Board of Directors
Just as the Federal Reserve’s oversight is a blend of various components, the nine director seats on each Federal Reserve Bank’s Board are filled through a variety of methods.
Three Class A directors represent commercial banks that are members of the Federal Reserve System. These directors are bankers who are nominated and elected by member banks within the Tenth Federal Reserve District, which includes western Missouri, Nebraska, Kansas, Oklahoma, Wyoming, Colorado and northern New Mexico.
Under the Class A category, a director will be elected by a specific group of member banks classified as either 1, 2 or 3. This classification is based on the total amount of capital and surplus for each commercial bank, with Group 1 banks being the largest. Each group within the class elects one director.
Three Class B directors represent the public. Class B directors may not be an officer, director or employee of a financial affiliation company. These directors are elected by member banks under the same categories as Class A directors.
Three Class C directors represent the public, but are appointed by the Board of Governors of the Federal Reserve System. This adds another layer to the blending of public and private control over the nation’s central bank. The Board of Governors selects both the chairman and deputy chairman of each regional Federal Reserve Bank’s Board of Directors from among the Class C directors. These directors are highly insulated from banking relationships. They may not be an officer, director or employee of a financial affiliation company. Additionally, these directors may not own stock in a bank or a bank holding company.
Each of the Kansas City Fed’s Branch offices in Denver, Oklahoma City and Omaha also has its own seven-member board of directors. Four of these directors are appointed by the Kansas City Fed while three are appointed by the Board of Governors. Branch directors serve three-year terms and provide their respective Branch executives with insight on regional economic conditions as well as offer advice and counsel.