Under Section 4 of the Federal Reserve Act, each Federal Reserve Bank, including the Federal Reserve Bank of New York, operates pursuant to the supervision of a Board of Directors, in addition to the general supervision of the Board of Governors in Washington, D.C. The Bank’s Board of Directors has nine members, all chosen from outside the Reserve Bank, who are divided into three equal classes—designated A, B and C.

The Class A and Class B directors are elected by the member commercial banks of the Second District. The Class C directors are appointed by the Board of Governors. Each year, one Class C director at each Reserve Bank is designated by the Board of Governors as chair of the Bank’s Board of Directors, and a second Class C director is designated deputy chair.

Class A directors are required to be representative of the member banks in the District and for the most part they have been officers or directors of member banks or their holding companies. Class B and Class C directors are required to represent the public "with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor and consumers."

Neither Class B nor Class C directors may be officers, directors or employees of any private-sector bank or bank holding company. Class C directors may not own shares in any bank or bank holding company.
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The New York Fed expects its employees to perform their duties with honesty, integrity and impartiality, and without improper preferential treatment of any person. The New York Fed’s Code of Conduct outlines its principles and standards for employee conduct, including rules for avoiding actual and apparent conflicts of interest.

New York Fed employees are subject to the same conflict of interest statute that applies to federal government employees (18 U.S.C. Section 208).

Under Section 208 and the New York Fed’s code of conduct, a Bank employee is prohibited from participating personally and substantially in an official capacity in any particular matter in which, to the employee's knowledge, the employee has a financial interest if the particular matter will have a direct and predictable effect on that interest.

New York Fed employees are also not permitted to own or control investments in depository institutions or affiliates of depository institutions. Employees are also prohibited from investing in certain thrift holding companies and funds that have a stated policy of concentrating their investments in the financial services sector. Additionally, staff members in the Markets Group and those with regular and ongoing access to Class I Federal Open Market Committee information may not own or control investments in a primary dealer or an entity that directly or indirectly controls a primary dealer.
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Federal Reserve Board
The Board of Governors of the Federal Reserve System, located in Washington, D.C., provides the leadership for the System. The Board oversees the activities of all 12 Reserve Banks, approving the appointments of their presidents and some members of their boards of directors.
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