Stephen Friedman relinquishes post at New York Fed

Stephen Friedman, chairman of the board of directors at the Federal Reserve Bank of New York, resigned his post on May 7, following controversy over his decision to remain on the board of directors at Goldman Sachs.

"Last Fall, after Goldman Sachs 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 mischaracterized as improper," Friedman wrote in his resignation letter to the Fed.

He will be replaced by Denis Hughes, deputy chair of the board.