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2 Lawmakers Urge Fed to Change Its Enforcement Procedures

"Two prominent members of Congress, troubled by an enforcement action that the Federal Reserve imposed on large banks last year, are pressing for a big change in the way that Fed approves its crackdowns."

"Senator Elizabeth Warren of Massachusetts and Representative Elijah E. Cummings of Maryland, both Democrats, are recommending that the Fed’s board of governors formally vote on significant enforcement actions. They made this request in a letter sent on Tuesday to Janet Yellen, the new chairwoman of the Fed."

"The Fed’s board, made up of seven officials appointed by the president, rarely votes on supervisory actions. Instead, it usually delegates this authority to the Fed’s in-house staff. Ms. Warren and Mr. Cummings appear to believe that a board vote could increase the oversight of enforcement actions and create more accountability when problems arise with such actions."

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