Insider Trading At The Fed
May 08, 2009
Well, all over the papers yesterday and today, you can find the news that Stephen Friedman, chairman of the New York Federal Reserve (from which he has just resigned under a cloud of controversy), bought in December another 37,300 shares of Goldman Sachs, of which he was a director. Now Fed officials are not supposed to be shareholders, directors or officeholders of banks. Goldman became a bank before Friedman bought these shares. No matter, said Friedman to himself. I'll just ask for a waiver. And he got it. Why did the Securities and Exchange Commission issue this waiver? You ask me.
What Treasury Needs Is A Distraction
May 05, 2009
The bank stress tests are beginning to create a perception problem, but not--as you might think--for banks. Rather the issue is top level Administration officials' own optics (spin jargon for how we think about our rulers). At one level, the government's approach to banks--delay doing anything until the economy stabilizes--is working out nicely. This is the counterpart of the macroeconomic Summers Strategy and in principle it is brilliant.
What the Boom Forgot
May 03, 2004
IN AN UNCERTAIN WORLD: TOUGH CHOICES FROM WALL STREET TO WASHINGTON By Robert E. Rubin and Jacob Weisberg (Random House, 427 pp., $35) THE CHASTENING: INSIDE THE CRISIS THAT ROCKED THE GLOBAL FINANCIAL SYSTEM AND HUMBLED THE IMF, Revised and Updated By Paul Blustein (PublicAffairs, 435 pp., $18) THE ROARING NINETIES: A NEW HISTORY OF THE WORLD'S MOST PROSPEROUS DECADE By Joseph E. Stiglitz (W.W.