Gov’t Audit: Fed Bank Boards Lack Diversity

Daniel Wagner, Bloomberg Businessweek, October 19, 2011

Federal Reserve banks need stronger policies to prevent conflicts of interest, a government watchdog said Wednesday.

The banks’ board members have apparent conflicts of interest because of their day jobs as executives and corporate directors, the non-partisan Government Accountability Office said in an audit. It said the Fed banks should document directors’ roles in overseeing financial companies and request waivers when needed.

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The audit also criticized the boards’ lack of diversity. They are composed mainly of white men, in part because they include mostly senior executives, it said. The GAO analyzed data from the Equal Employment Opportunity Commission and found that diversity in the pool of candidates is severely limited.

The GAO recommended that Fed banks consider a wider range of candidates for their boards, document directors’ roles and responsibilities, request waivers when conflicts are possible and post more documents on their websites.

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  • Anonymous

    That’s what banks need, black and Hispanic Marxists sitting on federal bank boards.

  • Question Diversity

    It’s amazing. I never thought I would say this, but someone has gotten me to be sympathetic with the Federal Reserve. Of course, I would solve the “problem” of the lack of diversity at the Fed really easily — Repeal the legislation creating the Fed. This is part of the reason why I’m opposed to Dodd-Frank, not only is it the keystone to further crony capitalism, it imposes beaucoup AA mandates on the financial industry. Which adds rank incompetence to the existing perfidy; the worst of both worlds.

  • Madison Grant

    How did America, Europe, Canada, Australia and Japan become the wealthiest lands in history without blacks setting financial policy? Must be a fluke.

    We need blacks running our economy so they can do just as brilliant a job as they’ve done in Sub-Saharan Africa and Haiti!

  • Anonymous

    Black people do not operate on the same moral code as White people.

    The Fed is corrupt as it is. Giving Black politicians such as Marion Berry, William Jefferson, Kwame Kilpatrick, Charlie Rangel, Carol Moseley Braun a chance to do what they do best, ruin something, may not be a bad idea.

  • Done with it

    “The audit also criticized the boards’ lack of diversity. They are composed mainly of white men, in part because they include mostly senior executives, it said. The GAO analyzed data from the Equal Employment Opportunity Commission and found that diversity in the pool of candidates is severely limited.”

    Sounds like a grand idea! After all, Fannie Mae was such a smashing success under the direction of Franklin Raines. Way to earn that 91.1 million.

    http://tinyurl.com/49h8a9

  • Captain Caveman

    Surely our Jewish friends at the Federal Reserve will embrace diversity. They and their comrades cram it down the throats of whites every day.