I'M NOT FINISHED TALKING!
To an extent, Bernie Sanders’ Festivus rant against the U.S. central bank in yesterday’s Times has a lot in common with those of weird Uncle Rand and crazy Uncle Ted and simple Uncle Marco. The socialist senator from Vermont wants audits and transparency. But, unlike the gynecologist senator from Kentucky, Bernie doesn’t want to end the Fed, he does want to end the Fed as we (and, more importantly, Jamie Dimon and Lloyd Blankfein) know it. Feel the Bern, Janet Yellen. Change is now 2% more likely than it was on Tuesday.
If I were elected president, the foxes would no longer guard the henhouse. To ensure the safety and soundness of our banking system, we need to fundamentally restructure the Fed’s governance system to eliminate conflicts of interest. Board members should be nominated by the president and chosen by the Senate. Banking industry executives must no longer be allowed to serve on the Fed’s boards and to handpick its members and staff. Board positions should instead include representatives from all walks of life — including labor, consumers, homeowners, urban residents, farmers and small businesses….
The sad reality is that the Federal Reserve doesn’t regulate Wall Street; Wall Street regulates the Fed. It’s time to make banking work for the productive economy and for all Americans, not just a handful of wealthy speculators. And it begins by making the Federal Reserve a more democratic institution, one that is responsive to the needs of ordinary Americans rather than the billionaires on Wall Street.