The Regional Feds Need More Independence
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June 14 (Bloomberg) -- All the fuss about whether JamieDimon, the chief executive officer of JPMorgan Chase & Co.,should remain on the New York Federal Reserve Bank board ismissing a larger issue. The entire board is connected to thebanking industry and needs reform.
It is imperative that the board include some directors whoare independent of the banking industry because it performs manyvital public functions, including selecting the president of theNew York Fed, who also serves as vice chairman of the policy-making Federal Open Market Committee. Yet none of the currentdirectors is entirely independent, not even the six who by lawshould represent the public.