Bear Stearns ‘risk’ expert rewarded for bad risk analysis by getting job at NY Fed
Posted on November 9th, 2008 by bile Tags: bank supervision group, Bear Stearns Cos., central bank, Federal Reserve Bank of New York, Federal Reserve System, investment bank, JPM, JPMorgan Chase & Co., Michael Alix, New York, United StatesThe former chief risk officer at investment bank Bear Stearns Cos., which nearly collapsed in March, is now a senior official of the Federal Reserve division that supervises U.S. banks.
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 a Fed announcement.
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.
The inmates are running the asylum. But we already knew that.
The story is a few days old but it’s worth repeating.
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