A Federal Reserve document states: “Due to concerns about potential conflicts of interest … Class A directors may not participate in most aspects of the appointment process of Reserve Bank presidents and first vice presidents.”
a. Who are the Class A directors?
b. What potential conflicts of interest is this document referring to?
c. If there is a conflict of interest in the governance structure of the Federal Reserve Banks, why did Congress establish this structure when it passed the Federal Reserve Act in 1913?