"Although...in compliance my service is being mischaracterized as improper"

NY Fed Board Chairman Stephen Friedman resigned amid controversy he owned stock and served as a Goldman director. From resignation letter: "…although I have been in compliance with the rules, my public service motivated continuation on the Reserve Bank Board is being mischaracterized as improper." William Black, professor of Economics and Law University of Missouri: It's a clear conflict of interest for private banks to own an arm of the Fed, much less individual regulators to own stakes in entities they're overseeing. Friedman case highlighted unusual role of Fed’s 12 regional banks that serve both private and public interests. The solution?