ratio from the mid - 1980s through the late 1990s generally ranged between 25 percent and 30 percent. the u. s. branches and agencies of foreign banks that borrowed from their parents and lent those funds in the united states ( “ lending branches ” ) held roughly 60 percent of all foreign bank branch and agency assets in the united states during the 1980s and ’ 90s. commercial and industrial lending continued to account for a large part of foreign bank branch and agency balance sheets through the 1990s. 11 this profile of foreign bank operations in the united states changed in the run - up to the financial crisis. reliance on less stable, short - term wholesale funding increased significantly. many foreign banks shifted from the “ lending branch ” model to a “ funding branch ” model, in which u. s. branches of foreign banks were borrowing large amounts of u. s. dollars to upstream to their parents. these “ funding branches ” went from holding 40 percent of foreign bank branch assets in the mid - 1990s to holding 75 percent of foreign bank branch assets by 2009. foreign banks as a group moved from a position of receiving funding from their parents on a net basis in 1999 to providing significant funding to non - u. s. affiliates by the mid - 2000s – more than $ 700 billion on a net basis by 2008. 12 a good bit of this short - term funding was used to finance long - term, u. s. dollardenominated project and trade finance around the world. there is also evidence that a pub. l. no. 102 - 242, 105 stat. 2286, amending the international banking act of 1978, codified at 12 u. s. c. 3101 – 3111. basel committee on banking supervision ( 1992 ), “ minimum standards for the supervision of international banking groups and their cross - border establishments ”, ( basel : bis, july ), www. bis. org / publ / bcbsc314. htm. the original basel concordat, concluded in 1975, was the first significant accomplishment of the basel committee. ffiec 002, various years. ffiec 002, various years. ffiec 002, various years. bis central bankers ’ speeches significant portion of the dollars raised by european banks in the pre - crisis period ultimately returned to the united states in the form of investments in u. s. securities. indeed, the amount of u. s. dollar - denominated asset - backed securities and other securities held by europeans increased significantly

to better educate america's youth about personal finance. on the regional level, many federal reserve banks work closely with the state coalitions to help achieve this worthy mission. in fact, there is at least one economic education specialist at each of the reserve banks and their branches. many of these specialists offer training seminars to help educators teach vital economic and personal finance topics in their classrooms. the federal reserve also continues to support a variety of programs and initiatives to increase financial literacy. these include : • money smart week, an annual week - long program coordinated by the federal reserve bank of chicago, which educates consumers about money management and promotes financial education awareness in 20 cities across the 7th district ; • building wealth, a resource developed by the federal reserve bank of dallas to help consumers develop a personal plan for building wealth ; • " life smarts ", a national quiz - based competition for high school students sponsored by the national consumer league and promoted by many reserve banks ; • educational web sites, such as the federal reserve bank of san francisco's " fedville, " where students actively learn more about financial concepts such as spending, saving, and earning interest ; and • federalreserveeducation. org, our system - wide education web portal offering easy access to a host of beneficial resources geared toward students, parents, and teachers. in addition to these and many other federal reserve resources, we will continue to work to expand the resources and programs devoted to the important public policy challenge of improving financial literacy. i want to take this opportunity to thank the jump $ tart coalition and their partners for their continued support and commitment to furthering the financial education of our youth. now, it is with great pleasure that i introduce laura levine, executive director of jump $ tart and appointed member of president bush's recently formed council on financial literacy, who will give a report on the status of financial education of youth in this country.