Last Friday New York Federal Reserve Chairman and former Goldman Sachs Chief Economist William Dudley went before the Senate Banking Subcommittee on Financial Institutions and Consumer Protection. Dudley testified in the wake of a slew of scandals the New York Fed was caught up in including a secret recording that revealed the Fed looked on the other way on a “shady” deal by Goldman Sachs, allowing Wall Street banks to manipulate commodity markets, and providing inside information to Goldman Sachs about how the NY Fed viewed certain Goldman clients.
|By: DSWright Monday November 24, 2014 12:24 pm|
|By: DSWright Thursday November 20, 2014 8:56 am|
Apparently that recent study showing banking culture is corrupt in essence is not so far off the mark as it has now been revealed that Goldman Sachs received inside information from the New York Federal Reserve. It is not just the banksters or the regulators but a culture of corruption which has led to a seemingly endless series of corruption stories coming out of Wall Street and Washington.
In what is being called a “leak,” a former regulator with the New York Fed joined Goldman Sachs and used his contacts at the Fed to gain access to inside information for his new employer.
|By: DSWright Friday November 8, 2013 9:30 am|
Is there anyone left who doesn’t think Wall Street has a culture of corruption? Even the President of the New York Federal Reserve William Dudley, a former Chief Economist at Goldman Sachs, has now critiqued Wall Street’s open contempt for the rule of law. Dudley claimed the banksters have displayed “deep-seated cultural and ethical failures.”
|By: DSWright Wednesday October 16, 2013 10:35 am|
The New York Federal Reserve was not content with just firing Carmen Segarra for taking on Goldman Sachs now they are trying to have her lawsuit sealed. The NY Fed’s justification for sealing the documents and parts of the complaint is the accusation that Segarra stole the documents she is using in her case. In other words, the Fed is continuing its long tradition of secrecy and opacity
|By: Yves Smith Friday March 12, 2010 12:28 pm|
Quite a few observers, including this blogger, have been stunned and frustrated at the refusal to investigate what was almost certain accounting fraud at Lehman. Despite the bankruptcy administrator’s effort to blame the gaping hole in Lehman’s balance sheet on its disorderly collapse, the idea that the firm, which was by its own accounts solvent, would suddenly spring a roughly $130+ billion hole in its $660 balance sheet, is simply implausible on its face. Indeed, it was such common knowledge in the Lehman flailing about period that Lehman’s accounts were sus that Hank Paulson’s recent book mentions repeatedly that Lehman’s valuations were phony as if it were no big deal.
Well, it is folks, as a [pdf] newly-released examiner’s report by Anton Valukas in connection with the Lehman bankruptcy makes clear. The unraveling isn’t merely implicating Fuld and his recent succession of CFOs, or its accounting firm, Ernst & Young, as might be expected. It also emerges that the NY Fed, and thus Timothy Geithner, were at a minimum massively derelict in the performance of their duties, and may well be culpable in aiding and abetting Lehman in accounting fraud and Sarbox violations.
|By: Cynthia Kouril Wednesday January 13, 2010 7:01 pm|
This is a timeline based on the emails released by Federal Reserve Bank in response to a letter request from Rep. Darrell Issa. These emails show AIG trying to do plain vanilla disclosures, and initially involving the Fed to make sure they were disclosing enough. But the disclosures were inadequate and the Fed did not ensure AIG did make adequate disclosure. The emails released thus far are sufficiently damning and raise a host of suspicions;we have a right to know the full story. Further, because of the push back and forth, it is hardly wild speculation to think there is a smoking gun document out here.
|By: David Dayen Tuesday January 12, 2010 1:40 pm|
The battle for transparency at the Federal Reserve just ratcheted up a notch. Edolphus Towns, the chair of the House Oversight and Government Reform Committee, just issued a subpoena to the New York Federal Reserve Bank, asking for documents related to AIG and their counter-party payments.
|By: David Dayen Friday January 8, 2010 2:43 pm|
Ed Towns, the chairman of the House Oversight and Government Reform Committee, just announced that he would hold hearings into the emails that show how the New York Federal Reserve delayed disclosure of AIG counter-party payments, hiding public information from federal regulators.