NY Fed Chair Friedman resigns

Here is the CNBC video of the news (with a lot more at the end on the stress tests):

And FT reports:

Stephen Friedman, the chairman of the New York Federal Reserve has resigned from his post with immediate effect following his controversial purchase of shares in Goldman Sachs, his former employer, earlier this year.

The New York Fed said in a statement that Mr Friedman, a former chairman of Goldman Sachs, had informed William Dudley, president and chief executive officer of the New York Fed, and the board of governors of his decision.

In a letter to Mr Dudley, Mr Friedman wrote: “Last fall, after Goldman Sachs Group, became a bank holding company, I agreed to remain on the board, 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 mischaracterised as improper. The Federal Reserve System has important work to do and does not need this distraction.”

Denis Hughes, deputy chair of the board, will exercise the powers and duties of the chair following Mr Friedman’s departure.