Late on Sunday we cautioned readers that according to an anecdotal report from Bloomberg, the NY Markets Group which mans the Fed's trading dloor, also known as the Plunge Protection Team, had been gripped by unprecedented chaos following the clash of egos between the career economist who took over the NY Fed presidency, John Williams, and the two top traders on the NY Fed's market team, Simon Potter, and his right hand man, the head of the Financial Services Group, Richard Dzina, who were fired by Williams even though the NY Fed made it seem that they were quitting on their own accord.
Perhaps not coincidentally, the very next day the US stock market suffered its biggest drop in 2019, with many wondering why the Fed wasn't there to save them.
It now appears that rumors of bitter infighting at the NY Fed markets were accurate because on Wednesday morning, the NY Fed announced that it was restructuring the leadership roles in its Markets Group:
The Federal Reserve Bank of New York today announced that it will restructure the leadership of the Markets Group to best meet its critical responsibilities. The previous position of Executive Vice President and Head of the Markets Group will be split into two roles: an Executive Vice President and Head of the Markets Group, and an Executive Vice President and Manager of the System Open Market Account (SOMA).
The Markets Group Head will be responsible for the group’s entire portfolio of products and services, with a focus on operational effectiveness, policy, human capital, and technology. As a member of the Executive Committee, the Markets Group Head will also play a key role in developing and implementing the New York Fed’s strategic direction and priorities.
The SOMA Manager will be responsible for a critical element of that portfolio, implementing monetary policy in accordance with the directives of the Federal Open Market Committee (FOMC). The SOMA Manager will have a deep knowledge of capital markets, market operations, and related policy, and is responsible for providing expert analysis and advice to the FOMC. The SOMA Manager is appointed annually by the FOMC subject to approval of the New York Fed.
In both instances, the New York Fed will seek leaders who are visionary and collaborative, and who will inspire, support, and develop outstanding teams.
We doubt we are the only ones who find the "collaborative" clarification amusing; we also doubt that the now fired Simon Potter does not find it all that humorous at all.
More importantly, any "visionary and collaborative" traders who believe they have the skill set to buy - and never sell - any asset, are urged to submit their resumes to the 9th Floor of Libert 33 c/o Spencer Stuart, where the world's most important trading desk can be found:
The New York Fed has selected Spencer Stuart to conduct a nationwide search to identify a broad, diverse and highly qualified pool of candidates—including those from within the New York Fed and the Federal Reserve System—from which to select these new leaders. The search firm is also conducting a search for a new Executive Vice President and Head of the Financial Services Group.