Simon Johnson raises some serious concerns about the Federal Reserve of New York.
His initial concern is why Jamie Dimon remains a member of the board of the bank after the imbroglio in London which is being investigated by the Fed. He feels so strongly about this issue that he was able to get 38,000 signatures on a petition to remove Dimon. Johnson raises another issue re Dimon: why did he not step down when the Fed was negotiating the sale of Bear Stearns to JPMorgan.
Stephen Friedman is the next director in Johnson's sights. As a Class C director Friedman cannot be a stockholder in a bank nor can he be involved in a company that controls a bank. Friedman's investment company appears to be actively involved in banks.
Finally, Lee Bollinger, the Fed chairman, does not meet the standards of the chairman as (per Fed rules) being "a person of tested banking experience.” Bollinger is a lawyer and president of Columbia University. He has no banking experience.
Johnson makes some good points here.
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