Federal Reserve System: Mandated Report on Potential Conflicts of
Interest (Letter Report, 11/13/2000, GAO/GAO-01-160).

The Federal Reserve System plays multiple roles in the payments system
by virtue of its status as central bank, banking industry regulator, and
payments service provider. Where these roles overlap, conflict, or
potentially complement one another inappropriately, the Federal Reserve
is faced with the challenge of managing or separating them in such a way
as to ensure that it is fulfilling each role without exerting undue
influence or giving itself an advantage at the expense of the banking
industry or its private sector competitors in providing payment
services. GAO found no evidence to suggest that the Federal Reserve has
not adequately separated its multiple roles.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GAO-01-160
     TITLE:  Federal Reserve System: Mandated Report on Potential
	     Conflicts of Interest
      DATE:  11/13/2000
   SUBJECT:  Bank management
	     Banking law
	     Federal reserve banks
	     Conflict of interests
	     Banking regulation