Tuesday, November 11, 2008

Rewarding failure

You know that one of the first parts of the economic meltdown was Bears Stern. One of the major reasons they no longer exist is that they did not assess risk properly. One would expect that failure would not be awarded, right – especially by the gov’munt – right?

Well, you must not know how DC works then. From IBD,
Fed hires Bear Stearns executive

The former chief risk officer at investment bank Bear Stearns, which collapsed in March, was appointed to a senior position at the NewYork Federal Reserve. Michael Alix, who worked at Bear Stearns for 12 years, will help oversee the financial safety and soundness of banks, which are inspected by Federal Reserve examiners. In March, the Fed and Treasury orchestrated a buyout of Bear Stearns by JPMorgan. The deal was forged with a $29bil federal backstop.

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