Fed Hires Bear Stearns Risk Chief to Supervise Bank Soundness

Fed Hires Bear Stearns Risk Chief to Supervise Bank Soundness

www.nakedcapitalism.com

Michael Alix has been named a senior vice president in the Bank Supervision Group of the Federal Reserve Bank of New York. He will serve as a senior advisor to William L. Rutledge, executive vice president, Bank Supervision Group....

Most recently, Mr. Alix worked for the Bear Stearns Companies, Inc., where he served as chief risk officer from 2006-2008 and global head of credit risk management from 1996-2006

(visit the link for the full news article)

I had to add this quote as well:

As John Carney of Clusterstock, who found this remarkable tidbit, noted:

We suppose that Alix at least has plenty of experience with unsound banking institutions. He was the chief risk officer of Bear Stearns from 2006 until 2008. So, basically, he was the guy on the mast charged with yelling "iceberg" just before the Titantic introduced its bow to a floating hunk of ice.

Do you think they can keep from laughing when they make these choices? I mean seriously.... what are they thinking? They couldn't find someone that wasn't attached to a bank that failed for this particular job?

This would be like hiring Baghdad Bob for White house press secretary.
Or the CEO of Enron to head up the ethics committee.
Or Barry Bonds to investigate steroids in baseball....

www.nakedcapitalism.com
(visit the link for the full news article)

umm . . . are they on crack or just plain retarded? Even a normal person like me can see that that was not a very good choice.

Originally posted by Karlhungis


Do you think they can keep from laughing when they make these choices? I mean seriously.... what are they thinking? They couldn't find someone that wasn't attached to a bank that failed for this particular job?

Well they are Thinking that if they has gotten away so far with scamming the American people with not retributions, then the American people most be so dumb and stupid to do anything about it right now.

Jeez . . . that's kinda like having Barny Gumble or Homer Simpson supervising the beer fridge.

They'll empty out the coffers quicker than Mother Hubbard's cupboard snafu.

Some things just boggle the mind.


edited to update my flagging Simpson's trivia knowledge!!!

[edit on 4-11-2008 by GoalPoster]

The 700billion dollar bailout that was going to help main street.... Hmmmm.

I don't even hear them yelling Main street anymore....


Maybe their trying to give this guy a chance to sink the US Government like he helped do with Bear Stearns.

I am sure he is up to the job...

Actually the money has been used for anything else but lining the pockets of favored banks so they can buy other banks and at the same time Paulson is investing tax payer money into global banks but not for the benefit of the tax payer at all.

In the latest news of the bail out . . .

In an attempt to prevent a global shortage of dollars the Federal Reserve Bank is offering loans of up to $30 billion each to Mexico, Singapore, South Korea and Brazil, according to The Washington Post.

The move is hoped to allow the central banks in those nations to pump cash into their strapped financial systems. While there is reason to ensure stability in the world markets, the Federal Reserve cannot honestly believe that $30 billion will solve any systemic problems. Considering how much money has been wasted in futile bailouts and “capital infusions” in the United States – nearly $1 trillion has been ear-marked thus far – it borders on ridiculous to believe that this move will help other nations. There is no reason for the Federal Reserve to be expending any of its efforts propping up other nations when so much needs to be done at home.

So yes the squandering of tax payer money is in full gear and now 1 trillion has been wasted as our nation falls deeper and deeper into recession

It most be nice to have your own treasury department printing money at your will at the expenses of tax payer in the nation.

Where is the firing squat when you need it.

Oversight and not accountability.

www.washingtonpost.com...

what he did is prove that he is exactly who they want for that job. you dont think there is honesty and integrity at the federal reserve do you?
he is the right man for that job



oh and its barney gumble.

Uhm. maybe he is getting a second chance and demonstrated that he did warn about what was coming down the pike. I totally doubt it, but ya never know with these idiots.

Ya, maybe he learned how to make a killing by doing NOTHING! Just like he always dreamed of!

Foxes guarding the hen house never works, I mean you have these pure failures, being put in charge of oversight of government free money in their systems, this is yet another example of a disaster in the making possibly.

Once Paulson and Kashkari are out, they will go back to Wall Street and take advantage of their current positioning and make even more money for themselves, how can the same people associated with the very firms that have had a part in this scheme be trusted with any legitimate oversight responsibilities, this in itself seems criminal anyone else agree?

[edit on 4-11-2008 by phinubian]

Yes is criminal and the Fed has asked for additional funding to prosecute this type of criminal activities.

But the Bush administration has been adamant to give funding, what do you expect when you have a corrupted government making the laws.

Hey never fear we have George W Bush at the helm. He we protect us and make things right.......