Neel Kashkari named CEO of Minneapolis Fed

Neel Kashkari, the Republican who ran unsuccessfully against Gov. Jerry Brown in 2014, won’t be running for public office in California again any time soon – he’s trading the warm sun of Laguna Beach for the cold snows of Minneapolis to become president and CEO of that city’s Federal Reserve Bank, effective Jan. 1.

NEEL KASHKARIKashkari, 42, will replace Narayana Kocherlakota, who has served in the post since 2009 and announced last December that he wouldn’t seek reappointment at the end of his term, according to the Minneapolis Fed’s news release.

Kashkari will be part of the Federal Open Market Committee that helps formulate U.S. monetary policy, and will oversee 1,100 employees in Minneapolis and in Helena, Mont., who do economic research, supervise financial institutions and provide payments services to commercial banks and the U.S. government.

Kashkari said in the release that he’s “truly honored” to get the job. “I look forward to working with the Bank’s dedicated staff and continuing the Bank’s long-standing tradition of excellent service to the Ninth Federal Reserve District and to the nation. The Minneapolis Fed has built a strong reputation for economic research and thought leadership as well as excellence in Bank operations. I am delighted that I will be working with the Federal Reserve Bank of Minneapolis team to build on the Bank’s many achievements.”

Kashkari beat a more conservative Republican, then-Assemblyman Tim Donnelly, by about five percentage points to finish second behind Brown in June 2014’s top-two gubernatorial primary. He lost to Brown by 20 percentage points in November’s general election.

Before running against Brown, Kashkari had been a managing director and head of global equities at PIMCO from 2009 to 2013; before that, he served in the Treasury Department from 2006 to 2009, culminating with his oversight of the Troubled Asset Relief Program (TARP) to bail out reeling Wall Street firms under presidents George W. Bush and Barack Obama.

“Mr. Kashkari is an influential leader whose combined experience in the public and private sectors makes him the ideal candidate to head the Minneapolis Fed,” said MayKao Hang, incoming chair of the Minneapolis Fed’s board of directors and co-chair of the search committee. “We were fortunate to have outstanding candidates during our national search. Mr. Kashkari stood out because of his inspiring leadership skills, solutions-oriented nature, collaborative style and deep commitment to public service,” she added.


Bay Area Council lauds Fed nominee Janet Yellen

Janet Yellen, a professor emeritus at UC Berkeley’s Haas School of Business whom President Obama nominated Wednesday to chair the Federal Reserve Bank, was “a thoughtful and engaged member” of the Bay Area Council’s executive committee, the council said Thursday.

Summers withdraws from Fed chief consideration, Janet Yellen considered strong candidate“Janet Yellen provided an incisive voice on economic policy during her tenure with the Bay Area Council,” council president and CEO Jim Wunderman said in a news release. “Janet was an active and valuable leader … providing thoughtful and timely insights on the regional, state and national trends that were shaping our economy leading up to and entering the Great Recession.”

The Bay Area Council is a public policy advocacy organization composed of more than 275 of the nine-county region’s biggest employers. Yellen, 67, served on its executive committee from 2004 to 2010 during her tenure as president and CEO of the Federal Reserve Bank of San Francisco.

She was a frequent speaker at Bay Area Council conferences and meetings, including an April 2008 address to hundreds of CEOs and leading executives in which she shared her perspectives on the emerging financial crisis that would soon become the Great Recession. She also spoke at the 2006 Outlook Conference, discussing the forces driving the economic boom at the time and the surging housing market.


Throwing down on the AIG bonuses

Here’s what U.S. Sen. Barbara Boxer, D-Calif., had to say on the Senate floor today about the $165 million in bonuses being paid out to executive and top employees at AIG, the insurance giant which recently received about $170 billion in taxpayer funds as a bailout to prevent bankruptcy:

This Associated Press article does a good job of putting the bonuses in context, at least to some extent. People are angry that AIG employees seem to be richly rewarded for catastrophic failure that has put the world economy at risk, and that’s entirely understandable, but the truth is: this bonus incentive system is how Wall Street works, and perhaps the politicians’ ire would’ve been more helpful before all the papers were signed and our money handed over, back when it would’ve been easier to re-open the AIG workers’ contracts and deal with this issue.

Anyway, some more of your voices in Congress speak out about the AIG bonuses, after the jump…
Continue Reading