Press Release No. 06/104

Press Release: IMF Managing Director de Rato Proposes Appointment of John Lipsky as First Deputy Managing Director

May 18, 2006

Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), today proposed the appointment of John Lipsky to the position of First Deputy Managing Director. Mr. Lipsky, a U.S. national, is currently the Vice Chairman of the JPMorgan Investment Bank. He will succeed Anne O. Krueger, who last month announced her intention to leave the Fund at end of her term on August 31, 2006 (see Press Release No. 06/82).

In announcing the proposed appointment, Mr. de Rato said, "John Lipsky will bring to this important position an international reputation in macroeconomics, a first rate record in leadership, and outstanding skills as a communicator.

"John is no stranger to the Fund, having worked here for 10 years until 1984. Since then he has enjoyed a highly successful career working as an economist on financial markets. John has also been an influential commentator on the reform of the international financial system and the work of the Fund. This breadth of skills and experience will enable him to make a major contribution in the period ahead as we implement the Fund's Medium-Term Strategy.

"John will build on the legacy of Anne Krueger, who has served the Fund with great distinction over the past five years."

In accepting the proposed appointment, Mr. Lipsky said, "I am delighted and honored to be proposed for the position of First Deputy Managing Director of the IMF. This is an opportunity to serve the international community through the IMF, which is the central institution of the international monetary system. I look forward to working with Rodrigo de Rato and the rest of the Management team and staff, as well as the Executive Board, on the exciting and important challenges that lie ahead of us. For me, this is also a homecoming to an institution I know well and where I have many friends."

The Managing Director selects and appoints the First Deputy Managing Director and the two other Deputy Managing Directors. The appointment requires approval of the Fund's Executive Board and, in making the selection, the Managing Director consults with the Executive Board regarding the type of qualifications that, in the view of the Executive Board, a Deputy Managing Director should possess.

Mr. Lipsky's appointment will be to a five-year term, effective September 1, 2006.

Background

John Lipsky, 59, is Vice Chairman of the JPMorgan Investment Bank. In this position, Mr. Lipsky publishes independent research on the principal forces shaping global financial markets, is actively engaged with JPMorgan's key clients, and represents the firm around the world with senior public and financial sector decision makers. Previously, Mr. Lipsky served as JPMorgan's Chief Economist, and as Chase Manhattan Bank's Chief Economist and Director of Research. He served as Chief Economist of Salomon Brothers, Inc. from 1992 until 1997. From 1989 to 1992, Mr. Lipsky was based in London, where he directed Salomon Brothers European Research Group.

Before joining Salomon Brothers in 1984, he spent a decade at the IMF, where he worked on a number of countries and served as the Fund's Resident Representative in Chile between 1978-80.

In 2000, he chaired a Financial Sector Review Group, set up by former Managing Director Horst Köhler, to provide the IMF with an independent perspective on how the Fund should organize its financial sector and capital markets work (see News Brief No. 00/93).

Mr. Lipsky's professional activities include serving on the Board of Directors of the National Bureau of Economic Research, the Economic Club of New York, the American Council on Germany and the Japan Society. He also serves as a member of the Advisory Board of the Stanford Institute for Economic Policy Research and of the Economics Subcommittee of the Bond Market Association. Mr. Lipsky is a member of the Council on Foreign Relations.

A graduate of Wesleyan University, Mr. Lipsky earned a bachelors degree in economics. Subsequently, he was awarded an M.A. and a Ph.D. in economics from Stanford University.