An Inside Listen at How the Fed “Regulates” Big Banks

This American Life and ProPublica present a special episode which documents the experiences (and secret recordings!) of Carmen Segarra, a Fed regulator assigned to Goldman Sachs. Spoiler alert: The Fed sometimes does a laughably terrible job regulating big banks.

http://www.thisamericanlife.org/radio-archives/episode/536/the-secret-recordings-of-carmen-segarra.

http://www.propublica.org/article/carmen-segarras-secret-recordings-from-inside-new-york-fed

Publication of the recordings has caused Senators Elizabeth Warren (D-MA) and Sherrod Brown (D-OH) to call for investigations into the relationships between banks and regulators. Senator Warren had this to say: “When regulators care more about protecting big banks from accountability than they do about protecting the American people from risky and illegal behavior on Wall Street, it threatens our whole economy. We learned this the hard way in 2008. 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.”

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