seven-member board governing the federal reserve system. Its members are appointed by the president, subject to Senate confirmation, and serve 14-year terms. The board supervises the banking system by issuing regulations controlling the activities of bank holding companies, and also issues regulations implementing federal laws regulating banking; holds a voting majority at meetings of the influential Federal Open Market Committee, which exercises control over the supply of credit in the banking system; and sets reserve requirements for national banks and state chartered banks that own stock in Federal Reserve Banks. The financial modernization act of 1999 (the Gramm-Leach-Bliley Act) expanded the Federal Reserve Board's authority to supervise financial holding companies, a new type of bank holding company. It also established a supervisory process in which the Federal Reserve would consult with the U.S. Treasury Department to determine activities that are both closely related to banking and financial in nature, and thus acceptable activities for financial holding companies.
governing board of the Federal Reserve System. Its seven members are appointed by the President of the United States, subject to Senate confirmation, and serve 14-year terms. The Board establishes Federal Reserve System policies on such key matters as reserve requirements and other bank regulations, sets the discount rate, tightens or loosens the availability of credit in the economy, and regulates the purchase of securities on margin.
governing board of the federal reserve system. Its seven members are appointed by the president of the United States, subject to Senate confirmation, and serve 14-year terms. The Board establishes Federal Reserve System policies on such key matters as reserve requirements and other bank regulations, sets the discount rate, tightens or loosens the availability of credit in the economy, and regulates the purchase of securities on margin.
