Proposals Regarding the Federal Reserve Board's Financial Disclosure System
FPCD-77-46: Published: Aug 12, 1977. Publicly Released: Aug 12, 1977.
- Full Report:
The Board of Governors of the Federal Reserve System has established a financial disclosure system for its employees that is designed to maintain public confidence in Board operations. Federal Reserve System regulations require employees in designated positions at the GS-13 level and above to submit confidential financial statements of employment and financial interests.
Employees in 26 positions reviewed by GAO who should have filed statements, according to Civil Service guidelines, did not do so because disclosure criteria were not specific enough. Only 85 of approximately 1,500 Board employees were required to file statements in 1976. In May 1977, the Board amended its regulations to expand the number of positions requiring filing of statements. No comprehensive listing of prohibited interests and procedures has been developed to help determine if speculation has taken place. The financial disclosure form should be revised to include information needed to enforce Board regulations. Some Board employees are not restricted in their credit arrangements even though they have duties that may influence policy and decisionmaking.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Board should take steps to improve its financial disclosure system by: (1) including specific criteria for identifying positions requiring financial disclosure statements; (2) seeking Civil Service Commission approval to include more data about employees' financial transactions on the statements; and (3) establishing written criteria for reviewing statements to include a comprehensive listing of prohibited interests, a further definition of speculative transactions, and criteria for restricting loans from supervised or regulated institutions.