John Williams

The New York Fed has tapped San Francisco Federal Reserve Bank President John Williams as its next president, concluding a search process that has drawn criticism for being inadequately considerate of candidates with more diverse backgrounds.

San Francisco Fed President John Williams is not suited to lead the most important of the regional Fed banks, given his inability to detect the phony-accounts problems at Wells Fargo. He also lacks Wall Street experience.

Senator is concerned about the San Francisco Fed chief’s track record; the gaps at three big banks are among the largest.

The Federal Reserve is facing a backlash over its lack of diversity in key positions after it emerged this weekend that John Williams, the current president of the San Francisco regional branch, is a front-runner to succeed William Dudley as head of the powerful New York Fed.

San Francisco Fed chief is reportedly leading candidate to replace Dudley in New York; four senior officers to retire as OCC readies penalties against the bank.