Federal Reserve Bank of New York is currently involved in an investigation that was called by US Senator Elizabeth Warren. Warren called for congressional hearings to further discuss the allegations that the Federal Reserve Bank of New York has been far too differential to the firms that it regulates.
It was a local radio program that raised "disturbing issues" that involved the regional Fed bank. According to Warren, "It's our job to make sure our financial regulators are doing their jobs." Warren is actually a member of the Senate Banking Committee and is a Massachusetts Democrat.
"This American Life," the radio program that released the transcript of a broadcast that includes excerpts from certain conversations, stated that the conversations were actually recorded by Carmen Segarra in secret. Segarra is a former New York Fed bank examiner who was fired from the office back in 2012.
According to the transcript, Segarra described how she felt that her Fed colleagues were terrified of Goldman Sachs Group, Inc. She said, "What I was sort of seeing and experiencing was this level of deference to the banks, this level of fear."
When the news of this transcript broke out, the New York Fed immediately said that it "categorically rejects" the allegations that Segarra have made.
As posted on their official website, "The New York Fed works diligently to execute its supervisory authority in a manner that is most effective in promoting the safety and soundness of the financial institutions it is charged with supervising."
Fortunately for Warren, she has another Senator who is backing her up. Senator Sherrod Brown, an Ohio Democrat, is also on the banking committee and he also wants the probe of the Federal Reserve Bank of New York to be pushed through. He said in his statement, "These allegations deserve a full and thorough investigation, and American taxpayers deserve regulators who will fight each day on their behalf."
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