Lehman's Fuld Director of New York Fed?

This little known fact was stated only in passing in this article, but it's really hard to believe - especially in the way it's used in this particular article. How can and investment bank's chief serve as a director of the New York Fed? Isn't that a conflict of interest?

Yes, I can appreciate that the Fed should seek insights from industry leaders, but the way Mr. Fuld's position with the NY Fed is used in this particular article, suggests that that position would help support Lehman Brothers and keep it from a Bears-like demise. That, I have to say, is very much an indication that such a position could be abused. My point is that Mr. Fuld's position should not have any materially different affect on Lehman than Mr. Alan Schwartz's lack of such a role hurt Bears Stearn. Wouldn't you agree?