SOLVAY — In some ways, Solvay Bank President and CEO Paul Mello’s role as a member of the Federal Reserve Bank of New York board of directors won’t be much different from serving on any other board. The directors oversee the bank’s performance, its officers, its policies, and risk procedures, he says. But of course, […]
SOLVAY — In some ways, Solvay Bank President and CEO Paul Mello’s role as a member of the Federal Reserve Bank of New York board of directors won’t be much different from serving on any other board.
The directors oversee the bank’s performance, its officers, its policies, and risk procedures, he says. But of course, the New York Fed isn’t a typical bank.
Along with 11 other regional Federal Reserve Banks around the country, the New York Fed is part of the Federal Reserve System, the nation’s central bank.
Directors of the regional banks are frequently asked for their opinions on market conditions, the economic climate, and how policies are affecting their markets by top Fed policymakers.
“It’s a great opportunity to share Central New York’s perspective on things,” Mello says. “I think that’s a good benefit to the area. It can only help.”
Mello won’t be involved in the Fed’s most visible role: setting the nation’s monetary policy. Those decisions affect interest rates on everything from mortgages to savings accounts and are made by the Federal Open Market Committee, which includes top leaders of the entire Federal Reserve System.
The regional banks like the New York Fed supervise and regulate bank holding companies in their district. They also serve as the “banker’s bank,” Mello says, providing services to financial institutions like clearing transactions.
The New York Fed — led by its president, William Dudley — oversees a district including New York state, parts of Connecticut and New Jersey, Puerto Rico, and the U.S. Virgin Islands. Serving on the board is a unique opportunity, says Mello, whose three-year term began March 28.
Mello is one of three directors on the board who represent the interests of the district’s banks. Richard Carrión, chairman and CEO of Banco Popular de Puerto Rico, and JPMorgan Chase Chairman and CEO Jamie Dimon are the other directors representing the interests of banks.
Another six directors represent the public’s interests. Three are elected by member banks in the district and three are chosen by the Fed’s Board of Governors.
Before joining the New York Fed’s board of directors, Mello had been serving on a Fed advisory board for more than a year. Mello says he has been struck by how much attention the views of that board’s members receive.
“The people at the Fed are impressive,” he says. “They care. These are people who are dedicated and hardworking. They really care and listen.”
As a director of the bank, he says the interaction is likely to be even more intense. His first board of directors meeting is set for mid-April.
Mello has been president and CEO at Solvay Bank since 2002. Before that, he was executive vice president and CFO. He is currently chairman of the Independent Bankers Association of New York State.
Based in Solvay, Solvay Bank has seven additional branches in Fairmount, Camillus, Liverpool, North Syracuse, Cicero, downtown Syracuse, and Westvale. The bank also owns an insurance agency.
Solvay Bank Corp., the holding company for Solvay Bank, earned $1.3 million in the fourth quarter, down $143,000 from the same period in a year earlier. Earnings for the full year in 2011 totaled $6 million, up more than 5.6 percent from 2010.
The New York Fed employs about 2,700 people at offices in East Rutherford, N.J.