Federal lawmakers petition for the disclosure of the past salaries of the Inspector General at the Federal level
In a move aimed at establishing a more independent inspector general at the Federal Reserve, Senators Elizabeth Warren (D-MA) and Rick Scott (R-FL) have requested information from Mark Bialek, the current Federal Reserve inspector general.
The senators' letter, dated Monday and seen by Reuters on Tuesday, is part of an ongoing effort to address concerns about the independence and effectiveness of the Fed's inspector general. The request comes amid a bipartisan push for more bank oversight following the collapse of several regional lenders in March and May.
Senators Warren and Scott have posed questions to Mr. Bialek about his salary and inspections related to bonuses at the central bank over the past five years. The senators have expressed objections to having the inspector general's salary tied to the compensation of Fed officials whom the watchdog is tasked with investigating.
The senators' bill, if passed, would change the reporting structure of the Fed's inspector general, with the inspector general reporting directly to the president and the Senate instead of the central bank's board. Currently, the Fed's inspector general reports directly to the central bank's board.
The request for salary information is not the first time Senators Warren and Scott have raised concerns about the Fed's inspector general. In a May hearing, Mr. Bialek defended his $378,000 annual salary, which makes him the highest paid employee at the Fed and one of the highest paid officials in the entire federal government.
The call for transparency follows the failures of Silicon Valley Bank and Signature Bank, which prompted the senators to introduce a bill in May that would give the central bank an inspector general who is appointed by the president and confirmed by the Senate. The bill is aimed at strengthening bank oversight and ensuring the independence of the inspector general.
The senators' efforts come in the wake of two regional Fed presidents being forced to resign due to a trading scandal in 2021. The senators believe that a more independent inspector general would help prevent such incidents in the future and ensure the integrity of the Federal Reserve's operations.
The letter from Senators Warren and Scott is part of a series of actions by the lawmakers to address concerns about the Fed's inspector general. It remains to be seen how Mr. Bialek will respond to the senators' request for information. However, the senators' push for transparency and independence is expected to continue as they seek to strengthen bank oversight and ensure the integrity of the Federal Reserve's operations.
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