To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
William J. McDonough today announced his intention to retire as president and chief executive officer of the Federal Reserve Bank of New York as of July 21, 2003. He informed the board of directors of the bank at today’s board meeting.
Peter G. Peterson, chairman of the board, said that he understood, but regretted Mr. McDonough’s decision to step down after 10 years. Mr. Peterson said he will form an advisory committee of prominent members of the business and financial community, which will assist the board of directors in identifying candidates to succeed Mr. McDonough. A search committee, which Mr. Peterson will chair, consisting of some of the nine board members, will evaluate and interview qualified candidates, and make a recommendation to the full board. “Bill McDonough has epitomized the citizen who gives a great deal back to his country through public service,” Mr. Peterson said. “Bill came to the New York Fed after a 22-year career in the private sector, following 11 years at the State Department and U.S. Navy. Instead of resting on his previous successes, he became president at age 59 and he has made remarkable contributions to banking and the United States economy through his service at the New York Fed. In addition to extraordinary leadership at the New York Fed, Bill has served admirably as vice chairman and a permanent voting member of the Federal Open Market Committee (“FOMC”), which is responsible for making monetary policy in the United States.
"Bill also has served as chairman of the Basel Committee on Banking Supervision, and under his leadership, the Committee has developed major revisions in the Basel Capital Accord, which will modernize the capital rules for internationally active banks. This has been a singular and enormously challenging achievement.”
Mr. McDonough joined the New York Fed in January 1992, as executive vice president and head of the Markets Group, which has responsibility both for the implementation of monetary policy and for foreign exchange activities. Some 18 months later, on July 19, 1993, he was named president of the bank upon the retirement of E. Gerald Corrigan.
During the period of the search for his successor, Mr. McDonough said he intends to stay fully engaged with the work of the bank, including the finalization of the revisions of the Basel Capital Accord, which is expected later this year. Mr. McDonough will continue to be assisted by Jamie B. Stewart, first vice president and chief operating officer of the New York Fed.
Mr. McDonough is the 8th chief executive officer of the New York Fed and its longest serving head since Alfred Hayes, who was president from 1956 to 1975.
Mr. McDonough said he would not discuss any future plans he might have after leaving the Fed, except that he intends to stay active in the variety of not-for-profit boards on which he serves. Mr. McDonough is the vice-chairman of the Council of Foreign Relations, and on the boards of the Carnegie Corporation and the New York Philharmonic Orchestra, among others.