Greg Becker left Fed post after bank’s bankruptcy
2023.03.11 01:55
Greg Becker left Fed post after bank’s bankruptcy
By Tiffany Smith
Budrigannews.com – Greg Becker, the failed Silicon Valley Bank’s chief executive officer, no longer serves on the Federal Reserve Bank of San Francisco’s board of directors.
According to a Federal Reserve spokesperson, Becker’s departure took effect on Friday. Prior on Friday, Silicon Valley Bank (O: Regulators closed the SIVB).
The spokesperson withheld information regarding Becker’s departure from the San Francisco Fed board. One of three finance executives who represented member banks in the San Francisco Fed district was Becker, who was a Class A director at the San Francisco Fed.
Private citizens serve on boards that oversee each regional bank. Six additional directors represent a variety of local businesses and community interests in addition to the three directors who represent banks. The Fed’s Board of Governors in Washington selects three of those directors, while a local process selects the remaining directors.
The Fed in Washington is in charge of the 12 regional Federal Reserve banks, which are quasi-private organizations. Their respective boards provide advice on governance and local economic intelligence in addition to direct supervision of the banks.
Most importantly, these boards also lead the selection of new presidents when there are vacancies, although directors from companies regulated by the Fed are not permitted to take part in that process.
In recent years, the Fed has been criticized for the directors of its banks being too heavily influenced by the business and banking communities and lacking in racial and gender diversity. The Fed has been working to make these positions more open to more people.
In the past, the boards have also caused problems for the Fed. At the beginning of the global financial crisis, the board of the New York Fed was heavily dominated by bankers, including the CEO of Lehman Brothers, whose collapse in 2008 is widely regarded as launching the most severe phase of the crisis.
The Chicago Fed’s then-board chair resigned before the end of her term in 2019 because her employer was having legal issues.
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