(Reuters) – The ousted chief executive of a small New York State banking company has stepped down as a director of the Federal Reserve Bank of New York, the New York Fed said on Tuesday, marking the second banking industry official to make a sudden departure from a regional Fed board in the last two months.
Thomas Murphy left the New York Fed board on Monday, the New York Fed said, the same day Arrow Financial Corp said Murphy had been terminated from his roles as president and CEO of the bank holding company. Arrow owns the Glens Falls National Bank and Trust Co and Saratoga National Bank and Trust Co.
His departure from Arrow was announced the same day the company received a noncompliance notice from Nasdaq, where its shares are listed, for failing to file its recent quarterly and annual results in a timely fashion.
Murphy had been a Class A director at the New York Fed since January 2021, representing small banks in the New York Fed district.
Each of the 12 regional Federal Reserve banks has nine directors divided into three classes. Class A directors are elected by member banks to represent the industry on each regional Fed’s board.
His departure comes about two months after the former head of failed Silicon Valley Bank had to leave the board of the San Francisco Fed following its sudden collapse in March. Greg Becker, who had also been a Class A director, was in Washington on Tuesday appearing before a Senate hearing convened to probe Silicon Valley’s failure.
(Reporting By Dan Burns; Editing by Chizu Nomiyama)
