The deputy chief at the Federal Reserve’s economic research department will take over as director of the Fed’s regulatory division and will play a key role in Dodd-Frank implementation.
Michael Gibson will begin his new position in January following the retirement of Patrick Parkinson, who has held the job for more than three decades, according to WSJ.com.
Gibson will use his extensive experience in risk management and financial markets to help him ramp up the Fed’s oversight of the financial industry. Part of that oversight includes conducting stress tests on banks that have $50 billion or more in assets.
The stress tests, which require banks to report estimated losses caused by Europe’s financial crises and other factors, will begin early next year.
Gibson will also help develop other rules that the nation’s largest banks must follow, such as establishing capital reserve requirements.
"Mike's expert knowledge of risk management and financial markets make him an excellent choice at a time when we are drawing on a wide range of expertise in bank supervision and regulation to focus not just on the health of individual institutions, but on the financial system as a whole," Fed Chairman Ben Bernanke said, WSJ.com reports.
Parkinson’s retirement follows a string of departures of high-ranking Fed staff in recent months. Certain former Fed staff members said they were exhausted from all of the fighting that has resulted from the U.S. financial crisis.