Mindful of previous conflict of interest charges, the Federal Reserve Bank of New York chose a nonprofit leader Monday to fill a board seat that was held by a former executive of Goldman Sachs.
Kathryn Wylde, the president and chief executive of the Partnership for New York City, succeeds Stephen Friedman, a Goldman alumnus who remained on the New York Fed's board after his firm converted to a bank holding company last fall. Fed policy bars officers of banks from the type of board seat Friedman held, but the New York Fed sought a waiver from officials in Washington to make an exception for him.
While that request was being considered, Friedman bought more than 37,000 shares of Goldman stock. He resigned in May as questions grew about his stock purchase.
Wylde has worked at the Partnership for New York City since 1982 and was named the founding president and chief executive in 1996. Previously, she spent two years as the urban affairs officer of Anchor Savings Bank and worked for 11 years at Lutheran Medical Center.