Leaked Tapes Goldman Sachs: Controls The Federal Reserve And Government

A former US bank examiner who alleges she was fired for being too tough on Goldman Sachs has released hours of secretly recorded tapes to add muscle to her argument as she tries to win a legal appeal.

Carmen Segarra is a former New York Federal Reserve bank examiner who butted heads with her bosses over her policing of Goldman Sachs.

Segarra alleges that her attempts to discipline Goldman Sachs were blocked by her bosses at the New York Fed, who she suggests were intent on giving Goldman Sachs no trouble. The Fed disputes her allegations, as does Goldman.

Segarra’s case raises a host of questions about “regulatory capture”, the term for regulators who become too cozy with the industry they are meant to police.

Segarra was hired by the New York Fed in 2012 to examine Goldman Sachs’ policy on conflicts of interest, which govern the ethics of the firm’s dealing with its clients.

The tapes – many muddy in sound – reveal that Segarra clashed with her bosses as she attempted to write an official critique of why Goldman Sachs had no policy on conflicts of interest. Her bosses at the Fed are on tape urging her to abandon her insistence that the policy did not exist, and say instead that the bank had a “bad” policy. The exchanges have a sharp tone. 
As Segarra was embattled in her job at the Fed, she secretly recorded conversations with her supervisors in hopes of showing that they were pressuring her to tone down her critique of Goldman Sachs. Segarra was fired in 2013 after only seven months of work.

The cause of Segarra’s dismissal is a matter of bitter legal dispute. Segarra sued the Fed after she was fired, claiming her questioning of Goldman Sachs rankled her bosses, who allegedly wished to be friendly to the bank. The Fed has countered that her termination was “on performance grounds”. A district court ruled in favor of the Federal Reserve. Segarra has appealed the decision.

Roberts of STA Wealth, said that the financial crisis made regulators protective of banks rather than aggressive in policing them. “The major banks have held the government hostage for years,” Roberts said. 
the global movement

Leave a Reply