Fed Hires Bear Stearns Risk Chief Michael Alix . . .
To Supervise Bank Soundness

Naked Capitalism 4nov2008

You cannot make this stuff up. From the Federal Reserve Bank of New York's web site:

Michael Alix has been named a senior vice president in the Bank Supervision Group of the Federal Reserve Bank of New York. He will serve as a senior advisor to William L. Rutledge, executive vice president, Bank Supervision Group....

Most recently, Mr. Alix worked for the Bear Stearns Companies, Inc., where he served as chief risk officer from 2006-2008 and global head of credit risk management from 1996-2006. His prior experience included eight years at Merrill Lynch & Company where he was a director, Asia chief credit officer and a vice president, head of North America financial institutions credit. He began his career with the Irving Trust Company where he served as an assistant vice president and lending officer.

As John Carney of Clusterstock, who found this remarkable tidbit, noted:

We suppose that Alix at least has plenty of experience with unsound banking institutions. He was the chief risk officer of Bear Stearns from 2006 until 2008. So, basically, he was the guy on the mast charged with yelling "iceberg" just before the Titanic introduced its bow to a floating hunk of ice.

We have our own paranoid pet theory as to how this appointment might have come about. Who would know better what was in the dreck pool that the Fed has parked over at BlackRock than the former chief risk officer? If Alix knows a few embarrassing things, might be wise to give him an incentive not to talk them up.

source: 5nov2008

New York Fed Names New
Senior Vice President in Bank Supervision

Press Release / Federal Reserve Bank of New York 31oct2008

New York—Michael Alix has been named a senior vice president in the Bank Supervision Group of the Federal Reserve Bank of New York. He will serve as a senior advisor to William L. Rutledge, executive vice president, Bank Supervision Group. Mr. Alix’s appointment was made by the Bank’s board of directors and is effective, November 3, 2008.

Most recently, Mr. Alix worked for the Bear Stearns Companies, Inc., where he served as chief risk officer from 2006-2008 and global head of credit risk management from 1996-2006. His prior experience included eight years at Merrill Lynch & Company where he was a director, Asia chief credit officer and a vice president, head of North America financial institutions credit. He began his career with the Irving Trust Company where he served as an assistant vice president and lending officer.

Mr. Alix holds an M.B.A in finance from the Wharton School of the University of Pennsylvania and a bachelor's degree in economics from Duke University. He is a resident of New Jersey.

Contact: Andrew Williams (212) 720-6143 (646) 720-6143 andrew.williams@ny.frb.org

source: 5nov2008