David Cote, chief executive officer of Honeywell International Inc. and a former director at JPMorgan Chase & Co., was nominated as a director of the Federal Reserve Bank of New York.
Cote, 61, was nominated as a Class B director for a term ending Dec. 31, 2016, the Fed district bank said in a statement today. Three Class B directors are elected by banks in the New York Fed’s district to represent the public.
Cote, CEO of Honeywell since 2002, stepped down in July from JPMorgan’s (JPM) board -- where he served on the risk committee - - after narrowly winning re-election in May. He had overcome opposition from some shareholders after the bank’s $6.2 billion trading loss in 2012 exposed risk-management failures.
JPMorgan’s risk committee came under scrutiny after a JPMorgan trader, dubbed the London Whale because of the size of his positions, made the wayward bet on credit derivatives. Cote had never worked at a bank or as a financial risk manager.
Class B directors at the New York Fed can’t be officers, directors or employees of any bank, according to the district bank’s website.
The New York Fed also has three Class A directors who are elected by and represent member banks, and three Class C directors who are chosen by the Fed’s board of governors to represent the public.
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