Elizabeth Warren Wants A Full Investigation Of The Federal Reserve After ‘This American Life’ Recordings


Stemming from information obtained by Carmen Segarra, a former New York Fed bank examiner, Democratic Senator Elizabeth Warren has called for a full investigation of the Federal Reserve Bank, according to UPI.

Carmen Segarra investigated Goldman Sachs when she was a New York Fed bank examiner, and started to notice that the Federal Bank of New York was unwilling to support her allegation that the bank was missing policies regarding conflicts of interest. Segarra was ultimately fired from her job after expressing these allegations, and she secretly recorded hours of conversations between her and her bosses that show they were fighting her on the validity of her claims. She believes the Fed has been swayed by the money and power of Goldman Sachs, and wants to see the Fed do its job as a bank regulator.

The Fed, on the other hand, claims they did not fire Segarra because of her allegations but because of poor work performance.

Senator Warren released a statement citing her unhappiness with the Fed.

“Congress must hold oversight hearings on the disturbing issues raised by today’s whistleblower report when it returns in November, because it’s our job to make sure our financial regulators are doing their jobs.”

Carmen Segarra released 46 hours of secret recordings she’d made between 2011 and 2012 to the radio program This American Life.

According to the New York Post, one regulator met with a Goldman Sachs executive and is heard saying, “I don’t want to hit them on the head with a bat.”

In another meeting, Segarra is told by a supervisor that consumer laws don’t apply to their wealthiest clients.

On Friday, the Goldman Sachs Group tightened its own rules on investments its bankers can make in individual stocks and bonds, says Reuters. The decision also bars bankers from investing in activist or event-driven hedge funds. The rule is effective immediately.

A source familiar with both Goldman Sachs and the Segarra case said that the new rules at Goldman Sachs were drafted independently of the allegations generated by Segarra.

Carmen Segarra — who now works at another financial institution — told Propublica what she was trying to accomplish with the secret tapes.

“I was just documenting what Goldman was doing. If I was not able to push through something that obvious, the Federal Reserve Bank of New York certainly won’t be capable of supervising banks when even more serious issues arise.”

[Image via NBC]

Share this article: Elizabeth Warren Wants A Full Investigation Of The Federal Reserve After ‘This American Life’ Recordings
More from Inquisitr