Goldman Sachs Group Inc (NYSE:GS)‘s continuing high handedness when it comes to complying with financial regulations is, as heard on 47.5 hours of recordings by Carmen Segarra, a product of pampering from NY Fed. Jake Bernstein, the ProPublica reporter who recently revealed the contents of these recordings and has consequently put a shameful face on NY Fed , talked about his findings on CNBC.
Bernstein highlighted how NY Fed gave Goldman Sachs Group Inc (NYSE:GS) preferential treatment and instead of going hard on the investment bank in connection with Fed’s supervision program, merely nudged Goldman with kick gloves.
“[…] What it showed us was that NY Fed sort of treated Goldman Sachs Group Inc (NYSE:GS) with kick gloves, that they were very reluctant to press the bank for information, to push the bank too hard on this stuff and then the examiner, Carmen Segarra, alleges that she found real problems with Goldman Sachs Group Inc (NYSE:GS)’s compliance program particularly with conflicts of interest and then her superiors, and you can hear it on the recordings, tried to pressure her to change them […],” said Bernstein.
After Carmen Segarra, who was deployed by NY Fed’s David Beim to investigate Goldman Sachs Group Inc (NYSE:GS), found problems with the investment bank’s compliance program, her boss asked her to change her findings. Her refusal to break the law and put the whole financial system in jeopardy once again, led to Segarra being fired just 7 months after she was hired to carry out the investigation.
Bernstein said that he was surprised by the continuing nature of corruption in both financial regulatory authorities and financial institutions like Goldman Sachs Group Inc (NYSE:GS), especially after the 2008 financial crises which caused havoc in the markets. CNBC’s Steve Liesman, who was also present at the interview suggested that Fed has to come clean about its operations and be publicly audited on this issue.
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