Federal Reserve System: Mandated Report on Potential Conflicts of Interest
GENERAL ACCOUNTING OFFICE WASHINGTON DC
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This report responds to a mandate in the Gramm-Leach-Bliley Act of 1999 for us to study the potential conflicts of interest faced by the Federal Reserve System Federal Reserve in its role as a central bank, payment services provider, and regulator of the banking system. The payments system is the system of mechanisms, both paper-based and electronic, for moving funds among financial institutions throughout the nation. In this report, we discuss the Federal Reserves role in providing check collection and automated clearing house ACH services, which are often referred to as retail payments. To encourage competition between the Federal Reserve and private sector providers of payment services, the Monetary Control Act of 1980 MCA requires that the Federal Reserve charge fees for payment services that it once provided to its members free of charge.
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