NY Fed Hires Chief Risk Officer of Bear Stearns! What?

Does it really make sense for the Fed to hire the chief risk officer of Bear Stearns to help supervise banks. Perhaps by employing some of the people that created this mess we will get out of it, or will we? (click here to skip the introduction and read about the Feds decision to partner with Bear Stearns employees)

Article Introduction & Excerpt (Via Time.Com)

It’s hard to believe, but people are starting to express outrage over the New York Fed hiring the former chief risk officer of Bear Stearns to help supervise banks. To be fair, I feel like I should acknowledge that it would be practically impossible to clean up this mess without employing some of the people who created it. If you de-Baathify the finance industry, who will be left to run things?

To be fair again, I feel like I should go back and see what, exactly, Michael Alix has been saying these past few years. Just because he was running risk management at Bear Stearns when she company collapsed from a lack of sound risk management doesn’t necessarily mean he was sitting idly by. The other day, I was reading a Bloomberg article about how Keishi Hotsuki, Merrill Lynch’s co-head of risk management, tried to get his firm to stop making such risky bets. He was essentially told to shut up. Eventually he left the firm.

Click here to read about the Feds Decisions To Hire Ex-Bear Stearns Employees