May 8, 2021

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US Fed Investigates “Operational Error” That Interrupted Bank Transfers | News from banks

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The Federal Reserve has said that an “ operational error has caused an interruption of service ” in some of its systems that process billions of dollars in payments every day.

The U.S. Federal Reserve said on Wednesday it was restoring services disrupted by an “operational error” that led to outages in a dozen regions, including check clearing and Fedwire, which handles billions of dollars in daily transactions for the biggest banks in the world.

“An operational error by the Federal Reserve resulted in a disruption of service in several lines of business,” the Fed said in an emailed statement. “We are restoring services and communicating with all Federal Reserve Financial Services clients regarding the status of operations.”

The Fed first reported potential issues with the services at 12:43 p.m. EST (5:43 p.m. GMT). At 2:09 p.m. (19:09 GMT), its website reported an “alert” state for Fedwire, FedACH and 11 other regions.

The departments involved form the hidden backbone of the U.S. banking system, making it easier to clear checks and allowing billions of dollars in payments to flow through the financial system daily.

Fedwire is “the premier electronic funds transfer service that banks, businesses and government agencies rely on for critical same-day transactions,” says the Fed.

In December, Fedwire Funds processed over 835,000 transactions per day on average, with an average daily volume of $ 3.4 trillion.





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