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Originally Posted by camaraderie
Bad analogy Beez. Those guys don't make more $$ by screwing other people.
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Chairman of the New York Fed Caught Screwing Other People, Resigns
Friedman is now choosing to resign from the New York Fed due to his insider stock trading. (Sadly, he gets to keep the money he stole). As a Fed insider, he basically started buying up cheap Goldman Sachs stock when he had foreknowledge of the Fed’s future lending policies toward Goldman. Goldman shares closed on Thursday at $133.73, meaning Friedman has profited handsomely,
earning more than $3 million in total on just two purchases.
John Dunbar, a senior fellow at the Center for Public Integrity, a nonprofit watchdog group in Washington, said the stock purchases were a “complete conflict of interest.”
“It is almost comical. If you tried to do that in a more traditional Washington bureaucracy, there is no way on earth you would get away with that,” he said.
Along with serving as the Chairman of the New York Federal Reserve Bank, Stephen Friedman has held many other major roles in investment banking and government. He is a former executive of the investment firm Goldman Sachs; he is the current Chairman of the United States President’s Foreign Intelligence Advisory Board; from 2002 to 2005 he was the United States Assistant to the President for Economic Policy and director of the National Economic Council; Friedman is also the Chairman Emeritus of the Board of Columbia University, Chairman Emeritus of the Executive Committee of the Brookings Institution, and a member of the Council on Foreign Relations. Friedman’s brother is Richard Friedman, a law professor at the University of Michigan. Friedman’s son is screenwriter David Benioff.
NY Fed chair resigns amid stock purchase questions