Timothy Geithner is worried about a problem of perception.
The Treasury Secretary told PBS Newshour that it’s "a problem" having a banker like JPMorgan Chase CEO Jamie Dimon sit on the board of the Federal Reserve Bank of New York. That's because, in Geithner's view, it creates the perception that the institution, one charged with overseeing Wall Street, is too close to the finance industry.
"It's a problem that the structure of the Fed established 90 years ago... creates that basic perception and I think that’s something worth trying to change," Geithner told PBS. "But the American people should understand that although the Fed was set up that way, those banks and the members of the board play no role in supervision, they have no role in the writing of the rules and they play no role in decisions the Fed makes about how to respond to the financial crisis."
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