Patrick Parkinson, the Federal Reserve’s head of bank supervision, plans to retire on Jan. 1, to be replaced by Michael Gibson, a deputy director in the division of research and statistics, the central bank said.
Gibson, 45, will oversee U.S. bank holding companies and state chartered banks and will also represent the Fed on the Basel Committee on Banking Supervision, which is coordinating the global effort to strengthen capital, liquidity and risk management standards in the financial system.
Gibson’s “expert knowledge of risk management and financial markets make him an excellent choice at a time when we are drawing on a wide range of expertise in bank supervision and regulation to focus not just on the health of individual institutions, but on the financial system as a whole,” Chairman Ben S. Bernanke said today in a statement.
The bank supervision head at the central bank is growing in prominence as the Fed implements new regulatory rules created by the Dodd-Frank act and carries out stress tests for the largest U.S. bank holding companies. Global bank regulators have increased cooperation following the financial crisis that intensified in 2008 with the bankruptcy of Lehman Brothers Holdings Inc.
Gibson, like Parkinson, is a Ph.D. economist who spent most of his career in the Fed’s division of research and statistics. He earned his doctorate in economics from the Massachusetts Institute of Technology and his bachelor’s degree from Stanford University.
Parkinson, 59, joined the Fed in 1980 and became head of supervision in October 2009. From January to July of 2009, he was detailed to the Treasury Department to help draft its plan for overhauling financial regulation.
Parkinson “has been an exemplary leader, helping to build a more multidisciplinary and analytical approach to supervision and regulation,” Bernanke said.
To contact the editor responsible for this story: Christopher Wellisz at email@example.com