Denis Hughes, the president of the New York State AFL-CIO, was named chairman of the Federal Reserve Bank of New York on Monday.

Hughes has worked as the acting chairman of the New York Fed since May, when Stephen Friedman, a former Goldman Sachs executive, resigned the post amid conflict of interest charges. Friedman was criticized for staying on as the New York Fed's chairman after Goldman converted to a bank holding company. The New York Fed sought a waiver to allow Friedman to remain chairman but as that request was considered, he purchased more than 37,000 shares of Goldman stock.

Hughes, who was named the New York Fed's deputy chairman in 2007 and has been on the board since 2004, will remain chairman through yearend.

The New York Fed also named Lee Bollinger, the president of Columbia University, as its deputy chairman for the rest of the year.

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