Magazine article American Banker

17 Oklahoma Banks Gain Permission to Join Others in 19th Fed District

Magazine article American Banker

17 Oklahoma Banks Gain Permission to Join Others in 19th Fed District

Article excerpt

CHICAGO--Although many banks now are trying to cross state lines, don't include some Oklahoma banks. They want out of Texas, and they've received permission from the Federal Reserve Board to retreat.

Seventeen financial institutions in the southeastern corner of Oklahoma received approval late last year from the Federal Reserve Board to leave the Dallas Fed in the 11th District and rejoin the rest of Oklahoma as part of the 10th District.

The 10th District is headquartered in Kansas City with the Fed bank there and serves Oklahoma banks out of its Oklahoma City office.

The banks made their desire to leave the Dallas Fed known in 1980 when they petitioned the Fed in Washington for the Switch. Most were in favor of the transfer, and only one bank was against it.

"It was a situation where the banks in the eight countries did more business in Oklahoma City than in Dallas," said Edward W. Vorlop, vice president of the Dallas Fed and the person in charge of the transfer. The one bank against the switch was in the opposite position, doing more business with Dallas than Oklahoma City.

How did the Oklahoma counties get assigned to the Dallas Fed in the first place? Mr. Vorlop said it all revolved around the railroads. When the Fed first outlined the districts in 1914, checks were moved by trains, and it was easier for banks in those districts to get checks through by rail to Dallas than to Oklahoma City.

"It was all set up on a basis of moving checks," he explained. …

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