New York Fed Chairman, With Ties to Goldman, Resigns

The chairman of the Federal Reserve Bank of New York, Stephen J. Friedman, abruptly resigned on Thursday, days after a newspaper article raised questions about his ties to his former employer, Goldman Sachs.

The New York Fed had approved a request by Goldman to become a bank holding company, the chairman’s involvement in Goldman was a violation of Fed policy, The Wall Street Journal reported in an article this week.

The New York Fed had asked for a waiver, which, after about two and a half months, the Fed granted, the newspaper said. During that time, Mr. Friedman bought 37,300 more Goldman shares, which have since risen $1.7 million in value.

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~ by The Paranoid Gamer on May 10, 2009.

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