12 These shares are nontransferable and yield only limited powers and benefits. Dividends are set by federal law. The commercial bank shareholders elect two-thirds of the directors that oversee the Reserve Banks; the Board in Washington appoints the remaining one-third.
Only three bankers can serve on a Reserve Bank’s board of directors, and only one of those can be from a large commercial bank in the District. The remaining six directors represent the interests of the public.