Monetary maven

Business People, Nov 01, 2005 by Vorderman, Steve

Q What is the primary mission of the Federal Reserve, and what is its focus as a financial body?

A The United States Congress created the Federal Reserve System in 1913 and charged it

with the responsibility to foster a sound banking system and a healthy economy.

Q What are some of the most important things the Chicago Fed does on a regular basis, at least in its impact on the regional economy?

A The most important things the Chicago Fed does include:

* Operating as a "banker's bank" for other banks throughout the district, through its operation of payment mechanisms such as wire transfers, automated clearing house payments and check clearing.

* Supervising and regulating state chartered banks that are members of the Federal Reserve System (in our district, which includes portions of Illinois, Indiana, Michigan, Wisconsin and all of Iowa), and bank holding companies.

As one of the banks that make up the Federal Reserve System, the Chicago Fed is responsible for helping to formulate the nation's monetary policy. As a director of the Chicago bank, I am responsible for reporting on business conditions as I understand them. This anecdotal information augments the statistical data compiled by the Fed's staff, so that our interest rate policy is as fully informed as possible.

Q How does the unique economic base of the Midwest affect the country's economy as a whole?

A The Midwest economy as a whole is based on manufacturing. Historically, this has tended to mean cars and trucks, which are obviously important to the national economy. More recently, however, the Midwestern economy has developed a broader base of manufacturing activities, including recreational and other specialpurpose vehicles, valueadded agricultural products, and the higher tech activity related to the orthopedic equipment products made in the Warsaw area. All of these products are marketed and distributed on a national basis.

Q Describe your history with Lake City Bank.

A I grew up in Kosciusko County, in Pierceton, so I've known about Lake City Bank my whole life. The first 25 years of my banking career were out of state though, so I first began working for Lake City in 1998. It's a terrific organization, and I've really enjoyed the last seven years here.

Q What changes and growth has Lake City undergone during your tenure as CEO?

A Lake City Bank has been around since 1872, so we've had a lot of success for a very long time before I got here. What I've tried to do is focus a lot of attention on our bank's core values; the quality of our people, which I believe is outstanding; and the relationship approach we take with our clients. We established a very strong training program we call Lake City University since I've been here, and I'm very proud of that. We also entered Fort Wayne relatively recently, as you know, and I'm proud of our success here.

Q What are some new developments taking place at Lake City? A We've been working on a lot of exciting and important things, but perhaps the most significant new development has been our growth and success in the greater Fort Wayne area. Since building our first Fort Wayne branch in 1999, we've grown to the point where almost one-third of our totals are in this portion of our total footprint.

Q What's in the plans for Lake City, both in its long- and short-term future?

A Future plans include continued growth in the Fort Wayne area. We'll continue to add high quality people when appropriate, and while we have nothing specific to announce just yet, we continue to explore possibilities to establish new office locations as well.

Q What's your vision of the future of northeast Indiana's economy?

A Our challenges in northeast Indiana are well-documented, but I think we have a lot of strengths we can build on in the region There is a strong work ethic here, and we continue to make things here that are purchased by the rest of the country and throughout the world. We are refining and improving these manufacturing processes to make things better and more affordable. Business and civic leaders are developing an understanding that we need to put more emphasis on economic development, and while that process is complex and slow-moving, we are making progress.

Q What aspects of living and working in northeast Indiana are most enjoyable for you?

A This is our home. We've lived in other places, and made our home there at the time, but Rebecca and I truly feel we have come back home here. I really am proud to work with a terrific team of bankers, and am proud to share in their success. Finally, my job allows me to work with the region's business and community leaders, which is very enjoyable. It's a great life, and I feel very lucky to be here.