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Dimon on New York Fed Board Renews Concern About Conflicts   Bloomberg

May 14 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon's position as a director on the Federal Reserve Bank of New York's board renewed concern that the central bank is too close to the institutions it oversees.

Dimon, who disclosed a $2 billion trading loss by his firm last week, is one of three bankers sitting on the New York Fed's board, as mandated by Congress under the Federal Reserve Act. While directors have no role in bank supervision, Elizabeth Warren, a Massachusetts Democrat running for U.S. Senate, called for Dimon's removal from the district bank board because the New York Fed regulates JPMorgan. Senator Bernard Sanders, a Vermont Independent, said he sees a conflict in Dimon's two roles.

Fed governance came under scrutiny after taxpayer-funded bailouts during the 2008 financial crisis sparked a political backlash. The Dodd-Frank Act overhauling bank supervision required a Government Accountability Office audit of the central bank, which was completed last year and found the Fed needs to strengthen policies governing conflicts of interest and improve transparency.

Having bankers on the boards of regional Fed banks "is a problem, period," said Sheila Bair, senior adviser at Pew Charitable Trusts and a former chairman of the Federal Deposit Insurance Corp. "Why the regional banks have members of the industry that they regulate on their boards is beyond me."



As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed May 16th, 2012 at 01:05:05 AM EST
[ Parent ]
Dimon is one of three Class A governors. There are also three Class B and three Class C governors.

From the FRBNY web site:

Board of Directors

Terms expire December 31 of the year indicated.

Class A

elected by member banks to represent member banks
     
Richard L. Carrión (bio) 2013
Chief Executive Officer and Chairman
Banco Popular de Puerto Rico
Jamie Dimon (bio) 2012
Chairman of the Board and Chief Executive Officer
JPMorgan Chase
Paul P. Mello (bio) 2014
President and Chief Executive Officer
Solvay Bank

Class B
   

elected by member banks to represent the public      

Glenn H. Hutchins (bio) 2012
Co-Founder
Silver Lake
Alphonso O'Neil-White (bio) 2013
President and Chief Executive Officer
HealthNow New York, Inc.
Terry J. Lundgren (bio) 2014
Chairman, President and Chief Executive Officer
Macy's, Inc.

Class C
   

appointed by Board of Governors to represent the public
     

Lee C. Bollinger (bio) Chair, 2012
President
Columbia University
Kathryn S. Wylde (bio) Deputy Chair, 2013
President and Chief Executive Officer
Partnership for New York City
Emily K. Rafferty (bio), 2014
President
The Metropolitan Museum of Art


Isn't that nice. Member banks elect representatives of both themselves and the public and then the board elects three more to represent the public. How democratic.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed May 16th, 2012 at 01:17:18 AM EST
[ Parent ]
Yes, and one of the public seats went to the head of a huge hedge fund, Silver Lake, and another to a healthcare vacuum cleaner. Then there's the society wife, a 1%'er, and the CEO of a company which makes its living selling to the public.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Wed May 16th, 2012 at 02:45:02 AM EST
[ Parent ]
None of them is of my family.
by PerCLupi on Wed May 16th, 2012 at 05:22:46 AM EST
[ Parent ]
That's a very narrow definition of "public".

as in, 1% is narrow.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Wed May 16th, 2012 at 05:39:54 AM EST
[ Parent ]
More like the wealthiest 1/10th of 1%.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed May 16th, 2012 at 03:34:38 PM EST
[ Parent ]
The Fed is not a government organisation which exists to regulate the banksters, it is a bankster organistion which exists to regulate government

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Wed May 16th, 2012 at 08:35:45 AM EST
[ Parent ]

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