'You Can't Make This Stuff Up…'

by Chris Sturr | November 04, 2008

…is the universal response to this item circulating through the blogosphere this morning. From Clustershock Beta. Hat tip to Across the curve:

Fed Hires Bear Stearns Risk Boss
John Carney | Nov 3, 08 8:35 AM

In a move that is sure to put to rest the notion that there are no second acts in American life, former Bear Stearns chief risk officer Michael Alix has landed a job in the office of the Federal Reserve charged with assessing the safety and soundness of domestic banking institutions.

We suppose that Alix at least has plenty of experience with unsound banking institutions. He was the chief risk officer of Bear Stearns from 2006 until 2008. So, basically, he was the guy on the mast charged with yelling “iceberg” just before the titantic introduced its bow to a floating hunk of ice. Prior to that he ran credit risk management for Bear from 1996 to 2006, Jon Keehner at Bloomberg points out. That worked out just great.

“Alix will be a senior adviser to William Rutledge, executive vice president of the bank supervision group, according to a statement on the New York Fed’s Web site. Staff in the group ‘assess the safety and soundness of domestic banking institutions,’” Keehner reports.

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