Inside the Fed: Charlotte's fortress of finance brings benefits
With hundreds of millions stacked up inside, security is a top priority. PLUS: the news of the week.
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Editor’s note: In this special series, Mark Washburn provides an exclusive look inside the Charlotte branch of the Federal Reserve Bank, uncovering its vital role in Carolinas commerce. Each segment offers a unique glimpse into the unseen engine driving our local economy. Our regular Ledger newsletters return beginning Monday.
Here are the local economic benefits, enhanced security measures and regional influence gained from Charlotte’s Federal Reserve branch.
by Mark Washburn
When 12 Federal Reserve Banks were established in 1913, they were put in cities with the greatest financial and regional influence.
Over the years, 24 satellite branches have been added, including Charlotte’s. They are prestigious to the communities they are located in and add vitality to the local financial industry.
But having a branch has other benefits. Fed economists monitor local and regional economic trends. They interact with residents across the Carolinas, finding out how people experience the economy and issue periodic regional reports.
Each month since January 2008, the Federal Reserve Bank of Richmond has conducted the Carolinas survey of business activity. The survey is sent electronically to business contacts throughout North Carolina and South Carolina.
Tom Barkin, president of the Richmond Fed, has made a priority of partnering with people in small towns and rural areas in his district to monitor their micro economies.
Thomas Barkin, president of the Richmond Federal Reserve Bank. (Federal Reserve photo)
Because Barkin sits on the Federal Open Market Committee, this means their experiences and observations can help shape national monetary policy.
Bank examiners number about 100 at the Charlotte branch, assigned to various divisions like the major banking institutions and those in rural areas.
They ensure the safety and soundness of the financial system, says Jim Strader, media relations manager for the Richmond district.
Security from the ground up
With hundreds of millions stacked up inside, the building has always been a fortress.
Among the security measures:
Sensors are buried in the ground to detect anyone trying to tunnel in.
A special police force with powers of arrest anywhere in the city block the Fed occupies is always on patrol. They are Fed employees who carry sidearms and are never far from long guns. They polish their marksmanship on the basement firing range.
Cameras outside monitor the perimeter. Inside, camera bubbles pimple ceilings and walls. In counting rooms and other sensitive areas, multiple cameras observe every movement. They are powerful enough to read a serial number on a bill from above and can be monitored from screens in Charlotte and elsewhere in the Fed system.
New currency is shipped by truck from the Bureau of Engraving and Printing in Washington, D.C., occasionally in 18-wheelers. They don’t travel alone.
In counting rooms, authorized employees wear blue smocks. There must always be at least two blue-smocked workers together. When “non-accountable personnel” —meaning visitors from another department — enter such areas, they don red smocks to be easily identified and monitored.
It probably doesn’t hurt that Charlotte-Mecklenburg Police headquarters is across the street.
In all its history, there has never been a major security breach at Charlotte’s Fed. Perhaps there’s something to be said for maintaining a low profile in a high-stakes industry.
Mark Washburn is a retired Charlotte Observer writer and columnist who lives in Davidson. Reach him at mwashburn76@gmail.com.
Previously:
“Inside the Fed: Non-stop machinery of Carolinas’ cash” (Monday)
“Inside the Fed: Follow the money” (Wednesday)
“Inside the Fed: How Charlotte secured its Federal Reserve branch” (Friday)
Today’s supporting sponsor is SouthPark Community Partners, an independent nonprofit organization whose mission is to lead SouthPark's advancement by driving economic vitality, creating memorable experiences, and ensuring an extraordinary quality of life.
This week in Charlotte: Two teens arrested in deadly shooting spree, new alcohol laws, soccer fight, Observer cuts back on print paper
On Saturdays, The Ledger sifts through the local news of the week and links to the top articles — even if they appeared somewhere else. We’ll help you get caught up. That’s what Saturdays are for.
Education
CMS teachers say district is late on paying: (Observer) Some Charlotte-Mecklenburg Schools teachers say their paychecks for working summer school are late.
CMS health screenings plunge: (EduGram) The number of vision screenings of students in Charlotte-Mecklenburg Schools fell 65% last year compared with 2022-23, dental screenings fell 85% and hearing screenings fell similarly.
Politics
Alcohol law changes: (WRAL) Gov. Roy Cooper signed into law a bill allowing ABC stores to open on New Year’s Day, the Fourth of July and Labor Day. It also allows to-go and delivery sales of mixed drinks and lets airport passengers carry drinks around the terminal.
Transit authority envisioned: (WFAE) The draft of a transportation bill that local officials are considering proposing calls for creating a transit authority to spend money from a higher sales tax, with 40% of the money going to roads and limits on spending on rail.
Business
Observer to reduce print newspaper to 3 days/week: (Ledger) The Charlotte Observer plans to reduce its print edition to three days a week starting in September, shifting towards a digital-forward newsroom to better meet modern reader expectations and operational needs.
Wells’ profits slide: (Reuters) Wells Fargo’s second-quarter profit dropped 9%, and its interest income fell short of analysts’ expectations, as the bank said it had to pay more to retain customers amid higher interest rates.
Car rental virtual customer service: (404 Media; hat tip to N.C. Rabbit Hole) There’s a car rental office off Tyvola Road that has no human workers but instead uses agents on video screens. Customers walking into Nu Car Rentals are greeted with a computer screen that says “Tap this screen to be connected to an agent.”
Local News
Two arrested in deadly shooting spree: (WBTV) Charlotte-Mecklenburg Police arrested an 18-year-old and a 16-year-old in connection with four shootings from a vehicle in a 30-minute span Tuesday morning.
Jail lawsuit: (WFAE) Parents of a Mecklenburg County Jail inmate who died in custody in July 2022 sued Sheriff Garry McFadden this week, saying the sheriff routinely ignored the medical needs of inmates. The sheriff’s office says it doesn’t comment on pending litigation.
Sports
Tough road stretch ahead for Charlotte FC: (Futbol Friday) Charlotte FC faces a tough midseason schedule with upcoming away games against top Eastern Conference teams Cincinnati and Columbus, following a recent loss to Inter Miami and a challenging roster situation.
Soccer fight: (Associated Press) After a 1-0 loss to Colombia at Bank of America Stadium on Wednesday, about a dozen Uruguay players entered the stands and fought with Colombia fans. Uruguay’s captain said the players were trying to protect their families and that there was “not a single police officer.”
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Executive editor: Tony Mecia; Managing editor: Cristina Bolling; Staff writer: Lindsey Banks; Business manager: Brie Chrisman, BC Creative