NPR plays Secretly-Taped Sessions involving Bank Examiners at New York Federal Reserve

NPR plays Secretly-Taped Sessions involving Bank Examiners at New York Federal Reserve

Last week, secretly taped sessions of bank examiners at the New York Federal Reserve were played on National Public Radio (NPR). These tapes had depicted nervous and confused bank regulators, especially after Wall Street's flagrant disregard for law, leading to the financial crisis.

Federal Reserve Bank of New York is Wall Street banks' main regulator and has supervisors in Goldman Sachs, an American multinational investment banking firm, and other companies.

The secretly taped sessions had depicted a link between the New York Fed employees embedded in Goldman Sachs and regulatory capture, the form of political corruption.

Carmen Segarra, a member of Fed team who was fired after seven months on the job, had recorded the session. Now, Segarra has been suing the Fed, saying that she doesn't want to go along with timorous form of Federal Reserve Bank of New York supervision that had dismissed her.

In one of the taped sessions, the examining team has been found talking about tactics to probe a Goldman deal. One member of the team could be heard characterizing the deal as 'legal but shady'.

A male member, who is still unidentified, said they don't want to discourage Goldman for revealing these kinds of things in future. The man further said, "and therefore maybe you know some comment that says don't mistake our inquisitiveness, and our desire to understand more about the marketplace in general, as a criticism of you as a firm necessarily".

The session was recorded in 2012 and it has made things clear that why regulatory system of the country is not working properly.

Author Michael Lewis has named the secretly taped sessions as 'Ray Rice video' for country financial sector.

Popular Stories