Sanders Seeks Removal of Bankers from Fed Boards Posted by AVCU on 2:06 PM

Vermont Senator Bernie Sanders, along with Barbara Boxer and Mark Begich introduced legislation yesterday to 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 Sanders. Congress created the Fed a century ago with 12 regional banks with private bank executives on their boards. The Fed structure is under scrutiny following a $2 billion trading loss at JPMorgan Chase, whose CEO, Jamie Dimon, is on the board of the New York Fed. “If this is not a conflict of interest, I don’t know what is,” Sanders said.

The 12 regional Fed banks each have a nine-member board of directors. Six are appointed by member banks of the Fed System. The other three are appointed by the Fed's Board of Governors in DC. The legislation would make all nine members appointed by the Board of Governors. Watch Sanders public statement below.