Godlike Productions - Discussion Forum
Users Online Now: 2,305 (Who's On?)Visitors Today: 675,081
Pageviews Today: 1,181,164Threads Today: 502Posts Today: 8,387
02:06 PM


Back to Forum
Back to Forum
Back to Thread
Back to Thread
REPLY TO THREAD
Subject New York Fed chairman quits over Goldman Sachs ties
User Name
 
 
Font color:  Font:








In accordance with industry accepted best practices we ask that users limit their copy / paste of copyrighted material to the relevant portions of the article you wish to discuss and no more than 50% of the source material, provide a link back to the original article and provide your original comments / criticism in your post with the article.
Original Message New York Fed chairman quits over Goldman Sachs ties


Stephen Friedman, chairman of the board of the Federal Reserve Bank of New York, resigned Thursday over questions about his ties to Goldman Sachs.
In a letter to Fed officials, Friedman said, "Today, although I have been in compliance with the rules, my public service motivated continuation on the Reserve Bank Board is being mischaracterized as improper. The Federal Reserve System has important work to do and does not need this distraction."

Earlier this week, The Wall Street Journal raised questions about the influence of Goldman Sachs, on whose board Friedman sits, in shaping Washington's response to the financial crisis.

"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," the Journal storysaid..

"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."

FIND MORE STORIES IN: Washington | New York | Wall Street | Goldman Sachs | Federal Reserve System | Timothy F. Geithner | Stephen Friedman
The New York Fed's executive vice president and general counsel, Thomas Baxter, says Friedman's purchases of Goldman Sachs stock in December 2008 and January 2009 "did not violate any Federal Reserve statute, rule or policy."

The New York Fed chair is influential, and the president of the New York Fed is a permanent member of the Federal Reserve's policymaking Open Market Committee. It meets eight times a year to decide the direction of interest rates and money supply. Goldman Sachs alum William Dudley holds the job.

The announcement came from the New York Fed on Thursday evening, shortly after the Federal Reserve in Washington released results of stress tests on 19 of the largest bank holding companies.

Goldman was among the 19, but the report says it does not need to raise its capital cushion.

With Friedman's departure, the New York Federal Reserve Bank says Denis Hughes, deputy chairman, "will exercise the powers and duties of the chair."

Contributing: The Associated Press

[link to www.usatoday.com]
Pictures (click to insert)
5ahidingiamwithranttomatowtf
bsflagIdol1hfbumpyodayeahsure
banana2burnitafros226rockonredface
pigchefabductwhateverpeacecool2tounge
 | Next Page >>





GLP