WASHINGTON -- House Banking Committee Chairman Henry Gonzalez said he was seeking to determine the extent to which foreign-controlled banks influence the policies of the Federal Reserve System.
"I would like to know exactly what role foreign banking interests, some closely connected to foreign governments, play in decision-making functions in the Federal Reserve by virtue of the composition of the boards of directors of the Reserve Banks," Rep. Gonzalez said in a letter to Fed Chairman Alan Greenspan.
Earlier last week, the Texas Democrat announced his intention to conduct a comprehensive legislative review of the Fed.
In his letter, he asked Mr. Greenspan to provide his committee by Nov. 30 a list of all the subsidiaries of foreign-controlled financial institutions that are members of the Federal Reserve System.
"Indicate which foreign bank subsidiaries vote for Federal Reserve Bank directors," he wrote. "Please specify the number and percentage of votes in each district from foreign bank subsidiaries, and the names and number of officers or employees of foreign banks' subsidiaries serving on the board of directors of the reserve banks or their branches."
He also asked Mr. Greenspan to provide a description of the methods used by the Fed to determine whether a bank operating in the United States is subject to foreign control.