Fed Vice Chair Nominee Stanley Fischer Doesn't Have To Explain Himself To You


But he does have to explain himself to Senate banking committee, several members of which have taken issue with his 3-year internship under Chuck Prince at Citigroup.

"My three years at Citigroup were the most important element in my education that enabled me to be an effective supervisor of banks, which was one of my duties as Governor of the Bank of Israel," Fischer told members of the Senate banking committee. "Without that experience I would have come to it largely with an academic background, without ever having seen the inside of a bank." The fact that a top U.S. banking regulator would have ties to one of the big banks under the Fed's oversight was expected to be a potential focus of the hearing. Fischer made the comments in response to a query from Senator Elizabeth Warren, who suggested that too many government employees are former Citigroup executives, potentially putting the government "under the grip of a tight-knit group" and making economic policy vulnerable to "groupthink."

Fed vice chair nominee Fischer defends Citigroup stint [Reuters]