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Federal Reserve Bank of New York

The Federal Reserve Bank of New York is one of the twelve regional Reserve Banks of the Federal Reserve SystemFederal Reserve SystemThe Federal Reserve System is the central bank of the United States. Created by the Federal Reserve Act of 1913, it consists of the Board of Governors in Washington, D.C., twelve regional Federal Reserve Banks and the Federal Open Market Committee (FOMC).Open the full entry and serves the Second District. The largest Reserve Bank by assets and volume of activity, it conducts open market operations for the Federal Open Market Committee and stores monetary gold for official institutions.

Contents22 sections
Key facts

First Board Meeting Elects Benjamin Strong Governor

On October 5, 1914, about a month and a half before the bank opened, the first meeting of the Federal Reserve Bank of New York’s board elected Benjamin Strong Jr., then 41 and president of Bankers Trust Co., as Governor. Born in 1872, Strong had begun his career in finance in 1891 at Cuyler, Morgan and Co. and from 1904 served Bankers Trust Co. successively as secretary, vice president and president.⁠[1]

Opening on Cedar Street

The Federal Reserve Bank of New York opened on November 16, 1914, in subleased offices at 62 Cedar Street with seven officers and 85 clerical employees, taking in deposits of $99,814,000 from 479 commercial banks. By the end of 1918 it occupied six locations with more than 203,000 square feet.⁠[2]

The bank began with more than $20 million in capital stock, and many of its staff were on loan from local banks.⁠[3]

Building the Liberty Street Headquarters

In 1918–1919 the bank bought the block bounded by Liberty, Nassau and William Streets and Maiden Lane for $4.8 million, and the existing buildings were demolished from May to September 1921. A building committee appointed in early 1921 chose York & Sawyer through a competition among six firms, with Philip Sawyer as designer; Samuel Yellin was commissioned in 1920 for the decorative wrought iron.⁠[2]

Excavation began in 1921, reaching bedrock 117 feet below street level, and Strong laid the cornerstone on May 31, 1922. In June 1924, 2,600 officers and employees began moving in, and the building was completed in September 1924. It has 22 floors, four below street level and 18 above, and is built of limestone and sandstone in a style modeled on Florentine Renaissance palazzos.⁠[2]

Buffalo Branch Opens

On May 15, 1919, the bank opened its first branch, in Buffalo; the branch closed in October 2008.⁠[3]

Benjamin Strong and International Central Bank Cooperation

Strong’s tenure ran to October 16, 1928; he died in 1928 while still chief executive. George L. Harrison succeeded him on November 22, 1928.⁠[4][1]

Montauk Building Acquired and Eastern End Built

The bank’s 1918 offer of $400,000 for the Montauk Building on the same block was refused; it bought the building in September 1933 for $326,250. Construction of the eastern end began in July 1934 and was completed in July 1935, at a total cost of $21 million.⁠[2]

Chief Executive Retitled President

Before the Banking Act of 1935, the head of each Federal Reserve Bank held the title of governor. On March 1, 1936, Harrison’s title changed from Governor to President.⁠[4]

Foreign Gold Arrives Around World War II

The vault was built during the construction of the building in the early 1920s. During and after World War II, as many countries sought a safe place to keep their reserves, much of the gold now in the vault arrived.⁠[5]

Building Designated a New York City Landmark

The headquarters building was designated a New York City Landmark on December 21, 1965, and was listed on the State and National Registers of Historic Places on May 6, 1980.⁠[2]

Gold Holdings Peak

Holdings in the vault peaked at more than 12,000 tons in 1973, shortly after the United States stopped allowing foreign governments to convert dollars into gold, and have declined gradually since then.⁠[5]

The Utica Office and the East Rutherford Operations Center

Keeping Payments Running

During the attacks of September 11, 2001, the bank kept essential trading and payments operations and dollar payment systems running, and provided medical care, showers and meals to rescue workers and staff.⁠[2][3]

Maiden Lane LLC for the Bear Stearns Transaction

The Maiden Lane LLC transaction connected with the acquisition of Bear Stearns by JPMorgan Chase & Co.JPMorgan Chase & Co.JPMorgan Chase & Co. is a financial holding company headquartered in New York that operates investment banking, consumer and small business financial services, commercial banking, financial transaction processing and asset management under its J.P. Morgan and Chase brands; its roots trace back to the Manhattan Company of 1799.Open the full entry closed on June 26, 2008; the Federal Reserve Bank of New York lent the entity about $28.82 billion as a senior loan, alongside a subordinate loan of about $1.15 billion from JPMorgan Chase.⁠[6]

Emergency Credit for AIG

On September 16, 2008, the Board of Governors of the Federal Reserve System, using its emergency authority under section 13(3) of the Federal Reserve Act, authorized the Federal Reserve Bank of New York to extend AIG a secured revolving credit facility of up to $85 billion; AIG agreed to transfer 79.9 percent of its equity to a trust for the benefit of the U.S. Treasury. On October 8 the Board authorized a securities borrowing facility of up to $37.8 billion, and a restructuring on November 10 reduced the revolving facility from $85 billion to $60 billion.⁠[7]

As part of the November 2008 restructuring, the Maiden Lane II LLC transaction closed on December 12, 2008, with a loan of about $19.5 billion from the bank; the bank also lent Maiden Lane III LLC about $24.3 billion, with AIG contributing $5 billion of equity.⁠[6]

AIG Loans Repaid and the Maiden Lane Entities Wound Down

On January 14, 2011, the bank’s assistance to AIG was terminated and its loans fully repaid with interest and fees; interest and fees on the revolving credit facility totaled about $6.7 billion. Maiden Lane II LLC and Maiden Lane III LLC sold their remaining securities on February 28 and August 23, 2012, producing a combined net gain of about $9.4 billion for the U.S. public.⁠[7]

Maiden Lane LLC repaid the bank’s loan with interest on June 14, 2012, and sold its last securities on September 18, 2018, for a net gain of about $2.5 billion.⁠[6]

John C. Williams Becomes President

As of November 2026: Leadership and Board of Directors

District and Functions

For monetary policy, the bank conducts open market operations for the FOMC, buying and selling Treasury securities through primary dealers and holding them in the System Open Market Account (SOMA). It intervenes in foreign exchange markets on behalf of the Treasury and the Federal Reserve System and serves as the main contact for foreign central banks; it examines member banks, bank holding companies and many U.S. operations of foreign banks in the Second District and provides liquidity through the discount window; it operates the large-dollar Fedwire system as the System’s Wholesale Product Office and acts as fiscal agent for the government.⁠[10]

The Gold Vault

The vault lies beneath the headquarters on Manhattan bedrock, 80 feet below street level and 50 feet below sea level, with 122 compartments; its only entrance is guarded by a 90-ton steel cylinder set in a 140-ton steel-and-concrete frame. As of 2024 it held about 507,000 gold bars weighing 6,331 metric tons and remains the world’s largest known depository of monetary gold.⁠[5]

None of the gold belongs to the Federal Reserve Bank of New York or the Federal Reserve System; it is owned by the U.S. government, foreign governments, other central banks and official international organizations, and no individuals or private entities may store gold there. The bank charges handling fees for deposits, withdrawals and transfers between compartments but no storage fee, and values the gold at the U.S. official book value of $42.2222 per troy ounce.⁠[5]

Presidents

The bank’s chief executives have been Benjamin Strong Jr. (1914–1928), George L. Harrison (1928–1940), Allan Sproul (January 1, 1941–June 30, 1956), Alfred Hayes (August 1, 1956–August 1, 1975), Paul Volcker (August 1, 1975–August 2, 1979), Anthony M. Solomon (April 1, 1980–January 1, 1985), E. Gerald Corrigan (January 1, 1985–July 19, 1993), William J. McDonough (July 19, 1993–June 11, 2003), interim president Jamie B. Stewart (June 11–November 17, 2003), Timothy F. Geithner (November 17, 2003–January 27, 2009), William C. Dudley (January 27, 2009–June 17, 2018) and John C. Williams (from 2018).⁠[4][11]

Related Organizations, Websites, and Public Accounts

Federal Reserve Bank of New York: Official website: https://www.newyorkfed.org/ (opens in a new window).⁠[10]

Federal Reserve System: Official website: https://www.federalreserve.gov/ (opens in a new window).⁠[8]

Sources

  1. Benjamin Strong Jr. (opens in a new window)
  2. About the Building (opens in a new window)
  3. Federal Reserve Bank of New York (opens in a new window)
  4. Presidents of the Federal Reserve Bank of New York (opens in a new window)
  5. Gold Vault (opens in a new window)
  6. Maiden Lane Transactions (opens in a new window)
  7. Actions Related to AIG (opens in a new window)
  8. Federal Reserve Bank of New York (opens in a new window)
  9. Office of the President (opens in a new window)
  10. What We Do (opens in a new window)
  11. Historical Speeches (opens in a new window)