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New York Fed Fails to Amend Conflict Rules After Dudley Waiver

The Federal Reserve Bank of New York failed to revise conflict-of-interest rules to reflect its responsibility for a broader array of financial firms under the Dodd-Frank Act passed a year ago, the Government Accountability Office said yesterday.

The New York Fed hasn’t changed its “policies and procedures to more fully reflect potential conflicts that could arise with this expanded role,” the GAO said in a report. It showed that a New York Fed official, separately identified as William C. Dudley, now the bank’s president, received a waiver in 2008 to keep shares of insurer American International Group Inc. after it was bailed out by the central bank.