By Benjamin Goad - 07/11/13 07:59 PM EDT
Since then, the Fed has been charged with developing a host of new regulations spelled out in the Dodd-Frank Wall Street reform law to prevent a repeat of the disaster.
Prior to her service on the Fed, Duke was chief operating officer Virginia-based TowneBank.
“I am especially gratified to have brought my own practical banking experience and community banking perspective to the massive overhaul of financial system regulation that was required by the provisions of the Dodd-Frank Act and informed by the lessons learned during the financial crisis,” Duke wrote in a resignation letter to President Obama.
Duke did not announce her future plans.
Fed Chairman Ben Bernanke praised Duke’s tenure on the Board, saying she brought to the job, “fresh ideas grounded in her deep knowledge of the banking industry.”
“Betsy has made invaluable contributions to the Federal Reserve and to the country during her five years at the Board," Bernanke said.
The Independent Community Bankers Association (ICBA), who had an ally in Duke, also heralded her tour of duty. Community banks have fought for relief from regulations designed to rein in the country’s biggest banks, and Duke opposed a “one-size-fits-all approach,” to regulation, the group said.
“Thanks in no small part to her leadership, all rules now clearly specify how they apply to community-based institutions,” the ICBA said in a statement issued Thursday afternoon.