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Fed asks whether it is too close to banks

from Financial Times

The Federal Reserve board is conducting a major review of how the regulator and its reserve banks supervise large financial institutions, amid mounting criticism that it is to close to and too lenient with the Wall Street groups it oversees. News of the inquiry came a day before two top officials, Fed Governor Dan Tarullo and New York Fed president William Dudley, are due to testify in separate Senate hearings into regulatory oversight practices. more

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