Ex-Bear Stearns exec Michael Alix now at Federal Reserve
THE ASSOCIATED PRESS
Tuesday, November 4th 2008, 4:29 PM
Michael Alix, who worked at Bear Stearns for 12 years and was its senior risk manager since 2006, was named a senior vice president in the bank supervision group of the Federal Reserve Bank of New York, according to an announcement by the Fed.
The appointment is apt to raise questions because of the key role Alix played at Bear Stearns and given the Federal Reserve's role in Bear Stearns' sale to JPMorgan Chase & Co. after its breathtaking slide. In his new job at the central bank, Alix will help oversee the financial safety and soundness of banks, which are inspected by Federal Reserve examiners.
"That's incredible," said James Cox, a Duke University law professor and securities law expert. "This is not reassuring. ... What is there in this person's experience and skill package" that qualifies him for the Fed position?
New York Fed spokesman Andrew Williams didn't immediately return a phone call seeking comment.
In March, with Bear Stearns on the brink of bankruptcy, the Federal Reserve and Treasury Secretary Henry Paulson — with the involvement of Chairman Ben Bernanke and New York Fed President Timothy Geithner — orchestrated a buyout of Bear Stearns by JPMorgan. The deal was forged with a $29 billion federal backstop from the Fed acting as central bank
Federal prosecutors have been investigating the conduct of Bear Stearns managers before its blowup amid the collapse of the subprime mortgage market. Prosecutors have said they expect to bring additional criminal charges against two former Bear Stearns hedge fund managers who were accused last summer of lying to investors. The eventual implosion of the defendants' hedge funds cost investors $1.8 billion and began a domino effect that pushed Bear Stearns itself to the brink.
Alix, who was appointed by the New York Fed's board, officially assumed the senior vice president position Monday, the announcement said. He will be a senior adviser to William Rutledge, the executive vice president of the bank supervision division.
Alix's appointment was first reported Tuesday by blogger Scott Rothbart.
Before becoming Bear Stearns' chief risk officer in 2006, Alix was the bank's global head of credit risk management from 1996-2006. Before that, he was credit officer and vice president at Merrill Lynch & Co.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Your assessment may be right Shadow. All I know is that I was shocked when I read it.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
It sure looks like someone has got something on somebody.
That would be the monkey on our backs.......just where it lives I'm not sure.....still trying to get a real good look at it...... there is more than meets the eye here and it is WAY beyond Dems/Reps and even America alone........
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
That would be the monkey on our backs.......just where it lives I'm not sure.....still trying to get a real good look at it...... there is more than meets the eye here and it is WAY beyond Dems/Reps and even America alone........
Ya...it's called GLOBALIZATION!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
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