Fed Shuts More Check ProcessingPlants
WASHINGTON - (06/01/06) -- The Federal Reserve, which has beenreducing its check processing operations as the Check 21 electroniccheck law becomes more popular, announced Wednesday it is closingdown three more of its check processing facilities leaving just 18across the nation. Since 2003 the Fed has reduced the number of itscheck processing offices from 45. The latest move means the Fedwill discontinue check processing in San Francisco, Kansas City andHelena, Mont., and volume in those three plants will be shifted toother locations. Processing operations in San Francisco will bemoved to Los Angeles; in Kansas City to St. Louis; and in Helena toDenver. The move will mean 280 people at those three facilities, of8% of the Fed's current check processing employees, will lose theirjobs. The most recent data shows that check volumes in the U.S.have declined from 50 billion in 1995 to 37 billion in 2003, aselectronic payments have replaced paper checks as the main currencyof transactions.