Federal Reserve BOG member, UNC alumna speaks

Elizabeth Duke has come a long way from her days as a Carolina Playmaker.

Duke, a member of the Board of Governors for the Federal Reserve System and UNC alumna, spoke Wednesday at Kenan-Flagler Business School about her rise from small-town banker to federal policy maker.

But Duke, who was a dramatic art major, said she originally chose a career in banking for only one reason: she needed a job.

“I found a job as a part-time drive-through teller,” she said, adding that 15 years after taking that job, she had worked her way up to CEO of that bank.

Through much of her time as a community banker, Duke said she mainly dealt with small-business lending. But during the financial crisis of the early 1990s, she had to deal with problem loans.

“And I have never lost sight of the importance of loan availability to small businesses,” she said.

Though she had only envisioned her career as a community banker, Duke received a call in 2007 asking her if she would be interested in serving as a member of the Fed’s Board of Governors.

“I was intrigued, flattered and more than a little intimidated by the prospect,” she said.

Nevertheless, Duke took office Aug. 5, 2008 and will remain in office until Jan. 31, 2012.

Nearly a month after she took office, the economic crisis of 2008 hit the Federal Reserve with the failure of Lehman Brothers.

“It was a pretty frightening time,” she said. “You had to stop the panic before you could tackle the real underlying issues.”

Senior Jordan Hill said he felt it was important to hear her perspective in regards to the economic crisis.

“I think it’s a fantastic opportunity to have a voting member of the board here at UNC,” he said.

UNC student Nick Nohling agreed, adding that it was a great way to see into the Fed.

“It’s a great learning opportunity for us to listen to her,” he said.

During the crisis, Duke said the Fed was wrongly criticized for bank bailouts.

“I can understand how it could seem that way, but I also know that every action the Fed took was directed at improving the economy rather than the well-being of the banks,” she said.

From her experiences in the banking business, Duke stressed the importance of lifelong learning.

“Use everything you have learned so far, take advantage of any educational opportunity that comes along, and apply what you learn.”

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