NY Fed Chief Steps Down

Looks like New York Federal Reserve Chairman won’t be following in Tim Geithner’s footsteps. New York Fed Chairman Stephen Friedman–who assumed more power after Geithner went to D.C.–will be stepping down. Friedman fell under fire this week for his purchase of shares from his old employer Goldman Sachs. Turns out he’s an active alum: Friedman agreed to sit on Goldman’s board following its transition to a bank holding company this fall, but now acknowledges that the position conflicts with his one at the Fed. “Today, although I have been in compliance with the rules, my public service-motivated continuation on the Reserve Bank Board is being mischaracterized as improper,” he said in a letter. “The Federal Reserve System has important work to do and does not need this distraction.”