Thursday, April 5, 2012

Plunge Protection Team Lever Puller to Step Down

Bob English emails: 
Brian Sack is leaving the new York Fed.What's interesting to me is the timeline (bolded) below.  I did some quick Google searches and this structure appears unique. From the Fed: 
Brian Sack to Resign from New York Fed
April 5, 2012 
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NEW YORK—The Federal Reserve Bank of New York today announced that Brian Sack, executive vice president and head of the Markets Group, is resigning from the Bank effective September 14, 2012.

Mr. Sack will remain in his current position as head of the Markets Group and Manager of the System Open Market Account (SOMA) until June 29, 2012, to help ensure a smooth transition. The New York Fed has started the search process for Mr. Sack's replacement.

"Brian's service to the Bank over the past three years has been critical to our response to the financial crisis and the country's economic recovery," said William C. Dudley, president and chief executive officer of the New York Fed. "I accepted his resignation with great regret and wish him well."

Mr. Sack will step down as head of the Markets Group and SOMA Manager on June 29, 2012. He will then be placed on leave until September 14, 2012, during which he will have limited contact with the Bank and no access to Bank information, including FOMC and supervisory materials.

Mr. Sack joined the New York Fed as head of the Markets Group in June of 2009.

The release emphasizes Sack's arms length status from 6/29/12 until his final resignation on 9/14/12.  So, it looks like he's going into the private sector (though possibly BIS/World Bank) and they're getting ahead of any claims of conflicts of interest.  But why stay at all from 6/29 to 9/14?  6/29 also happens to be the very last business day of Q2.  Not sure why that would be significant.  Maybe bonuses tied to his new job with a firm with FYE on 6/30?

1 comment:

  1. A friend of EPJ emailed the following insights:

    Knee-jerk reaction: His inception date at the NYFRB is given as June. If that is a year-anniversary, it may satisfy his third complete year, possibly completing the checkbox for comps to give him the summer off paid. I've never met a public employee who did not know, to two decimals, the exact countdown to some comp deadline. The FED's benefits list runs to three pages. He's a relatively young man. No one ever went broke over-estimating the self interest of publicly paid servants.

    In plain sight, Twist ends June 29. It would be natural to keep him through the last POMO. The September date is two days after the September FOMC meeting, and is a Friday - information embargo quid pro quo? "Enjoy the summer, take a nice trip, keep quiet, and your comps will not encounter any red tape." ?