Fed hires Bear Sterns executive ... really

NEW YORK, Nov. 4 (UPI) -- The Federal Reserve Bank of New York, not without some flack, has hired a former Bear Stearns risk assessor to help with bank supervision.

Investment bank Bear Stearns failed in March largely due to its risky subprime mortgage investments, ABC News reported Tuesday.

The hiring of Michael Alix, who headed Bear Stearns' risk management for two years, was met with some skepticism.

"You're kidding me," said Dean Baker, economic policy expert at the Center for Economic Policy and Research in Washington. "You would think (his record) would be a big strike against him," Baker said.

Hiring Alix, "is sure to put to rest the notion that there are no second acts in American life," financial blogger John Carney wrote.

Alix's role at Bear Stearns, was "yelling 'iceberg' just before the Titanic introduced its bow to a floating chunk of ice," Carney wrote.