BOSTON, MA -- With JP Morgan's trading losses focusing attention on Wall Street's inability to police itself, U.S. Senate candidate and consumer advocate Elizabeth Warren today said it's time to end Wall Street's conflicts of interest and ban big bank executives from sitting on the Board of Directors of the regional Federal Reserve banks.
Warren, who has called for JP Morgan CEO Jamie Dimon to step down from the NY Federal Reserve Board on which he serves, is endorsing the Federal Reserve Independence Act offered earlier this week by Senators Bernie Sanders (VT), Barbara Boxer (CA) and Mark Begich (AK). The legislation would ban all big bank executives from the boards of the regional Federal Reserve Banks.
"Foxes shouldn't guard the henhouse, and executives from the big banks shouldn't have that sort of role on the Federal Reserve's Regional Banks," said Warren. "It's time for some common sense. The legislation that's pending to boot the big banks out of their perch in the Federal Reserve should pass now."
Warren is widely credited with the idea for the Consumer Financial Protection Bureau, and she served as Assistant to the President and Special Advisor to the Secretary of the Treasury in 2010 and 2011, with the authority to set up the consumer agency. Time Magazine named her one of the "New Sheriffs of Wall Street" for her clear and fearless oversight efforts during the financial crisis on behalf of the American people, and the Boston Globe named her Bostonian of the Year in 2009.