David W. Mullins Jr.

David W. Mullins Jr.
Born	Template:Birth date Memphis, Tennessee, U.S.
Died	February 26, 2018(2018-02-26) (aged 71) Naples, Florida, U.S.
Occupation	Economist
Years active	1974–2018
Known for	14th Vice Chairman of the Federal Reserve (1991–1994), Associate Director of the Brady Commission, Assistant Secretary of the Treasury for Domestic Finance

David Wiley Mullins Jr. (April 28, 1946 – February 26, 2018) was a distinguished American economist who held the position of the 14th vice chairman of the Federal Reserve from 1991 until 1994. Prior to his vice chairmanship, Mullins was appointed to the Federal Reserve Board of Governors in 1990. Earlier in his career, he served as under secretary of the treasury for domestic finance during President George H. W. Bush's administration. After concluding his public service, Mullins transitioned to the private sector by joining the hedge fund Long Term Capital Management, remaining active in finance even following its collapse in 1998.

Early life

Mullins was born on April 28, 1946, in Memphis, Tennessee, and grew up in Fayetteville, Arkansas, where his father was president of the University of Arkansas. He obtained a Bachelor of Science degree from Yale University and pursued graduate education at the MIT Sloan School of Management, earning a Ph.D. in 1974. Subsequently, he joined Harvard Business School as a faculty member specializing in financial crises.

Career

In response to the 1987 stock market crash, President Reagan appointed Nicholas F. Brady—then chairman of Dillon, Read—to chair the Presidential Task Force on Market Mechanisms (commonly known as the Brady Commission). Brady selected Harvard Business School professor Robert R. Glauber as executive director, who brought Mullins on board as associate director. Mullins played a key role in coordinating nearly fifty specialists to produce the Brady Report, which analyzed the causes behind Black Monday and suggested reforms for market operations, with particular attention to derivatives trading and portfolio insurance.

When Brady became Treasury Secretary, he assigned Mullins—then assistant Secretary of the Treasury—the responsibility of addressing the savings and loan crisis. Mullins formulated a strategy that led to the enactment of FIRREA in 1989, establishing the Resolution Trust Corporation (RTC) to oversee $394 billion in failed thrift institution assets—a model that was later adopted internationally. In 1989, President Bush appointed Mullins assistant Secretary of the Treasury for domestic finance. During his tenure at Treasury, Mullins co-authored a seminal paper on defaults in high-yield debt markets that earned the first Smith Breeden Prize.

In May 1990, President Bush nominated Mullins to serve a fourteen-year term on the Federal Reserve Board of Governors to succeed H. Robert Heller. Recognized within the Fed as its "resident intellectual" due to his academic expertise, Mullins surprised many by resigning in 1994 to join John Meriwether's hedge fund Long Term Capital Management (LTCM). At LTCM, he became part of an elite group of financial specialists including Nobel Prize winners Myron Scholes and Robert C. Merton. His involvement significantly enhanced LTCM’s reputation and bolstered investor confidence.

After LTCM collapsed in 1998 and was dissolved by 2000, Mullins departed from the firm and engaged with other financial organizations. The failure of LTCM effectively marked the end of his governmental career. By 2008, he held the position of chief economist at hedge fund Vega Asset Management.

Death

Mullins Jr. passed away unexpectedly during emergency heart surgery in Naples, Florida, on February 26, 2018.

Further reading

• "Brady Report" Presidential Task Force on Market Mechanisms (1988): Comprehensive Report by the Presidential Task Force on Market Mechanisms. Chaired by Nicholas F. Brady, Published by the U.S. Government Printing Office.

External links

• Collection of Statements and Speeches by David W. Mullins