Bill Black, Carmen Segarra, and the Regulatory Failure That Is the Federal Reserve Bank of New York

By: Saturday October 12, 2013 12:40 pm

Back in 2009, law professor and former banking regulator Bill Black excoriated the internal corporate culture of the Federal Reserve when it comes to banking regulatory oversight. For a very specific illustration of what Black was talking about, just take a look at the complaint filed by former banking regulator Carmen Segarra against her former employer, the Federal Reserve Bank of New York. She was hired and assigned to investigate problems at Goldman Sachs, and when she and her team discovered some major problems, she was pressured to downplay them and back off. When she refused, she was terminated and Goldman Sachs was given a clean bill of health by the folks that fired her.

You’re shocked, I know. But the details, along with the documentation, are the truly shocking part of all this. Not about Goldman Sachs, but about their pals at the Federal Reserve Bank of New York.


Reason 549 Why We Need a Strong CFPB Director

By: Tuesday June 28, 2011 1:30 pm

My wife and I recently bought a home. As if I hadn’t been persuaded earlier, the entire process convinced me of the need for a strong Consumer Financial Protection Bureau and someone strong-willed and committed to protecting consumers to run it, like Elizabeth Warren.

FDIC Takes Aim at Large Banks and Small-minded Regulators

By: Monday July 12, 2010 7:15 pm

While Ben Bernanke dreams of being the uber-regulator and chief monitor of systemic risk, a new agreement between the FDIC and other banking regulators like the Fed allows the FDIC to have independent direct access to big banks instead of making the FDIC to rely on his tame stable of regulators at the Fed.

Chalk one up for real oversight.

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