Friday, May 8, 2009

"Naked Conflicts": NY Fed Chairman Resigns Over Goldman Controversy

http://finance.yahoo.com/tech-ticker...ia,jpm,fas,SKF

Outstanding interview

From Friedman's resignation letter: "…although I have been in compliance with the rules, my public service motivated continuation on the Reserve Bank Board is being mischaracterized as improper." It was improper says our guest, William Black, associate professor of Economics and Law University of Missouri, Kansas City. Bottom line: It's a clear conflict of interest for private banks to own an arm of the Fed, much less individual regulators to own stakes in entities they're overseeing.
Friedman’s case has highlighted the unusual role of Fed’s 12 regional banks that serve both private and public interests. The solution?

•For starters