Federal Reserve Watchdog Flags Confidential Information Sharing Concerns Among Regional Bank Boards
The Federal Reserve's internal watchdog has flagged concerns about the sharing of confidential supervisory information (CSI) among regional bank boards. The Office of Inspector General (OIG) warns that current safeguards are not robust enough to prevent sensitive data from reaching the wrong people.
The OIG has been monitoring this issue for some time, with reports dating back to June 2023 identifying vulnerabilities in Supervision Central and another platform called OASIS. In July 2026, the watchdog delivered a particularly pointed critique, stating that the Board's insider risk management program was 'insufficiently proactive.'
The structure of regional Federal Reserve banks is unique, with each of the 12 banks having a nine-member board of directors comprised of public-interest appointees and representatives from the banking industry. This arrangement creates an inherent tension that demands rigorous information barriers.