A (Worrisome) View Inside the Federal Reserve

Adam Taggart
By Adam Taggart on Tue, Sep 30, 2014 - 8:49am

This past weekend, This American Life released a podcast featuring secret tape recordings made by Carmen Segarra, a former staff member of the Federal Reserve.

Segarra was placed on the team overseeing regulatory compliance at Goldman Sachs. The environment her recordings reveal is one of toothless regulatory capture, where the Fed feared doing anything that might upset Goldman, the bank it was supposed to be keeping in line.

The hour-long podcast is well worth a listen: 

http://www.thisamericanlife.org/radio-archives/episode/536/the-secret-re...

The full transcript can be read here.

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23 Comments

Oliveoilguy's picture
Oliveoilguy
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Good for Carmen

None of this surprises me about Goldman. Truly a viper. I hope more courageous people like her will pursue the truth. 

Thetallestmanonearth's picture
Thetallestmanonearth
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I hope she doesn't stand too

I hope she doesn't stand too close to open windows in tall buildings.  What she did takes gumption and it would be a shame to see that rewarded the way the banks typically reward dissidents.

Time2help's picture
Time2help
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Ditto

Ditto for nailguns.  I'd recommend getting rid of those, they are dangerous.

Bankers Slave's picture
Bankers Slave
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And there is not a lot you can

do about those heart attack attacks. Good on her though!

Thetallestmanonearth's picture
Thetallestmanonearth
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Hot tubs are also

Hot tubs are also ill-advised.

LesPhelps's picture
LesPhelps
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The Tapes Feature the Fed

What shocked me was the way the Fed deferred to Goldman.  Deferred is too mild a word, but I'm struggling for a better one.  The Fed auditors behaved like subordinates who reported to Goldman representatives.

I was only worried about Carmen's career in the banking industry.  What don't I know that makes people concerned about her physical safety? 

Time2help's picture
Time2help
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What you don't know
LesPhelps wrote:

I was only worried about Carmen's career in the banking industry.  What don't I know that makes people concerned about her physical safety? 

See the rabbit hole?  Go down it.  Further.

Bankers Slave's picture
Bankers Slave
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And take the

red pill before your descent! 

Time2help's picture
Time2help
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Prophetic?

Thetallestmanonearth's picture
Thetallestmanonearth
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Mysterious deaths

I was only worried about Carmen's career in the banking industry.  What don't I know that makes people concerned about her physical safety?

 

http://www.christianpost.com/news/alarming-spate-of-suicides-mysterious-deaths-among-bankers-prompt-speculation-115425/

sand_puppy's picture
sand_puppy
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Greatest Scene in Greatest Movie of Our Era

The Red Pill and the Blue Pill.  We each choose.

Time2help's picture
Time2help
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RE: Red Pill - Be Careful

First you take one, then another, then before you know it you are chugging the whole bottle of red pills.

Jim H's picture
Jim H
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Where are these emergency room Doc's getting these red pills?

http://www.zerohedge.com/news/2014-10-02/doctor-boards-atlanta-flight-ha...

 

"If they're not lying, they are grossly incompetent," said Dr. Gil Mobley, a microbiologist and emergency trauma physician from Springfield, Mo. as he checked in and cleared Atlanta airport security wearing a mask, goggles, gloves, boots and a hooded white jumpsuit emblazoned on the back with the words, "CDC is lying!" As The Atlanta Journal-Constitution reports, Mobley says the CDC is "sugar-coating" the risk of the virus spreading in the United States.

I want some of those pills Gil and Sandpuppy have access to!  Maybe a "sugar coated" red pill if you could. 

LesPhelps's picture
LesPhelps
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Greatest Scene in the Greatest Movie of our Era
sand_puppy wrote:

The Red Pill and the Blue Pill.  We each choose.

Yeah, but the rest of the trilogy was one of the greatest disappointments of our Era.

Trun87114's picture
Trun87114
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Mostly true...

The fantastic fight scenes in #2 saved it from it's rapidly devolving plot, IMO. But I totally agree about the third.

LesPhelps's picture
LesPhelps
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Thetallestmanonearth wrote:I
Thetallestmanonearth wrote:

I was only worried about Carmen's career in the banking industry.  What don't I know that makes people concerned about her physical safety?

 

http://www.christianpost.com/news/alarming-spate-of-suicides-mysterious-deaths-among-bankers-prompt-speculation-115425/

I've read about these deaths.

Mahaps I am dense, but I am simply not seeing any polonium here.  What appears to be happening to me is bankers, who know as much or more than we do about what and when, are deciding they don't want to hang around.

Looks like the Sisyphus dilemma to me.  They are not entirely alone.  Suicides are already up in the US and the meltdown is far from full blown yet.

Any other links?

Bankers Slave's picture
Bankers Slave
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The Matrix Decoded

Thetallestmanonearth's picture
Thetallestmanonearth
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Here you go Les...nothing is

Here you go Les...nothing is conclusive, but the more of these stories I read, the more I start to wonder.

 

http://www.zerohedge.com/news/2014-02-07/4th-financial-services-executive-found-dead-self-inflicted-nail-gun-wounds

LesPhelps's picture
LesPhelps
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Thanks

I guess I was expecting a rash of deaths of people creating obstacles for banks, like bank regulators, auditors, whistle blowers, judges or political leaders thwarting bank efforts.

Mike Dueker seems to be the only one who even remotely fits that category and there isn't even an obvious motive in his story.

pinecarr's picture
pinecarr
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Will tapes affect fate of "Audit the Fed" bill in the Senate?

From article at Silverdoctors.com, "Will Senators Rand Paul and Elizabeth Warren Unite to Finally “Audit the Fed”?",  @ http://www.silverdoctors.com/will-senators-rand-paul-and-elizabeth-warren-unite-to-finally-audit-the-fed/

The most incredible thing you realize from Carmen Segarra’s account of her brief stint at the Fed, is that when push came to shove and non-compliance issues were revealed, her bosses had no backbone whatsoever and in fact scrambled to protect the banks and coverup their malfeasance.
Incredibly, this was still business as usual just a couple of years after the banks destroyed the global economy, ripped apart the rule of law, and demanded and received trillions in taxpayer backstops and bailouts.
So were Carmen’s efforts all for naught? Thanks to her secretly recording over 46 hours worth of conversations, it’s possible that her whistleblowing may ultimately bear some real fruit.
In the near-term, the most interesting angle is whether or not it will affect the fate of the “Audit the Fed” bill in the U.S. Senate.
Elizabeth Warren has called for congressional hearings into allegations that the Federal Reserve Bank of New York has been too deferential to the firms it regulates in light of the Segarra revelations.

gillbilly's picture
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All I heard was fear

In the recordings, all I could hear was fear in everyone's voice. Whether it was Segarra, Silva, Kim, the Goldman Sachs execs, everyone...just fear. They didn't give me the impression that they were corrupt, but actually something almost worse than that...they all know the system is corrupt, flawed, and riddled with time bombs and they're all afraid of what will happen if they're the one to accidently or intentionally blow on the house of cards. The entire segment was pretty sad.  I suppose if I worked in a place like the Fed or G-S I would be terrified too. Let them have their money, it must be a miserable existence!

LesPhelps's picture
LesPhelps
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gillbilly wrote: In the
gillbilly wrote:

In the recordings, all I could hear was fear in everyone's voice. Whether it was Segarra, Silva, Kim, the Goldman Sachs execs, everyone...just fear. They didn't give me the impression that they were corrupt, but actually something almost worse than that...they all know the system is corrupt, flawed, and riddled with time bombs and they're all afraid of what will happen if they're the one to accidently or intentionally blow on the house of cards. The entire segment was pretty sad.  I suppose if I worked in a place like the Fed or G-S I would be terrified too. Let them have their money, it must be a miserable existence!

I like it!  Plus, if the Fed points out to John Q Public what GS is doing, GS could retaliate by making it clear what the Fed is doing.  Who is doing more damage, GS, or the Fed?  Hard call.  Actually, neither of them could be pulling off this shell game unless they were working together.

treebeard's picture
treebeard
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Fear and sadness

Good to hear from you again Gillbilly, great point, everything has its price.  I do not envy the kleptocrats. I have lived in areas that were poor and others that were very wealthy, but I have never seen so much misery as when I lived in the burb's within commuting distance of wall street.  Divorce, drug and alcohol problems, severe emotional issues, isolation, infighting, estranged children and broken families.  You could not pay me to live in a place like that again.  Everybody is pretending to be politically correct, but in general are clueless or could really care less.  It was one of the least authentic places one could possibly live. Oh, but those manicured lawns swarming with immigrants do look beautiful! 

As others, I am not surprised by the tapes,  I'm sure it's just the tip of the iceberg.  These are just low level technocrats trying to keep the mess going.  I think the metaphor should be up the rabbit hole, the farther up the food chain you go the stranger it gets.  Lets applaud those in the system who find a back bone, but not give it more of our personal energy than we have too.

There are a whole world of heroes who are working outside the banking system, outside consumer society to create a whole different kind of world.  Participation in the "main stream" continues to drop at all levels, who wants to sit around a table at rigged game, heck who wants to play the inane ridiculous "game" to begin with at all.  Here's to a different reality all together.

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