Business

New York Fed Chief Would Need Lawmakers' Approval in Dodd Bill

Bloomberg
The Federal Reserve Bank of New York president, who supervises five of the seven largest U.S. banks, would be subject to White House appointment and lawmakers’ approval under legislation proposed today. Also, one member of the Fed Board of Governors would be designated vice chairman for supervision, and no firm under Fed oversight would be allowed to vote for or have past or present employees serve as directors of regional Fed banks, according to the bill to overhaul financial regulation. Senate Banking Committee Chairman Christopher Dodd, a Democrat from Connecticut, unveiled the proposed legislation in Washington. The changes are part of legislation that, if approved, would reduce the roles of the 12 regional Fed banks and vest more power in Washington-based Fed governors and lawmakers. Dodd’s plan curtails Fed supervision powers to oversight of about 35 of the biggest firms from 5,000 banks and houses a new consumer financial-protection agency at the central bank.
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Posted by Editor at March 16, 2010 02:28 AM