The Federal Reserve will continue to expect much more from ever before from directors of large banks, said Federal Reserve Governor Jerome Powell, on Wednesday.
In a speech at a conference sponsored by the Chicago Fed, Powell reminded the audience that, during the financial crisis, large banks incurred "massive losses" from esoteric products that were not even on the radar of bank boards. He said the Fed would work with bank directors who feel buried under paper from regulations put in place post-crisis, but said the central bank would not back away from requiring that bank boards be strong and effective.
Powell did not address Sen. Elizabeth Warren's demand that the Fed use its power to remove bank directors who were on the board of Wells Fargo during the time when several consumer fraud scandals took place between 2011 and 2015. The Fed governor also did not comment on the outlook for interest rates or the economy.
Source: MarketWatch
