Federal Reserve discount loans to banks to meet liquidity needs dropped off sharply on Thursday and returned to lower levels by Friday. Separately, overnight overdrafts on Tuesday and Wednesday rose to several billion dollars, as a handful of depository and other institutions with accounts at the Federal Reserve were forced into overdraft positions on their reserve accounts.
We will continue efforts to attract and retain both specialists and generalists who are qualified to address issues as the industry evolves. As I have outlined in my testimony, the Federal Reserve’s supervisory strategy is to maintain staff who can adequately evaluate the general soundness of banking activities by placing strong emphasis on the bank’s management processes, systems, and controls.