Wow, that has to be a record for shortest tenure ever at the NY Fed.
His resignation letter (below), is as Dealbook notes, rather disingenuous:
Mr. Friedman was chairman of the New York Fed at the same time he was a member of Goldman’s board. He also had a substantial stake in the firm as the Fed was crafting a solution to keep Wall Street banks afloat. Denis M. Hughes, deputy chair of the board, will take over as the interim chairman, the New York Fed said in a statement. (Read Mr. Friedman’s letter after the jump.)
Because the New York Fed approved a request by Goldman to become a bank holding company, the chairman’s involvement in Goldman was a violation of Fed policy, The Wall Street Journal said in an article earlier this week.
The New York Fed asked for a waiver, which, after about two and a half months, the Fed granted, the newspaper said. During that time, Mr. Friedman bought 37,300 more Goldman shares in December, which have since risen $1.7 million in value
Friedman Resigns as Chairman of New York Fed
Dealbook, May 7, 2009, 5:57 pm
The New York Fed is the most powerful financial institution you’ve never heard of. Look who’s running it.
Wednesday, May 6, 2009, at 12:29 PM
Friedman Quits New York Fed After Goldman Purchases
Bloomberg, May 7 2009
NY Fed chair quits over Goldman role
CNNMoney.com May 7, 2009: 7:25 PM ET