Changes at the FRB

Two new governors come in and a seasoned governor retires. This makes for a fairly significant change at the Federal Reserve. The Board of Governors has a membership of seven so a change of three makes a difference.

Governor Kelly has announced his retirement. He's earned it after serving on the Board since 1987. Kelly plans to retire on New Year's Eve. The formal term of a governor is 14 years and Kelly's tenure comes very close.

Two new members will be joining the Board. Mark W. Olson fills the seat vacated by Alice Rivlin more than two years ago. Susan Schmidt Bies fills the seat that has been open since Susan Phillips' term expires in 1998.

Governor Bies has experience as a banker, educator, and researcher. Was EVP for Risk Management and Auditor at First Tennessee National Corporation in Memphis. She taught economics at Rhodes College in Memphis, and at Wayne State University in Detroit. She also served as Chief Regional and Banking structure Economist at the FRB of St. Louis.

Governor Olson has experience in banking, legislation and regulatory and management consulting for financial institutions. As President and CEO of Security State Bank in Fergus Falls, MN, he was active with the American Bankers Association and served as its president in 1986. His consulting work included assisting Eastern European bankers adjust to a free-market economy.

Copyright © 2002 Compliance Action. Originally appeared in Compliance Action, Vol. 6, No. 16, 1/02