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Former Bear Stearns Exec Moving on To Fed

Published 11/05/08 Dustin Ensinger - Print Article
E-mail - editor@economyincisis.org

A former chief risk officer at Bear Stearns, which nearly collapsed in March, will now be working for the Federal Reserve Bank of New York, overseeing the financial safety and solvency of banks.

Michael Alix worked at Bear Stearns for 12 years and served as the company’s senior risk manager since 2006 before moving on to the Fed, according to an announcement by the reserve bank.

The appointment may raise a few eye eyebrows due to Bear Stearns near collapse and its subsequent sale orchestrated by the Fed. JPMorgan Chase bought out the company and saved it from bankruptcy, but only with the aid of a $29 billion backstop from the Fed. The company and some of its executives are currently under investigation relating to the near collapse of Bear Stearns.

‘’That’s incredible,'’ James Cox, a Duke University law professor and securities law expert, said. ‘’This is not reassuring. … What is there in this person’s experience and skill package'’ that qualifies him for the Fed position?

Source CNNMoney.com:

The 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 an announcement by the Fed.

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