[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 957 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 957

 To amend the Federal Reserve Act to restrict conflicts of interest on 
    the boards of directors of Federal reserve banks, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 23, 2023

  Mr. Sanders introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Reserve Act to restrict conflicts of interest on 
    the boards of directors of Federal reserve banks, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Independence Act''.

SEC. 2. ENDING CONFLICTS OF INTEREST.

    (a) Class A Members.--The tenth undesignated paragraph of section 4 
of the Federal Reserve Act (12 U.S.C. 302) (relating to Class A) is 
amended by striking ``chosen by and be representative of the 
stockholding banks'' and inserting ``designated by the Board of 
Governors of the Federal Reserve System, from among persons who are not 
employed in any capacity by a stockholding bank''.
    (b) Class B.--The eleventh undesignated paragraph of section 4 of 
the Federal Reserve Act (12 U.S.C. 302) (relating to Class B) is 
amended by striking ``be elected'' and inserting ``be designated by the 
Board of Governors of the Federal Reserve System''.
    (c) Limitations on Boards of Directors.--The fourteenth and 
fifteenth undesignated paragraphs of section 4 of the Federal Reserve 
Act (12 U.S.C. 303) (relating to Class B and Class C, respectively) are 
amended to read as follows:
    ``No employee of a bank holding company or other entity regulated 
by the Board of Governors of the Federal Reserve System may serve on 
the board of directors of any Federal reserve bank.
    ``No employee of the Federal Reserve System or board member of a 
Federal reserve bank may own any stock or invest in any company that is 
regulated by the Board of Governors of the Federal Reserve System, 
without exception.''.

SEC. 3. REPORTS TO CONGRESS.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Comptroller General of the United States shall 
submit to Congress a report regarding the adherence to the provisions 
of this Act and the amendments made by this Act.
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