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The Fed Needs Governors Who Arent Wall Street Insiders
Key Excerpts from Article on Website of Wall Street Journal
Posted: November 23rd, 2014
http://online.wsj.com/articles/elizabeth-warren-and-joe-manc...
The Federal Reserve's Board of Governors and the New York Fed have been responsible for supervising Wall Street banks. After the 2008 crisis and the regulatory lapses it revealed, Congress gave the Fed even more oversight authority. Two recent reports highlight that the Fed isnt very good at supervising certain banks. In September, Carmen Segarra, a former bank examiner at the Federal Reserve Bank of New York, released secret recordings she had made of meetings at the New York Fed in 2012. The recordings revealed that New York Fed employees had identified concerns with a proposed Goldman Sachs deal. The New York Fed didnt attempt to make Goldman address these concerns. The recordings also showed Ms. Segarras superiors pressuring her to soften her finding that Goldman did not comply with federal regulations on conflicts of interest. An October report from the Feds Office of Inspector General provided additional confirmation that the Fed is failing to oversee the big banks. The report found that the New York Fed had failed to examine J.P. Morgan Chases Chief Investment Office despite a recommendation to do so in 2009. The report concluded that the New York Fed needed to improve its supervision of the biggest, most complex banks. Were all counting on the Fed to monitor the big banks and stop them from taking on too much risk, but evidence is mounting that this faith in the Fed is misplaced.
Note: If the above link fails, click here. 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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