The Federal Reserve along with the other Federal Financial Institutions Examination Council (FFIEC) agencies is inviting financial institutions to participate in the U.S Treasury Department sponsored industry-wide business continuity exercise for members of the financial services sector. The purpose of the exercise is to test the financial sector’s ability to respond to a pandemic like crisis, such as an influenza pandemic. The exercise targets all financial services organizations across the United States. Financial institutions may want to consider this exercise as an opportunity to test their pandemic contingency programs and to identify opportunities for improvement.

The exercise is scheduled to begin September 24, 2007, and conclude on October 10, 2007. The exercise is voluntary and there is no fee to participate. The FFIEC’s press release inviting the financial institutions to participate in the exercise is available on the FFIEC’s web site at www.ffiec.gov. Detailed information about the exercise and registration is available at the pandemic flu exercise website: www.fspanfluexercise.com.

Federal Reserve Banks are asked to distribute this letter to banking organizations supervised by the Federal Reserve, as well as to their own supervisory and examination staff. Please note that institutions must register to participate in this exercise by August 31, 2007 through the pandemic flu exercise website.