THIS SHOULD BE TAUGHT IN KINDERGARTEN

(h/t Atrios)

I've noted before that the NY branch of the Federal Reserve is chock-full of MOTU. Now, over 4 years later, the GAO makes the same "discovery." From Sen. Bernie Sanders web site:

GAO Finds Serious Conflicts at the Fed

October 19, 2011

WASHINGTON, Oct. 19 - A new audit of the Federal Reserve released today detailed widespread conflicts of interest involving directors of its regional banks.

"The most powerful entity in the United States is riddled with conflicts of interest," Sen. Bernie Sanders (I-Vt.) said after reviewing the Government Accountability Office report. The study required by a Sanders Amendment to last year's Wall Street reform law examined Fed practices never before subjected to such independent, expert scrutiny.

The GAO detailed instance after instance of top executives of corporations and financial institutions using their influence as Federal Reserve directors to financially benefit their firms, and, in at least one instance, themselves. "Clearly it is unacceptable for so few people to wield so much unchecked power," Sanders said. "Not only do they run the banks, they run the institutions that regulate the banks."

The full report is here and this is from the recommendations:

To help enhance economic and demographic diversity and broaden perspectives among Reserve Bank directors who are elected to represent the public, encourage all Reserve Banks to consider ways to broaden their pools of potential candidates for directors, such as including officers who are below the senior executive level at their organizations.

We need more moves like this one.