The Federal Reserve Bank of New York has tapped Wall Street for its newest member.
On Monday, The NY Fed named James Gorman, Morgan Stanley’s chief executive, signed on to a three-year term beginning in January 2016.
According to Reuters, the appointment might raise questions after the New York Fed, the central bank’s eyes and ears on Wall Street, was criticized in recent years for what some see as a too-cozy relationship with the big banks it supervises.
Gorman, the bulge bracket firm’s head since 2010, will become one of three Class A members of the New York Fed’s board.
By regulation, one director must represent a bank with capital and surplus of more than $1 billion.
Unlike the six Class B and C directors who represent corporate, industrial and public interests, Gorman will have no say on financial supervision or the selection of a New York Fed president.
Gorman replaces Richard Carrion, CEO of Banco Popular de Puerto Rico.
The other two Class A directors are Paul Mello, CEO of Solvay Bank, and Gerald Lipkin, head of Valley National Bank.
