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The Federal Reserve announced Aug 2, 2004 it will discontinue check processing in 9 locations by early 2006, reducing its total number of check processing sites to 23. In 2003, the Fed had 45 check processing centers when it announced it would close 13 sites by the end of 2004. While the Fed maintains it is committed to offering check processing services nationwide, at least one consultant says the Fed should get out of the check processing business all together. It would be more efficient to shut down the Fed network, said Bert Ely. The Alexandria, VA based industry observer said that as check volume declines, the Fed is not raising its processing prices sufficiently to cover its costs. The shortfall, he said, amounts to a taxpayer subsidy, which he said should come to an end.