The political heat surrounding Stephen Friedman, the former chairman of the New York Federal Reserve Bank and Goldman Sachs director, is showing no signs of easing.
Over the weekend, the House oversight committee, led by Edolphus Towns, said it had reviewed internal Fed emails revealing “misgivings” within the US central bank that were ultimately “overruled” about letting Mr Friedman own Goldman shares while serving on the NY Fed board. Read more
Signs of ECB nervousness about just how Europe’s new financial supervisory regime will work are becoming apparent. Its latest review of the proposals, while generally supportive, urges a tougher wording to ensure the unimpeded flow of information between the three planned European supervisory authorities, central banks and the new European Systemic Risk Board, which it will dominate.
To work efficiently, the ECB concludes, the new system “requires effective information sharing procedures in order to ensure a smooth interaction of supervision at the macro-prudential and micro-prudential levels and the timely access of the ESRB to all relevant information required to perform its duties”. Read more
The ECB does not see economic growth as an objective of stronger regulation, writes Ralph Atkins in a Financial Times blog Read more
Stronger regulation is demanded by an ECB executive board member, writes Ralph Atkins of the Financial Times Read more