No. 2194

For Release: Wednesday, December 23, 1998

APPOINTMENTS TO N.Y. FED BOARD

NEW YORK – John C. Whitehead has been redesignated chairman of the board of directors of the Federal Reserve Bank of New York for 1999 by the Board of Governors of the Federal Reserve System, the New York Fed announced today.

Mr. Whitehead, formerly chairman of Goldman, Sachs & Co., Inc., New York, NY has been serving as a class C director of the bank since September 1995 and as chairman since January 1996.

The Board of Governors also has reappointed Peter G. Peterson as a class C director of the New York Fed for a three-year term beginning January 1999 and redesignated him deputy chairman of the bank’s board of directors for 1999.

Mr. Peterson, who is chairman of The Blackstone Group, New York, NY, has been serving as a class C director since January 1996 and as deputy chairman since November 1998. As deputy chairman, he succeeded Thomas W. Jones, who resigned from the bank’s board.

The board of directors of the Federal Reserve Bank of New York consists of nine members, three of whom are appointed by the Board of Governors of the Federal Reserve System as class C directors. The remaining six (three class A and three class B directors) are elected by member banks in the Second Federal Reserve District. Class A directors are drawn from among the banking community. Class B and C directors are individuals chosen from professions outside the banking community and typically represent business, industry, agriculture, labor and consumers.

The voting member banks of the Second Federal Reserve District in this election (those with capital and surplus of $30 million to $1 billion) have selected the following:

Richard L. Carrion as a class A director for a three-year term beginning January 1999. Mr. Carrion is chairman, president and chief executive officer of Popular, Inc., San Juan, Puerto Rico and its bank, Banco Popular de Puerto Rico. He succeeds Robert G. Wilmers, chairman and chief executive officer of Manufacturers and Traders Trust Company, Buffalo, NY, who had been serving as a class A director since January 1993.

Ronay Menschel as a class B director for a three-year term beginning January 1999. Ms. Menschel, who is president of Phipps Houses, New York, NY, has been serving as a class B director since March 1998.

In addition, the Board of Governors of the Federal Reserve System has reappointed Bal Dixit as a director of the Buffalo Branch of the New York Fed for a three-year term beginning January 1999 and redesignated him chairman of the branch board. Mr. Dixit is President and chief executive officer of Newtex Industries, Inc., Victor, NY. He has been a director of the Buffalo Branch since January 1996 and chairman of its board since January 1997.

Kathleen R. Whelehan has been reappointed by the board of directors of the New York Fed as a director of the Buffalo Branch for a three-year term beginning January 1999. Ms. Whelehan, who is regional president, Rochester/Southern Region, Marine Midland Bank, Rochester, NY, has been serving as a branch director since December 1996.