GAO issues report on Fed director conflicts

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GAO issues report on Fed director conflicts
WASHINGTON (MarketWatch) -- Responding to criticism of the Federal Reserve for the number of director-affiliated banks that participated in emergency lending programs during the financial crisis, the Government Accountability Office on Wednesday called on the central bank to take four steps: broaden their pools of potential candidates for directors, clearly document the roles of the directors, adopt a process for regional banks to grant rule waivers, and publish key governance documents. In a letter back to the GAO, the Fed said it will look to broaden the pool, consider ways to amend bylaws to make director roles clearer, will consider publishing any granted waivers and will post governance documents online. Sen. Bernie Sanders, the Vermont Independent who requested the report, said it shows that "the most powerful entity in the United States is riddled with conflicts of interest."