APPENDIX II

Continuing Programs In Support Of Affirmative Action

Recruitment

Affirmative Action Job Fair. The Bank attended its second Affirmative Action Job Fair for experienced applicants. Several candidates are under active consideration for future job openings.

American Institute of Banking (AIB) Career Success Program, AIB, the NYC Department of Employment, and participating banks (including this Bank) provided office and clerical skills training and employment opportunities for economically disadvantaged candidates.

INROADS, INROADS is a program designed to identify and develop talented Black and Hispanic high school students entering four year colleges who possess an interest in pursuing business careers. The Bank provided summer employment and business advisors to six students in 1991. The Bank increased its participation in the program by conducting two workshops, sponsored by INROADS, for their students. Finally, the Bank actively recruits graduate INROADERS who are seeking employment.

Summer Internship Program. For 12 weeks each summer, ten interns receive first hand work experience and participate in a variety of seminars and workshops designed to expose them to the many job opportunities at the Bank. Each of the students is matched with a mentor to assist him or her in adjusting to the Bank and to support and encourage personal and professional growth.

Recruitment at Predominantly Minority Colleges and Universities. The Bank continues to recruit on campus at five women's colleges on the east coast and at four minority colleges in the southeast. The Bank also participated in our ninth minority college career fair at the Atlanta University Center.

Leadership, Education and Development (LEAD) Program in Business Inc. This program is designed to attract outstanding minority high school students to careers in business and management. During 1991, the Bank hosted "A Day at the Fed" for 20 LEAD students.

American Economic Association's (AEA) Summer Program for Minority Economists. The Bank provides financial support to this program which teaches econometrics to minority students during the summer.

Urban Bankers Coalition (UBC). UBC encourages the advancement of minorities in banking and finance through a variety of development programs and seminars. A senior officer is a member of the local chapter's board of directors and Mr. Oltman, First Vice President, served as honorary chairperson for UBC's annual awards dinner.

AEA Federal Reserve System Ph.D. Fellowships for Minority Students. The Bank provided financial support to this program which seeks to increase the representation of minorities at the Ph.D. level in the economics profession.

Retention

The Fund for Corporate Initiatives, Inc.: Young Executive Program. This program is designed to develop managerial and leadership skills and provide exposure to a broad range of management issues, as presented by successful corporate executives. For the last six years, the Bank has sponsored a minority senior staff member's attendance at this program.

Black Executive Exchange Program (BEEP). The Bank sponsors, under the auspices of the National Urban League, minority employees as guest lecturers at predominantly black colleges and universities. Four minority officers and senior staff employees participated in

1991.

Community Involvement

Join-A-School Program. This program, sponsored by the New York City Board of Education, promotes one-to-one partnerships between businesses and public high schools. Its purpose is to build a bridge for students between the classroom and the world of work. Among the variety of activities in its partnership with Curtis High School, the Bank provided technical assistance in the form of workshops and seminars, and sponsored a Mentorship Program.

Youth Opportunity Council. During the summer of 1991, the Bank employed 12 students in various clerical positions under the auspices of the New York City Partnership Program which provides job opportunities for economically disadvantaged high school and college students.

Solidaridad Humana, Solidaridad Humana is a non-profit institution which teaches adult language skills and office skills to Hispanic students and recent immigrants. A senior staff employee and a senior officer provide technical guidance as members of its Business Advisory Council.

International Center for the Disabled (ICD), ICD is a vocational training organization which provides placement assistance to the disabled. A Personnel Officer is a member of the Placement Committee.

Lower Eastside Service Center (LESC), LESC is a non-profit organization providing drug and alcohol abuse treatment programs. During the past year, two members of the Bank's training staff provided word processing training to staff at the LESC and a senior officer provided technical assistance as a member of its Business Advisory Council.

Federation for the Handicapped. The Federation is a vocational training organization which provides training and placement assistance to the disabled. A senior officer is a member of its Business Advisory Board.

Model Office Classroom (MOC), Sponsored by the Mayor's Volunteer Action Center, MOC brings business speakers to the classroom. In 1991, the Bank provided guest speakers to students at Mabel Dean Bacon High School, a vocational school located in lower Manhattan.

APPENDIX III

AFFIRMATIVE ACTION INITIATIVES FOR 1992

Recruitment

Graduate level summer internship program. Given the Bank's increasing need for master's level candidates and the greater potential for this group to move into the senior staff ranks, we will shift our summer internship program emphasis to the recruitment of more master's level students.

Urban Bankers Coalition (UBC). A senior officer of the Bank will serve as the National President of the National Association of Urban Bankers. The Bank will continue to network with a large pool of minority professionals through this organization.

Minority professional organizations. We will establish contacts, where possible, with minority professional organizations, especially for recruitment of master's level and professional candidates. This will be done by participating in job fairs coordinated by these organizations, advertising in their newsletters and hosting seminars and information sessions for these groups.

Advertise in minority-targeted publications. Given our increased need for senior staff professionals, we will target various national minority publications in which to advertise job openings.

Development and Retention

Implement Management Development Initiatives. The Personnel Officers, working with area management, will identify "pivotal" positions within the Bank which provide development opportunities for high potential employees. Personnel will recommend, where appropriate, cross-functional rotational assignments into pivotal jobs for training and developmental purposes.

Offer Coaching and Counseling Program. The Bank will offer a customized coaching and counseling program starting in the second quarter of 1992 that is designed to develop stronger communication and feedback between management and staff.

Encourage mentor relationships. Officers are encouraged to develop mentor relationships with minority and female employees to provide a support and counseling structure, as well as broader management perspectives.

Review staffing_of_task_force and Bank objective work groups_for_representation_of minorities and females. Special efforts will be made to include minorities and females on Bank task forces and work groups. This will provide individuals with greater exposure and visibility and further developmental opportunities.

Introduce Performance Planning and Appraisal Process (PPAP), The Bank will introduce a new PPAP to provide effective feedback to employees and strengthen the current performance appraisal process.

Management Awareness of Employee Development and Feedback.

Strengthen review, feedback and evaluation process. The affirmative action performance and feedback process will be strengthened to communicate more frequently with Bank management and members of the Management Development and Compensation Committee on affirmative action progress. High potential minority and female employees will be identified and profiled for the Committee's review, along with other promising employees, in an effort to strengthen the development and retention of these, employees at the Bank.

Place more emphasis on "Managing Diversity" in the Bank's training & development curriculum. Work force diversity challenges managers to identify and solve problems that arise because of cultural, racial, generational, and gender differences. Such problems often have a direct impact on job satisfaction, morale and productivity. Approaches to managing those differences will be incorporated into the Bank's current training curriculum.

Create focus groups. The Bank will continue to use focus groups, comprised of a broad cross section of employees at various levels to review the Bank's efforts on various Personnel-related initiatives.

APPENDIX IV

DEFINITIONS

ADA (AMERICANS WITH DISABILITIES ACT) requires an employer to remove physical impediments or otherwise to make reasonable accommodations to allow a qualified disabled person to perform a job.

AFFIRMATIVE ACTION is positive action taken by employers to hire and advance people protected under the Civil Rights Act of 1964 ("Act"). Affirmative Action programs are the result of executive orders of the President and their purpose is to remedy the effects of past discrimination against those protected by the Act.

CIVIL RIGHTS ACT OF 1964 prohibits discrimination, including harassment, in employment on the basis of race, color, religion, sex, or national origin. The Act also established the Equal Employment Opportunity Commission which administers the Act to ensure equal treatment to all.

EQUAL EMPLOYMENT OPPORTUNITY is the right of every person to apply for and be evaluated for job opportunities and to be considered only on the basis of that person's ability to do the job, and not the person's race, color, religion, sex, or national origin, age, or any mental or physical disability.

DISABLED INDIVIDUAL means any person who (1) has physical or mental impairment which substantially limits one or more of such person's major life activities, (2) has a record of such impairment, or (3) is regarded as having such an impairment. For the purpose of the definition, "major life activity" means any mental or physical function or activity which, if impaired, creates a substantial barrier to employment.

QUALIFIED DISABLED INDIVIDUAL means a disabled individual who is capable of performing a particular job, with a reasonable accommodation to his disability, at an acceptable level in production applicable to a non-disabled incumbent employee.

SEXUAL HARASSMENT is a prohibited form of sex discrimination, and may take two forms. One involves unwelcome conduct, such as a sexual advance, that may be used in making employment decisions. The other exists if there is an intimidating, hostile, or offensive working environment.