The current makeup of the Federal Reserve Board results in bankers safeguarding their own interests, U.S. Sen. Bernie Sanders (I-Vt.) said Wednesday.
“The CEOs of the largest banks in America should not be allowed to serve as directors of the main agency in this country in charge of regulating these financial institutions,” Sanders wrote in a statement published on his official website. “The Fed has got to become a more democratic institution that is responsive to the needs of the middle class, not just Wall Street CEOs.”
“Jamie Dimon was the poster child for why we need to end the serious conflicts of interest at the Fed, but he was not alone. Two-thirds of the directors at the New York Fed are hand-picked by the same bankers that the Fed is in charge of regulating,” Sanders said. “Allowing Wall Street CEOs to serve as Federal Reserve directors and hand-pick its members and staff is a clear example of the fox guarding the henhouse.”
Sanders quoted a General Accounting Office report that Dimon was among “at least 18 current and former directors of Federal Reserve banks that received $4 trillion in near-zero-interest Fed loans after the 2008 financial collapse.”
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