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Stephen Friedman (economist)

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Stephen Friedman
Chair of the President's Intelligence Advisory Board
In office
December 20, 2005 – October 28, 2009
PresidentGeorge W. Bush
Barack Obama
Preceded byJim Langdon
Succeeded byChuck Hagel
David Boren
5th Director of the National Economic Council
In office
December 12, 2002 – January 10, 2005
PresidentGeorge W. Bush
Preceded byLarry Lindsey
Succeeded byAl Hubbard
Personal details
Born (1937-12-21) December 21, 1937 (age 87)
New York City, New York, U.S.
Political partyRepublican
SpouseBarbara Benioff
Children3, including David
RelativesAmanda Peet (daughter-in-law)
EducationCornell University (BA)
Columbia University (JD)

Stephen Friedman (born December 21, 1937[1]) is an American economist. He is a former chairman of the U.S. 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.

Early life and education

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Friedman was born in New York City, to a Jewish family. He received his BA from Cornell University[2] in 1959 and his Juris Doctor 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]

Career

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Friedman (right) with President George W. Bush and Alan Greenspan in 2004

In 1966 Friedman joined Goldman Sachs and became a partner in 1973. From 1987 until November 1990 he was the co-chief operating officer and either co-chairman or chairman between 1990 and 1994.[8] Friedman re-joined the board of Goldman in April 2005, and stepped down from serving on the board on May 22, 2013.[9]

In 1998 Friedman joined Stone Point Capital LLC. He also served as Senior Advisor at Crestview Partners, LP and a Special Limited Partner and Member of the Executive Advisory Board of Insight Partners.[10]

From 1998 to 2002, he served as a senior principal of Marsh & McLennan Capital Corp.[11] In March 1999 President Clinton announced his intention to appoint Friedman and Crescencio S. Arcos to serve as Members of the President's Intelligence Advisory Board.[12]

From December 2002 to December 2004 Friedman was United States Assistant to President George W. Bush for Economic Policy as well as the director of the National Economic Council.[13] On October 27, 2005 Friedman was asked to replace Brent Scowcroft as the Chairman of the President’s Foreign Intelligence Advisory Board.[14]

Chairman of New York Federal Reserve Bank

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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.

Public service

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Friedman Wrestling Center at Cornell University

Friedman is involved in several public service activities, including Chairman Emeritus of the Board of Columbia University,[20] Chairman Emeritus of the Executive Committee of the Brookings Institution,[citation needed] and a member of the Council on Foreign Relations.[21] He is also a benefactor of his alma mater Cornell University, particularly its wrestling program as the college's wrestling building is known as the Friedman Center.[22]

Personal life

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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]

References

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  1. ^ McGeehan, Patrick (December 13, 2002). "Man in the News; Economic Adviser From Other Side of the Deficit -- Stephen Friedman". New York Times.
  2. ^ "Stephen Friedman". Federal Reserve Bank of New York. January 2008. Retrieved 10 September 2014.
  3. ^ "Stephen Friedman". Federal Reserve Bank of New York. January 2008. Retrieved 10 September 2014.
  4. ^ "Keynote Speaker: Stephen Friedman". Columbia Law School. Retrieved 10 September 2014. Mr. Friedman, a 1962 graduate of the law school, spent 28 years with Goldman Sachs & Company where he served as co-chairman (1990-1992) and chairman and senior partner (1992-1994.)
  5. ^ Friedlander, Blaine (Jan 20, 2003). "Cornell to open nation's first dedicated wrestling center, named for alumni Stephen Friedman and trustee Barbara Benioff Friedman". Cornell Chronicle. Retrieved 10 September 2014. Stephen Friedman is a former Cornell wrestling star and 1959 graduate.
  6. ^ "Cornell Alumni News" (LX (18)). 15 June 1958. {{cite journal}}: Cite journal requires |journal= (help)
  7. ^ "Keynote Speaker: Stephen Friedman". Columbia Law School. Retrieved 10 September 2014. Columbia University Law School, LL.B., 1962 (Law Review)
  8. ^ "Stephen Friedman". Federal Reserve Bank of New York. Retrieved 10 September 2014. He was vice chairman and co-chief operating officer from 1987 to November 1990, and co-chairman or chairman from 1990 to 1994.
  9. ^ ALDEN, WILLIAM (April 4, 2013). "Stephen Friedman to Retire From Goldman Board". DealB%k. New York Times. Retrieved 10 September 2014. He joined Goldman's board in April 2005./A onetime leader of Goldman who worked at the firm for nearly 30 years, Mr. Friedman is stepping down on May 22, the day before Goldman's annual shareholder meeting.
  10. ^ "Executive Profile: Stephen Friedman". Bloomberg Business Week. Retrieved 10 September 2014. Mr. Stephen Friedman serves as a Senior Advisor at Crestview Partners, L.P. He also serves as a Special Limited Partner and Member of Executive Advisory Board of Insight Venture Partners. Mr. Friedman joined Stone Point Capital LLC in 1998.[dead link‍]
  11. ^ Johnson, Loch K. (January 12, 2011). The Threat on the Horizon: An Inside Account of America's Search for Security After the Cold War. Oxford University Press. p. 40. ISBN 978-0-19-979243-6. Retrieved 10 September 2014. Marsh & Mclennan stephen friedman.
  12. ^ "TEXT: CLINTON NAMES ARCOS & FRIEDMAN TO INTELLIGENCE BOARD". Federation of American Scientists. March 24, 1999. Retrieved 10 September 2014. President Clinton announced March 24 his intent to appoint Cresencio S. Arcos and Stephen Friedman to serve as Members of the President's Foreign Intelligence Advisory Board.
  13. ^ "Stephen Friedman". Federal Reserve Bank of New York. Retrieved 10 September 2014. From December 2002 to December 2004, he served as assistant to President George W. Bush for Economic Policy and director of the National Economic Council.
  14. ^ Clemons, Steve (October 27, 2005). "Stephen Friedman Named to Chair President's Foreign Intelligence Advisory Board". Washington Note. Retrieved 10 September 2014.
  15. ^ "Directors of the Federal Reserve Bank of New York: 2008 Annual Report" (PDF). New York Federal Reserve. 2009. p. 83. Archived from the original (PDF) on 16 January 2013. Retrieved 10 September 2014.
  16. ^ "Friedman Resigns as Chairman of New York Fed". DealB%k. New York Times. May 7, 2009. Retrieved 10 September 2014. The New York Fed asked for a waiver, which, after about two and a half months, the Fed granted.
  17. ^ "Resignation Letter of Stephen Friedman, Chair of the Federal Reserve Bank of New York" (PDF). The Federal Reserve. The Federal Reserve Bank of New York. May 7, 2009. Archived from the original (PDF) on November 26, 2010. Retrieved 2009-05-07.
  18. ^ Friedman, Stephen (May 7, 2009). "Letter of Resignation to Ben Bernanke" (PDF). Personal Letter. Archived from the original (PDF) on November 26, 2010. Retrieved 10 September 2014.
  19. ^ Matt Taibbi (July 13, 2009). "The Great American Bubble Machine". Rolling Stone. p. 6. Archived from the original on April 6, 2010. Retrieved Sep 9, 2012.
  20. ^ "Keynote Speaker: Stephen Friedman". Columbia Law School. Retrieved 10 September 2014. Mr. Friedman has maintaned [sic] a strong commitment [sic] to his alma mater and is Chairman Emeritus of the Board of Columbia University.
  21. ^ McDonald, Duff (October 28, 2010). "The man behind Buffett's new man: Stephen Friedman". Fortune. Retrieved 10 September 2014. Friedman is also a trustee of The Council on Foreign Relations.
  22. ^ Friedlander, Blaine (Jan 20, 2003). "Cornell to open nation's first dedicated wrestling center, named for alumni Stephen Friedman and trustee Barbara Benioff Friedman". Cornell Chronicle. Retrieved 10 September 2014. The $3.5 million facility is named for two Cornell alumni who made the lead gift toward the building, Stephen Friedman, who was appointed to the Bush administration in December, and his wife, Barbara Benioff Friedman.
  23. ^ "Stephen Friedman". Gawker. February 3, 2008. Retrieved September 10, 2014.
[edit]
Business positions
Preceded by Chair and Chief Executive Officer of Goldman Sachs
1992–1994 		Succeeded by
Political offices
Preceded by Director of the National Economic Council
2002–2005 		Succeeded by
Government offices
Preceded by Chair of the President's Intelligence Advisory Board
2005–2009 		Succeeded by
Succeeded by
Chair of the Intelligence Oversight Board
2005–2009
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