One of Wall Street's most powerful institutions is looking for a new boss. An UBS banker is in the running – which could further strengthen the Swiss bank's clout in Washington.
Janet Yellen's departure as chair of the U.S. Federal Reserve isn't the only job opening roiling American monetary policy. Another major policy poobah – William Dudley – is also leaving for retirement mid-year.
If Dudley isn't quite as well-known as Yellen, his succession is just as important to Wall Street as hers, as U.S. publication «American Banker» reported.
Dudley's replacement is of huge interest to Swiss banks in the States: As head of the New York Fed, he is Wall Street's regulator as well as one of seven governors who actually set U.S. monetary policy.
Trump Critic
UBS is following the succession plan with particular interest: Seth Carpenter, the Swiss bank's chief economist in the U.S. is in the running, according to the report.
He is an Ivy League graduate with a long career at the Fed and the Treasury. He moved to the Swiss bank last year – effectively joining one of the firms he had formerly helped to oversee. His experience on both sides of the fence could give him a leg up for the Fed post.
A political novice, Carpenter also has severe marks against his candidacy: he served under Democrat Barack Obama, and would be seen as somewhat of a holder despite his stint at UBS. He also hasn't shied away from criticizing Trump, most recently in an interview with Germany's «Handelsblatt» (behind paywall, in German) late last year.
UBS' White House Ties
Carpenter's record isn't flawless: in 2015, he was scrutinized by the U.S. Senate for his alleged role in a 2012 leak at the Fed. He was never accused of any wrong-doing.
If he returns to public service, UBS would again have a direct line to the administration – much like ex-UBS banker Robert Wolf, a close friend of Obama's and frequent visitor to the White House. Wolf left UBS in 2010, but remained a political advisor to the bank.
Trump used the proximity to UBS against Hilary Clinton in 2016's bitter election battle. Her ties to UBS deepened in 2009, the bank faced a criminal investigation threatening its very existence, as finews.com reported.
