▼   ▼   ▼   ▼   ▼

Jim (cont'd):  

While serving as the Chair of the New York Fed's Board of Directors, the former co-CEO of Goldman Sachs sought permission from the Fed, and from Goldman Sachs, to buy stock in this company. Both the Fed's counsel and the counsel of Goldman Sachs blessed the transaction. Keep in mind, the New York Fed's Executive Vice President and Counsel, Thomas Baxter, said that Friedman's purchases of Goldman Sachs' stock, in December of 2008 and January of 2009, did not violate any Federal Reserve statute, rule or policy...

Friedman promptly disclosed the transaction... and, for this totally cleared, totally legal trade, he was hounded off the Fed this week. He resigned from his job because, in his words, his fine is "being mischaracterized as improper."

He's being too much of a gentleman...

He was widely called as someone who had a showed a flagrant violation of the rules... To believe... read the press... you'd think it was a disgrace to the public trust in the committee.

The media and senators alike said that, to which I say, what the heck...how can this happen?... How can a man who has been consistently giving back to this great country... he served as the director of the National Economic Council from 2002 until 2004... where, by the way, he had to divest all of his Goldman Sachs stock under that job... with his entry into public service... How can he be criticized and derided now for buying stock back, when he made the Fed aware that he bought back stock in Goldman Sachs, subsequent to his being elected to be a director of the firm? How can he be driven out of service, when he did everything right?...

More important, let's talk substance...

Goldman Sachs' stock had been driven down by a series of bear raids, to a point where the company's stock almost... well, it almost broke the company... the stock got hit that bad... it almost caused a panic at the actual company... Friedman, in what could only be considered as an important vote of confidence for Goldman Sachs, bought stock in the open market, fully disclosed, and was one of the single most important purchases, because it was widely reported as one of those buys that said, maybe Goldman Sachs isn't going out of business after all...

That affirmation in the face of endless, endless short selling raids, helped turned the tide that I think saved American capitalism from nationalization... And, for this, he's reviled?... For this, a lifetime of good works gets nullified? He's characterized as an abuser of public trust?... I say nonsense...

And while I'm at it... can I say that I have also had to hear, once again, that the top people at Goldman Sachs are part of some sort of financial kabal that seeks to control this nation's finances... That's an incredible charge that's whispered constantly behind the scenes... It has no basis in fact...

What you are seeing is the logical outgrowth of a culture instilled at Goldman... to give back, to serve, to join in government... and it's a culture you have seen manifested over and over and over again. I know it. I saw it. I thought that I was almost ordered to do it when I worked at Goldman Sachs in the 80s, when I had the privilege to work for Steve... and he was "Steve"... he was never "Mr. Friedman"...

▼   ▼   ▼   ▼   ▼

The Bottom Line!:     When I first heard this ridiculous charge against Friedman, I thought the mob would subside when they figured out it was much ado about nothing...    No. The "Jihad" gained steam... without a single fact on its side... and we lost a good man when Friedman quit...   More important... if you quit a job to go serve, and you play by the rules, and you're hounded out of a position, where this nation needs you, you've got to ask, "Why bother?"...

Steve Friedman deserves our thanks, not our scorn. Oh, and why people don't give back... and don't serve?... Simple... It ain't worth it.