Posted Oct 10, 2013 by Martin Armstrong
Carmen Segarra, a former senior bank examiner at the Federal Reserve Bank of New York has filed a wrongful termination lawsuit against the Fed alleging she was fired after refusing to alter a critical examination of Goldman Sachs. She states that during a 7 month examination of Goldman’s legal and compliance divisions, she discovered that the bank did not have policies to prevent conflicts of interest as required by regulation. This has been an alleged ongoing problem with Goldman from other aspects, This should have caused a downgrade of Goldman’s regulatory rating, which would have impacted perhaps its ability to do business. Her suit named names and states that the downgrade was voted on internally..The ability of any regulator to ever audit a NY institution is highly debatable.