–Correcting 10:00 ET Story to Reflect That Chairs and Deputy
Chairs Must Be Chosen From Among Class C Directors, Who in Turn Cannot
Be Affiliated With or Own Shares in a Bank.

WASHINGTON (MNI) – The Federal Reserve Monday announced its
nominees to serve on the boards of the 12 regional Fed banks for 2011.

Each Reserve Bank has a nine-member board of directors. The Board
of Governors in Washington appoints three of these directors and each
year designates one of its appointees as chair and a second as deputy
chair.

For the New York Federal Reserve Bank, the board named Lee
Bollinger, president of Columbia University as chairman, while his
deputy will be Katheryn Wylde, president and CEO of the Partnership for
New York City.

The Federal Reserve has been sensitive to any accusations of a
conflict of interest made by Fed critics during the development of
financial industry reform legislation who cited the case of then N.Y.
Fed Chairman Stephen Friedman who purchased $3 million additional shares
of stock in Goldman Sachs in December 2008. The Fed said its top
officials in New York and Washington were not aware of the additional
purchase beyond those he already owned during Goldman’s transition to a
bank and for which a waiver had been requested.

Friedman, who remains a member of Goldman Sachs’ board, came into
violation of Federal Reserve policy when Goldman was converted to a bank
holding company in September 2008, thereby placing it under the
regulatory authority of the New York Fed. He resigned from the Fed board
in May 2009 but said in his resignation letter that the criticism was
unwarranted.

By law, the chairpersons and deputy chairs of the Fed regional
banks must be chosen from among Class C directors, who in turn cannot be
affiliated or own shares in a bank. And since the Friedman episode, the
Fed has implemented a new policy that covers any Class C director who
owns stock in a company that later becomes a bank holding company,
saying the stock must be sold or the director must depart the Fed
affiliation within 60 days.

Below is the full list of of the chairs and deputy chairs
designated by the Board for 2011:

Boston – Henri A. Termeer, Chairman, President and Chief Executive
Officer, Genzyme Corporation, Cambridge, Massachusetts, renamed Chair.

Kirk A. Sykes, President, Urban Strategy America Fund, L.P.,
Boston, Massachusetts, renamed Deputy Chair.

New York – Lee C. Bollinger, President, Columbia University, New
York, New York, named Chair.

Katheryn S. Wylde, President and Chief Executive Officer,
Partnership for New York City, New York, New York, named Deputy Chair.

Philadelphia – Charles P. Pizzi, President and Chief Executive
Officer, Tasty Baking Company, Philadelphia, Pennsylvania, renamed
Chair.

Jeremy Nowak, President and Chief Executive Officer, The
Reinvestment Fund, Philadelphia, Pennsylvania, renamed Deputy Chair.

Cleveland – Alfred M. Rankin, Jr., Chairman, President and Chief
Executive Officer, NACCO Industries, Inc., Cleveland, Ohio, renamed
Chair.

Richard K. Smucker, Executive Chairman and Co-Chief Executive
Officer, The J.M. Smucker Company, Orrville, Ohio, renamed Deputy Chair.

Richmond – Margaret E. McDermid, Senior Vice President and Chief
Information Officer, Dominion Resources, Inc., Richmond, Virginia, named
Chair.

Linda D. Rabbitt, Chairman and Chief Executive Officer, Rand
Construction Corporation, Washington, D.C., named Deputy Chair.

Atlanta – Carol B. Tom, Chief Financial Officer and Executive Vice
President, The Home Depot, Atlanta, Georgia, renamed Chair.

Thomas I. Barkin, Director, McKinsey & Company, Atlanta, Georgia,
renamed Deputy Chair.

Chicago – William C. Foote, Chairman and Chief Executive Officer,
USG Corporation, Chicago, Illinois, renamed Chair.

Thomas J. Wilson, Chairman, President and Chief Executive Officer,
The Allstate Corporation, Northbrook, Illinois, renamed Deputy Chair.

St. Louis – Steven H. Lipstein, President and Chief Executive
Officer, BJC HealthCare, St. Louis, Missouri, renamed Chair.

Ward M. Klein, Chief Executive Officer, Energizer Holdings, Inc.,
St. Louis, Missouri, renamed Deputy Chair.

Minneapolis – John W. Marvin, Chairman and Chief Executive Officer,
Marvin Windows and Doors, Warroad, Minnesota, renamed Chair.

Mary K. Brainerd, President and Chief Executive Officer,
HealthPartners, Minneapolis, Minnesota, renamed Deputy Chair.

Kansas City – Paul DeBruce, Chief Executive Officer and
Chairman/Founder, DeBruce Grain, Inc., Kansas City, Missouri, named
Chair.

Lu M. Cordova, Chief Executive Officer, Corlund Industries, LLC;
President and General Manager, Almacen Storage Group, Boulder, Colorado,
named Deputy Chair.

Dallas – Herb Kelleher, Founder and Chairman Emeritus, Southwest
Airlines, Dallas, Texas, named Chair.

Myron E. Ullman III, Chief Executive Officer and Chairman of the
Board, J.C. Penney Company, Inc., Plano, Texas, named Deputy Chair.

San Francisco – Douglas W. Shorenstein, Chairman and Chief
Executive Officer, Shorenstein Properties LLC, San Francisco,
California, named Chair.

Patricia E. Yarrington, Vice President and Chief Financial Officer,
Chevron Corporation, San Ramon, California, named Deputy Chair.

** Market News International Washington Bureau: 202-371-2121 **

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