House Dems ask Fed to consider diverse candidates to fill Richmond vacancy

A group of House Democrats called on Federal Reserve leaders to consider candidates with public service or academic experience to replace the ousted president of the central bank’s Richmond branch.

Rep. Maxine Waters (Calif.), the ranking Democrat on the House Financial Services Committee, and seven of her colleagues wrote Tuesday that the Fed should consider a diverse array of candidates to fill the Richmond spot in a letter to Federal Reserve Board Chairman Janet Yellen, Reserve Bank of Richmond Director Margaret Lewis and the Richmond Fed board of directors.

{mosads}“While financial sector interests have an outsized voice on the regional bank boards, there is no reason this must also be the case among Reserve Bank presidents,” the lawmakers wrote.

“Elevating the perspectives of individuals from labor, community and academic backgrounds will enhance the Fed’s independence, credibility with the public and ability to fulfill its monetary and supervisory mandates,” they wrote.

Democratic Reps. John Conyers Jr. (Mich.), Elijah Cummings (Md.), Keith Ellison (Minn.), Al Green (Texas), Gwen Moore (Wis.) and Nydia Velázquez (N.Y.), as well as Del. Eleanor Holmes Norton (D-D.C.), joined Waters on the letter. Velázquez, Green, Moore and Ellison all serve on the Financial Services Committee.

Former Richmond Fed President Jeffrey Lacker resigned earlier this month, after admitting he confirmed leaked confidential information to a banking analyst. The lawmakers wrote that Lacker’s “abrupt departure … underscores the need for more to be done to select candidates who demonstrate an unwavering commitment to advancing the interests of the public rather than private industry.”

The lawmakers noted that 39 percent of the directors at each of the 12 Federal Reserve regional banks come from the financial sector. Forty-two percent come from business backgrounds, they added, while only 4 percent come from labor and 7 percent come from nonprofit or academic backgrounds.

Atlanta Fed president Raphael Bostic, a former University of Southern California economics professor who studied urban economics and development, recently became the first black person to lead a Fed regional bank.

“If presidents whose interests align with that of the public are to be selected, more intentional efforts must be undertaken,” the lawmakers wrote.