Your Tax Dollars At Work

  • 3 November 2014
  • jwoodie
New York Federal Reserve - Your Tax Dollars At Work

liberty">Liberty advocates have long alleged that the Federal Reserve is one of the biggest risks facing our financial system. Now, thanks to a former Fed employee, Carmen Segarra, who secretly taped her meetings with her superiors and with bankers from Goldman Sachs, we have hard evidence of just how big a problem the Federal Reserve is. Here is one example:

"In a tense, 40-minute meeting recorded the week before she was fired, Segarra's boss repeatedly tries to persuade her to change her conclusion that Goldman was missing a policy to handle conflicts of interest. Segarra offered to review her evidence with higher-ups and told her boss she would accept being overruled once her findings were submitted. It wasn't enough.

"'Why do you have to say there's no policy?' her boss said near the end of the grueling session.

"'Professionally,' Segarra responded, 'I cannot agree.'

"The New York Fed disputes Segarra's claim that she was fired in retaliation."

Segarra is suing the Federal Reserve over her firing. Fed officials were alarmed to discover Segarra had tape recordings of her meetings and, despite the recorded evidence of how they pushed her to go easy on Goldman Sachs, they insist they did nothing wrong.

Taxpayers have been repeatedly assured that Wall Street bankers have changed their ways since the 2008 bailout. Segarra's tapes indicate they haven't changed at all, and have done so with the Federal Reserve's blessing.