Court documents, legal proceedings, or official statements from involved parties.

Numisma Bank, Co-Founded by Former Fed Official and Liz Warren Relative, Set to Receive Rare Master Account Approval, Raising Eyebrows

May 23, 2024, 10:57 PM

Numisma Bank, co-founded by former Federal Reserve Vice Chair Randy Quarles and a relative of Senator Elizabeth Warren, is set to receive a rare master account approval from the Federal Reserve. This decision has raised eyebrows within the financial community, particularly given the involvement of Quarles and Warren's relative. Critics argue that the Federal Reserve's decision appears inconsistent, as similar applications from other banks, such as Custodia Bank, have been blocked. David Zaring noted that the optics of this approval are 'pretty uncomfortable for the Fed,' highlighting concerns about potential favoritism and the market value of former Fed officials. Additionally, Numisma is statutorily entitled to a master account, according to Alt.