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Bank trade groups want more clarity on Fed master accounts

April 25, 2022

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Republican senators raised the issue of transparency and ethics with regard to master account approval at the Fed during the nomination process for Sarah Bloom Raskin, a former candidate to serve as the central bank’s vice chair for supervision.

Sen. Cynthia Lummis, R-WY, implied that Raskin used her influence as a recent Fed governor to help the fintech Reserve Trust gain a Fed master account, allowing the company to move money without working with a bank.

The Federal Reserve Bank of Kansas City denied Reserve Trust’s first application for a master account in June 2017, a month after Raskin joined the fintech’s board.

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