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New Scrutiny of Goldmans Ties to the New York Fed After a Leak
Key Excerpts from Article on Website of New York Times


New York Times, November 19, 2014
Posted: December 1st, 2014
http://dealbook.nytimes.com//2014/11/19/rising-scrutiny-as-b...

From his desk in Lower Manhattan, a banker at Goldman Sachs thumbed through confidential documents courtesy of a source inside the United States government. The banker came to Goldman through the so-called revolving door ... that connects financial regulators to Wall Street. He joined in July after spending seven years as a regulator at the Federal Reserve Bank of New York, the governments front line in overseeing the financial industry. He received the confidential information, lawyers briefed on the matter suspect, from a former colleague who was still working at the New York Fed. The previously unreported leak, recounted in interviews with the lawyers briefed on the matter who spoke anonymously ... illustrates the blurred lines between Wall Street and the government. When Goldman hired the former New York Fed regulator, who is 29, it assigned him to advise the same type of banks that he once policed. And the banker obtained confidential information [that] provided Goldman a window into the New York Feds private insights. The emergence of the leak comes as questions mount about a perceived coziness between the New York Fed and Wall Street banks Goldman in particular. Revelations from a former New York Fed employee, Carmen Segarra, recently stoked that debate. Ms. Segarra released taped conversations suggesting that her supervisors went soft on Goldman. The new accounts of a regulator and a banker actually sharing confidential documents violating a cardinal rule of the regulatory world suggest that ... Goldman, perhaps more than any other Wall Street bank, appears to be entwined with the New York Fed.

Note: For more along these lines, see these concise summaries of deeply revealing articles about widespread corruption in government and banking and finance. For additional information, see the excellent, reliable resources provided in our Banking Corruption Information Center.


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