The inclusion of a community banking representative on the Federal Reserve Board could be required by legislation, thanks to a quietly proposed amendment.
According to an unnamed Capitol Hill source, the Senate Banking Committee Thursday reached an unanimous consent agreement to move S. 2244, the Terrorism Risk Insurance Act reauthorization bill. The agreement stipulates that the bill will be considered with only four amendments in order, including one from Sen. David Vitter (R-La.) that would place a community bank representative on the Fed board. The amendment would likely be adopted by a voice vote, the source said.
The bill is expected to be approved by the Banking Committee next week.
The Independent Community Bankers of America has been lobbying President Obama this year to appoint someone with community banking experience to the Fed Board. In May, Vitter introduced S. 2252, The Community Bank Preservation Act, that would require at least one member of the board to have experience as a community banker or community bank supervisor.
“Community bankers have an unparalleled understanding of what it takes to create healthy, vibrant local economies, which lead to a more robust national economy overall,” John H. Buhrmaster, ICBA chairman and president/CEO of 1st National Bank of Scotia, N.Y., said in a June ICBA release. “It's in the Federal Reserve's best interest to have a community banker on the board who can bring this valuable expertise and perspective to the table—helping to make the Fed board's decision process on economic and monetary policy as holistic as possible.”
NAFCU President/CEO Dan Berger penned a letter in April to the White House, asking for a credit union representative on the Fed board as well.
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