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Fed Vice Chairman Donald Kohn Resigns

Tyler Durden's picture





 

The Fed's second in command is leaving in June. WSJ's take on rats leaving the sinking ship.

Donald L. Kohn, the 67-year-old vice chairman of the Federal Reserve Board who has been a close adviser to Fed chairmen Ben Bernanke and Alan Greenspan, said he will step down from the post when his  term ends in June.

The retirement gives President Barack Obama a third seat to fill on the seven-member Fed board. Daniel Tarullo, a former Georgetown University law professor whom Mr. Obama named to the Fed board last year, is a potential successor to Mr. Kohn as a vice chairman.

But the prestige of the title may be used by the White House to lure someone from outside the Fed to fill one of the vacancies.

"At no time since the Great Depression have this ability and dedication been tested as they have been over the past several years," Kohn said in a letter to Mr. Obama. "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."

Mr. Kohn was at Mr. Bernanke's side for nearly every critical decision during the financial crisis, serving as the institutional memory of the organization where he has worked for 40 years. And Mr. Bernanke asked him to solve some of the thorniest challenges during the crisis -- from finding a way to melt frozen commercial-paper markets to keeping peace among occasionally warring factions inside the Fed because he was trusted by almost all of them.

"The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn for his invaluable contributions over 40 years of public service," Mr. Bernanke said. "Most recently, he brought his deep knowledge, experience, and wisdom to bear in helping to coordinate the Federal Reserve's response to the economic and financial crisis. In addition, Don helped lead the stress tests of major financial institutions; he directed the Board's ongoing efforts to increase the transparency of the Federal Reserve; and he has been leading an international effort within the Bank for International Settlements to help central banks focus on key issues and responses to the crisis. On a personal note,  I would like to express my deep appreciation for Don's friendship and counsel during some very difficult times.  He will be greatly missed."

 


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Mon, 03/01/2010 - 10:54 | Link to Comment Hondo
Hondo's picture

Yes!!!!  That is fantastic news!! 

Mon, 03/01/2010 - 11:20 | Link to Comment MaldelBot
MaldelBot's picture

Yes! now Darth Summers can take a crack at destroying the economy.

Mon, 03/01/2010 - 12:09 | Link to Comment Anonymous
Mon, 03/01/2010 - 14:31 | Link to Comment MaldelBot
MaldelBot's picture

Ya. Or just ask Lithuania. 

 

 

Mon, 03/01/2010 - 10:56 | Link to Comment williambanzai7
williambanzai7's picture

Go make some big bucks before the apocalypse hits.

Mon, 03/01/2010 - 11:00 | Link to Comment SWRichmond
SWRichmond's picture

OK, I'll go first:

Rats leaving the sinking ship!

Mon, 03/01/2010 - 12:37 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Is it rats leaving the ship or rats playing musical chairs? Remember that there is a circle jerk that is followed in the corridors of power. A rotation from politics to academia to think tank to corporate to (sometimes) legislative, in any and all combinations imaginable.

Around and around they go. Where they stop, nobody knows.

Mon, 03/01/2010 - 11:03 | Link to Comment CB
CB's picture

lol. abandon ship?

Mon, 03/01/2010 - 11:03 | Link to Comment Anonymous
Mon, 03/01/2010 - 12:16 | Link to Comment Anonymous
Mon, 03/01/2010 - 19:21 | Link to Comment Anonymous
Mon, 03/01/2010 - 11:04 | Link to Comment Ruth
Ruth's picture

Timmy needs some assistance?

Lloyd needs more blood?

The smoke machines are stuck?

.....still thinking

Mon, 03/01/2010 - 12:45 | Link to Comment obewon
obewon's picture

Lol! Enjoyed your quips.

NewsFlash: The Euro is under tremendous pressure in 2010, and the ECB needs to do more currency market rigging; they also need more "smoke screens".

My Guess: Kohn goes to ECB as a "Consultant" (big pay increase here!). Who better to call on, since he is an expert at market rigging, currency manipulations, and such. Then the manipulations of the ECB and the FED will be better coordinated.

 

Still thinking.

Mon, 03/01/2010 - 14:15 | Link to Comment bchbum
bchbum's picture

And he can have timmy do his taxes, since he's such a whiz at turbotax.

Mon, 03/01/2010 - 11:05 | Link to Comment Anonymous
Mon, 03/01/2010 - 11:34 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

You always have to factor M1 with the velocity of money (how often money changes hands.) M1 alone doesn't tell you much in today's economy.

Mon, 03/01/2010 - 12:30 | Link to Comment Anonymous
Mon, 03/01/2010 - 11:56 | Link to Comment MarketTruth
MarketTruth's picture

Are the main owners/members of the Federal Reserve (Rothschilds, Morgans, Warburgs, Rockefellers, etc) shipping him to Europe to help manipulate their market, or is it Easy Street for him at the Vampire Squid?

Buy physical gold.
Right now @ all-time highs in the Euro and British Sterling

www.kitconet.com/charts/metals/gold/2a-euro-us-30d-Large.gif

www.kitconet.com/charts/metals/gold/2a-gbp-us-30d-Large.gif

 

PS: THREE seats will be empty at the Fed? That in and of itself is very telling.

Mon, 03/01/2010 - 11:19 | Link to Comment junkyard dog
junkyard dog's picture

Finally, Bernanke wrote something on his own.

 

Mon, 03/01/2010 - 11:28 | Link to Comment Species8472
Species8472's picture

"The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn for his invaluable contributions over 40 years of public service

40 years of inflation.

Mon, 03/01/2010 - 11:41 | Link to Comment Anonymous
Mon, 03/01/2010 - 11:28 | Link to Comment crosey
crosey's picture

he directed the Board's ongoing efforts to increase the transparency of the Federal Reserve

hmmm....wonder if the real story is in there.

Mon, 03/01/2010 - 11:45 | Link to Comment Anonymous
Mon, 03/01/2010 - 14:17 | Link to Comment bchbum
bchbum's picture

even on his face?

Mon, 03/01/2010 - 11:54 | Link to Comment TomJoad
TomJoad's picture

Don helped lead the stress tests of major financial institutions; he directed the Board's ongoing efforts to increase the transparency of the Federal Reserve

Seriously?

There was an ongoing effort?

Where can someone with this kind of epic track record of success go next?

I smell cephalopod.

Mon, 03/01/2010 - 11:55 | Link to Comment Anonymous
Mon, 03/01/2010 - 12:01 | Link to Comment Anonymous
Mon, 03/01/2010 - 12:01 | Link to Comment Anonymous
Mon, 03/01/2010 - 14:38 | Link to Comment Anonymous
Mon, 03/01/2010 - 12:08 | Link to Comment Anonymous
Mon, 03/01/2010 - 12:32 | Link to Comment Astute Investor
Astute Investor's picture

"I am confident that history will judge the Federal Reserve, under the leadership of Chairman Bernanke, to have met these challenges with great speed, imagination and effectiveness."

What a bunch of self-serving horse sh**!  Always nice when your "performance review" is just a de facto self-assessment.

 

Mon, 03/01/2010 - 12:34 | Link to Comment Assetman
Assetman's picture

At 67 years old, Donald Kohn is certainly getting up there-- but he is nowhere near "Paul Volcker old".

Which leads me to believe he is either aiming for another career move (i.e., Goldman, IMF)-- or he has bought his patch of land in Paraguay and will use freshly printed cash to build his private bunker getaway.

Mon, 03/01/2010 - 12:54 | Link to Comment Anonymous
Mon, 03/01/2010 - 13:03 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"rats leaving the sinking ship"....YES!!!!!

Mon, 03/01/2010 - 13:32 | Link to Comment jmc8888
jmc8888's picture

I think zero hedge is pointing out (through bold) that the guy in the fed who was probably pushing for more transperency the most, is leaving.

 

Meaning, we're about to get a fed hidden further behind the curtains.  (unless we congress does it's job)

 

Mon, 03/01/2010 - 13:56 | Link to Comment Anonymous
Mon, 03/01/2010 - 15:31 | Link to Comment Anonymous
Mon, 03/01/2010 - 15:36 | Link to Comment Anonymous
Fri, 04/16/2010 - 10:33 | Link to Comment Tom123456
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