The Federal Reserve Banks perform fiduciary services for the U.S. Treasury. The Fed maintains the Treasury’s funds account and clears checks drawn on that account, thereby acting as the federal government’s bank.
A few Reserve Banks also conduct nationwide auctions of Treasury securities, through which the Treasury raises money to finance government spending and refinance debt. The Philadelphia Fed is the central site for Legacy Treasury Direct, an electronic record-keeping system that issues and maintains the securities that investors purchase directly from the Treasury.
Philadelphia’s Treasury Services Department also maintains the Collateral Management System, a web-based application that manages, values, and monitors collateral for the U.S. Treasury, and on behalf of the entire Federal Reserve System for the Reserve Banks’ discount window lending. Philadelphia also maintains the system that manages the checkbook of the U.S. Treasury. This system, known as the Treasury Check Information System, reconciles government checks and also provides the functionality to handle any check-related claim cases.