Richard Ravitch resigned from the board of directors at Build America Mutual, effective immediately, to devote more time to his growing public service responsibilities, according to a press release issued Tuesday by the municipal bond insurer.
"Last week, the Governor of Puerto Rico asked me to be his representative on the Federal Oversight Board assisting the Commonwealth in managing its financial crisis," said Ravitch. "In order to avoid any appearance of conflict as I take this difficult and complex task, I am resigning from the board of directors of BAM, effective immediately. It has been an honor to work with the men and women of BAM, and I wish them the best of luck in the future."
Ravitch is an expert in municipal finance and executed successful fiscal turnarounds as the Chairman of the New York State Urban Development Corp. and, later, as Chairman of the New York Metropolitan Transportation Authority.
"Dick's insight into the competing political and fiscal pressures facing public officials in today's economic and fiscal landscape is unmatched, and he's been generous in sharing that perspective as we crafted the conservative underwriting standards and risk management structures that are the foundation of BAM's insured portfolio," said Robert Cochran, BAM Chairman.
More recently, Ravitch served as Lieutenant Governor of New York and co-chaired the State Fiscal Crisis Task Force with former Federal Reserve Board Chairman Paul Volcker. Ravitch has been a member of BAM's Board since the company's launch in July 2012, representing the issuer-members who utilize BAM insurance to save money on their debt-service costs.
"Dick Ravitch has been a trusted advisor as BAM grew from a startup into the most active guarantor of new-issue municipal bonds in the country," said Seán McCarthy, BAM's chief executive officer. "We have appreciated and benefitted from his guidance, counsel, and perspective on the municipal bond market."
As of the end of the second quarter, BAM's principal amount insured was at $5.59 billion in 468 deals, while Assured Guaranty had $6.84 billion in 464 deals.
BAM's board of directors will select Mr. Ravitch's successor.
