Gov't audit: Fed bank boards lack diversity
WASHINGTON (AP) - A government watchdog says the boards of regional Federal Reserve banks need stronger policies to avoid conflicts of interest...
WASHINGTON (AP) — A government watchdog says the boards of regional Federal Reserve banks need stronger policies to avoid conflicts of interest.
The non-partisan Government Accountability Office said Wednesday that board members have apparent conflicts of interest because of their day jobs as executives and corporate directors. It says the Fed banks should document directors’ roles in overseeing financial companies, and request waivers when needed.
The apparent conflicts drew attention after the then-chairman of the New York Fed, who also was a director of Goldman Sachs Group Inc., bought Goldman stock during the financial crisis.
The GAO also said the boards lack diversity. It says they include mostly white men, and lack representation from labor and consumer groups.
The boards are legally required to represent agriculture, commerce, industry, services, labor and consumer groups.
Copyright 2011 The Associated Press.
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