Which Stan Fischer Would Be Fed’s No. 2?

Dec. 13 (Bloomberg) -- The Barack Obama administration hasindicated that Stanley Fischer is the leading candidate tobecome vice chairman of the Federal Reserve System. In theinitial rush of response, commentators tripped over themselvesto praise Fischer’s academic experience in the 1970s and 1980s,his work at the World Bank and the International Monetary Fundin the 1990s, his time as a senior executive at Citigroup Inc.in the early 2000s, and his work as governor of the Bank ofIsrael from 2005 until this year.

A moment’s reflection on this record should give pause.Close examination reveals two quite different Stan Fischers, inthe sense that at different times in his busy career he hasdemonstrated diametrically opposed views on the systemic risksposed by large banks. Given the Fed’s newly established leadingrole as a regulator, it is entirely reasonable to ask: Whatexactly are his current views?