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Code · BILL · 118th Congress · S. 1663 (Introduced in Senate) — To amend the Federal Reserve Act to limit banker representation on boards of directors of Federal Reserve banks, and... · Sec. 2

Sec. 2. Banker representation on Federal Reserve bank boards

551 words·~3 min read·/bill/118/s/1663/is/section-2

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The tenth undesignated paragraph of section 4 of the Federal Reserve Act ( 12 U.S.C. 302 ) is amended— by inserting with $50,000,000,000 or less in assets before the period at the end; and by inserting The Reserve bank, in consultation with the Board of Governors of the Federal Reserve System, may remove a Class A director if, after the director is elected, the assets of the bank of the director grow rapidly greater than $50,000,000,000. No individual may serve as a Class A director if the individual represents a bank that has a CAMELS rating of 3 or higher or outstanding Matters Requiring Attention or Matters Requiring Immediate Attention above the average number for banks of similar size and complexity. after the period at the end.
The 16th undesignated paragraph of section 4 of the Federal Reserve Act ( 12 U.S.C. 304 ) is amended— in the third sentence, by inserting with $50,000,000,000 or less in assets after member bank ; and by striking the first and second sentences. The 11th undesignated paragraph of section 4 of the Federal Reserve Act ( 12 U.S.C. 302 ) is amended by striking three members, and all that follows through the period at the end and inserting 6 members who shall be designated by the Board of Governors of the Federal Reserve System.
They shall be elected to represent the public, without discrimination on the basis of race, creed, color, sex, or national origin, and with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers. When the necessary subscriptions to the capital stock have been obtained for the organization of any Federal reserve bank, the Board of Governors of the Federal Reserve System shall appoint the class B directors and shall designate one of such directors as chairman of the board to be selected.
Pending the designation of such chairman, the organization committee shall exercise the powers and duties appertaining to the office of chairman in the organization of such Federal reserve bank. . The 16th undesignated paragraph of section 4 of the Federal Reserve Act ( 12 U.S.C. 304 ) is amended— in the first sentence, as redesignated by subsection (a)(2)(B) of this section, by striking and one candidate for director of Class B ; and in the third sentence, as redesignated by subsection (a)(2)(B) of this section, by striking and Class B .
Section 4 of the Federal Reserve Act is amended— in the fifth paragraph of the fourth undesignated paragraph, by striking and Class C ; by striking the 12th undesignated paragraph; by striking the 15th undesignated paragraph ( 12 U.S.C. 303 ); by striking the 17th undesignated paragraph ( 12 U.S.C. 304 ); and by striking the 20th undesignated paragraph. Section 4 of the Federal Reserve Act is amended— in the 14th undesignated paragraph ( 12 U.S.C. 303 ), by striking No director of class B shall be an officer, director, or employee of any bank. and inserting No individual who served as an officer, director, or employee of any bank or other financial institution regulated by the Board of Governors of the Federal Reserve System during the preceding 5-year period shall serve as a director of class B. ; and by striking the 15th undesignated paragraph ( 12 U.S.C. 303 ).
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Sec. 2
Banker representation on Federal Reserve bank boards
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