Secret Recordings Inside The Federal Reserve Prompt Elizabeth Warren To Call For Investigation

by Alan Pyke – Sens. Elizabeth Warren (D-MA) and Sherrod Brown (D-OH) want to investigate the Federal Reserve’s relationships with the banks it oversees after the release of taped conversations between managers and a former bank examiner at the Fed. The recordings were made surreptitiously by a former Fed employee named Carmen Segarra, who is trying to prove in court that she was fired in retaliation for her attempts to bring a cultural shift to the supervisory work of the powerful central bank. They include a reprimand from her boss that she is “arrogant,” that she should “have a sense of humility” about her work, and should be guided more by the consensus within her working group than by her own instincts as a 10-year veteran of regulatory compliance work in the banking industry. Segarra says she began making the tapes after her own colleagues tried on multiple occasions to...

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