In an irony of ironies, the Federal Reserve Bank of New York has hired Bear Stearns’ chief risk manager as a senior advisor in the Bank Supervision Group overseeing the regulation of banks. Named a senior vice president at the NY Fed, Michael Alix spent 12 years at Bear Stearns, the giant investment bank, which teetered on the edge of bankruptcy before it was bought out by JPMorgan.
That buyout was co-orchestrated by the Federal Reserve, the Secretary of the Treasury Hank Paulson, and the president of the NY Fed, Timothy Geithner. Geithner has been mentioned as a possible Treasury secretary if Senator Obama wins the presidency.
According to USA Today, the Fed made the announcement of Alix’s hiring on Halloween.
Hat tip: Carl Weisman