Reports: Regulators deferred to Goldman Sachs

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Reports: Regulators deferred to Goldman Sachs

Postby Doc » Sun Sep 28, 2014 12:03 am

Let no one say Obama is not for big banks. If they break the law there are no penalties. Only penalties for the people that accuse them of wrong doing.

http://www.usatoday.com/story/money/bus ... /16338577/

Reports: Regulators deferred to Goldman Sachs

Elizabeth Weise, USATODAY 6:18 p.m. EDT September 27, 2014

ML Goldman Sachs 0928

(Photo: Mark Lennihan, AP)

Secret tapes made by a banking investigator examining Goldman Sachs show a culture of deference and risk aversion in which regulators were afraid to anger the very financial institutions they were supposed to be overseeing.

The 46 hours of recordings of meetings and conversations come from Carmen Segarra, a Harvard-trained lawyer who was hired in 2011 by the New York Federal Reserve as part of a team overhauling how the banking system was regulated after the 2008 financial crisis.

Segarra found a culture in which regulators were cozy with the banks they worked with and where managers were loath to say or do anything that might upset them. Goldman Sachs and the New York Fed have denied Segarra's allegations.

The tapes were released Friday as part of a joint report by National Public Radio's "This American Life" show and the non-profit investigative journalism organization proPublica.

In one example, the New York Fed team was concerned about a deal Goldman Sachs was doing with a Spanish bank called Banco Santander. Her boss, Michael Silva, termed it "legal but shady."

But before the team met with Goldman Sachs staff, the Fed's staff did not press on the deal. In a discussion afterward, one of the other examiners says on the tape that they didn't want to push the bank too hard. Instead, they could say something like "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."

Goldman Sachs has denied Segarra's allegations.

In a statement released Saturday, the Federal Reserve Bank of New York said it "categorically rejects the allegations being made about the integrity of its supervision of financial institutions."

It went on to say "examiners are encouraged to speak up and escalate any concerns they may have regarding the New York Fed or the institutions that we supervise."

Segarra was fired after seven months on the job, because she wouldn't go along with the status quo--and because she wouldn't back down from her assertion that Goldman Sachs didn't have a policy for dealing with conflicts of interest.

She then sued, saying she was being retaliated against for her negative findings against Goldman Sachs. The case was thrown out of court last year when the judge said the facts didn't fit the statute Segarra had sued under.

U.S. Senators Elizabeth Warren and Sharrod Brown on Saturday called for congressional hearings into the allegations, according to Bloomberg.

Her hiring came about in part because of a report written by a David Beim, a former Wall Street banker himself, who was hired as an independent investigator by the New York Fed to look at whether the regulatory agency was neutral and objective.

His 2009 report found exactly the same failings the Segarra tapes show.
The classes and the races to weak to master the new conditions of life must give way {..} They must perish in the revolutionary holocaust --Karl Marx
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Re: Reports: Regulators deferred to Goldman Sachs

Postby Mr. Perfect » Sun Sep 28, 2014 3:35 am

Tammany Hall. You can take a Democrat out of it, but you can never take it out of a Democrat.
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Re: Reports: Regulators deferred to Goldman Sachs

Postby Doc » Wed Oct 01, 2014 3:32 am

Mr. Perfect wrote:Tammany Hall. You can take a Democrat out of it, but you can never take it out of a Democrat.



I agree Why do you suppose that is? Other than being a matter of "we have ours screw you" They make organized crime look like amateurs


.
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Re: Reports: Regulators deferred to Goldman Sachs

Postby Zack Morris » Sat Oct 04, 2014 4:51 am

Forget Tammany Hall, what about Tammany House on 1600 Pennsylvania Avenue NW? In 2006, a former Goldman Sachs CEO was appointed by the Republican machine figurehead-in-chief George W. Bush and presided over a direct transfer of public money to his former company. Makes regulatory wishy-washiness look tame by comparison.
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Re: Reports: Regulators deferred to Goldman Sachs

Postby Mr. Perfect » Sat Oct 04, 2014 7:23 am

The current Democrat view is that that is what stimulates economic growth.

http://en.wikipedia.org/wiki/Quantitative_easing

So are you complaining? I'm not following.
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Re: Reports: Regulators deferred to Goldman Sachs

Postby Zack Morris » Thu Oct 16, 2014 3:57 am

Mr. Perfect wrote:The current Democrat view is that that is what stimulates economic growth.

http://en.wikipedia.org/wiki/Quantitative_easing

So are you complaining? I'm not following.


QE and TARP are two different programs. Open market operations by central banks, as in QE, are nothing new and well within their mandate.
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Re: Reports: Regulators deferred to Goldman Sachs

Postby Doc » Sat Oct 18, 2014 11:12 pm

Zack Morris wrote:
Mr. Perfect wrote:The current Democrat view is that that is what stimulates economic growth.

http://en.wikipedia.org/wiki/Quantitative_easing

So are you complaining? I'm not following.


QE and TARP are two different programs. Open market operations by central banks, as in QE, are nothing new and well within their mandate.


QE requires federal treasury bonds to buy. Obama could en QE any time he wants to. QE is abut nothing other than bailing out banksters no matter what they clam they are doing it for.
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