Stephen Friedman Resigns As Chairman of New York Fed Amid Questions About Ties To Goldman

Amid recent questions about his strong ties to Goldman Sachs while serving as chairman of the New York Fed, Stephen Friedman announced on Thursday that he would resign immediately from the central bank. Earlier this week, The Wall Street Journal published an article outlining Friedman's close ties to Goldman Sachs — including serving on its board and having large stock ownership in the firm — while the New York Fed was taking major actions affecting Goldman Sachs, including allowing the company to convert to a bank holding company and providing it with financial rescue funds. In his resignation letter, Friedman denied any conflict of interest. Thomas Baxter, Jr., general counsel of the New York Fed, also said that Friedman's purchases of Goldman stock in December and January did not violate any Fed policies. Friedman's resignation letter is available here (PDF).