Skip to comments."Naked Conflicts": NY Fed Chairman Resigns Over Goldman Controversy
Posted on 05/08/2009 12:55:51 PM PDT by AH_LiveRight
New York Fed Board Chairman Stephen Friedman resigned yesterday amid controversy he owned stock and served as a board director of Goldman Sachs -- an entity he was served with overseeing as a Fed regulator.
From Friedman's resignation letter: " although I have been in compliance with the rules, my public service motivated continuation on the Reserve Bank Board is being mischaracterized as improper." It was improper says our guest, William Black, associate professor of Economics and Law University of Missouri, Kansas City. Bottom line: It's a clear conflict of interest for private banks to own an arm of the Fed, much less individual regulators to own stakes in entities they're overseeing.
Friedmans case has highlighted the unusual role of Feds 12 regional banks that serve both private and public interests.
(Excerpt) Read more at finance.yahoo.com ...
It was one thing for him to have Goldman in his portfolio, but quite another for him to buy more while he was regulating it!
Trust your financial elites! They are not like everyone else,
I think the real crime is against the English language. That was some opening sentence!