Corporate Leadership Entities
The San Francisco Federal Reserve, a crucial component of the Federal Reserve System, has announced several new appointments to its board of directors. These appointments, effective from January 1, 2025, include Mario Cordero (Class C director), Pallavi Mehta Wahi (Deputy Chair), Russell A. (Chip) Childs (Chair), Jeff Newgard (Class A director), and Maritza Diaz (Class B director).
As per the bylaws of the San Francisco Fed, Class C directors must have been residents of the District for two years prior to their appointment, and they represent the public's interests. On the other hand, Class A directors may be officers, directors, or employees of a member bank, but they are barred from participating in certain decisions related to the Reserve Bank's supervisory function and the appointment of certain officers.
The roles of the San Francisco Fed's Branch Boards are primarily advisory and supervisory, focusing on gathering regional economic insights and ensuring that the San Francisco Fed's policies and actions reflect the diverse economic realities of its district. They accomplish this by gathering qualitative and quantitative information about local economic conditions through business and community leaders, advising on regional concerns, and supporting outreach efforts to local banks, businesses, and the public.
In addition to the appointments mentioned above, Laura Lee Stewart, the President and Chief Executive Officer of Sound Community Bank and Sound Financial Bancorporation, based in Seattle, Washington, will join as a Class A director effective January 1, 2026. Jack Sinclair is another Class B director set to join the board effective January 1, 2027.
The San Francisco Fed has a separate seven-member branch board, consisting of the Los Angeles Branch Board of Directors, Portland Branch Board of Directors, Salt Lake City Branch Board of Directors, and Seattle Branch Board of Directors, each serving as distinct entities.
The Dodd-Frank Act, enacted in 2010, allows only Class B and Class C directors to participate in the presidential appointment process at the San Francisco Fed. A subset of the Reserve Bank directors also oversees the maintenance of an effective system of internal auditing procedures.
In their special role with respect to monetary policy and credit policy, directors bring the benefits of regional autonomy to the Federal Reserve System, offering separate and eclectic viewpoints on economic and credit conditions. This structure supports the Federal Reserve's overall mission to promote a healthy economy and stable financial system.
- As a Class A director, Laura Lee Stewart's expertise in finance as the President and CEO of Sound Community Bank will provide valuable insights for the San Francisco Fed's advisory and supervisory roles.
- Each branch board, including the Los Angeles, Portland, Salt Lake City, and Seattle boards, plays a crucial part in gathering regional economic insights, thereby helping the San Francisco Fed formulate monetary and credit policies that reflect diverse business conditions.
