Top Republican Suggests Regional Fed Should Be Overhauled

• Toomey says status quo of regional banks is ‘unacceptable’

• He wants the Fed to be subject to public records request law

By Laura Davison, Bloomberg, Feb. 10, 2022

The top Republican on the Senate Banking Committee said Congress should weigh an overhaul of the U.S. Federal Reserve Regional Bank system and consider consolidating regional banks that are “wandering” into issues such as climate change.

Senator Pat Toomey of Pennsylvania said Thursday that the 12 regional banks were formed to manage the economies in their districts, but that largely ended in the 1930s as oversight was taken over by the central bank. That’s left the regional banks without a clear mandate, he said.

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Toomey said he is also concerned that the Fed is not being transparent with the public and has been “stonewalling” congressional inquiries into bank decisions. He said lawmakers should consider making the Fed subject to the records request law, the Freedom of Information Act, like other federal entities are.

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