Fed announces details of 2025 monetary policy review

November 22, 2024 2:50 PM

In this week's banking news roundup: The Federal Reserve released additional information about its periodic review of its monetary policy strategy, tools and communications framework; TD Bank Group announced Michelle Myers will succeed Anita O'Dell as global chief auditor; Provident Financial Services will expand its commercial lending team; and more.

Fed release details of 2025 monetary policy review

The Federal Reserve Friday announced additional information about its periodic review of its monetary policy strategy, tools and communications framework.

"We are open to new ideas and critical feedback," said Fed Chair Jerome H. Powell. "[We] will take onboard lessons from the last five years and adapt our approach where appropriate to best serve the American people, to whom we are accountable."

The periodic review — a comprehensive evaluation of the Fed's monetary policy framework, which the agency has committed to conducting every five years — is intended to ensure that the agency's approach effectively supports its congressionally mandated objectives of maximum employment and price stability.

According to a Fed release, the review will utilize The Federal Open Market Committee's Statement on Longer-Run Goals and Monetary Policy Strategy, which articulates the committee's approach to monetary policy; and the committee's policy communications tools.

The committee's 2% longer-run inflation goal — which remains unchanged — will not be a focus of the review.

Federal Reserve policymakers will begin discussions during the first FOMC meeting of 2025, set for the last week of January. Once the review concludes, the agency says it will evaluate the insights and perspectives gathered and publish the findings. —Ebrima Santos Sanneh

TD Bank Group names a new global chief auditor

TD Bank Group is promoting an insider to be its next global chief auditor, the Toronto-based company said in a press release.

Michelle Myers, TD's controller and chief accountant for the past 12 months, will succeed Anita O'Dell, who is retiring. Myers will start her new job on Dec. 9, and O'Dell, who has also been serving as TD's interim U.S. chief auditor, will shift into an advisory role through May 31, 2025.

Keith Lam, who has been TD's deputy U.S. chief auditor, will take over as the acting U.S. chief auditor. Lam will join TD's U.S. management team and report jointly to Myers and the U.S. audit committees.

The personnel changes come weeks after TD pleaded guilty to money-laundering conspiracy charges and amid a CEO transition, with Raymond Chun set to succeed Bharat Masrani in the top seat on Apr. 10, 2025. —Allissa Kline

Provident in NJ expands commercial lending team to drive growth

Provident Financial Services in Iselin, New Jersey, said it hired six veteran business lenders to build out its commercial banking operation in eastern Pennsylvania. The recruits are part of a broader expansion effort ahead of expectations for stronger loan demand alongside lower interest rates.

"As we extend our reach and capabilities across eastern Pennsylvania, their leadership and insights into the local markets will be instrumental in positioning us for success," John Andreacio, Provident's regional director of commercial lending, said in a release announcing the hires. They include Matthew Moresco, Matthew Skilton, Gerald Bresser, Michael Valenzano, Patrick Beaner and Daniel Decker.

The $24 billion-asset bank completed the conversion of its Lakeland Bancorp acquisition in September — the same month that the Federal Reserve cut its benchmark interest rate by 50 basis points. The Fed lowered rates by another 25 basis points this month. The Lakeland deal nearly doubled Provident's size and boosted it into the ranks of regional lenders in the New Jersey-Pennsylvania area. — Jim Dobbs

Citizens hires, promotes new heads of mortgage, lending and retail banking

The consumer banking segment at Citizens Financial Group in Providence, Rhode Island, has new leaders overseeing mortgage lending, consumer lending and retail banking, the company announced in a press release.

Raman Muralidharan, a former head of U.S. lending at HSBC Bank, is Citizens' new head of mortgage and reports to Brendan Coughlin, vice chair and head of consumer banking. Muralidharan will focus on mortgage originations and servicing. Meanwhile, Adam Boyd has been promoted to head of consumer lending, and Nuno Dos Santos is now the head of retail banking.

Boyd reports to Coughlin and Dos Santos, who oversees more than 5,000 employees across 1,000 retail branches, reports to Mark Rendulic, Citizens' interim head of core banking.

Muralidharan and Boyd succeed Eric Schuppenhauer, who previously oversaw lending and mortgage and now works at SoFi, and Dos Santos succeeds Kim Dee, who left Citizens in October, a spokesperson said. —Allissa Kline

Deutsche Bank taps Lazard veteran as vice chairman of global M&A

Deutsche Bank hired Alexander Hecker from Lazard as vice chairman of global mergers and acquisitions. Hecker, who's based in New York, is joining the German lender this week, reporting to Alison Harding Jones, the bank's global head of M&A, and Bruce Evans, head of investment banking coverage in the Americas, the two wrote in a staff memo seen by Bloomberg News. A Deutsche Bank spokesman confirmed the memo's contents, declining to comment further.

Hecker has spent about 25 years at Lazard, where he held titles including head of consumer investment banking. He'll help drive large-cap and cross-border M&A, Harding Jones and Evans said. Hecker has worked on transactions for companies including Anheuser-Busch InBev SA/NV and Fyffes, according to regulatory filings.

Deutsche Bank has been actively luring senior bankers from Wall Street rivals, having hired Harding Jones from Citigroup earlier this year. —Gillian Tan, Bloomberg News

UBS names new regional heads of EMEA global banking

UBS Group named new regional heads in its global banking team for Europe, the Middle East and Africa, according to internal memos seen by Bloomberg. Marco Superina will lead global banking Switzerland for UBS from January, according to one memo. Superina joined Credit Suisse in 1997 and most recently worked as head of M&A, Switzerland, for the bank, according to his LinkedIn profile.

Philipp Beck will continue as head of M&A for EMEA and relocate to London in due course, the memo said.

Elsewhere in the region, Pierre Lescastereyres was appointed as co-head of global banking for France and Belux, alongside Bruno Hallak. Lescastereyres will also continue to assist UBS' global industrials group with chemicals coverage.

In the Netherlands, Thomas Poos was appointed as head of global banking for the country, according to the memo.

A representative for UBS confirmed the contents of the memos. —Dinesh Nair, Bloomberg News