I don’t want a close relationship. I want the federal reserve to treat banks like soulless corporations that must adhere to every single law or face removal from the relationship and business.
We absolutely do not want a cozy relationship here. It needs to be black and white, transparent and bound by our law.
This all depends on what you mean by cozy. To regulate and monitor the banks closely, the regulators must be in close contact with the bank and its employees.
Keep in mind also that the Fed has employees that work at desks inside some banks.
What the Fed does is complex and can have unintended consequences for hundreds of millions of Americans. We don’t like the idea of cronyism but you also cannot solve problems as complex as the US (and world) economy without collaboration.
We absolutely do not want a cozy relationship here. It needs to be black and white, transparent and bound by our law.