New York Fed's Sarah Dahlgren to Join McKinsey Upon Leaving

Updated on
  • Dahlgren previously announced she would leave Fed on Oct. 1
  • She led oversight of biggest U.S. banks during 25-year career

Sarah Dahlgren, a top supervisor who oversees the largest U.S. banks at the New York Federal Reserve, will join a consulting firm after leaving the regulator.

Dahlgren, 52, who announced earlier this year that she planned to resign as head of the financial institution supervision group, will work for McKinsey & Co., according to Allison Kellogg, a spokeswoman for the New York-based company. Kellogg declined to comment on what Dahlgren’s role would be or when she would start. Dahlgren was set to leave the New York Fed on Oct. 1.

The 25-year Fed veteran’s duties have included handling the relationship with American International Group Inc. after its 2008 bailout, and grappling with JPMorgan Chase & Co.’s more than $6 billion so-called London Whale trading loss. She’s also led an effort to bring on-site bank examiners back to the New York Fed.

The organization’s bank oversight was questioned by U.S. lawmakers during November Senate hearings following allegations by former New York Fed bank examiner Carmen Segarra, who said her colleagues were too deferential to Goldman Sachs Group Inc.

Dahlgren has also been one of the Fed’s spearheads on efforts to ensure that the incentives of boards and executives are aligned to manage risks inside the largest banks. It’s one of the principal focuses of the Fed’s so-called stress tests, which are conducted yearly to ensure banks have enough capital to ride out an economic downturn.

The Wall Street Journal reported the move earlier Thursday through its Dow Jones Newswires.