No. 2209

Friday, October 1, 1999

PETERSON APPOINTED CHAIRMAN OF THE BOARD OF THE NY FED

NEW YORK - The Board of Governors of the Federal Reserve System has appointed Peter G. Peterson chairman of the board of directors of the Federal Reserve Bank of New York.

Mr. Peterson will become chairman effective January 1, 2000. He will succeed John W. Whitehead who has served as chairman of the bank's board since January 1996.

Mr. Peterson, chairman of The Blackstone Group, New York, NY has been a class C director of the bank since January 1996 and deputy chairman of the board since November 1998.

Mr. Peterson has been chairman of The Blackstone Group since 1985. Prior to that he was chairman and chief executive officer of Lehman Brothers, Kuhn, Loeb, Inc., an investment banking firm.

He was the U.S. Secretary of Commerce from 1972 to 1973 after having served as Assistant to the President for International Economic Affairs and Executive Director of the Council on Economic Policy during1971 and 1972.

Mr. Peterson worked for the Bell & Howell Company for 13 years prior to his government service. He began his career with Bell & Howell as an executive vice president and became chairman and chief executive officer in 1963.

He earned a Bachelor of Science degree summa cum laude from Northwestern University and a Master of Business Administration degree with honors from the University of Chicago. He also has received several honorary degrees from various universities.

Mr. Peterson is a director of Sony Corp., and Transtar Inc. He is chairman of the board of both the Council on Foreign Relations and the Institute for International Economics. In addition, he serves as founding president of The Concord Coalition and is a trustee of the Committee for Economic Development, the National Bureau of Economic Research, the Museum of Modern Art, and the Public Agenda Foundation. He also is founding member of the Bi-Partisan Budget Appeal.

The board of directors of the Federal Reserve Bank of New York consists of nine members, three of whom are appointed by the Board of Governors of the Federal Reserve System as class C directors. The remaining six (three class A and three class B directors) are elected by member banks in the Second Federal Reserve District. Class A directors are drawn from among the banking community. Class B and C directors are individuals chosen from professions outside the banking community and typically represent business, industry, agriculture, labor and consumers.