Tags: senators | bankers | federal | boards

Senators Seek to Remove Bankers From Fed Boards

Tuesday, 22 May 2012 01:02 PM

 

U.S. Senators Bernie Sanders, Barbara Boxer and Mark Begich plan to introduce legislation today that would remove banking industry executives from the 12 regional Fed banks’ boards of directors.

“Allowing currently employed banking industry executives to serve as directors on the boards of directors of Federal Reserve banks is a clear conflict of interest that must be eliminated,” according to the text of the bill, released today by Sanders, a Vermont Independent who caucuses with Democrats.

Congress created the Fed nearly a century ago with a mix of public and private features, including 12 regional banks with private banking executives on their board of directors. The structure of the central bank is under new scrutiny following a $2 billion trading loss at JPMorgan Chase & Co. whose chief executive officer, Jamie Dimon, is on the board of directors of the New York Fed.

Sanders and Boxer, a Democrat from California, plan a press conference today to discuss the legislation. Begich, a Democrat from Alaska, is a cosponsor of the bill.

The 12 regional Fed banks each have a nine-member board of directors. Six of those directors are appointed by banks that are members of the Federal Reserve System. The remaining three are appointed by the central bank’s Board of Governors in Washington.

The legislation would make all nine members appointed by the Board of Governors. The governors are political appointees, nominated by the president and confirmed by the Senate.

Employees of any firm regulated by the Fed would no longer be eligible. The legislation also says that directors and employees of the Fed system would be prohibited from owning stock or investing in any company that is regulated by the Fed system “without exception.”


© Copyright 2015 Bloomberg News. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Scientist Considered Father of Birth Control Pill Dies

Saturday, 31 Jan 2015 19:42 PM

Carl Djerassi, the chemist widely considered the father of the birth control pill, has died.Stanford University spokesma . . .

Navy Abandons 'Global Force for Good' to Broaden Appeal

Saturday, 31 Jan 2015 13:55 PM

The Navy is taking a new approach to its recruiting commercials: Appealing to people who are already in uniform, have lo . . .

NYC's de Blasio: I've Moved Past Police Crisis

Saturday, 31 Jan 2015 13:04 PM

Weeks removed from an open revolt from his own police force that had officers turning their backs on him, Mayor Bill de  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved