Friday, Sep 20, 2002
Financial Times
Two-step at the council
William McDonough, the courtly president of the New York Federal Reserve, is poised to take over as chairman of the Council on Foreign Relations -- a prestigious appointment that speaks volumes about the power of New York's old-boy network.
The council's incumbent is Pete Peterson, president and co-founder of the Blackstone Group and a US commerce secretary under President Richard Nixon. Peterson and McDonough are said to be close - and they got a lot closer earlier this month when McDonough gave a thundering speech against excessive executive pay.
That just happened to be the subject of a report this week by a panel of executives, regulators and executives, led by Peterson. A neat pas-de-deux indeed.
Insiders stress that McDonough, 68, is under no pressure to step down at the New York Federal Reserve - his job has no retirement date. Most likely he will combine both jobs.
Peterson, too, could stay on if he chooses. But in practice, the word at the CFR is that McDonough, who recently took up the vice-chairman slot, is the "highly probable" successor.
The impending shuffle reflects broader changes at the top of the council, the heart of the east coast foreign policy establishment. The hunt is on for a successor to Les Gelb, the president, who steps next June after a decade as president.
Late Spring 2003 would be a natural transition date for McDonough, an ex-diplomat who loves to speak French and Spanish. A tout a l'heure, as they say.