Friday, February 26, 2010

The Nation: An Update on Goldman/Fed Crony Friedman

I posted on this after the Wall Street Journal article came out last year and again in a Fed Independence post. Essentially Stephen Friedman, a Goldman board member was also on the board of the New York Fed as the "public" representative, of course when Goldman became a bank holding company it was suddenly under the New York Fed's oversight. Friedman was a board member of the overseer and the overseen.....something that is a conflict of interest and not allowed. So what did the upstanding Friedman do? Did he do the right thing and resign or sell his Goldman shares? No, he stayed on with the Fed, sought an exemption and bought more Goldman stock with what could only be insider information.

Great job to the Nation for keeping this story alive.

Scott Dauenhauer CFP, MSFP, AIF