Fed Weighs Steps to Prevent ‘Regulatory Capture’ by Banks

The Federal Reserve, criticized by lawmakers for being too cozy with Wall Street, is considering tougher measures to restrict bank examiners from leaving to take jobs at firms they have overseen.

Currently, the two most senior employees assigned to a bank are barred from joining a firm they examined for one year after leaving the central bank system. Fed officials are discussing whether to expand the prohibition beyond those top positions, according to a person with knowledge of the matter.