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Warren Calls for Hearings on New York Fed Allegations
Key Excerpts from Article on Website of BloombergBusinessweek


BloombergBusinessweek, September 27, 2014
Posted: October 8th, 2014
http://www.businessweek.com/news/2014-09-26/new-york-fed-den...

U.S. Senator Elizabeth Warren called for congressional hearings into allegations that the Federal Reserve Bank of New York has been too deferential to the firms it regulates. A radio program about the regional Fed bank raised disturbing issues. Its our job to make sure our financial regulators are doing their jobs, Warren, a Massachusetts Democrat and member of the Senate Banking Committee, said in a statement yesterday. The program This American Life released the transcript of a broadcast that includes excerpts of conversations it said were secretly recorded by Carmen Segarra, a former New York Fed bank examiner who was fired in 2012, with some of her colleagues and her supervisor. In the transcript, Segarra described how she felt that her Fed colleagues were afraid of Goldman Sachs Group Inc. and handled it with kid gloves. Senator Sherrod Brown, an Ohio Democrat whos also on the banking committee, backed Warrens call for a probe. Segarra sued the New York Fed last October, alleging she was fired in May 2012 after refusing to change her findings on the conflict-of-interest policy. In 2009, New York Fed President William C. Dudley commissioned a probe into his own institutions practices by David Beim, a finance professor at Columbia Business School. In a report submitted that year and released by the Financial Crisis Inquiry Commission in 2011, Beim wrote that a number of people he interviewed at the reserve bank believe that supervisors paid excessive deference to banks and as a result they were less aggressive in finding issues or in following up on them in a forceful way.

Note: Listen to these revealing recordings and more. For more on this, see concise summaries of deeply revealing financial corruption news articles from reliable major media sources.


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