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 Friday November 8, 2013 9:30 am|
|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: DSWright Friday October 11, 2013 8:40 am|
Former New York Federal Reserve Bank Examiner Carmen Segarra has a filed a wrongful termination lawsuit against the New York Federal Reserve. In the suit Segarra claims that while acting as a bank examiner for the NY Fed she was told to falsify findings on Goldman Sachs, when she refused was fired.
|By: David Dayen Wednesday December 19, 2012 2:40 pm|
The Financial Times points out today that Tim Geithner, while heading the NY Fed, knew all about the Libor fraud at the major banks, and that traders were manipulating the rate purely to make money for themselves on various deals. This is a stronger charge than the idea that banks manipulated the rate for reasons of financial health, and Geithner knew it was happening. But he did nothing. As per usual.
|By: David Dayen Wednesday July 25, 2012 11:05 am|
Tim Geithner is testifying before the House Financial Services Committee on a number of issues today. It looked like he would skate by without questions on the Libor scandal until Scott Garrett, an unlikely source, tore into him. And it got worse.
|By: David Dayen Tuesday July 17, 2012 10:15 am|
The British Parliament continued their investigation into Barclays Bank and the Libor scandal this week, and it’s just getting worse and worse for everyone involved. Yesterday, Jerry del Missier, the former COO of Barclays, testified that he was instructed by CEO Bob Diamond to manipulate the Libor down in 2008, to mask the ill financial health of the bank.
|By: David Dayen Monday July 16, 2012 8:30 am|
If there is a genuine effort to bring criminal charges in the Libor scandal, the Justice Department will have plenty of banks to choose from – Deutsche Bank, cooperating with EU and Swiss regulators, is just an example – and can round up a couple low-level bankers for the perp walk photo-op. But this would be a classic deflection strategy. Because the more you learn about Libor, the more you must reserve some of your fury for the regulators.
|By: David Dayen Saturday July 14, 2012 4:00 pm|
As part of the release of data from the New York Federal Reserve Bank yesterday, a phone transcript revealed that a Barclays employee admitted to the regulatory body that their submissions of the interest rate benchmark, Libor, were fraudulent, and that they assumed all other banks engaged in the same practice.
|By: David Dayen Friday July 13, 2012 6:40 am|
The flames of the Libor scandal have been creeping up under the feet of Treasury Secretary Timothy Geithner. Evidence showed that the New York Fed found out about the rate-rigging from Barclays and other banks in 2007, when Geithner was still the bank President. This appeared to display regulatory impotence in the face of massive fraud. Geithner had to respond. And he did with a classic version of CYA.
|By: David Dayen Tuesday July 10, 2012 1:25 pm|
As the Libor scandal intensifies, some of the scrutiny has shifted from the role of the banks to the role of the regulators who potentially either actively ignored the rate-rigging happening under their noses, or outright encouraged it. This was the accusation leveled by former Barclays Bank CEO Bob Diamond, though BoE official deny it. But it fits a larger pattern of regulators protecting the banks through actions and inaction on wrong doing.