Treasury/Fed: All Goldman Sachs, All the Time

Yes, another Fed slot is soon to be filled, with another Goldman Sachs alum.

I never bought into the conspiracy that Goldman is taking over the financial world, but the lack of diversity of thought and the risk of groupthink is increasingly becoming a concern . . .

William Dudley, who runs the markets desk at the Federal Reserve Bank of New York, is the likely front-runner to become next president of the bank after another leading candidate for the job, Fed governor Kevin Warsh, withdrew from the race.

New York Fed board members interviewed several candidates for the job last Saturday and have met again this week. Once they make a final choice, the Federal Reserve Board in Washington needs to sign off on the decision, which it is expected to do quickly. The process has been slowed by the uncertain status of outgoing New York Fed president, Timothy Geithner.

Mr. Dudley has helped to design and implement many of the new facilities that the Fed has launched in recent months, giving him an intimate inside knowledge of the changes the institution has gone through and the problems plaguing markets. He is a career economist, who spent a long stint as the chief U.S. economist for Goldman Sachs and who earned a PhD in economics at the University of California at Berkeley.

New York Fed Nears Pick
WSJ, JANUARY 17, 2009

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