Bernanke Approved Goldman Sachs NY Fed Waiver

Bernanke Approved Goldman Sachs NY Fed Waiver


Kohn had Board backing for NY Fed waiver: official
Mon May 11, 2009 Reuters

By Alister Bull and Mark Felsenthal

JEKYLL ISLAND, Ga (Reuters) – A waiver granted by Federal Reserve Vice Chairman Donald Kohn that allowed the chairman of the New York Fed’s board of governors to stay in his job had the full backing of the Fed’s Board of governors, including Chairman Ben Bernanke, a Fed official said on Monday.

The controversial waiver allowed Stephen Friedman to stay in his job as chairman of the board of governors of the New York Federal Reserve despite owning shares in Goldman Sachs (GS.N) ,which the Fed began regulating in September.

Friedman, a retired chairman of Goldman Sachs, resigned last week after it was reported in The Wall Street Journal that he had bought more Goldman shares.

The Wall Street Journal called in an editorial on Monday for Kohn’s resignation, and said he had shown a tin political ear by allowing Friedman to stay at the New York Fed.

Goldman converted into a bank holding company last September in order to secure access to Federal Reserve lending facilities.

Kohn had Board backing for NY Fed waiver: official | Reuters.

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