Article: Fed's Moves To Improve Image Face Skepticism.(Washington)

Byline: Steven Sloan

WASHINGTON - The Federal Reserve Board's recent decisions to enhance consumer protection regulation and crack down on industry compensation practices do not appear to be assauging critics in Congress.

In the past two weeks, the Fed announced it would begin supervising nonbank subsidiaries of bank holding companies for compliance with consumer protection rules. That move was followed by word that the central bank is crafting a proposal designed to restrict inappropriate executive compensation practices at financial institutions.

Those steps come as the prospect of the Fed becoming the systemic risk regulator look ...

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