Goldman director Friedman defends role at NY Fed

NEW YORK — Goldman Sachs director Stephen Friedman, who resigned Thursday as chairman of the Federal Reserve Bank of New York's board, defended his conduct Friday in serving in both posts.

"I followed the rules as I always have," he said at Goldman Sachs' annual meeting Friday.

Friedman was the subject of a Wall Street Journal story that raised questions about his ties to Goldman.

Goldman received quick Fed approval late last year to become a bank holding company. During that time Friedman sat on Goldman's board and had a large holding in the company, a violation of Fed policy, the Journal reported.

The New York Fed's general counsel Thomas Baxter says Friedman's purchases of Goldman stock didn't violate the Fed's rules.