The revolving door goes round and round….
According to the New York Federal Reserve, Mr. Gorman has been elected as Class A director. He will be representing Group 1, which is composed of member banks with capital and surplus of more than $1 billion. He will serve a three-year term.
Mr. Gorman along with his fellow Class A directors will be offering advice to the New York Federal Reserve Board regarding policy, the economy, and markets.
James Gorman professional background
Mr. Gorman has been serving Morgan Stanley as CEO since January 2010. He assumed the role of Chairman in January 2012. Before his positions as Chairman and CEO, he served as co-president of the bank. He joined Morgan Stanley in 2006.
Before joining Morgan Stanley, Mr. Gorman held executive positions at Merrill Lynch. He also worked as a senior partner at McKinsey & Co. He started his professional career as a lawyer in Melbourne, Australia.
Mr. Gorman is a member of the Federal Advisory Council to the Federal Reserve of Governors. Also serves as co-chairman of the Partnership for the New York City.
Additionally, Mr. Gorman is a member of the Board of Overseers of the Columbia Business School, the Board of the Institute of International Finance, the Monetary Authority of Singapore International Advisory Panel, the Council on Foreign Relations, and the Economic Club of New York.
He previously served as co-chairman of the Business Committee of the Metropolitan Museum of Art. He served as chairman of the Board of the Securities Industry and Financial Markets Association in Washington, D.C.
Mr. Gorman holds a bachelor’s degree and a law degree from the University of Melbourne, and an MBA from Columbia University.
Criticisms regarding New York Fed
Some suggested that the appointment of Mr. Gorman may raise concerns citing the reason that the New York Federal Reserve has been criticized because of its “too cozy relationship with big banks.”
The New York Federal Reserve faced criticisms for its oversight failures related to JP Morgan’s “London Whale” credit derivative losses worth $6.2 billion in 2012.
In 2009, Stephen Friedman, a retired chairman of Goldman Sachs, resigned as Chairman of the New York Federal Reserve Board amid scrutiny regarding his acquisition of stocks in the bank while the Fed was considering a Wall Street bailout.