Thursday, June 4, 2009
The WSJ on Stephen Friedman
"Stephen Friedman has appropriately resigned as chairman of the New York [Fed], amid a flap over his ownership of Goldman Sachs [GSG] shares. ... Friedman owned about 46,000 [GSG] shares and was a [GSG] director, but that violated no rules when [GSG] was a broker-dealer regulated by the [SEC]. But Mr. Friedman became subject to that ban when [GSG] applied to become a bank holding company last autumn. ... Half of the financial world already thinks [GSG] runs the US Treasury and the Fed, however unfairly. The American public is furious about the bailouts of AIG and banks, engineered by the Fed and Treasury, that have helped the likes of [GSG]. And guess who Mr. Friedman's search committee picked as Mr. Geithner's successor when he left to run Treasury? Another Goldman alum, William Dudley", my emphasis, Editorial at the WSJ, 11 May 2009.
Only half? Unfairly? Hahahaha the Mogambo Guru would say. Look at the AIG bailout. WSJ, stop protecting GSG. Dudley is a GSG "alum"? He may be the only one. Or do you believe Robert Rubin and Henry Paulson were GSG "alums"? The NY Fed's composition could not be more inappropriate. Next, supposedly "independent" CPAs will take board seats at their auditees! The stupidest thing in this piece was the large type "center", "Bad judgment threatens the Fed's independence". What independence is the WSJ talking about? The Fed is a creature of the banks. It always has been.