A Senate Independent is calling for the head of JPMorgan Chase to step down as a board member of the Federal Reserve Bank of New York.
Sen. Bernie Sanders (I-Vt.) said Monday that the $2 billion trading loss by JPMorgan underscores the need for the Federal Reserve to make changes that eliminate conflicts of interest.
“It is an obvious conflict of interest for Jamie Dimon, the CEO of the largest bank in America, to serve on the New York Fed’s board of directors,” Sanders said.
Sanders said he is working on legislation that would end the conflict of interest.
“No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed’s board of directors or be employed by the Fed,” Sanders said.
“The New York Fed is in charge of both regulating JPMorgan Chase and deciding whether or not to provide billions of dollars in virtually zero-interest loans to this too-big-to-fail institution if it needs another bailout,” he said.
“This is a clear example of the fox guarding the hen house.”