Federal Reserve Chairman Alan Greenspan recently told Congress that banks also had upgraded their plans for dealing with the “fortunately low but still deeply disturbing possibility” that terrorists could strike America again. Bucknam credited the U.S. government for issuing the warning and was pleased intelligence agents seem to be disrupting the latest terrorist plans. “We’ve all suspected since 9/11 that this could happen,” he said. “I’m looking at the positive in this.” Treasury Secretary John Snow warned last month that the U.S. economy would be shaken by another attack. Appearing on MSNBC Monday, Snow urged banks and the stock exchanges to stay open under added security.
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He said the intelligence reports amounted to “the most extraordinarily detailed documents I’ve seen” and shows financial institutions need to be vigilant. The Birmingham branch of the Federal Reserve Bank will no longer process checks since many people are moving away from paper-based forms of payment, an agency spokesman said. The branch’s check processing operations will be moved to the Federal Reserve Banks’ Atlanta office, the federal agency reported Monday. The Birmingham location is a branch of the Atlanta office.
It’s not known how many of the processing jobs at the Birmingham branch will be affected by changes since some staff reductions will occur through attrition. Other staff members might have opportunities for reassignment or relocation, officials said. The changes are due to the declining number of paper checks written in the United States, the reserve banks reported. A 2001 Federal Reserve study found that about checks were written in the United States in 2000, down from about 50 billion.
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“People are moving away from paper-based forms of payment,” said Pierce Nelson, spokesman for the Federal Reserve Bank of Atlanta. “This is a difficult decision to make, but we are making it based on trends in the nation’s payment system.” The growing popularity of electronic forms of payment such as the Internet and debit cards have reduced the amount of paper checks, Nelson said. Nine reserve bank sites across the nation will discontinue check processing operations as part of the plan.