Federal Reserve Bank of Kansas City

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1 Memorial Drive, designed by Henry N. Cobb, dedicated 2008.

The Federal Reserve Bank of Kansas City is located in Kansas City, Missouri and covers the 10th District of the Federal Reserve, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico. It is second only to the Federal Reserve Bank of San Francisco in size of geographic area served. Missouri is the only state with two main branches of Federal Reserve Banks, the other is located in St. Louis (Federal Reserve Bank of St. Louis).

Federal Reserve Notes issued by the bank are identified by "J" on the face of one and two dollar bills and the J10 on the face of other currency.

The current president is Esther George.[1]

Headquarters buildings[edit]

The first bank building was the R.A. Long Building at 928 Grand which opened on November 16, 1914 until a new $4.3 million building could be built across the street at 925 Grand which formally opened in November 1921 in Downtown Kansas City. Shortly after it was established, the bank rented space to outside tenants.[2] President Harry S. Truman had his office in Room 1107 of the building from when he left the Presidency in 1953 until the Truman Library was completed in 1957.[3]

In 2002, the bank announced plans to build a new facility at 1 Memorial Drive 20 blocks south at 29th and Main on 15.6 acres (63,000 m2) on a hilltop south of the Liberty Memorial. The historic 925 Grand Building was the oldest building of any Federal Reserve Bank operating at that time. It was sold to Townsend LLC in March 2005 and the Reserve leased back the structure until the new building opened.[4] It was designed by Henry N. Cobb of Pei Cobb Freed & Partners.

Economic policy symposium[edit]

Since 1978,[5][6] the Kansas City Fed has held an annual economic policy symposium. From 1978–1981, it was held at different locations, and from 1982 it has been held in Jackson Hole, Wyoming.[7] From 1978 to 1981 the symposia focused on agricultural economic issues. Since 1981 topics have been more broad and the symposia have gotten broader attention.[8]

In 2003 and 2005, papers were presented at the symposium that were critical of the status quo, and predicted problems with the unseen risks of derivatives. These ideas in these papers were rejected at the time, but later were seen as having predicted the financial crisis of 2007-2010.[9][10][11][12][13]

Jackson Hole Consensus[edit]

The 2014 edition of the symposium was widely anticipated.[14] Featuring a speech by European Central Bank president Mario Draghi,[15] it was depicted as the point of emergence of a new consensus in the economics doctrine and institutions,[16][17] stressing the importance of aggregate demand, countercyclical investments and fiscal policy[18] in opposition to the so-called austerity policies[19] of the Washington Consensus and Berlin View. This paved the way for quantitative easing to begin in 2015.[20]

The Money Museum[edit]

$10 1915 Kansas City District Federal Reserve Bank Note.

The Fed operates a museum at its new site, called The Money Museum. It offers visitors opportunities to learn about the functions of the Federal Reserve system and America's financial systems. Features of the museum include interactive exhibits, a visit to the automated, multi-story cash vault where millions of dollars are secured — one of the largest in the region, viewing of the Harry S. Truman Coin Collection, and an opportunity to lift a real gold bar. The museum is open weekdays for self-guided tours and for one-hour guided tours, except holidays.[21]

Branches[edit]

Map of the Tenth District

Leaders of the bank[edit]

Esther George and Thomas Hoenig

Leaders of the Kansas City Federal Reserve are:[22]

Chairs[edit]

Following are chairs of the board of directors of the Kansas City Federal Reserve since 1992.[23]

Year Chair Company Residence
2017–present Rose M. Washington Tulsa Economic Development Corporation Tulsa, Oklahoma
2015–2016 Steve Maestas Maestas Development Group Albuquerque, New Mexico
2013–2014 Barbara Mowry GoreCreek Advisors Greenwood Village, Colorado
2011–2012 Paul DeBruce DeBruce Grain Kansas City, Missouri
2008–2010 Lu M. Córdova Corlund Industries Boulder, Colorado
2005–2007 Robert A. Funk Express Personnel Services Oklahoma City, Oklahoma
2003–2004 Richard H. Bard International Surface Preparation Corporation Golden, Colorado
2001–2002 Terrence P. Dunn J.E. Dunn Construction Kansas City, Missouri
1998–2000 Jo Marie Dancik Ernst & Young Denver, Colorado
1996–1997 A. Drue Jennings Kansas City Power & Light Company Kansas City, Missouri
1995–1996 Herman Cain Godfather's Pizza Omaha, Nebraska
1992–1994 Burton A. Dole, Jr. Puritan-Bennett Corporation Overland Park, Kansas

Board of Directors[edit]

The following people are on the board of directors as of 2016:[24]

Class Name Company Residence Term Expires Dec 31 Notes
A Max T. Wake Jones National Bank & Trust Co. Seward, Nebraska 2016
A Paul J. Thompson Country Club Bank Kansas City, Missouri 2017
A Mark A. Zaback Jonah Bank of Wyoming Casper, Wyoming 2018
B Len C. Rodman Black & Veatch Overland Park, Kansas 2016
B Lilly Marks University of Colorado and Anschutz Medical Campus Aurora, Colorado 2017
B Brent A. Stewart, Sr. United Way of Greater Kansas City Kansas City, Missouri 2018
C Rose M. Washington Tulsa Economic Development Corporation Tulsa, Oklahoma 2016 Deputy Chairman
C James C. Farrell Farmers National Company Omaha, Nebraska 2017
C Steve C. Maestas Maestas Development Group Albuquerque, New Mexico 2018 Chairman

According to the Kansas City's website the directors blended as follows:[25]

Class A - Three Class A directors represent commercial banks that are members of the Federal Reserve System. These directors are bankers who are nominated and elected by member banks within the Tenth Federal Reserve District, which includes western Missouri, Nebraska, Kansas, Oklahoma, Wyoming, Colorado and northern New Mexico. Under the Class A category, a director will be elected by a specific group of member banks classified as either 1, 2 or 3. This classification is based on the total amount of capital and surplus for each commercial bank, with Group 1 banks being the largest. Each group within the class elects one director.

Class B - Three Class B directors represent the public. Class B directors may not be an officer, director or employee of a bank or bank holding company. These directors are also elected by member banks under the same categories as Class A directors.

Class C - Three Class C directors also represent the public, but are appointed by the Board of Governors of the Federal Reserve System. This adds another layer to the blending of public and private control over the nation’s central bank. The Board of Governors also selects both the chairman and deputy chairman of each regional Federal Reserve Bank’s board of directors from among the Class C directors. These directors are highly insulated from banking relationships. They may not be an officer, director or employee of a bank or bank holding company. Additionally, these directors may not own stock in a bank or a bank holding company.

Popular culture[edit]

The heist in the 2008 movie Mad Money takes place at a fictitious version of the bank.

See also[edit]

References[edit]

  1. ^ "ESTHER GEORGE NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FEDERAL RESERVE BANK OF KANSAS CITY" (PDF). 15 September 2011.
  2. ^ -Timeline - Official Federal Reserve Bank of Kansas City Website Archived December 10, 2006, at the Wayback Machine.
  3. ^ "Truman Places: Federal Reserve Bank - Trumanlibrary.org - Retrieved January 5, 2008". TrumanLibrary.org. Retrieved 16 November 2011.
  4. ^ Federal Reserve Bank of Kansas City Announces Sale of Headquarters Building - March 15, 2005 - Official Press Release Archived September 30, 2006, at the Wayback Machine.
  5. ^ Economic Symposium Conference Proceedings | Federal Reserve Bank of Kansas City Archived 2014-09-29 at the Wayback Machine.
  6. ^ Economic Symposium Conference Proceedings | Federal Reserve Bank of Kansas City
  7. ^ Wiseman, Paul (30 August 2012). "Why world markets focus on tiny Jackson Hole, Wyo". USA Today. Retrieved 23 March 2013.
  8. ^ "Jackson Hole Symposium - kc.frb.org - Retrieved August 22, 2009". kc.frb.org. Retrieved 2011-11-16.
  9. ^ Lahart, Justin. "Mr. Rajan Was Unpopular (But Prescient) at Greenspan Party". Wall Street Journal. Retrieved 18 April 2010.
  10. ^ Lahart, Justin. "Ignoring the Oracles: You Are With the Free Markets, or Against Them". Wall Street Journal. Retrieved 18 April 2010.
  11. ^ Beat Balzli and Michaela Schiessl (8 July 2009). "The Man Nobody Wanted to Hear". Spiegel Online International.
  12. ^ Borio & White. "Borio/White specific 'warning' papers here (2003)" (PDF). Retrieved 3 November 2013.
  13. ^ Rajan. "Rajan specific 'warning' papers here (2005)" (PDF). Retrieved 3 November 2013.
  14. ^ "How Jackson Hole became such an important economic talking shop". The Economist. Retrieved 2017-06-11.
  15. ^ Bank, European Central. "Unemployment in the euro area". European Central Bank. Retrieved 2017-06-11.
  16. ^ "Can Mario Draghi save the euro again?". Washington Post. Retrieved 2017-06-11.
  17. ^ "Draghi steals the show at Jackson Hole". Financial Times. Retrieved 2017-06-11.
  18. ^ "The Lost Consistency of European Policy Makers". Sparse Thoughts of a Gloomy European Economist. 2014-10-06. Retrieved 2017-06-11.
  19. ^ Blackstone, Brian (2014-08-22). "ECB's Mario Draghi Signals Departure From Austerity Focus". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-06-11.
  20. ^ "A Peek at More Than Three Decades of Jackson Hole Economic Gabfests". Bloomberg.com. 2016-08-25. Retrieved 2017-06-11.
  21. ^ Federal Reserve Bank of Kansas City, The Money Museum, Uploaded 25 July 2008.
  22. ^ http://www.frbkc.org/publicat/confidencerestored/confidencerestored.pdf
  23. ^ http://www.kc.frb.org/aboutus/leadership/kansascity-alumni-directors.cfm
  24. ^ "Directors of Federal Reserve Banks and Branches". The Federal Reserve. 8 December 2013.
  25. ^ http://www.kansascityfed.org/aboutus/leadership/board-of-directors-classes.cfm

External links[edit]

Coordinates: 39°4′33″N 94°35′9″W / 39.07583°N 94.58583°W / 39.07583; -94.58583