Fed’s Vice Chairman Submits Resignation

The Federal Reserve Board's No. 2 has submitted his resignation. Donald L. Kohn said Monday that he will step down from his post as vice chairman when his current term expires on June 23.

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Kohn, 67, has been a member of the Fed board since August 2002 and served as its second-in-command since June 2006. He has worked in some capacity for the Federal Reserve Bank System for 40 years.

""At no time since the Great Depression have [the] ability and dedication [of the Federal Reserve staff] been tested as they have been over the past several years."" Kohn wrote in his ""resignation letter"":http://www.federalreserve.gov/newsevents/press/other/other20100301a1.pdf to President Obama. ""I am confident that history will judge the Federal Reserve,

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under the leadership of Chairman Ben Bernanke, to have met these challenges with great speed, imagination, and effectiveness.""

Federal Reserve Chairman Ben Bernanke noted that Kohn led the agency's stress tests of major financial institutions last year and has directed the board's ongoing efforts to increase transparency of the Federal Reserve.

""The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn for his invaluable contributions over 40 years of public service,"" Bernanke said. ""Most recently, he brought his deep knowledge, experience, and wisdom to bear in helping to coordinate the Federal Reserve's response to the economic and financial crisis.""

With Kohn’s departure, three seats on the seven-member Fed board are currently vacant. Commentary from mainstream media organizations point out that President Obama now has a historic opportunity to reshape the central bank, as nominations to fill openings are made by the president, and he’s already put two board governors in place, including the reappointment of Bernanke as chairman.

White House officials say a list of potential candidates for the three open seats is developing. Press Secretary Robert Gibbs told reporters that the president plans to appoint a new vice chair by June.