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May 7, 2009

Chair of NY Fed Scrutinized for Shares in Goldman Sachs
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And in financial news, each of the twelve regional Federal Reserve banks
have been found to have directors who are either board members of banks
or who own shares in bank holding companies. Consumer advocates say
directors of Fed banks shouldn’t have any financial ties to the
institutions they’re supposed to regulate. Scrutiny is focusing on
Stephen Friedman, the chair of the Federal Reserve Bank of New York.
Earlier this week, the Wall Street Journal revealed Friedman was given a
waiver to hold shares in his former company Goldman Sachs even after it
became a regulated bank holding firm. Friedman was also found to have
bought the shares in Goldman Sachs before he was granted the legal
waiver. The shares are now estimated to be worth more than $2 million.



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