Bernie Sanders says SVB’s CEO was on the regional Fed board overseeing it, plans bill to ‘end this conflict of interest’

Must read

Explosion at Pennsylvania chocolate factory kills 7

All seven bodies have been recovered from the site of a powerful explosion at a chocolate factory in a small town in eastern Pennsylvania,...

A Wharton professor gave A.I. tools 30 minutes to work on a business project. The results were ‘superhuman’ 

Artificial intelligence is presenting new possibilities on how to do work, and leaving many observers nervous about what will become of white-collar jobs. ...

Your depression and anxiety may be biologically aging you. These small changes could slow the clock

If you’re one of the millions of Americans who lives with a mental disorder, your body might be older than you think. ...

Far-Left Dem Jamaal Bowman Goes to Bat For Chinese-Owned TikTok, Says Ban is ‘Racist’

Far-left Democrat Representative Jamaal Bowman blasted efforts to ban the Chinese-owned social media/spying app TikTok, saying any criticism...

Senator Bernie Sanders said he plans to introduce a measure that would prevent big-bank executives from serving on the boards of the regional Federal Reserve banks that oversee them. 

“One of the most absurd aspects of the Silicon Valley bank failure is that its CEO was a director of the same body in charge of regulating it: the San Francisco Fed,” the Vermont senator said on Twitter Saturday. “I’ll be introducing a bill to end this conflict of interest by banning big bank CEOs from serving on Fed boards.”

Greg Becker, Silicon Valley Bank’s former president and chief executive officer, had served as a director on the San Francisco Fed board before the bank failed last week. Lawmakers are scrutinizing why the San Francisco Fed failed to address problems at the lender before its collapse.

The Fed didn’t immediately respond to a request for comment on Saturday.

Unlike the Fed board in Washington, which is made up of officials nominated by the president and confirmed by the Senate, the Fed’s 12 regional banks are run by presidents chosen by private boards of directors. Those directors are made up of business and community leaders, as well as bank executives.

The 2010 Dodd-Frank Act changed the law to exclude bank executives serving on regional Fed boards — known as Class A directors — from participating in the selection of those bank presidents. The change was meant to prevent banks in the regional Fed districts from selecting the official charged with overseeing their day-to-day operations.

Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.

More articles

Latest article

Explosion at Pennsylvania chocolate factory kills 7

All seven bodies have been recovered from the site of a powerful explosion at a chocolate factory in a small town in eastern Pennsylvania,...

A Wharton professor gave A.I. tools 30 minutes to work on a business project. The results were ‘superhuman’ 

Artificial intelligence is presenting new possibilities on how to do work, and leaving many observers nervous about what will become of white-collar jobs. ...

Your depression and anxiety may be biologically aging you. These small changes could slow the clock

If you’re one of the millions of Americans who lives with a mental disorder, your body might be older than you think. ...

Far-Left Dem Jamaal Bowman Goes to Bat For Chinese-Owned TikTok, Says Ban is ‘Racist’

Far-left Democrat Representative Jamaal Bowman blasted efforts to ban the Chinese-owned social media/spying app TikTok, saying any criticism...

House Freedom Caucus Hits Back at Biden, Pledges Spending Cuts

By Brett Rowland (The Center Square) The House Freedom Caucus hit back Wednesday after its budget...