Stephen Friedman (economist)
Stephen Friedman (born December 21, 1937[1]) is an American economist. He is a former chairman of the US President's Intelligence Advisory Board and former chair of the Federal Reserve Bank of New York. He was nominated on October 27, 2005, to replace Brent Scowcroft in the position.
Stephen Friedman
December 21, 1937
New York City, U.S.
Barbara Benioff
3, including David
Amanda Peet (daughter-in-law)
Early life and education[edit]
Friedman was born in New York City, to a Jewish family. He received his BA from Cornell University[2] in 1959 and his law degree from Columbia University Law School[3] in 1962.[4] At Cornell he was a wrestler[5] and a member of the Quill and Dagger society.[6] At Columbia he was on the Law Review.[7]
Chairman of New York Federal Reserve Bank[edit]
Friedman was the Chairman of the New York Federal Reserve Bank, a body which implements the Wall Street policies of the Federal Reserve, during a period of immense financial market upheaval, from January 2008 until May 7, 2009.[15] When Goldman Sachs was converted to a bank holding company in September 2008 the bank then came under the regulatory authority of the New York Fed, which made Friedman’s position as a member of Goldman Sachs’ board a violation of Federal Reserve policy. At the time of the conversion Friedman requested a waiver from this violation, which was granted about 10 weeks later.[16]
On May 7, 2009, Friedman resigned as Chairman of the Federal Reserve Bank of New York.[17] In his letter of resignation Friedman explains why: ‘Last Fall, after Goldman Sachs Group, Inc. became a bank holding company, I agreed to remain on the Board, pursuant to the waiver authority of the Board of Governors of the Federal Reserve System, to provide continuity during a time of financial market instability. Today, although I have been in compliance with the rules, my public service motivated continuation on the Reserve Bank Board is being mis-characterized as improper. The Federal Reserve System has important work to do and does not need this distraction.’[18]
Friedman was criticized for seemingly benefiting from his role as Chair of the New York Fed branch due to the federal government's aid to Goldman Sachs in recent months. He had "remain[ed] on the board of Goldman even as he was supposedly regulating [Goldman]; in order to rectify the problem, he applied for, and got, a conflict of interest waiver from the government. Friedman was also supposed to divest himself of his Goldman stock after Goldman became a bankholding company, but thanks to the waiver, he was allowed to go out and buy 52,000 additional shares in his old bank, leaving him $3 million richer," as one report put it.[19] Friedman's resignation announcement came within an hour of the government's release of the 2009 stress tests for 19 U.S. financial institutions.
Personal life[edit]
Stephen Friedman is married to Barbara Benioff, chairwoman of the board of governors of Hebrew Union College. The couple live on Fifth Avenue in Manhattan, and have three children: two daughters, Susan and Caroline, and a son, David Benioff. Benioff, who goes by his mother's maiden name, is a writer, screenwriter and adaptor of Game of Thrones. David is married to actress Amanda Peet.[23]