Date
21 July 2017
Bernie Sanders' criticism of Wall Street has put pressure on Democratic front runner Hillary Clinton, who is a major beneficiary of funding from banks. Photo: Reuters
Bernie Sanders' criticism of Wall Street has put pressure on Democratic front runner Hillary Clinton, who is a major beneficiary of funding from banks. Photo: Reuters

Fed ‘hijacked’ by bankers, Sanders says

Democratic US presidential candidate Bernie Sanders lambasted the US Federal Reserve as an institution that has been “hijacked by the very bankers it regulates” and called for a ban on bank executives from regional Fed governing boards.

The populist Sanders last week criticized the Fed’s decision to raise interest rates and said proudly in a Saturday night debate that Wall Street won’t like him in the White House, Reuters reported.

“Wall Street is still out of control,” Sanders wrote in a New York Times opinion piece Wednesday.

Seven years after large US banks were bailed out by the Treasury Department because they were too big to fail, the banks have become even bigger, leaving taxpayers at risk of another bailout, he said.

“To rein in Wall Street, we should begin by reforming the Federal Reserve,” Sanders wrote.

“Unfortunately, an institution that was created to serve all Americans has been hijacked by the very bankers it regulates.”

The chief executives of the largest banks in America serve on Federal Reserve boards, he said, likening that to the chief of Exxon Mobil running the Environmental Protection Agency.

He said banking executives should be barred from serving on the boards of the Fed’s regional banks, and board members should be nominated by the president and chosen by the Senate.

– Contact us at [email protected]

FL

EJI Weekly Newsletter

Please click here to unsubscribe