Vice-chairman and Federal Reserve board member Don Kohn will step down in June of this year. Kohn played an integral role in designing the central bank’s response to the crash and his been a source of guidance through the crisis. Kohn’s departure will require a speedy replacement in order to insure the rollbacks of Federal supports go smoothly.
The Federal Reserve has been under tremendous scrutiny throughout the financial crisis as many lawmakers appear to be split on the actions taken to prevent collapse. Many celebrate the success of the bailout while others are resentful of the debt and insist that the Federal Reserve powers have become too great and need to be minimized.
The reasons for the 67-year-old Kohn’s departure were not listed in his resignation letter to President Barack Obama Monday. Kohn’s exit will come at the end of his four-year term.
In his letter, Kohn lauded the abilities of his team writing, “At no time since the Great Depression have this ability and dedication been tested as they have been over the past several years. I am confident that history will judge the Federal Reserve, under the leadership of chairman Ben Bernanke, to have met these challenges with great speed, imagination and effectiveness.”
The administration has been considering possible replacements for Kohn. One prospect for the position would Fed governor, Daniel Tarullo. Tarullo would seem a likely choice, as he is the sole Presidential appointment on the board.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription
