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Stephen Friedman, the chairman of the Federal Reserve Bank of New York, abruptly resigned on Thursday, days after questions arose about his ties to Goldman Sachs.
Mr. Friedman was chairman of the New York Fed at the same time he was a member of Goldman’s board. He also had a substantial stake in the firm as the Fed was crafting a solution to keep Wall Street banks afloat. Denis M. Hughes, deputy chair of the board, will take over as the interim chairman, the New York Fed said in a statement.
Ideally, things will get back to normal now at the NY Fed, a place that advanced JP Morgan the money to buy Bear Stearns in March 2008 — when JP Morgan CEO Jamie Dimon was on the board.
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Now maybe they can get around to re regulating the financial market like they used under Glass- Steagall act??
A classic episode of Yes, Prime Minister reintroducing Sir Desmond Glazebrook, played by the classic character actor, Richard Vernon, who played Slartibartfast in the televised version of H2G2, is called A Conflict of Interests. DG’s conversations with Appleby and Hacker are right out of today’s news. Put it in your Netflix queue if you can’t buy the whole series — YPM-disc 3. This is the sequel to Yes, Minister.
Hello Jane
Very Interesting development. The “Conflict issue us well recognized as a no no by the business industry in general as business accounting 101.
The “Wild West” financial sector has a few rules of financial decorum left…the rest of it is totally a “Robber Bank” looking for a new holdup victim. After the retirement funds were taken to the cleaners Uncle Sam was the latest heist. Bank robbery is a lousy business as the roles have been reversed.
“Conspiracy of Fools “Eichenwald’s story of Enron is a description of creativity in rippoffs and any group is the robbery target.
sorry pups, this was published in error – your comments will be here waiting for ya when it is published
Ya gotta love the balls of BofA to take bailout trillions to buy Countrywide and Merrill Lynch with our money…sans regulations…now they want more $35 billion more to buck up the deal. Federal Reserve the shakers and movers wheelin and dealin with the public treaury.
We are financing the Banks for free!!!!!
Thanks to the Federal Reserve Robber Barons. Asia is bailing and starting their own sinking fund. These guys would rob their own invalid greatgrandmother while she was napping.
Neanwhile the banks have so many ways to exact fees from your account. I lost 1/3 of my disability income from BofA charges and they caused the problem.
This series should be required viewing of all Poly Sci students or optimally all civic classes in High School. OMG
Anyway, I suspect Friedman did what was expected of him, by the incestuous group that hired him, and departs the richer for it. And what he did will not be undone.