Monday, May 4, 2009

NY Fed Chair Friedman Makes 61% on Goldman Sachs Stock in Less than 6 Months

New York Fed Chairman Stephen Friedman sits on the Goldman Sachs Board of Directors. He owns 98,600 shares of Goldman Sachs. His latest purchases show:

1-22-09 8,272 shares at $66.19
1-22-09 7,028 shares at $67.11
12-17-08 37,300 shares at $80.78

Goldman trades at $128.86 today. That's a fast 61% return. Did Mr. Friedman have insider information from the New York Fed? What did Stephen Friedman know and when did he know it? Here's what the public knows:

AIG paid more than $94 billion to counter parties from September 16 to December 31. Goldman Sachs received $12.9 billion.

Mr Friedman's holdings are valued at $12.7 million. A regulator buys 52,600 shares of Goldman Sachs during the banking crisis? How is this remotely OK? Obama's soaring rhetoric on a tax cheat crack down will likely steal the stage. Just know the G20 placed no countries on the tax haven black list. Zero. Lofty language, followed by corporafornication. That's the Obama pattern.

Guess who will approve AIG's upcoming asset sales? The New York Fed. Might Goldman Sachs broker the deal?