ALBANY, N.Y. -- National Savings Bank of Albany said it became the first bank in the nation to use the Treasury Department's new software for bidding in government securities auctions.
The software, an enhancement to the Fedline electronic funds transfer system, streamlines the bidding process through Federal Reserve System. the Federal Reserve System.
"Most banks submit orders through an agent" who delivers bids to a Federal Reserve office in person, Russell G. Melton, treasurer and chief investment officer of the Albany thrift, said last month. "We approached the Fed early this year thinking there may be a review of the bidding process" in the wake of problems that surfaced last year at Salomon Brothers, he added.
National Savings, which has $637 million in assets, uses its Fedline connection for wire transfers and monitoring of its Fed account balances.