This article is about a former vice-chairman of the Federal Reserve. For his father, the former president of the University of Arkansas, see David Wiley Mullins.
David Mullins was born on April 28, 1946, to David Wiley Mullins and his wife Eula in Memphis, Tennessee.[1] His father worked for Auburn University until 1960, when he became the president of the University of Arkansas.[2] David Jr. was raised in Fayetteville, Arkansas, along with his brother Gary and sister Carolyn.[3] Mullins left Arkansas for Yale and went on to study finance at the MIT Sloan School of Management. In 1974 he earned his Ph.D. from MIT and accepted a position in the faculty of Harvard Business School as an expert in financial crises.[4]
Careeredit
Immediately after the market crash in 1987, President Reagan tapped Nicholas F. Brady, a former United States senator and then chairman of Dillon, Read, to chair the Presidential Task Force on Market Mechanisms, later known as the Brady Commission. Brady recruited Harvard Business School professor Robert R. Glauber as the commission's executive director, and Glauber in turn enlisted Mullins, a Harvard faculty colleague, as associate director. <Report of the Presidential Task Force on Market Mechanisms, p. ii> The commission was to be an inquiry into the stock market crash of October 19, 1987, known as Black Monday.[5] In two months, Mullins helped assemble nearly 50 people to produce the report, which provided the first official record of what caused the crash and offered recommendations on how to fix the deficiencies in the market.[6] The Brady Report laid some of the blame on derivatives trading and portfolio insurance mechanisms, with much of that focus being generated by Mullins.[7][8]
Brady went on to serve as Secretary of the Treasury. As the savings and loan crisis deepened, he turned to Mullins, now an assistant Secretary of the Treasury, to develop a plan to resolve the crisis. The plan was enacted by Congress on August 8, 1989, as FIRREA (The Financial Institutions Reform Recovery and Enforcement Act of 1989) which created the RTC to dispose of failed thrift assets. The RTC ultimately sold $394 billion in assets of 747 failed thrifts. This approach became a model for banking resolution plans in Sweden, Thailand and elsewhere. Mullins remained popular with Congress and the President.[9] In 1989, Mullins was appointed by President Bush as assistant Secretary of the Treasury for domestic finance.[1][10] While at the Treasury, Mullins co-wrote a paper on high-yield debtdefaults which received the inaugural Smith Breeden Prize.[11][12]
On May 21, 1990, Bush nominated Mullins to a 14-year term on the Federal Reserve Board of Governors to fill a vacancy left by the resignation of H. Robert Heller.[13][14] Mullins was seen as the Fed's "resident intellectual" due to his background as a professor in finance and economics.[15] In 1994, Mullins resigned to join John Meriwether's new hedge fund, Long Term Capital Management (LTCM). Although his term was to come to a close, the resignation was viewed as unexpected.[16][17]
At LTCM, Mullins joined what Business Week termed a "dream team" of financial experts and academics, including Nobel laureates Myron Scholes and Robert C. Merton.[18]Roger Lowenstein, author of When Genius Failed: The Rise and Fall of Long-Term Capital Management, argued that some prospective investors in LTCM were swayed by the presence of Mullins.[7] Just as the celebrity of Scholes and Merton caused investors and trading partners to exercise less diligence, Mullins' addition as a "marquee" name added gravitas to the firm.[19] Following that fund's collapse in 1998 and dissolution in 2000, Mullins left LTCM and worked for financial services companies.[20][21] Mullins' career in government was effectively ended by the collapse.[22] In 2008 he was chief economist of the hedge fund Vega Asset Management.[23]
David Wiley Mullins, Jr. died unexpectedly during an emergency heart surgery in Naples, Florida, on February 26, 2018.[24][25]
Notesedit
^ abWoolley, John T.; Peters, Gerhard (March 8, 1989). "Nomination of David W. Mullins Jr. To Be an Assistant Secretary of the Treasury". The American Presidency Project [online]. University of California, Santa Barbara. Retrieved 2008-10-29.
^"Information about David W. Mullins". David W. Mullins Papers. University of Arkansas. Retrieved 2008-10-29.
^Blustein, Paul (November 30, 1989). "Bush Eyes Treasury Official for Fed Post". The Washington Post. pp. D1.
^Dunbar, Nicholas (2000). Inventing Money: The story of Long-Term Capital Management and the legends behind it. New York: Wiley. pp. 132–133. ISBN0-471-89999-2.
^Gosselin, Peter G. (February 2, 1994). "Fed vice chairman Mullins quits". The Boston Globe. p. 39.
^Robinson, John (February 26, 1989). "A taste of the 'Harvard boutique'". The Boston Globe. pp. A1.
^Kilborn, Peter T. (February 2, 1989). "Big Slices of Authority For 2 Brady Assistants". The New York Times. pp. D18. Retrieved 2008-10-29.
^. American Finance Association. Archived from the original on 2009-05-29. Retrieved 2007-09-11.
^Mullins, David W.; Wolff, Eric D.; Asquith, Paul (1989). "Original Issue High Yield Bonds: Aging Analyses of Defaults, Exchanges, and Calls". Journal of Finance. The American Finance Association. 44 (4): 923–952. doi:10.2307/2328617. JSTOR 2328617.
^"People behind the policy at the Federal Reserve". USA Today. April 9, 1991. pp. 2B.
^Rosenbaum, David E. (November 30, 1989). "Treasury Official Seen As Choice for Fed Seat". The New York Times. pp. D2. Retrieved 2008-10-29.
^Nasar, Sylvia (June 9, 1991). "The New Intellectuals at the Fed". The New York Times. pp. Section 3, Page 1. Retrieved 2008-10-29.
^Berry, John M. (February 2, 1994). "Vice Chairman Of Fed Resigns Unexpectedly". The Washington Post. pp. F1.
^Nathans Spiro, Leah (August 29, 1994). "Dream Team". Business Week. p. 50.
^O'Brian, Timothy L.; Holson, Laura M. (October 23, 1998). "BLIND TRUST: A special report.; A Hedge Fund's Stars Didn't Tell, And Savvy Financiers Didn't Ask". The New York Times. pp. A1.
^Henriques, Dana B. (June 19, 1999). "Hedge Fund To Cash Out Original Stakes". The New York Times. pp. C1.
"Brady Report" Presidential Task Force on Market Mechanisms (1988): Report of the Presidential Task Force on Market Mechanisms. Nicholas F. Brady (Chairman), U.S. Government Printing Office.
MacKenzie, Donald (2006). An Engine, not a Camera: How Financial Models Shape Markets. The MIT Press. ISBN0-262-13460-8.
david, mullins, this, article, about, former, vice, chairman, federal, reserve, father, former, president, university, arkansas, david, wiley, mullins, david, wiley, mullins, april, 1946, february, 2018, american, economist, served, 14th, vice, chairman, feder. This article is about a former vice chairman of the Federal Reserve For his father the former president of the University of Arkansas see David Wiley Mullins David Wiley Mullins Jr April 28 1946 February 26 2018 was an American economist who served as the 14th vice chairman of the Federal Reserve from 1991 to 1994 Prior to his term as vice chairman Mullins served as a member of the Federal Reserve Board of Governors taking office in 1990 Before his appointment to the Federal Reserve he served as the under secretary of the treasury for domestic finance under President George H W Bush Mullins left the government service to join the hedge fund Long Term Capital Management and remained in private finance following its collapse in 1998 David Mullins14th Vice Chairman of the Federal ReserveIn office July 24 1991 February 14 1994PresidentGeorge H W BushBill ClintonPreceded byManuel H JohnsonSucceeded byAlan BlinderMember of the Federal Reserve Board of GovernorsIn office May 21 1990 February 14 1994PresidentGeorge H W BushBill ClintonPreceded byH Robert HellerSucceeded byAlan BlinderPersonal detailsBornDavid Wiley Mullins Jr 1946 04 28 April 28 1946Memphis Tennessee U S DiedFebruary 26 2018 2018 02 26 aged 71 Naples Florida U S Political partyDemocratic Formerly RepublicanEducationYale University BS Massachusetts Institute of Technology MS PhD Contents 1 Early life 2 Career 3 Notes 4 References 5 Further reading 6 External linksEarly life editDavid Mullins was born on April 28 1946 to David Wiley Mullins and his wife Eula in Memphis Tennessee 1 His father worked for Auburn University until 1960 when he became the president of the University of Arkansas 2 David Jr was raised in Fayetteville Arkansas along with his brother Gary and sister Carolyn 3 Mullins left Arkansas for Yale and went on to study finance at the MIT Sloan School of Management In 1974 he earned his Ph D from MIT and accepted a position in the faculty of Harvard Business School as an expert in financial crises 4 Career editImmediately after the market crash in 1987 President Reagan tapped Nicholas F Brady a former United States senator and then chairman of Dillon Read to chair the Presidential Task Force on Market Mechanisms later known as the Brady Commission Brady recruited Harvard Business School professor Robert R Glauber as the commission s executive director and Glauber in turn enlisted Mullins a Harvard faculty colleague as associate director lt Report of the Presidential Task Force on Market Mechanisms p ii gt The commission was to be an inquiry into the stock market crash of October 19 1987 known as Black Monday 5 In two months Mullins helped assemble nearly 50 people to produce the report which provided the first official record of what caused the crash and offered recommendations on how to fix the deficiencies in the market 6 The Brady Report laid some of the blame on derivatives trading and portfolio insurance mechanisms with much of that focus being generated by Mullins 7 8 Brady went on to serve as Secretary of the Treasury As the savings and loan crisis deepened he turned to Mullins now an assistant Secretary of the Treasury to develop a plan to resolve the crisis The plan was enacted by Congress on August 8 1989 as FIRREA The Financial Institutions Reform Recovery and Enforcement Act of 1989 which created the RTC to dispose of failed thrift assets The RTC ultimately sold 394 billion in assets of 747 failed thrifts This approach became a model for banking resolution plans in Sweden Thailand and elsewhere Mullins remained popular with Congress and the President 9 In 1989 Mullins was appointed by President Bush as assistant Secretary of the Treasury for domestic finance 1 10 While at the Treasury Mullins co wrote a paper on high yield debt defaults which received the inaugural Smith Breeden Prize 11 12 On May 21 1990 Bush nominated Mullins to a 14 year term on the Federal Reserve Board of Governors to fill a vacancy left by the resignation of H Robert Heller 13 14 Mullins was seen as the Fed s resident intellectual due to his background as a professor in finance and economics 15 In 1994 Mullins resigned to join John Meriwether s new hedge fund Long Term Capital Management LTCM Although his term was to come to a close the resignation was viewed as unexpected 16 17 At LTCM Mullins joined what Business Week termed a dream team of financial experts and academics including Nobel laureates Myron Scholes and Robert C Merton 18 Roger Lowenstein author of When Genius Failed The Rise and Fall of Long Term Capital Management argued that some prospective investors in LTCM were swayed by the presence of Mullins 7 Just as the celebrity of Scholes and Merton caused investors and trading partners to exercise less diligence Mullins addition as a marquee name added gravitas to the firm 19 Following that fund s collapse in 1998 and dissolution in 2000 Mullins left LTCM and worked for financial services companies 20 21 Mullins career in government was effectively ended by the collapse 22 In 2008 he was chief economist of the hedge fund Vega Asset Management 23 David Wiley Mullins Jr died unexpectedly during an emergency heart surgery in Naples Florida on February 26 2018 24 25 Notes edit a b Woolley John T Peters Gerhard March 8 1989 Nomination of David W Mullins Jr To Be an Assistant Secretary of the Treasury The American Presidency Project online University of California Santa Barbara Retrieved 2008 10 29 Information about David W Mullins David W Mullins Papers University of Arkansas Retrieved 2008 10 29 Blustein Paul November 30 1989 Bush Eyes Treasury Official for Fed Post The Washington Post pp D1 Dunbar Nicholas 2000 Inventing Money The story of Long Term Capital Management and the legends behind it New York Wiley pp 132 133 ISBN 0 471 89999 2 Dunbar pp 133 134 Glaberson William February 14 1988 A Task Force Plays Beat the Clock The New York Times pp Section 3 Page 4 Retrieved 2008 10 29 a b Lowenstein pp 37 Gosselin Peter G February 2 1994 Fed vice chairman Mullins quits The Boston Globe p 39 Robinson John February 26 1989 A taste of the Harvard boutique The Boston Globe pp A1 Kilborn Peter T February 2 1989 Big Slices of Authority For 2 Brady Assistants The New York Times pp D18 Retrieved 2008 10 29 Abstracts of Smith Breeden Prize Winning Papers 1989 American Finance Association Archived from the original on 2009 05 29 Retrieved 2007 09 11 Mullins David W Wolff Eric D Asquith Paul 1989 Original Issue High Yield Bonds Aging Analyses of Defaults Exchanges and Calls Journal of Finance The American Finance Association 44 4 923 952 doi 10 2307 2328617 JSTOR 2328617 People behind the policy at the Federal Reserve USA Today April 9 1991 pp 2B Rosenbaum David E November 30 1989 Treasury Official Seen As Choice for Fed Seat The New York Times pp D2 Retrieved 2008 10 29 Nasar Sylvia June 9 1991 The New Intellectuals at the Fed The New York Times pp Section 3 Page 1 Retrieved 2008 10 29 Dunbar pp 142 Berry John M February 2 1994 Vice Chairman Of Fed Resigns Unexpectedly The Washington Post pp F1 Nathans Spiro Leah August 29 1994 Dream Team Business Week p 50 O Brian Timothy L Holson Laura M October 23 1998 BLIND TRUST A special report A Hedge Fund s Stars Didn t Tell And Savvy Financiers Didn t Ask The New York Times pp A1 Henriques Dana B June 19 1999 Hedge Fund To Cash Out Original Stakes The New York Times pp C1 Lowenstein pp 227 Lowenstein p 176 177 Remember These Guys Business Week June 12 2006 p 57 Pruden William H III David Wiley Mullins Jr 1946 2018 The Encyclopedia of Arkansas History amp Culture EOA Ravenscroft School Retrieved 22 August 2018 Hagerty James R March 2 2018 David Mullins Rose to Fed Vice Chairman Then Joined Doomed Hedge Fund Firm The Wall Street Journal No March 2 2018 Dow Jones amp Company a division of News Corp Retrieved 22 August 2018 References editDunbar Nicholas 2000 Inventing Money The story of Long Term Capital Management and the legends behind it New York Wiley ISBN 0 471 89999 2 Lowenstein Roger 2000 When Genius Failed The Rise and Fall of Long Term Capital Management Random House ISBN 0 375 50317 X Further reading edit Brady Report Presidential Task Force on Market Mechanisms 1988 Report of the Presidential Task Force on Market Mechanisms Nicholas F Brady Chairman U S Government Printing Office MacKenzie Donald 2006 An Engine not a Camera How Financial Models Shape Markets The MIT Press ISBN 0 262 13460 8 External links editStatements and Speeches of David W MullinsGovernment officesPreceded byH Robert Heller Member of the Federal Reserve Board of Governors1990 1994 Succeeded byAlan BlinderPreceded byManuel H Johnson Vice Chair of the Federal Reserve1991 1994 Retrieved from https en wikipedia org w index php title David W Mullins Jr amp oldid 1143016722, wikipedia, wiki, book, books, library,
