President Barack Obama has announced his intention to nominate former Bank of Hawaii CEO Allan Landon to fill one of two available governor positions for the Federal Reserve System on its seven-seat board of governors, according to an announcement from the White House.
Landon, 66, is currently a partner in Oregon-based community bank investment firm Community BanCapital. He served as chairman and CEO of the Bank of Hawaii from 2004 to 2010 and served in several other executive positions with the bank from 2000 until his appointment as CEO, including president, chief operating officer, chief financial officer, and risk officer.
From 1998 to 2000, Landon served as CFO for First American Corp. and its subsidiary, First American National Bank. The majority of Landon's professional career has been spent at Ernst & Young, where he worked from 1970 to 1998, becoming a partner in 1984. Landon received a bachelor's degree from Iowa State University.
"Allan Landon has the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy," Obama said in a prepared statement "He brings decades of leadership and expertise from various roles, particularly as a community banker. I’m confident that he will serve our country well."
The Fed has not had had a community banker serve on its board of governors since Elizabeth Duke retired in August 2013.
Landon's nomination must be confirmed by the Senate, which may present an obstacle now that Republicans have a majority. Senator Richard Shelby (R-Alabama), who is expected to become chairman of the Senate Banking Committee (which must approve the nomination), opposed Obama's nomination of economist Peter Diamond as Fed governor in 2010.
Landon previously served on the board for the Seattle Federal Home Loan Bank. He and Washington Federal Savings CEO Roy Whitehead, who also served on that board, were removed from their positions on the board in May 2005 due to the improper sale of a combined $73 million worth of their banks' stock. The board did not find any wrongdoing on Landon's or Whitehead's part, but the board's independent review committee found that an "an appearance of impropriety" was created when the Bank of Hawaii and Washington Federal redeemed $25 million and $48 million, respectively, worth of Seattle FHLBank stock in 2004.