New York Fed Chairman resigns; prefers remaining a Goldman Director

Wow.

The Chairman of the New York Federal Reserve Bank’s board of directors, Stephen Friedman, has resigned. Apparently he concluded that:

1) if the Federal Reserve is supposed regulate banks, including Goldman Sachs; and

2) if he wanted to remain on the Board of Directors for Goldman Sachs;

then he had to resign.

Brilliant. Absolutely brilliant.

Of course, a few months ago he was buying shares of Goldman Sachs. But hey... what's a few stocks among friends, right? I mean, there's no way he could've been influencing monetary policy to benefit Goldman Sachs and himself, right?

On this occasion, I give Senator Dodd credit. The problem though is that he let any of this happen in the first place. As Banking Chairman, he shouldn't be making one-on-one phone calls to "understand the situation." He should be able to simply look at a situation and distinguish right from wrong, then take action.

How many teachers tell their students... "Grade your own paper. I trust you." ?

Tim White