The Federal Reserve on Wednesday tightened standards for certain directors at regional Fed banks in an attempt to distance the regional Fed banks from private banking companies.

According to the revised policy, Class B and C directors affiliated with a company that becomes a "financial affiliation company" during the director's term must resign from the company or from the Fed bank's board within 60 days. This period commences when the director becomes aware of the affiliation or the board informs the Fed of the company's change in character.

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