Friday, Feb 03, 2023

U.S. senators propose law to boost transparency at regional Fed banks

U.S. senators propose law to boost transparency at regional Fed banks

The two senators said on Friday in press releases their proposed law would, among other changes, bring the regional Fed banks under what's called the Freedom of Information Act, or FOIA.
The regional Fed banks, while overseen by the Board of Governors in Washington, are actually quasi-private institutions, technically owned by local private banks. The regional Fed banks contribute to monetary policy making and in the case of the New York Fed, implement it, while also regulating local banks and providing services to financial firms. They are not currently officially subject to FOIA, as the Board is.

In a press release, Sen. Warren's office said the law would make sure the regional Fed banks are responsive to congressional inquiries. Both senators have for some time pressed the central bank for various documents about ethics issues and other matters and have said the banks they have contacted have not been responsive.

The law would also fortify the central bank's Office of Inspector General, its in-house watchdog, which is currently investigating the financial market trading of several regional bank leaders, both retired and currently serving. Earlier this year, the Inspector General cleared Fed leader Jerome Powell and his former second-in-command Richard Clarida of trading violations, even as critics like Better Markets have questioned the thoroughness of the inquiry.

The Fed Inspector General is named by the Fed leader, and the proposed law would change that to make the investigations chief a presidential appointment subject to Senate confirmation. The law would also deny all government financial regulatory agencies the ability to refuse congressional requests for ethics-related information.

Warren's office said the law "would strengthen congressional oversight of the Fed and other financial regulatory agencies."

A spokesperson from the Fed declined to comment on the legislation.

At least one Fed watcher was doubtful the legislation has a future. Krishna Guha, an analyst at Evercore ISI, told clients, "we see this bill as unlikely to pass but it has enough bipartisan interest to attract ongoing attention."

Related Articles

EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
House Speaker Kevin McCarthy said he will block Reps. Adam Schiff and Eric Swalwell from serving on the House Intelligence Committee
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Prince William's godmother resigns honorary royal role after exposing her/their racism
Tax fraud verdict again exposes illusion of Trump the master businessman
Tax fraud verdict again exposes illusion of Trump the master businessman.
Yellen hints at ‘national security’ probe into Twitter purchase