Fed Watchdog Urges Tighter Controls for Selecting Regional Bank Leaders

The Federal Reserve's inspector general has called for stronger safeguards and clearer governance in the selection process for regional bank leaders. The Office of Inspector General issued 10 recommendations to address gaps in conflict-of-interest screening and inconsistent procedures across the central bank's 12 districts. The recommendations aim to improve controls related to assessing eligibility, financial conflicts, and the overall transparency of the selection process for Class C directors and Reserve Bank presidents.