1. Appointment
and Qualification of Members The Board
of Governors of the Federal Reserve System (hereinafter referred to
as the “Board”) shall be composed of seven members, to be appointed
by the President, by and with the advice and consent of the Senate,
after the date of enactment of the Banking Act of 1935, for terms
of fourteen years except as hereinafter provided, but each appointive
member of the Federal Reserve Board in office on such date shall continue
to serve as a member of the Board until February 1, 1936, and the
Secretary of the Treasury and the Comptroller of the Currency shall
continue to serve as members of the Board until February 1, 1936.
In selecting the members of the Board, not more than one of whom shall
be selected from any one Federal Reserve district, the President shall
have due regard to a fair representation of the financial, agricultural,
industrial, and commercial interests, and geographical divisions of
the country. In selecting members of the Board, the President shall
appoint at least 1 member with demonstrated primary experience working
in or supervising community banks having less than $10,000,000,000
in total assets. The members of the Board shall devote their entire
time to the business of the Board and shall each receive an annual
salary of $15,000, payable monthly, together with actual necessary
traveling expenses.
[12 USC 241. As amended
by acts of June 3, 1922 (42 Stat. 620); Aug. 23, 1935 (49 Stat. 704);
and Jan. 12, 2015 (129 Stat. 9). Prior to the enactment of the Banking
Act of 1935, approved Aug. 23, 1935, the Board of Governors of the
Federal Reserve System was known as the Federal Reserve Board. See
note to the third paragraph of section 1. The portion of this paragraph
dealing with salaries of Board members has in effect been amended
numerous times, most recently by Executive Order. Prior to the act
of December 27, 2000, section 1002 of which revised the executive
schedule, the salary of the chairman of the Board was set at executive
schedule level 2 and the salary of other members at level 3. The salary
of the chairman of the Board is now set at executive schedule level
I, and the salary of other members at level II (see 2 USC 358 and
5 USC 5313 and 5314).]
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2. Members Ineligible to Serve Member Banks; Term of Office; Chairman
and Vice Chairman The members of the
Board shall be ineligible during the time they are in office and for
two years thereafter to hold any office, position, or employment in
any member bank, except that this restriction shall not apply to a
member who has served the full term for which he was appointed. Upon
the expiration of the term of any appointive member of the Federal
Reserve Board in office on the date of enactment of the Banking Act
of 1935, the President shall fix the term of the successor to such
member at not to exceed fourteen years, as designated by the President
at the time of nomination, but in such manner as to provide for the
expiration of the term of not more than one member in any two-year
period, and thereafter each member shall hold office for a term of
fourteen years from the expiration of the term of his predecessor,
unless sooner removed for cause by the President. Of the persons thus
appointed, 1 shall be designated by the President, by and with the
advice and consent of the Senate, to serve as Chairman of the Board
for a term of 4 years, and 2 shall be designated by the President,
by and with the advice and consent of the Senate, to serve as Vice
Chairmen of the Board, each for a term of 4 years, 1 of whom shall
serve in the absence of the Chairman, as provided in the fourth undesignated
paragraph of this section, and 1 of whom shall be designated Vice
Chairman for Supervision. The Vice Chairman for Supervision shall
develop policy recommendations for the Board regarding supervision
and regulation of depository institution holding companies and other
financial firms supervised by the Board, and shall oversee the supervision
and regulation of such firms. The chairman of the Board, subject to
its supervision, shall be its active executive officer. Each member
of the Board shall within fifteen days after notice of appointment
make and subscribe to the oath of office. Upon the expiration of their
terms of office, members of the Board shall continue to serve until
their successors are appointed and have qualified. Any person appointed
as a member of the Board after the date of enactment of the Banking
Act of 1935 shall not be eligible for reappointment as such member
after he shall have served a full term of fourteen years.
[12 USC 242. As amended
by acts of March 3, 1919 (40 Stat. 1315); June 3, 1922 (42 Stat. 620);
June 16, 1933 (48 Stat. 166); Aug. 23, 1935 (49 Stat. 704); Nov. 16,
1977 (91 Stat. 1388); and July 21, 2010 (124 Stat. 2126). The Banking
Act of 1935, referred to in this paragraph, became effective Aug.
23, 1935. Prior to the enactment of that act, the chairman and vice
chairman of the Board of Governors of the Federal Reserve System were
known as the governor and vice governor of the Federal Reserve Board,
respectively. See note to the third paragraph of section 1. The act
of November 16, 1977, amended the second sentence of this paragraph.
The amendment takes effect on Jan. 1, 1979, and applies to individuals
who are designated by the President on or after such date to serve
as chairman or vice chairman. The act of July 21, 2010, designated
a new Vice Chairman for Supervision.]
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3. Assessments on Federal Reserve Banks The Board of Governors of the Federal Reserve System
shall have power to levy semiannually upon the Federal reserve banks,
in proportion to their capital stock and surplus, an assessment sufficient
to pay its estimated expenses and the salaries of its members and
employees for the half year succeeding the levying of such assessments,
together with any deficit carried forward from the preceding half
year, and such assessments may include amounts sufficient to provide
for the acquisition by the Board in its own name of such site or building
in the District of Columbia as in its judgment alone shall be necessary
for the purpose of providing suitable and adequate quarters for the performance
of its functions. After September 1, 2000, the Board may also use
such assessments to acquire, in its own name, a site or building (in
addition to the facilities existing on such date) to provide for the
performance of the functions of the Board. After approving such plans,
estimates, and specifications as it shall have caused to be prepared,
the Board may, notwithstanding any other provision of law, cause to
be constructed on any site so acquired by it a building or buildings
suitable and adequate in its judgment for its purposes and proceed
to take all such steps as it may deem necessary or appropriate in
connection with the construction, equipment, and furnishing of such
building or buildings. The Board may maintain, enlarge, or remodel
any building or buildings so acquired or constructed and shall have
sole control of such building or buildings and space therein.
[12 USC 243. As reenacted
without change by act of June 3, 1922 (42 Stat. 621); and amended
by acts of June 19, 1934 (48 Stat. 1108) and Dec. 27, 2000 (114 Stat.
3027). By act approved June 27, 1935 (49 Stat. 425), provision was
made for the furnishing of steam from the central heating plant to
the Federal Reserve Board, now the Board of Governors of the Federal
Reserve System.]
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4. Principal Offices;
Expenses; Deposit of Funds; Members Not to Be Officers or Stockholders
of Banks The principal offices of the
Board shall be in the District of Columbia. At meetings of the Board
the chairman shall preside, and, in his absence, the vice chairman
shall preside. In the absence of the chairman and the vice chairman,
the board shall elect a member to act as chairman pro tempore. The
Board shall determine and prescribe the manner in which its obligations
shall be incurred and its disbursements and expenses allowed and paid,
and may leave on deposit in the Federal Reserve banks the proceeds
of assessments levied upon them to defray its estimated expenses and
the salaries of its members and employees, whose employment, compensation,
leave, and expenses shall be governed solely by the provisions of
this Act, specific amendments thereof, and rules and regulations of
the Board not inconsistent therewith; and funds derived from such
assessments shall not be construed to be Government funds or appropriated
moneys. No member of the Board of Governors of the Federal Reserve
System shall be an officer or director of any bank, banking institution,
trust company, or Federal Reserve bank or hold stock in any bank,
banking institution, or trust company; and before entering upon his
duties as a member of the Board of Governors of the Federal Reserve
System he shall certify under oath that he has complied with this
requirement, and such certification shall be filed with the secretary
of the Board. Whenever a vacancy shall occur, other than by expiration
of term, among the six members of the Board of Governors of the Federal
Reserve System appointed by the President as above provided, a successor
shall be appointed by the President, by and with the advice and consent
of the Senate, to fill such vacancy, and when appointed he shall hold
office for the unexpired term of his predecessor.
[12 USC 244. As amended
by acts of June 3, 1922 (42 Stat. 621); June 16, 1933 (48 Stat. 167);
Aug. 23, 1935 (49 Stat. 705). The reference to “the six members” of
the Board of Governors is an apparent error in the law and should
read “the seven members.” See section 10, first paragraph, this act.]
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5. Vacancies During Recess of Senate The President shall have power to fill
all vacancies that may happen on the Board of Governors of the Federal
Reserve System during the recess of the Senate by granting commissions
which shall expire with the next session of the Senate.
[12 USC 245. As amended
by act of June 3, 1922 (42 Stat. 621).]
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6. Reservation of Powers of Secretary of Treasury Nothing in this Act contained shall be construed
as taking away any powers heretofore vested by law in the Secretary
of the Treasury which relate to the supervision, management, and control
of the Treasury Department and bureaus under such department, and
wherever any power vested by this Act in the Board of Governors of
the Federal Reserve System or the Federal reserve agent appears to conflict
with the powers of the Secretary of the Treasury, such powers shall
be exercised subject to the supervision and control of the Secretary.
[12 USC 246.
As reenacted without change by act of June 3, 1922 (42 Stat. 621).]
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7. Annual Report The Board of Governors of the Federal Reserve System shall annually
make a full report of its operations to the Speaker of the House of
Representatives, who shall cause the same to be printed for the information
of the Congress. The report required under this paragraph shall include
the reports required under section 707 of the Equal Credit Opportunity
Act, section 18(f)(7) of the Federal Trade Commission Act, section
114 of the Truth in Lending Act, and the tenth undesignated paragraph
of this section.
[12 USC 247. As reenacted
without change by act of June 3, 1922 (42 Stat. 621) and amended by
acts of June 3, 1922, and Dec. 27, 2000 (114 Stat. 3030).]
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8. Office of the Comptroller of the Currency Section three hundred and twenty-four
of the Revised Statutes of the United States shall be amended so as
to read as follows:
(a) Office of the Comptroller of the Currency established. There
is established in the Department of the Treasury a bureau to be known
as the “Office of the Comptroller of the Currency” which is charged
with assuring the safety and soundness of, and compliance with laws
and regulations, fair access to financial services, and fair treatment
of customers by, the institutions and other persons subject to its
jurisdiction.
(b) Comptroller
of the Currency.
(1) In general. The chief officer of the Office of the Comptroller of the Currency
shall be known as the Comptroller of the Currency. The Comptroller
of the Currency shall perform the duties of the Comptroller of the
Currency under the general direction of the Secretary of the Treasury.
The Secretary of the Treasury may not delay or prevent the issuance
of any rule or the promulgation of any regulation by the Comptroller
of the Currency, and may not intervene in any matter or proceeding
before the Comptroller of the Currency (including agency enforcement
actions), unless otherwise specifically provided by law.
(2) Additional authority. The Comptroller of the Currency shall
have the same authority with respect to functions transferred to the
Comptroller of the Currency under the Enhancing Financial Institution
Safety and Soundness Act of 2010 as was vested in the Director of
the Office of Thrift Supervision on the transfer date, as defined
in section 311 of that Act.
[12 USC 1. As reenacted
without change by act of June 3, 1922 (42 Stat. 621); and amended
by acts of May 20, 1966 (80 Stat. 161), Sept. 23, 1994 (108 Stat.
2232), and July 21, 2010 (124 Stat. 1523).]
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9. Branch Federal Reserve Bank Buildings No Federal Reserve bank may authorize
the acquisition or construction of any branch building, or enter into
any contract or other obligation for the acquisition or construction
of any branch building, without the approval of the Board.
[12 USC 522. As added
by act of June 3, 1922 (42 Stat. 622); and amended by acts of Feb.
6, 1923 (42 Stat. 1223); July 30, 1947 (61 Stat. 520); May 29, 1953
(67 Stat. 41); Aug. 31, 1962 (76 Stat. 418); Oct. 28, 1974 (88 Stat.
1505); and Oct. 24, 1992 (106 Stat. 3144).]
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10. Record of Open Market and Other Policies The Board of Governors of the Federal
Reserve System shall keep a complete record of the action taken by
the Board and by the Federal Open Market Committee upon all questions
of policy relating to open-market operations and shall record therein
the votes taken in connection with the determination of open-market
policies and the reasons underlying the action of the Board and the
Committee in each instance. The Board shall keep a similar record
with respect to all questions of policy determined by the Board, and
shall include in its annual report to the Congress a full account of the
action so taken during the preceding year with respect to open-market
policies and operations and with respect to the policies determined
by it and shall include in such report a copy of the records required
to be kept under the provisions of this paragraph.
[12 USC 247a. As added
by act of Aug. 23, 1935 (49 Stat. 705).]
12. Appearances before Congress * The Vice Chairman for Supervision
shall appear before the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House
of Representatives and at semi-annual hearings regarding the efforts,
activities, objectives, and plans of the Board with respect to the
conduct of supervision and regulation of depository institution holding
companies and other financial firms supervised by the Board.
[12 USC 247b. As added
by act of July 21, 2010 (124 Stat. 2126).]
