to 8.8 percent, remaining far below historic levels. Inputs to the annual forecast include data on recent performance of Ninth Federal Reserve District banks, analysis of trends in accounting statements and regulatory reports, statistical modeling and on-the-ground information gathered by talking with banking professionals. 2014 performance Year-end data for 2014—from Ninth Federal Reserve District banks’ quarterly regulatory submissions, known as “call reports”—show that Minnesota banking conditions improved last year, consistent with the Fed’s forecast at the beginning of the year (see table below). “Loan growth was very strong, approaching the top of our forecast range,” Feldman said. “The level of problem loans came in at the lower—better—end of our forecast range, while bank profitability was at the lower end of the forecast,” he said.  2014 Bank Performance Compared to Fed Forecast Measure Forecast Range Midpoint of Range 2014 Actual Problem Loans (as a percent of loan loss reserves) [...]



Minneapolis Fed Forecasts Economic Growth in the Ninth District for 2015

Tue, 06 Jan 2015 11:00:00 -0500

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 11px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/img/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Minneapolis Fed Forecasts Moderate Growth for Minnesota in 2015 The 2015 economic outlook from the Federal Reserve Bank of Minneapolis calls for moderate growth in the Minnesota economy. Based on the Minneapolis Fed’s statistical model, employment in Minnesota is expected to grow by 1.9 percent, while the unemployment rate is predicted to drop from 3.7 percent in November 2014 to 3.3 percent in the fourth quarter of 2015. Growth in personal income is anticipated to be 4.6 percent. “The Minnesota economy grew moderately in 2014 and will continue to grow at about the same rate in 2015,” said Toby Madden, regional economist at the Minneapolis Fed. In addition to the forecasting model, the Minnesota outlook includes information from the annual fedgazette business outlook poll of 315 district businesses and the annual manufacturing survey of 538 district manufacturers. The poll and survey were mailed out in early November and returned by Dec. 8. The Ninth District includes Minnesota, Montana, North and South Dakota, northwestern Wisconsin and the Upper Peninsula of Michigan. “The survey results showed optimism for economic growth in 2015,” Madden said. “According to the business poll, nine of 10 businesses are optimistic and expect growth for their own operations and the state economy.” The survey of business leaders indicates that businesses expect more sales and investment in 2015 and expect to increase employment. Respondents to the manufacturing survey also expect productivity and profits to rise. In regard to the state economy, both surveys see increases in employment, investment and consumer spending in 2015. More details on the 2015 economic forecast for Minnesota and the Ninth District can be found in the January issue of the fedgazette, the Minneapolis Fed’s quarterly newspaper, as well as at minneapolisfed.org. 2015 Economic Outlook Briefing: Video and Presentation The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana,[...]



President Narayana Kocherlakota announces he will not seek another term in 2016

Fri, 12 Dec 2014 10:00:00 -0500

The Federal Reserve Bank of Minneapolis announced today that President Narayana Kocherlakota will not seek reappointment to a new term as president of the Bank following the conclusion of his current term on February 29, 2016.

“Earlier this week, I informed the board of directors of the Federal Reserve Bank of Minneapolis that I do not intend to seek reappointment to a new term as president of the Bank after my current term ends on February 29, 2016,” Kocherlakota said. “I became president of the Minneapolis Bank in October 2009 so that I could be of service to my country in an economic emergency. I have been honored to play a role in shaping the response to that dire situation. While challenges lie ahead for the Federal Reserve System, the state of crisis has passed, and I have decided not to continue my service into a new term.”

Before his appointment as president, Kocherlakota served as a member of the Minneapolis Fed’s Research staff, as well as a Research consultant for the Bank. His prior experience also includes professorships at the University of Minnesota, where he was chair of the Economics Department, and at Stanford University.

“My service as president has been the most rewarding period of my professional career,” Kocherlakota added. “The people at the Federal Reserve Bank of Minneapolis, and the people of the Federal Reserve System more generally, are fantastic contributors to their country. I have been humbled on a daily basis by their knowledge, their talent and their dedication. It has been an enormous honor for me to serve the public with them, and I am deeply thankful to the Minneapolis Fed’s board of directors for giving me the opportunity to do so. I look forward to continuing to work with my Fed colleagues and the board of directors during the remainder of my time as president.”

Randy Hogan, chairman of the Minneapolis Fed’s board of directors, expressed his appreciation for Kocherlakota’s service. “The board of directors thanks Narayana for his outstanding leadership and for his many contributions to the Bank and to the Federal Reserve System. Among those contributions, his focus on improving communication between the Bank and its constituents is a key legacy of his tenure and will serve as a guide for years to come. We look forward to working with him throughout the remainder of his term, and we wish him all the best in his future endeavors.”




Banking Conditions in Ninth District States Third Quarter 2014 Update

Thu, 04 Dec 2014 10:00:00 -0500

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { padding-left: 7px; padding-right: 8px; } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 7px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/img/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Twin Cities Minnesota Banking Conditions Showed Solid Improvement in Third Quarter 2014 Minnesota banks reported improved profitability and loan growth in the third quarter of 2014, with problem loans falling a bit, according to Ron Feldman, executive vice president of Supervision, Regulation and Credit at the Federal Reserve Bank of Minneapolis. “Loan growth and bank profitability improved moderately among Minnesota banks, while asset quality made a small improvement,” he said. The findings were included in a Minneapolis Fed analysis of data from Ninth Federal Reserve District banks’ quarterly regulatory submissions, known as “call reports.” Minnesota banks’ median annual rate of loan growth increased 1.35 percentage points to 6.31 percent during the third quarter. The year-over-year change in the amount of outstanding loans slightly outpaced the 6.05 percent median rate for the nation as a whole. The level of problem loans compared with the resources banks have to cover loan losses improved by 67 basis points in the quarter. At 8.05 percent, Minnesota’s median problem assets ratio was just better than the national 8.33 percent median. Profitability measures also improved during the third quarter of 2014. Minnesota’s median return on average assets increased 6 basis points to 1.02 percent. That level exceeded the national 0.91 percent rate of return and surpassed the benchmark 1 percent for the first time since 2008, though bank profitability remains low compared to prior decades. Measures of liquidity and capital remain at healthy levels. The state’s total risk-based capital ratio stands at 15.72 percent after an 11-basis-point increase. The median use of noncore funding (in contrast to more stable bank deposits) stands at 13.58 percent of liabilities. Both are strong by historical standards and compared to the median national performance. The data for Minnesota’s 330 commercial banks and the nation are found in the tables below. The attachment to this release provides additional data on the characteristics of banks in the region and definitions a[...]



Banking Conditions in Ninth District States Second Quarter 2014 Update

Thu, 04 Sep 2014 10:00:00 -0400

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { padding-left: 7px; padding-right: 8px; } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 7px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/images/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Twin Cities Minnesota Banking Conditions Showed Only Modest Improvement in Second Quarter 2014 Minnesota banks reported modest to little improvement across measures of problem assets, loan growth and profitability in the second quarter of 2014, based on data from the 334 commercial banks in the state. According to Ron Feldman, executive vice president of Supervision, Regulation and Credit at the Federal Reserve Bank of Minneapolis, “Key metrics of Minnesota’s bank health turned in a mostly flat performance in the second quarter of 2014. The state’s median bank profitability did not change. Problem loans fell, but were already in strong condition. Loan growth improved, but only modestly.” The level of problem loans compared with the resources banks have to cover loan losses improved by a small amount (81 basis points) in the second quarter. At 8.72 percent, Minnesota’s median problem assets ratio was just about the same as the national 8.64 percent median and better than the long-run median. Profitability measures changed little in the quarter. Minnesota’s median return on average assets increased 2 basis points to 0.96 percent in the second quarter of 2014 and remains higher than the national 0.88 percent rate of return. The state’s median annual rate of loan growth increased 34 basis points to 4.96 percent this quarter, a very small change by historical standards. The year-over-year change in the amount of outstanding loans remains somewhat below the 5.62 percent median rate for the nation as a whole. Measures of liquidity and capital remain at healthy levels despite small steps backward in the quarter. The state’s total risk-based capital ratio stands at 15.61 percent after an 8-basis-point decrease. The median use of noncore funding (in contrast to more stable bank deposits) stands at 13.57 percent of liabilities. Both are strong, by historical standards. Data for Minnesota and the nation [pdf] Additional data on the characteristics of banks in the region and definitions and explanations of these data [pdf] More details on bank[...]



Banking Conditions in Ninth District States First Quarter 2014 Update

Wed, 28 May 2014 10:00:00 -0400

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { padding-left: 7px; padding-right: 8px; } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 7px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/img/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Twin Cities Limited Gains for Minnesota Banks in First Quarter 2014 Minnesota’s 341 banks posted lower-than-expected profits in the first quarter of 2014, although, on the positive side, loan growth was robust. According to Ron Feldman, executive vice president of Supervision, Regulation and Credit at the Federal Reserve Bank of Minneapolis, “Banks in Minnesota turned in higher loan growth this quarter compared to last, and the state’s conditions are generally strong compared to the rest of the country. That said, profits normally rise by a decent amount in the first quarter, but actually fell in this instance. Problem loans, which are already at very low levels, remained mostly flat.” At the median, Minnesota bank problem loans as a percent of the resources to cover potential losses increased by about half of a percentage point to 9.53 percent in the first quarter, a minor change by historical standards. The ratio stands a bit below the national median bank’s 9.85 percent. Minnesota bank earnings, as measured by the median return on average assets, fell by 1 basis point to 0.94 percent. Moreover, the main source of Minnesota bank earnings—the net interest margin—fell. Falling provisions had been a bolster to income, but the ratio of provisions relative to assets is now at zero. Flat earnings stand out in the first quarter, given that they normally improve at that time of year. Loan growth continued to improve; the state median bank year-over-year net loan growth rate reached 4.62 percent in the first quarter 2014 and closed in slightly on the national rate of 5.20 percent. Key measures of liquidity and capital remain strong. Bank liquidity, as measured by the median dependence on noncore funding (as opposed to more stable traditional deposits) compares favorably to historical and national rates despite a 19-basis-point increase to 13.22 percent. A key measure of capital, the median total risk-based capital ratio, increased 35 basis points. At 15.69 percent, the state median is healthy by regulatory and histori[...]



Banking Conditions in Ninth District States 2014 Forecast and Fourth Quarter 2013 Results

Tue, 04 Mar 2014 10:00:00 -0500

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 11px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/img/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Minnesota Banking Conditions Improved as Expected in 2013; Better but Not Great Improvement Forecast for 2014 Key measures of Minnesota banking conditions reported at year-end 2013 all fell within the range of projections offered by the Federal Reserve Bank of Minneapolis a year earlier. While loan growth and profitability finished 2013 at the lower end of expectations, loan performance ratios were at the stronger end of the forecast range. The Minneapolis Fed projects general improvement in 2014, with gains across key measures of earnings, loan growth and asset quality. However, the improvement is not likely to be large. “Minnesota’s banks remain below the long-run average levels of profitability and growth despite registering improvement in 2013,” said Ron Feldman, executive vice president at the Federal Reserve Bank of Minneapolis. “I expect to see improvement in 2014. But the gains seem likely to be small to middling, with profits and loan growth remaining below long-run norms.” 2013 Performance According to data collected at year-end 2013, Minnesota banking conditions turned in flat to middling improvement for the year. The median level of problem loans (as a percent of the resources banks must have to cover potential losses) fell to 9.04 percent at year-end, improving from the 11.68 percent rate of a year earlier. This reduction occurred even though problem loans were already at relatively low levels, and the figure compares favorably to the long-run median. Profitability, as measured by the median return on average assets, was essentially flat, improving just 1 basis point to 0.95 percent at year-end. Loan growth improved to 3.09 percent, marking the second straight year of positive growth. Minnesota banks continued to report historically high levels of capital and liquidity. 2014 Forecast The 2014 forecast projects additional improvement in 2014. Problem loans, as measured by the ratio of noncurrent and delinquent loans to capital and allowance, are expected to finish 2014 between 5.5 percent and 9 percent, a middling change relative to histor[...]



Minneapolis Fed Forecasts Economic Growth in the Ninth District for 2014

Mon, 06 Jan 2014 11:00:00 -0500

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 11px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/img/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana NorthDakota SouthDakota U.P. ofMichigan Wisconsin Minneapolis Fed Forecasts Moderate Growth for Minnesota in 2014 The 2014 economic outlook from the Federal Reserve Bank of Minneapolis calls for moderate growth in the Minnesota economy. Based on the Minneapolis Fed’s statistical model, employment in Minnesota is expected to grow by 1.2 percent, while the unemployment rate is predicted to drop from 4.6 percent in November 2013 to 4.3 percent in the fourth quarter of 2014. Growth in personal income is anticipated to be 5 percent. “The Minnesota economy continued on its upward trend in 2013, which will continue into 2014, but the pace of growth may slow slightly,” said Toby Madden, regional economist at the Minneapolis Fed. In addition to the forecasting model, the Minnesota outlook includes information from the annual fedgazette business outlook poll of 321 district businesses and the annual manufacturing survey of 485 district manufacturers. The poll and survey were mailed out in early November and returned by Dec. 10. The Ninth District includes Minnesota, Montana, North and South Dakota, northwestern Wisconsin and the Upper Peninsula of Michigan. “Both the statistical model and surveys point to a moderate economic performance in 2014,” Madden said. “Businesses expect growth for their own operations and the state economy.” The survey of business leaders indicates that businesses expect more sales and investment in 2014 and expect to raise prices. Respondents to the manufacturing survey are more bullish about their own operations and expect productivity and profits to rise. In regard to the state economy, both the surveys and the statistical model see increases in housing construction. They also expect increased business investment and higher prices. More details on the 2014 economic forecast for Minnesota and the Ninth District can be found in the January issue of the fedgazette, the Minneapolis Fed’s quarterly newspaper, as well as at minneapolisfed.org. 2014 Economic Outlook Briefing:Video a[...]



Minneapolis Fed Announces Chair, Deputy Chair and New Directors for 2014

Mon, 16 Dec 2013 00:00:00 -0500

The Federal Reserve Bank of Minneapolis announced the designation of the chair and deputy chair of its board of directors for 2014 and two new members.

Randall J. Hogan was named chair of the board of directors for 2014.  He has been a member of the board since 2010 and was deputy chair for 2012 and 2013.  Hogan is chairman and chief executive officer of Pentair in Minneapolis. 

Maykao Y. Hang was named deputy chair of the board of directors for 2014.  She has been a member of the board since 2012.  Hang is president and chief executive officer of the Amherst H. Wilder Foundation in St. Paul. 

Joining the board of directors in 2014 are Kendall J. Powell, chairman and chief executive officer, General Mills, Inc., Minneapolis; and Catherine T. Kelly, president and chief executive officer, Minnesota Bank and Trust, Edina.

Retiring from the Minneapolis Fed’s board are Mary K. Brainerd, president and chief executive officer, HealthPartners, Minneapolis; and Julie Causey, chairman, Western Bank, St. Paul.

Minneapolis Fed directors are selected to represent a cross section of the Ninth District economy, including consumers, industry, agriculture, the service sector, labor and commercial banks of various sizes. The Federal Reserve Bank of Minneapolis Board has nine members. Commercial banks that are members of the Federal Reserve System elect three bankers and three nonbankers. The Federal Reserve Board of Governors in Washington, D.C., appoints three additional nonbankers and designates the board's chair and deputy chair from among its three appointees. Kelly was elected by member banks. Hogan, Hang and Powell were appointed by the Board of Governors.

The responsibilities of directors are broad, ranging from overseeing the general operations of the Minneapolis Fed to reporting on district economic conditions. This information helps prepare the Minneapolis Fed president for participation in Federal Open Market Committee meetings, where decisions are made about monetary policy.




Banking Conditions in Ninth District States Third Quarter 2013 Update

Mon, 25 Nov 2013 10:00:00 -0500

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 11px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/img/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Small Improvement for Minnesota Bank Performance in Third Quarter 2013 In the third quarter of 2013, Minnesota’s 349 banks posted small improvements across key financial ratios. According to Ron Feldman, executive vice president of Supervision, Regulation and Credit at the Federal Reserve Bank of Minneapolis, “Minnesota banks had slightly better performance this quarter than last. In a continuation of longer-run trends, the state’s banks reduced problem loans and improved loan growth. The improvement remains steady but slow. Generally, Minnesota banking conditions compare well to the nation as a whole.” At the median Minnesota bank, the level of problem loans as a percent of the resources to cover potential losses decreased by 85 basis points to 9.94 percent in the third quarter. This ratio is a bit below the national median bank’s 10.22 percent. Minnesota bank earnings, as measured by the median return on average assets, improved 2 basis points to 0.98 percent, better than the national median of 0.86 percent. The state’s banks continued to improve loan growth in the third quarter, increasing the year-over-year rate of change in outstanding loan balances by 83 basis points to 2.43 percent. Key measures of liquidity and capital remain strong in the third quarter. Despite a relatively small decline of 5 basis points in the median total risk-based capital ratio to 15.60 percent, capital remains strong relative to previous years. Bank liquidity, as measured by the median dependence on noncore funding (as opposed to more stable traditional deposits) similarly remains strong and declined by 26 basis points to 13.49 percent of liabilities. Data for Minnesota and the nation [pdf] Additional data on the characteristics of banks in the region and definitions and explanations of these data [pdf] More details on banking conditions can be found on the following page: Banking Conditions in Ninth District States. Montana Banking Conditions Improve in Third Qu[...]



Federal Reserve Bank of Minneapolis Names New Research Director

Wed, 23 Oct 2013 15:00:00 -0400

The Federal Reserve Bank of Minneapolis has named Sam Schulhofer-Wohl its senior vice president and director of research effective Nov. 1, 2013. Schulhofer-Wohl succeeds Kei-Mu Yi, who has been named special policy advisor to the president.

Schulhofer-Wohl has been a member of the Minneapolis Fed’s research department since 2010, serving most recently as a senior research economist and advisor. Prior to joining the Bank, he was an assistant professor in the department of economics at the Woodrow Wilson School of Public and International Affairs at Princeton University. He received his Ph.D. in economics from The University of Chicago.




Banking Conditions in Ninth District States Second Quarter 2013 Update

Thu, 22 Aug 2013 10:00:00 -0400

Federal Reserve Bank of Minneapolis .tabs_container { width: 422px; margin-top: 0; } ul.tabs_nav { padding: 0; margin: 0; } ul.tabs_nav li a { } ul.tabs_nav li a.tabs_nav_selected { color: #000; border-bottom: 2px solid #dce9ed; background-color: #dce9ed; } ul.tabs_nav li a.twoline { padding-top: 6px; padding-bottom: 4px; } ul.tabs_nav li.tabs_nav_last a { padding-left: 11px; } .tabs_panel { border-top: 2px solid #dce9ed; background: transparent url(/img/common/tabs_panel_bkrd.gif) repeat-x top left; padding-top: 10px; } Minnesota Montana North Dakota South Dakota U.P. of Michigan Wisconsin Minnesota Banking Conditions Improve a Bit in Second Quarter 2013 Financial data reported by the 351 banks in Minnesota at the end of second quarter 2013 improved, but by a small amount. According to Ron Feldman, executive vice president of Supervision, Regulation and Credit at the Federal Reserve Bank of Minneapolis, “Second quarter results were better than the first quarter. There was some reduction in problem loans from an already strong level and a small increase in profitability and loan growth. The latter two areas continue to fall below historically normal levels. The gains were modest, but the state is performing, in general, on par with the nation.” The state median level of problem loans (as a percentage of the resources banks must have to cover potential losses on loans) fell by 18 basis points to the lowest point since 2005. Minnesota is right around the national median, with 10.79 percent noncurrent and delinquent loans as a percentage of capital and allowance. Return on average assets, a key measure of earnings, also improved to 0.96 percent in the quarter and stands higher at the Minnesota median bank than at the nation as a whole. Minnesota bank loan growth was 1.6 percent over the past four quarters, a third lower than the national median. Despite a substantial 80 basis point improvement from a year ago, this year-over-year change in the amount of outstanding loan balances remains sluggish by historical standards. Key measures of liquidity and capital deteriorated slightly in the quarter, but are stronger than national medians. Minnesota’s median total risk-based capital ratio inched back to 15.65 percent, high by historical standards. Liquidity also remains strong. Bank use of noncore funding (as opposed to more stable traditional deposits) stands at 13.75 percent of liabilities. Data for Minnesota and the nation [pdf] Additional data on the characteristics of banks in the region and definitions and explanati[...]