By Katy Burne
The Federal Reserve said it has expanded its curbs on employees departing for private practice, moving to address criticisms of an alleged "revolving door" between the regulator and Wall Street.
The central bank's new measures are designed to tighten the restraints it poses on officials leaving for financial institutions and to "promote consistency in post-employment ethics rules" across the system, the Fed said.
The Fed already had a one-year cooling-off period for senior officials leaving the Fed and accepting paid work from a financial institution for which they had primary responsibility in their last 12 months at the central bank. That rule applied primarily to officials who were "centralpoints of contact" as supervisors of firms with more than $10 billion in assets.
The new policy expands the policy to cover deputies of those central points of contact for banks, senior supervisory officers, deputy senior supervisors, enterprise-risk officers and team leaders in the financial supervision group. The Fed said the change, which takes effect in January, would more than double the number of employees captured under the policy to 250 from about 100.
The revised measures also impose a new restriction, whereby former Fed officials are prohibited from representing financial institutions and other third parties before Fed employees for one year after leaving. Current Fed employees are also banned from discussing official business with former Fed officers for one year.
Those restrictions become effective Dec. 5.
Write to Katy Burne at firstname.lastname@example.org
(END) Dow Jones Newswires
November 18, 2016 12:15 ET (17:15 GMT)
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