Frank Proposes Altering Plan on New York Fed Chief
By Scott Lanman and Craig Torres
Barney Frank, the U.S. House’s chief negotiator on an overhaul of financial regulation, proposed dropping a provision making the president of the Federal Reserve Bank of New York a White House appointee, while also requiring more disclosure from the central bank. Frank, chairman of the House Financial Services Committee, would instead reduce the role of commercial banks in choosing all 12 regional Fed chiefs. His measure counters a proposal by Senate Banking Committee Chairman Christopher Dodd, who wants to make the New York Fed chief a political appointee as part of efforts to avoid what he said are “conflicts of interest.” “There is going to be a debate,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics, a Washington- based research firm whose clients include America’s biggest banks. “For Senator Dodd to just roll and say ‘sure’ on the Frank offer would put him in a difficult position.”