The Legal Group is composed of five separate and distinct Functions: Legal, Bank Applications, Compliance, Federal Reserve Law Enforcement Unit and Records Management.

The Legal Function handles the Bank's legal work, including managing the Bank’s involvement in litigation, conducting transactions and formulating general policy, participating in negotiations, and drafting and reviewing documents, contracts and correspondence. It consists of the following divisions:

• The Bank Supervision and Markets Division provides legal support in the areas of bank regulation and supervision (examination), bank and bank holding company applications under authority delegated by the Board of Governors, capital markets (including open market operations), routine and emergency liquidity assistance through the so-called "Discount Window", and the domestic and international payments and settlement system oversight.  The Division also has oversight responsibility of the Bank Applications Function.

• The Corporate Affairs Division provides legal support on issues related to human resources, ethics, immigration, records management, tax compliance, public information, corporate governance and the Corporate Secretary’s Office.

• The Enforcement, Litigation, Protection and Investigations Division attorneys, investigators and staff handle litigation in which the Bank has an interest, pursue regulatory enforcement investigations and formal actions under authority delegated by the Board of Governors. The Division is also responsible for conducting internal investigations in the Bank.  It also has oversight responsibility for the Federal Reserve Law Enforcement Unit, which includes training and legal support of the law enforcement officers. 

• The Financial Services and Automation Division provides legal support in the areas of financial services and payments (including check collection, cash distribution, Fedwire® funds transfers, Fedwire® securities transfers, automated clearing house transfers and net-settlement arrangements), automation and technology (including intellectual property matters), account and relationship management issues for the Bank’s customers (depository institutions, the US Treasury Department, foreign central banks and international financial organizations) and handles contract and procurement matters for the Bank.

The Bank Applications Function acts pursuant to authority delegated by the Board of Governors of the Federal Reserve System, and is responsible for processing and providing rigorous analytical expertise for bank applications filed by banking institutions under the Bank Holding Company Act, the International Banking Act, the Bank Merger Act, and other relevant laws and regulations to expand their activities or merge with or acquire banks or other companies.

The Compliance Function promotes sound programs and policies designed to mitigate legal risks and protect the Bank's reputation.

The Federal Reserve Law Enforcement Unit provides protection and security for Bank personnel, guests and premises as well as valuables and custodies.