“The recent trading loss of more than $2 billion at JPMorgan Chase underscores the need to structurally reform the Federal Reserve System,” Sanders, who helped to establish audits of the Federal Reserve under Dodd-Frank, said last week in a letter to other senators, according to Fox Business.
JPMorgan Chase & Co. CEO Jamie Dimon currently serves on the New York Fed board, but his term is set to expire in December.
The bill is co-sponsored by Sens. Barbara Boxer (D-Calif.) and Mark Begich (D-Alaska), and would prohibit the Fed’s board members and employees from investing and owning stock in any firms that the Fed is responsible to oversee, Fox Business reports.
In 2009, New York Fed chairman Stephen Friedman resigned from his position following a story by The Wall Street Journal that revealed his trading of Goldman Sachs stock while serving as a Goldman Sachs director at the Fed.
“The American people deserve a Federal Reserve that is truly independent from the financial institutions it supervises and oversees,” Sanders said, according to Fox Business.
The Federal Reserve System is comprised of 12 regional banks, each of which has a nine member board of directors that come from outside of the central bank.