NEW YORK, Nov 5  (RBN and agencies) – The Federal Reserve Bank of New York has hired the former chief risk officer of Bear Stearns Cos, Michael Alix, to advise on bank supervision, according to a release in the Fed’s Web site.

Alix will serve as a senior adviser to William Rutledge in the Bank Supervision Group and his appointment is effective Nov. 3, according to the release dated Oct. 31

Mr. Rutledge praised the exceptional experience of his new hire: "He has been through all this stuff. He knows how people escape effective risk supervision. Micheal now joins us to make sure that they will continue to do so."

At Bear Stearns, an investment bank that collapsed in March and has become hallmark of the global credit crisis, Alix served as chief risk officer from 2006 to 2008 and global head of credit risk management from 1996 to 2006.

Timothy F. Geithner, the president of the New York Fed and a possible Secretary of the Treasury candidate under President-elect Obama emphasized the good relation the Fed had with Alix while he was working at Bear Stearns: "He called me just in time to sell my Bear Stearns shares. Without his advise, me and my colleagues would have lost millions."

Mr. Geithner expects a bigger future role for Mr. Alix: "Michael will not only advise on the supervision of other banks, but will also help us to assess risk the Federal Reserve Bank and the Treasury have taken on." 

"He’ll let me know when the time has come to move my retirement savings from treasuries to gold."

The interview was cut short, when Mr. Geithner received an urgent call from Mr. Alix.