Simon Potter, head of the Markets Group at the Federal Reserve Bank of New York and outgoing chair of the Global FX Committee, is to leave the NY Fed at the end of this week, it has been announced. As well as Potter, Richard Dzina, head of the NY Fed’s Financial Services Group is also leaving the central bank, which says it will conduct a “broad and thorough” search for their successors.

Ray Testa, chief operating officer of the Markets Group, has been named as interim head, and Chris Armstrong, senior vice president of cash operations, has been named interim head of the Financial Services Group, starting immediately.

Potter, who will step down in a planned accession in July as chair of the Global FX Committee after his two-year stint, joined the NY Fed in 1998 as an economist after a career in academia. He served as director of economic research and co-head of the Research and Statistics Group at the New York Fed, prior to becoming head of the Markets Group in June 2012.

In the latter role, he oversaw the implementation of domestic open market and foreign exchange trading operations on behalf of the Federal Open Market Committee (FOMC), the execution of fiscal agent support for the US Treasury, the provision of account services to foreign and international monetary authorities, and the administration and production of reference interest rates for the US money markets. Potter has played a prominent role in the Federal Reserve’s financial stability efforts, including by contributing to the design of the 2009 US bank stress tests, as a member of the international Macroeconomic Assessment Group that supported the Basel Committee’s work to strengthen bank capital standards.

“I want to thank Simon for his leadership over the years,” says John Williams, president and CEO of the New York Fed. “His contributions have been of great value to the bank, the FOMC and the System. Most recently, his deep experience in and understanding of markets were critical in helping the Committee think through and execute a path toward monetary policy normalisation, and he has been a leading and influential voice globally on reference rate reform.”

Dzina joined the Fed in June 1991 as a bank examiner. In 1995, he was assigned to the Markets Group, where he held successive assignments as a trader-analyst in the foreign exchange department, executive assistant to the Foreign Exchange Committee, coordinator of the Group’s euro conversion effort, staff coordinator of the cash management staff, and staff coordinator of the Treasury market policy staff. In 2004, Dzina was assigned to the Financial Services Group to lead the newly formed international cash department, which coordinates wholesale international cash distribution on behalf of the Federal Reserve System. In 2006, he returned to the Markets Group to run Central Bank and International Account Services, which provides correspondent banking and custodial services to foreign and international monetary authorities.

Since becoming executive vice president and head of the Financial Services Group in July 2015, he has overseen the wholesale product office, which is responsible for managing the Fedwire Funds, Fedwire Securities and the National Settlement Services on behalf of the Federal Reserve System, as well as the bank’s cash processing and distribution functions.

“Richard’s deep commitment to the Federal Reserve, its mission and people are always on display,” says Williams. “He is the consummate professional, who’s made invaluable contributions throughout his long and distinguished tenure for which I am grateful. Among which, I would note his leadership on FedWire modernization, his financial crisis-era work operationalizing numerous liquidity facilities, and his sponsorship of the Payments Risk Committee.

“Both Simon and Richard have contributed greatly throughout their careers and they each leave a substantial and substantive legacy,” he adds. “Not least of which is the depth and breadth of talent they’ve nurtured at the Bank and on their teams, which is why I have every confidence in the teams’ abilities to continue to execute on our mission. I wish them both all the best in their future endeavours.”

Colin Lambert

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