Democrat candidate for the U.S. Presidency, Bernie Sanders, says Wall Street is out of control, and that America needs to get the bankers out of positions of power within the U.S. Federal Reserve.
Writing an op-ed for The New York Times, Sanders stated that America needs to rein in Wall Street or American taxpayers will again risk having to bail out the banks as per when they forked out $700 billion in 2008. To avoid this possibly reoccurring, Sanders says that the Federal Reserve needs to be reformed.
Watch this wochit News report on Sander’s comments on Wall Street and the Fed:
The 74-year-old senator from Vermont pointed out that the Federal Reserve’s role is to oversee financial institutions, and to implement monetary policy that’s meant to maintain price stability and full employment.
“Unfortunately, an institution that was created to serve all Americans has been hijacked by the very bankers it regulates,” Sanders wrote.
“What went wrong at the Fed?” Sanders asked before providing an answer.
“The chief executives of some of the largest banks in America are allowed to serve on its boards,” he said. “During the Wall Street crisis of 2007, Jamie Dimon, the chief executive and chairman of JPMorgan Chase, served on the New York Fed’s board of directors while his bank received more than $390 billion in financial assistance from the Fed.
“Next year, four of the 12 presidents at the regional Federal Reserve Banks will be former executives from one firm: Goldman Sachs.”
Sanders wrote that this is an obvious conflict of interest, a type that is not tolerated in other agencies. “We would not tolerate the head of Exxon Mobil running the Environmental Protection Agency,” he explained.
Sanders went on to add: “To ensure the safety and soundness of our banking system, we need to fundamentally restructure the Fed’s governance system to eliminate conflicts of interest.”
— NYT Opinion (@nytopinion) December 23, 2015
Further into his op-ed, Sanders said that the Fed’s board should be made up of representatives derived from a broad range of America’s economy. He also detailed how the Fed needs to refocus its operations so it’s dedicated to the needs of regular Americans, and a productive economy.
“We also need transparency,” Sanders stated. “Too much of the Fed’s business is conducted in secret, known only to the bankers on its various boards and committees.”
Socialist Democrat Sander’s stance on Wall Street and America’s financial institutions, is a contrast to Democratic front-runner Hillary Clinton who is perceived to be pro-Wall Street.
Republican presidential candidate, Senator Rand Paul, of Kentucky, has also been critical of how the Federal Reserve operates, and has called for its reform and for it to be audited.
Watch philosopher and radio host Stefan Molyneux’s view on the Federal Reserve and the importance of interest rates: