NEW YORK — The Federal Reserve Bank of New York said Friday Sarah Dahlgren will take over for its retiring Head of Bank Supervision William Rutledge at the end of the year.
Like Rutledge, Dahlgren is a long time member of the Fed's most important regional branch. She is currently the leader of Special Investments Management Group, and she will be replaced in that position by Roseann Stichnoth. The SIMG was formed to manage the securities the Fed got as part of efforts to deal with failures at Bear Stearns and American International Group.
The changing of the guard comes in the wake of the passage of major financial oversight regulatory reform, which brings new responsibilities and powers to the Fed. The New York Fed, as the central bank's chief interface with financial markets, will be where many of these new powers are implemented.
In a statement, bank president William Dudley said "we are determined to apply the lessons of the crisis in a way that strengthens our supervision and oversight and ensures we have a sound and well-functioning financial system able to meet the needs of creditworthy borrowers throughout the economy." He said he would look to Dahlgren "to push forward the changes already underway in the Bank Supervision Group and to ensure that our supervisory practices keep pace with the ongoing evolution of the financial system."