For those without a subscription to the WSJ, courtesy of selise, here’s a link to Naked Capitalism
From the Wall Street Journal: "
New York Fed Chairman’s Ties to Goldman Raise Questions"
The Federal Reserve Bank of New York shaped Washington’s response to the financial crisis late last year, which buoyed Goldman Sachs Group Inc. and other Wall Street firms. Goldman received speedy approval to become a bank holding company in September and a $10 billion capital injection soon after.
During that time, the New York Fed’s chairman, Stephen Friedman, sat on Goldman’s board and had a large holding in Goldman stock, which because of Goldman’s new status as a bank holding company was a violation of Federal Reserve policy.
Meanwhile, Goldman’s stock has rallied strongly. Investors liked the bank’s announcement in early February that it hoped to repay its $10 billion federal capital injection, freeing it from pay and other restrictions. Then, after a surprisingly strong first-quarter earnings report in mid-April, Goldman raised about $5 billion in a public offering.
Mr. Friedman has benefited from those events. On Friday, Goldman stock closed late in New York Stock Exchange trading at $127.08 a share. Mr. Friedman’s December and January stock purchases now are showing accrued gains of $2.7 million.
Friedman intends to keep his $2.7 million.
AFTER his white-collar-thuggery became public, he announced he will be stepping down "at the end of the year."
That does not, however, end the INSTITUTIONAL damage Mr. Friedman did to what is left of the credibility of the New York Federal Reserve:
Mr. Friedman also was overseeing the search for a new president of the New York Fed, an officer who has a critical role in setting monetary policy at the Federal Reserve. The choice was a former Goldman executive.
The new President of the New York Fed is at least as tainted as Sen. Roland Burris (D-IL).