Chairman Of The New York Fed Resigns
This got shockingly little attention:
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.
Because the New York Fed approved a request by Goldman to become a bank holding company, the chairman’s involvement in Goldman was a violation of Fed policy, The Wall Street Journal said in an article earlier this week.
Incidentally, Friedman replaced Tim Geithner in this capacity.
Well, score one for the forces of good against the endless culture of cronyism and conflicts of interest between Wall Street and Washington. Now we just need to find out about Byron Dorgan's wife, who lobbied against the cramdown provision as her husband voted against it, and Barney Frank and Nancy Pelosi, who refused amendments capping credit card interest rates in the House reform bill, and just about every manager of every public pension fund in America, and...