Directors of Federal Reserve Banks have a special obligation for maintaining the integrity, dignity, and reputation of the Federal Reserve System. In their capacity as directors, these individuals are charged by law with the responsibility of supervising and controlling the operations of the Reserve Banks, under the general supervision of the Board of Governors, and for ensuring that the affairs of the Banks are administered fairly and impartially. Chosen, as they are, from diverse segments of the community at large, directors are expected to bring to their deliberations the benefit of experienced judgment and advice on specific matters within their respective Districts and on other general issues confronting the System as a whole. To ensure the proper performance of System business and the maintenance of public confidence in the System, it is essential that directors, through adherence to high ethical standards of conduct, avoid actions that might impair the effectiveness of System operations or in any way tend to discredit the System. Therefore, Federal Reserve directors should be guided by the following principles.
- Their personal financial dealings should be above reproach and information obtained by them as directors of the System should never be used for personal gain.
- Directors of Federal Reserve Banks, in carrying out their System responsibilities, should avoid any action that might result in or create the appearance of--
- affecting adversely the confidence of the public in the integrity of the Federal Reserve System,
- using their position as director for private gain,
- giving unwarranted preferential treatment to any organization or person.
- Directors should strictly preserve the confidentiality of Reserve Bank and System information. In public speeches and communications, directors should avoid statements that suggest the nature of any monetary policy action that has not been officially disclosed.
- Directors are expected to adhere to high ethical standards of conduct. Directors are also expected to comply fully with all applicable laws and regulations governing their actions as directors and in their conduct outside of the Federal Reserve System.