Good News for Some Banks

83 Pages Posted: 28 Feb 2017 Last revised: 22 Jan 2024

Date Written: February 25, 2017


Bankers are directors of Federal Reserve Banks. I document that a) banker directors of the New York Fed attend more meetings about the financial sector; b) elections for Reserve Bank directorships are more contested for bankers, but less so for large banks and American Banking Association directors; c) the market reaction to bankers’ elections to Reserve Bank boards is 1%; d) the market reaction to insider purchases is 1.3% higher when banker directors are on a Reserve Bank board; e) Fed enforcement actions appear more moderate for banker directors. Reserve Bank directorships appear to be good news for some banks.

Keywords: Federal Reserve, Director, Banks, Conflicts of Interest, Political Connection, Reputation, Insider Trading, Enforcement Actions, Regulatory Capture

JEL Classification: E58, G28, G30

Suggested Citation

Adams, Renée B., Good News for Some Banks (February 25, 2017). European Corporate Governance Institute (ECGI) - Finance Working Paper No. 502/2017, George J. Stigler Center for the Study of the Economy & the State Working Paper No. 311, Available at SSRN: or

Renée B. Adams (Contact Author)

University of Oxford ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

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