President Obama announced last week he planned to nominate Allan R. Landon to fill one of two long-standing vacancies on the Federal Reserve Board of Governors.
Of note, Landon will be the first community banker on the Fed’s Board of Governors since Elizabeth Duke left more than two years ago.
In a recent report, Lindsey M. Piegza of research firm Sterne Agee points out that many politicians have been critical of Fed’s failures to adequately regulate and inspect big banks. Elizabeth Warren and Joe Manchin have been among the most vocal critics, arguing that Fed governors should have experience in community banking. Some in Congress have even tried to make community banking experience a requirement for at least one member of the Federal Reserve Board.
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President Obama commented that Landon will bring wide experience in the banking sector as well as strong leadership qualities to the job. “[Landon] has the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy. He brings decades of leadership and expertise from various roles, particularly as a community banker. I’m confident that he will serve our country well.”
More on Allan R. Landon
Landon grew up in the Midwest and most of his career has been spent as a community banker. Early in his career, he served as an auditor for Ernst and Young, then a few years later, joined the Bank of Tennessee as CFO. Landon was also employed as president and CEO of the Bank of Hawaii until his retirement in 2010. He recently co-founded Community BanCapital, an investment fund that provides debt to community banks.
Two current vacancies at the Federal Reserve Board
There are currently two vacancies on the Federal Reserve Board. These spots were created by the retirement of Jeremy Stein last May, and the departure of Sarah Bloom Raskin, who left the Fed to serve as Deputy Secretary of the Treasury in March of 2014.
More on the Fed
The Federal Open Market Committee has 12 members, five district presidents and the board of governors. The district presidents serve on the FOMC for rotating one-year terms, except the New York Fed president who has a permanent seat. In 2015, the Committee includes the presidents of the Chicago, Richmond, Cleveland, San Francisco and the New York Federal Reserve Banks.
The FOMC is the monetary policymaking body of the Federal Reserve System. The Fed controls the supply of money, interest rates, and other key factors which are a part of economic growth in the U.S. Landon’s policy views are not well known, however, the 2014 Committee is already a Dovish body with nine Doves and one Hawk (Hawks most worried about keeping inflation low).