Sanders: Wall Street Is Running Fed Policies – NMP Skip to main content

Sanders: Wall Street Is Running Fed Policies

Phil Hall
Dec 23, 2015
Democratic presidential aspirant Bernie Sanders has taken to the op-ed page of the New York Times to propose reforming the Federal Reserve as a strategy to dilute Wall Street’s influence over government

Democratic presidential aspirant Bernie Sanders has taken to the op-ed page of the New York Times to propose reforming the Federal Reserve as a strategy to dilute Wall Street’s influence over government.

In an opinion piece titled “To Rein in Wall Street, Fix the Fed,” the Vermont senator argued that the central bank has failed in its mission because it “has been hijacked by the very bankers it regulates.” He repeated his displeasure over last week’s Fed rate hike, stating it would be a “disaster for small business owners who need loans to hire more workers and Americans who need more jobs and higher wages,” and he blamed the relationship between the Fed and Wall Street’s elite for creating major conflicts of interest.

“What went wrong at the Fed?” Sanders asked. “The chief executives of some of the largest banks in America are allowed to serve on its boards. During the Wall Street crisis of 2007, Jamie Dimon, the chief executive and chairman of JPMorgan Chase, served on the New York Fed’s board of directors while his bank received more than $390 billion in financial assistance from the Fed. Next year, four of the 12 presidents at the regional Federal Reserve Banks will be former executives from one firm: Goldman Sachs.”

Sanders added that having Wall Street executives on the Fed’s boards represented a situation that is not found in other regulatory agencies.

“We would not tolerate the head of Exxon Mobil running the Environmental Protection Agency,” he stated. “We don’t allow the Federal Communications Commission to be dominated by Verizon executives. And we should not allow big bank executives to serve on the boards of the main agency in charge of regulating financial institutions.”

Sanders proposed a new system where banking industry executives cannot serve as Federal Reserve board members. Instead, he called for board members to be chosen by the president and confirmed by the Senate, with nominees coming from different sectors of the economy. He also advocated annual audits of the Fed by the Government Accountability Office and a new era in transparency relating to Fed policy making.

“Too much of the Fed’s business is conducted in secret, known only to the bankers on its various boards and committees,” Sanders continued. “Full and unredacted transcripts of the Federal Open Market Committee must be released to the public within six months, not five years, which is the custom now. If we had made this reform in 2004, the American people would have learned about the housing bubble well in advance of the financial crisis.”

While not mentioning his political rival Hillary Clinton by name, Sanders repeated a key difference in their views of Wall Street by calling again to reinstate the Glass-Steagall Act. Sanders’ op-ed follows a similar piece authored by Clinton that ran in the New York Times on Dec. 7.

Published
Dec 23, 2015
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021
OptiFunder Secures $25 Million In Capital

OptiFunder, a warehouse management system provider for mortgage originators, raised $25 million in additional capital lead by Arthur Ventures, a growth capital firm focused on high-growth, founder-led and capital efficient B2B software companies.

Tech
Nov 23, 2021
Mortgage Company Donates $100K To High School In Memory Of Fallen U.S. Navy Corpsman

Cleveland-based CrossCountry Mortgage donated $100,000 to Milan Edison High School in memory of U.S. Navy Corpsman, Maxton W. Soviak, who died while assisting in the evacuation of Americans and refugees in Afghanistan in August.

Community
Nov 23, 2021
MISMO Seeks To Standardize Pre-Closing Title Data

Forming workgroup to focus on standardizing document datasets to streamline process and increase efficiency.

Industry News
Nov 23, 2021
Pandemic's Impact On Real Estate Around The World

Although the impact of the COVID-19 pandemic on the real estate industry has been well-documented within the United States, it’d be prudent to know how the global event impacted other countries as well. 

Industry News
Nov 22, 2021
Housing Market Potential Strengthens Modestly

First American Financial Corporation's Potential Home Sales Model for October 2021 reported that potential existing-home sales increased 0.1% month-over-month to 6.27 million, with household formation continuing to grow, largely driven by millennials.

Analysis and Data
Nov 22, 2021