Fed GC Target of Democratic Hopeful Martin O’Malley

Making the general counsel of the Fed a presidential appointee is a key component of Wall Street reforms proposed by Democratic nominee hopeful Martin O’Malley. “The General Counsel wields outsized influence on the board, advising on every major decision. In fact, the current General Counsel is sometimes referred to as the ‘eighth Federal governor,’” a white paper from his campaign reads. “By increasing transparency around this appointment, O’Malley would elevate its importance and ensure that only appointees who can prove independence and a will to work on behalf of the American people – and not the megabanks – will be appointed to it.”

The president of the New York Fed would also be hand-picked by the Executive Branch under the plan, released this week. The white paper follows an open letter O’Malley wrote to Wall Street banks, which said, “[Y]ou need to start by saying two things: ‘we’re sorry,’ and ‘thank you.’”