Senators Seek to Remove Bankers From Fed Boards

Tuesday, 22 May 2012 01:02 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

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 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
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:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Hollywood's Own Horror Show: Summer Movie Season Worst in Years

Thursday, 24 Jul 2014 13:44 PM

Hollywood studios are in a state of near-financial panic over the dismal performance of American-made films this summer. . . .

Supreme Court Likely to Deal With Obamacare Subsidies Next Year

Thursday, 24 Jul 2014 11:56 AM

With the White House and most of official Washington still reeling from the back-to-back contradictory Obamacare rulings . . .

Two-hour Arizona Execution Sparks Calls for Rethink on Death Penalty

Thursday, 24 Jul 2014 11:22 AM

Lawyers for a double-murderer whose lethal injection in Arizona dragged on for two hours called for an outside review of . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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