In two scenarios the Federal Reserve would withdraw from participation in the check and ACH markets and in the remaining three scenarios, the Federal Reserve would continue to provide those services. In the first withdrawal scenario, the Federal Reserve would announce its intention to liquidate its check and ACH services, although we would take steps to provide for a smooth transition for our customers.
In the second, the Federal Reserve envisioned selling its check and ACH services to a private-sector entity that would retain no privileged ties to the Federal Reserve. The three scenarios under which the Federal Reserve would continue to provide retail payment services to banks varied considerably.