Goldman Sachs Guy, Stephen Friedman…Conflicts of Interest
‘During a period of immense financial market upheaval and Government bailouts of banks and financial insurance companies, Friedman was Chairman of the New York Federal Reserve Board (which implements the Federal Reserve’s Wall Street policies) while simultaneously serving Goldman Sachs (a company impacted by the quasi Governmental policies of the Federal Reserve) as a Board Director. The AIG bailout, an historically large controversial bailout, directly benefitted Goldman Sachs who had one of the largest counterparty claims against AIG. On May 7, 2009 Friedman resigned as Chairman of the Federal Reserve Bank of New York in response to criticism of his December 2008 purchase of $3 million of stock in Goldman Sachs. Friedman, who remains a member of Goldman Sachs’ board, came into violation of Federal Reserve policy when Goldman was converted to a bank holding company in September 2008, thereby placing it under the regulatory authority of the New York Fed. Friedman requested a waiver from this violation when the conversion occurred, which was granted roughly two and a half months later. In his resignation letter, Friedman stated that the Fed did not need the “distraction” caused by his “public service motivated continuation on the Reserve Bank Board…being characterized as improper.”‘ (Wikipedia)
So we should not be surprised that Friedman is presently making exceptionally high compensation as a director of Goldman Sachs (and that is not the only board on which he presently serves):
Posted on April 4, 2013, in buisiness, Crime, Government, politics, Wealth and tagged American International Group, Banks, Federal Reserve, Federal Reserve System, Goldman Sach, New York Federal Reserve Bank, Stephen Friedman, Wall Street, Wikipedia. Bookmark the permalink. 2 Comments.